Thursday, December 16, 2010
Another example of Indian National Congress's so-called secular fundamentals: Islam out! Hindutva in!
Another example of Indian National Congress's so-called secular fundamentals. Islam out! Hindutva in! While the world is increasingly moving towards integrating Islamic Non-interest Banking institutions into the prevailing interest bearing Banking order, India's political groups highly infiltrated by extremist Hindutva elements, are doggedly refusing to even consider any proposal that bears 'Islam' or 'Islamic' in its nomenclature.
That prejudice is not borne of post 9/11 American Jewish Neo-con world-wide propaganda against all thinks Islamic. It has been the sole motivation behind partition of India and the subsequent tragic history of wars between the divided neighboring states.
India has cleverly fooled the world with its secular credentials, while the entire rank and file of its governing infrastructure as well as army, internal security and intelligence agencies were meticulously cleaned of Muslim presence even while the government, the opposition and media kept harping about India's secular creed as legislated in the Indian constitution.
It is common knowledge that Muslims in belief, in not in practice due to adverse systemic incompatibility, consider paying or receiving of interest as strictly prohibited by Quran. In the aftermath of oil boom of 1970's, Arabian Gulf countries were free and capable of experimenting with the Islamic norms of banking and trading. The two go together. Forty years down the line, the world is witness to the phenomenal growth of Islamic Banking and its non-interest products creating a very substantial and prosperous niche in the international financial markets.
India has remained closed economy, as the Brahmin Nehru family was most insecure in their stranglehold on the country and had kept India, not unlike the primitive rule of any other feudal fiefdom, a close country to safeguard their own and to an extant India's own security.
After the conspiratorial assassination of Rajiv Gandhi, US maneuvered PV Narasimha Rao and Manmohan Singh into top posts and forced liberalization and globalization agenda to bring India in to the fold of 'Free World'.
The two decades of opening of India, after 4 decades of closed economy, were what the doctor would have ordered. Indian economy and with it, India's international stature and rights and responsibilities too are on the rise.
One of the main handicaps that Indian governance suffers from is the preponderance of Hindutva exclusionary thinking in politics, bureaucracy, media and even private businesses and industries and the resultant exclusion of 150 million Indian Muslims from all sectors of national mainstream.
After the debacle of demolition of Babri Masjid, when Muslims renounced Indian National Congress in hordes, the fortunes of the ‘secular’ political party have become most insecure. It has now realized that it cannot court Muslim voters, without improving their economic lot. All poverty alleviation schemes, including micro-finance, have been dogged by corruption and exploitation of the poor. Indian Muslims have been trying hard with the Congress to persuade it open up the economy for Islamic Banking and Finance so that Muslims would be able to participate in both the overall economic progress of the country as well as ethical banking being provided to both Muslims and non-Muslims alike.
On his recent visit to Malaysia, the banker Prime Minister Manmohan Singh has personally witnessed how Islamic Banking has taken deep route in Malaysia's mixed society. However, Congress is mortally afraid of Hindutva elements for their unpatriotic propaganda about appeasing Muslims, as if Muslims are not the full citizen of their country.
The only redeeming factor that is lurking behind the Congress planning for the coming elections is to secure its position with Muslim voters on constitutional secularism basis. Sonia Gandhi and Manmohan Singh should not be cowed down by the most vocal and incendiary anti-Muslim propaganda by Hindutva Parivar and should move decisively to reclaim its lost Muslim vote bank. Judiciary too should uphold constitutional secularism and keep proactive vigilance against its erosion by relentless pressure from Hindutva elements.
One of the most revolutionary and visionary step that it can take, is to open up the economy for Islamic Non-Banking and should not be apologetic in siding with Muslim and Islam. Islamic Banking in India without Islamic nomenclature will not mesh with international Islamic financial system and will be a non-starter. Muslim should not compromise at this stage and dilute their demands or they will never to fulfill their own religious obligations and will have to go on struggling against the government and political establishments for all time to come. India's constitution guarantees them freedom of their religion and their demand for opening up the economy for Islamic Non-interest Banking should be strictly on their religious terms.
