Struggle For an Ideal Economic System

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Quaid-e-Azam's speech at the State Bank of Pakistan's inauguration ceremony.

“Mr. Governor, Directors of State Bank, Ladies and Gentlemen.

The opening of the State Bank of Pakistan symbolises the sovereignty of our State in the financial sphere and I am very glad to be here today to perform the opening ceremony. It was not considered feasible to start a Bank of our own simultaneously with the coming into being of Pakistan in August last year. A good deal of preparatory work must precede the inauguration of an institution responsible for such technical and delicate work as note issue and banking. To allow for this preparation, it was provided, under the Pakistan Monetary System and Reserve Bank Order, 1947, that the Reserve Bank of India should continue to be the currency and banking authority of Pakistan till the 30th September, 1948. Later on it was felt that it would be in the best interests of our State if the Reserve Bank of India were relieved of its functions in Pakistan, as early as possible. The State of transfer of these functions to a Pakistan agency was consequently advanced by three months in agreement with the Government of India and the Reserve Bank. It was at the same time decided to establish a Central Bank of Pakistan in preference to any other agency for managing our currency and banking. This decision left very little time for the small band of trained personnel in this field in Pakistan to complete the preliminaries and they have by their untiring effort and hard work completed their task by the due date which is very creditable to them, and I wish to record a note of our appreciation of their labours.

As you have observed, Mr. Governor in undivided India banking was kept a close preserve of non-Muslims and their migration from Western Pakistan has caused a good deal of dislocation in the economic life of our young State. In order that the wheels of commerce and industry should run smoothly, it is imperative that the vacuum caused by the exodus of non-Muslims should be filled without delay. I am glad to note that schemes for training Pakistan nationals in banking are in hand. I will watch their progress with interest and I am confident that the State Bank will receive the co-operation of all concerned including the banks and Universities in pushing them forward. Banking will provide a new and wide field in which the genius of our young men can find full play. I am sure that they will come forward in large numbers to take advantage of the training facilities which are proposed to be provided. While doing so, they will not only be benefiting themselves but also contributing to the well-being of our State.

I need hardly dilate on the important role that the State Bank will have to play in regulating the economic life of our country. The monetary policy of the bank will have a direct bearing on our trade and commerce, both inside Pakistan as well as with the outside world and it is only to be desired that your policy should encourage maximum production and a free flow of trade. The monetary policy pursued during the war years contributed, in no small measure, to our present day economic problems. The abnormal rise in the cost of living has hit the poorer sections of society including those with fixed incomes very hard indeed and is responsible to a great extent for the prevailing unrest in the country. The policy of the Pakistan Government is to stabilise prices at a level that would be fair to the producer, as well as the consumer. I hope your efforts will be directed in the same direction in order to tackle this crucial problem with success.

I shall watch with keenness the work of your Research Organization in evolving banking practices compatible with Islamic ideas of social and economic life. The economic system of the West has created almost insoluble problems for humanity and to many of us it appears that only a miracle can save it from disaster that is not facing the world. It has failed to do justice between man and man and to eradicate friction from the international field. On the contrary, it was largely responsible for the two world wars in the last half century. The Western world, in spite of its advantages, of mechanization and industrial efficiency is today in a worse mess than ever before in history. The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contended people. We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind.

May the Sate Bank of Pakistan prosper and fulfil the high ideals which have been set as its goal.

In the end I thank you, Mr. Governor, for the warm welcome given to me by you and your colleagues, and the distinguished guests who have graced this occasion as a mark of their good wishes and the honour your have done me in inviting me to perform this historic opening ceremony of the State Bank which I feel will develop into one of our greatest national institutions and play its part fully throughout the world.”

Quaid e Azam Muhammad Ali Jinnah, 1st July, 1948

 

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Marxism

Marxism is a particular political philosophy, economic and sociological worldview based upon a materialist interpretation of history, a Marxist analysis of capitalism, a theory of social change, and an atheist view of human liberation derived from the work of Karl Marx and Friedrich Engels. The three primary aspects of Marxism are:

1. The dialectical and materialist concept of history — Humankind's history is fundamentally that of the struggle between social classes. The productive capacity of society is the foundation of society, and as this capacity increases over time the social relations of production, class relations, evolve through this struggle of the classes and pass through definite stages (primitive communism, slavery, feudalism, capitalism). The legal, political, ideological and other aspects (e.g. art) of society are derived from these production relations as is the consciousness of the individuals of which the society is composed.

2. The critique of capitalism — Marx argues that in capitalist society, an economic minority (the bourgeoisie) dominate and exploit the working class (proletariat) majority. Marx argues that capitalism is exploitative, specifically the way in which unpaid labor (surplus value) is extracted from the working class (the labor theory of value), extending and critiquing the work of earlier political economists on value. He argued that while the production process is socialized, ownership remains in the hands of the bourgeoisie. This forms the fundamental contradiction of capitalist society. Without the elimination of the fetter of the private ownership of the means of production, human society is unable to achieve further development.

