The veteran economist and member Kerala State Planning Board Dr K Rama Chandran said the absence of ethical values in economic dealings and problems inherent in market economy is the basic reason behind the current economic crisis. The eradication of interest from economic system and injecting ethics into economics are the only ways to solve the crisis, he said while delivering the keynote address at a seminar organised recently by Jamaat-e-Islami Hind, Kerala on “Global Economic Crisis and Islamic Banking”.
The economic theories we studied and taught for a long period has not been giving any solution to the present problems. The invisible hands – demand and supply – are the force that distributes the produced goods and services in the economy. It will lead to wider inequalities because only those who have purchasing power are getting goods and services. Fall in demand is the reason for recession. When economy adopts the policies to increase demand, it will lead to some other problems. So we should search for an alternative system. Of course the value based Islamic Financial system is a considerable one; the economists should study this without prejudices, he added.
Dr. Ausaf Ahmed (Delhi), in his inaugural address, said Islamic banking is not a solution to all problems. But its operation will contribute stability and efficiency to the financial system. Unlimited greed, over credit and absence of morality are the basic problems. Islamic Banking will solve these problems and contribute economic discipline.
T. Arif Ali, Ameer Jamaat-e-Islami Hind, Kerala Circle presided over the function. H. Abdul Raqeeb, General Secretary, Indian Centre for Islamic Finance and T.K Farook, Director of Islamic Publishing House also addressed the seminar.
Early in the morning, a seminar on Islamic finance was inaugurated by Dr. Ausaf Ahmed, and Dr. Shariq Nisar, Bangalore presented a paper on “Islamic Finance in India, does it make sense?” Dr. P. Ibrahim, Pondichery University presided over the function. H. Abdul Raqeeb, Prof. P.P Aabdul Rasheed and Dr. Saeed Ramadan also addressed the seminar.