Ghulam Muhammed, Mumbai
http://ghulammuhammed.Ghulam Muhammed, Mumbai
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http://hindu.com/2010/12/14/
Interest-free banking urged
Special Correspondent
| Indian Centre for Islamic Finance delegation makes presentation at Yojana Bhavan |
JAIPUR: The Indian Centre for Islamic Finance (ICIF) has made out a strong case before Prime Minister's Economic Advisory Council member V. S. Vyas for introducing interest-free banking in the country at the earliest to ensure “inclusive growth with innovation” in accordance with the recommendations of the Planning Commission's Raghuram Rajan Committee.
An ICIF delegation from New Delhi, led by its general secretary H. Abdur Raqeeb, met Prof. Vyas at Yojana Bhavan here over the weekend to impress upon him the need for creating a framework to provide benefits of banking products and services to the marginalised sections of society, when “serious questions” were being raised about the utility of the micro-finance model.
Prof. Vyas, who is also deputy chairperson of the Rajasthan Planning Board, had observed at a dialogue on “Ethical issues in planning and management” here recently that Islamic economic principles for equitable distribution of wealth to the poor and the needy could provide answers to some of the challenges of modern economy.
Spurred by Prof. Vyas' remarks that the Islamic financial system could be further explored, the ICIF delegation made a detailed presentation before him while suggesting introduction of a pilot project with the public, private and foreign banks operating in India to open an “interest-free Islamic banking window” within the existing Indian banking regulations in Mumbai for one year before deciding the future course of action.
Mr. Abdur Raqeeb pointed out that certain faiths, including Islam, prohibit use of interest-based financial instruments and perceive them as promoting usury and exploitation. Since a large number of people belonging to these communities are in the economically disadvantaged strata of society, they are unable to access banking products and benefit from the country's economic growth.
Financial reforms
A high-level committee on financial sector reforms under Dr. Raghuram Rajan appointed by the Planning Commission in 2008 had stated that the delivery of interest-free finance on a larger scale, including through banking system, would be “in consonance with the objectives of inclusion and growth through innovation”. Prior to this, the Reserve Bank of India constituted a working group in 2006 to examine the instruments used in Islamic banking. Mr. Abdur Raqeeb told The Hindu here that he had requested Prof. Vyas to prevail upon Prime Minister Manmohan Singh, Union Finance Ministry and RBI to accept the high-level committee's recommendations in the wake of setbacks in the micro-finance institutions as well as the RBI's recent efforts for funding new rural branches through a pilot project in the north-east region receiving a “serious jolt”.
Significantly, the Prime Minister had recently asked the RBI to look into the Malaysian model of Islamic banking during his visit to Kuala Lumpur. Dr. Singh had observed that he would recommend to the RBI to look at “what is happening in Malaysia in this regard” while referring to the demands for experimenting with interest-free banking.
The ICIF delegation presented to Prof. Vyas some documents on the “financial tsunami of 2008” and the Islamic perspective of why it happened as well as the remedies. Mr. Abdur Raqeeb said the Islamic finance instruments had the potential to provide satisfactory services to the daily wage earners, farmers and below poverty line families.
“Islamic finance can cater to the needs of the growing population in the cities and come up with innovative products in the sectors such as insurance, mutual fund, capital market, trading loans, real estate and small infrastructure development projects,” said the ICIF general secretary, adding that huge investment flows from Muslim countries in Middle East and East Asia were waiting for the Islamic banking doors to be opened in India.
While emphasising that financial exclusion of large segments of population was adversely affecting socio-economic and educational uplift of the masses, Mr. Abdur Raqeeb called upon Prof. Vyas to join the efforts for providing a level playing field to interest-free banking along with the conventional banking model.
The ICIF also requested Prof. Vyasto look into the Maharashtra Government's recent pact with Bahrain-based Gulf Finance House, which will be investing 10 billion U.S. dollars over the next seven years for setting up an integrated economic development zone near Mumbai. A similar venture in Rajasthan would immensely benefit the people of the State.
Islamic bonds
A reference to the Kerala Government's initiative for establishing an Islamic finance model, which has since been challenged by Janata Party leader Subramaniam Swamy in the High Court, was also made at the meeting.
The Kerala Government is reportedly looking at Islamic bonds as another form of venture capital to build airports, introduce high-speed trains and develop expressways in future.