3. Advocacy of proletarian revolution — In order to overcome the fetters of private property the working class must seize political power internationally through a social revolution and expropriate the capitalist classes around the world and place the productive capacities of society into collective ownership. Upon this, material foundation classes would be abolished and the material basis for all forms of inequality between humankind would dissolve.

Contemporarily, Karl Marx’s innovative analytical methods — materialist dialectics, the labour theory of value, et cetera — are applied in archaeology, anthropology,[1] media studies,[2] political science, theater, history, sociological theory, cultural studies, education, economics, geography, literary criticism, aesthetics, critical psychology, and philosophy.

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Marxism - Wikipedia, the free encyclopedia

 

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Maoism

Maoism, variably and officially known as Mao Zedong Thought (simplified Chinese: 毛泽东思想; traditional Chinese: 毛澤東思想; pinyin: Máo Zédōng Sīxiǎng), is a variant of Marxism derived from the teachings of the late Chinese leader Mao Zedong (Wade-Giles Romanization: "Mao Tse-tung"), widely applied as the political and military guiding ideology in the Communist Party of China (CPC) from Mao's ascendancy to its leadership until the inception of Deng Xiaoping Theory and Chinese economic reforms in 1978. It is also applied internationally in contemporary times. Maoist parties and groups exist throughout the world, with notable groups in Peru, India, and Nepal. Notably, in Nepal they won the elections in 2008.[1]

The basic tenets of Maoism include revolutionary struggle of the vast majority of people against the exploiting classes and their state structures, termed a People's War. Usually involving peasants, its military strategies have involved guerrilla war tactics focused on surrounding the cities from the countryside, with a heavy emphasis on political transformation through the mass involvement of the lower classes of society.

Maoism departs from conventional European-inspired Marxism in that its focus is on the agrarian countryside, rather than the industrial urban forces. This is known as Agrarian socialism. Notably, Maoist parties in Peru, Nepal and Philippines have adopted equal stresses on urban and rural areas, depending on the country's focus of economic activity. Maoism broke with the state capitalist framework of the Soviet Union under Nikita Khrushchev and dismisses it as modern revisionism, a traditional pejorative term among communists referring to those who fight for capitalism in the name of socialism.

In its post-revolutionary period, Mao Zedong Thought is defined in the CPC's Constitution as "Marxism-Leninism applied in a Chinese context", synthesized by Mao Zedong and China's "first-generation leaders". It asserts that class struggle continues even if the proletariat has already overthrown the bourgeoisie, and there are capitalist restorationist elements within the Communist Party itself. Maoism provided the CPC's first comprehensive theoretical guideline with regards to how to continue socialist revolution, the creation of a socialist society, socialist military construction, and highlights various contradictions in society to be addressed by what is termed "socialist construction". While it continues to be lauded to be the major force that defeated "imperialism and feudalism" and created a "New China" by the Communist Party of China, the ideology survives only in name on the Communist Party's Constitution; Deng Xiaoping abolished most Maoist practices in 1978, advancing a guiding ideology called "Socialism with Chinese characteristics.

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Maoism - Wikipedia, the free encyclopedia

 

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David Harvey is a Distinguished Professor at the City University of New York (CUNY), Director of The Center for Place, Culture and Politics, and author of numerous books. He has been teaching Karl Marx's Capital for nearly 40 years.

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His Blog

Reading Marx’s Capital with David Harvey

 

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David Harvey- The Crises of Capitalism

 

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Are we seeing the end of capitalism?

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President Obama is trying, against stiff opposition, to reign in the worst excesses of free market capitalism with reforms of Wall St.

But Professor David Harvey, Marxist author of 'The Enigma of Capital' says Obama is wasting his time. He tells Sarah Montague that capitalism is amoral, lawless, and it should be overthrown instead.

BBC News - Hardtalk - Are we seeing the end of capitalism?

 

[xenia]

capitalism has its disasters no dount n i ll say even the westerners -the torch-bearers of capitalsm- dont practice it to the roots..all stupid slogans to make people believe them..
BTW you posted Marxism after Quaid-e-Azams speech, u mean its islamic??its not an islamic system either n infact very dangerous!!

 

[H2O3C4Nitrogen]

capitalism has its disasters no dount n i ll say even the westerners -the torch-bearers of capitalsm- dont practice it to the roots..all stupid slogans to make people believe them..
BTW you posted Marxism after Quaid-e-Azams speech, u mean its islamic??its not an islamic system either n infact very dangerous!!

I know, But you can blend the good in it with Islamic System of Economy to prosper on modern terms. To some extent they have commonality..!!!

 

[xenia]

I know, But you can blend the good in it with Islamic System of Economy to prosper on modern terms. To some extent they have commonality..!!!

marxism was more of a political philosophy, it has roots in Hegelian philosophy n it failed to achieve the projections of its proponents..
what good, for instance??..islamic system can be modernized on its own..researches show that islamic banking system is least vulnerable to external shocks, like in recent economic meltdown, due to min ripple effects...