An Islamic economic model, like the conventional economic models, is really the study of man and his behavior in the acquiring and using of resources for the satisfaction of the necessities, needs and other requirements of life. The Islamic economic model differs from the western one by placing emphasis on human and social considerations when making economic decisions. It does not merely seek profit, regardless of the cost. The criterion by which investment decisions are made should be the product of a mix of moral values, social aspirations and concerns, and a desire to fulfill other needs, feelings and emotions.
An Islamic economic model is an attractive alternative to globalised free trade, as it dictates that all economic activity has to have an ethical and moral dimension. It proclaims that life and property are a trust from God and absolute ownership resides with him and not man. Therefore, man does not have the right to destroy his life and property at will, or take advantage of others for his gain. Moral values and economic benefit to mankind as a whole would govern production and consumption. Nevertheless, freedom of enterprise is allowed, providing it is both moral and socially beneficial. The Islamic economic model disapproves of the western disregard of the global ecological balance, as it is offensive to the Islamic value system. It sees man as holding all of the earth's resources in trust for future generations of mankind. God, who ultimately owns all things, has placed this trust with man; to destroy these resources is therefore an offense to God. Although the profit motive is recognised as a legitimate driving force of economic endeavour, the Islamic economy condemns excessive profit and the charging of interest. An Islamic economy would not do what capitalism does, namely, legitmise greed and the pursuit of material gain.
Perhaps, the Islamic economic model can become a viable alternative to global laissez-faire capitalism. Its emphasis on a just distribution of resources, while recognising the principle of wealth creation, is ironically exactly what every anti- globalisation protester and environmentalist is calling for when they demonstrate against the International Monetary Fund, the World Trade Organisation and the World Bank. They too recognise the need for profitable economic activity. Their grievance is that the benefits of a globalised free market economy work to the benefit of those already rich, at the expense of the world's poor. They wish to see an economic system that is balanced and fair to all.
There is a huge bias towards the rich under capitalism; their huge reserves of wealth enable them to speculate on currencies, trade in shares and lend money through stock exchanges and money markets whose rules are written by the rich. Global currency speculation is particularly destructive and in many instances it destroys the targeted countries economy, leaving poverty in its wake. This bias also allows powerful global corporations and financial institutions to have free reign on the wealth of all developing countries as they open their economies to global free trade. Islamic economics could be the answer to the current Darwinian "dog eat do" trading system, that allows financial markets to control capital, regardless of the harm that it may do. A trading system based on the Qur'an and the Sunnah would provide an ethical and humane economic model in which speculation and interest would disappear, and money, once again, would become means of exchange and not a commodity for speculation.
In the search for a workable alternative to globalisation it needs to be recognised that it is now absolutely impossible to evolve any alternative based on nation states, or particular secular or religious beliefs. No state or religion by itself can find a viable answer to the challenge of globalisation. Information technology and modern transportation systems have enabled trade to cross borders to such an extent that today no one country or economy can stand alone and prosper.
However, for the global trading system to adapt an Islamic economic approach to globalisation it must not become dogmatic; it has to recognise that seeking change, improving our circumstances and seeking to advance ourselves is a fundamental human urge. Therefore, an Islamic economic model that denies this dynamic will become moribund. While it is right that there should be an underlying ethical and moral base to the Islamic economic model, any notion that economic behavior has the sole aim of conserving a certain social structure will fail. For Islamic economic theory to be successful it must incorporate the notion of change in its development. We cannot ignore the human urge to be creative. Humanity's creative drive has allowed humans to advance and transform the way in which they conduct their lives. An Islamic economic model should now, as it did in the past, allow mankind to continue to develop and grow.
The spiritual and moral values of an Islamic economic theory can offer a viable alternative to laissez -faire capitalism. It can create and develop markets, allow for entrepreneurship and develop banking and trade, but be based on a system that emphasises a fair distribution of the benefits of the Earth's riches by valuing human life above the blind pursuit of profit. Muslims and non-Muslims alike should argue for an ethical market; a market that is regulated not by the interests of any particular group, but on the basis of values. If this could happen, then we could shape a global economic system that comes closer to the values that are fundamental to all our religions.
