মাসিক আত-তাহরীক Ways to get rid of
What are the ways to get rid of from the evil effects of interest and its destructive consequences? It has already been mentioned that during the reign of Islamic Khilafat, no element of interest was found in the Muslim world for long nine hundred years. But when the Muslim rule began to weaken, when the imperialist powers of the Western capitalist countries began to capture the Muslim countries one after another, the backbone of their economy began to break. Trade and commerce, wealth and property—all went to the hands of the imperialists. This was the time when interest started to spread in an institutionalized form. When, after a long time, these countries regained political freedom interest had already got inextricably intertwined in the economic activities. No attempt was made by the governmets to eradicate interest. No meaningful effective measures were taken to uproot interest from the society by the Ulama and social activists as well. In order to remove interest from the society, sporadic initiatives to set up financial institutions based on Islamic principles were taken towards the end of the last century. But in Muslim countries like Bangladesh interest is a deep seated phenomenon actively present in the socio-economic as well as in the daily lives of the people. With a view to eradicate interest from the society by phases, and from the economic activities forever, some realistic action programs are suggested below.
A. Social Programes
1. Creation of public awareness
In order to eliminate interest from the society there is no alternative to rouse public awareness. About 85% people of Bangladesh are Muslim. They do not hesitate to sacrifice their lives for the sake of Allah SWT and His Prophet (pbuh). But due to lack of appropriate knowledge of Islam many of them do not know that interest is strictly forbidden in Islam. Some people say that the devine dictates were appropriate back in 1400 years ago, not for the present days. Na‘ujubillah.Their argument is that interest of the banks and interest charged by a person cannot be treated in the same way. Their point is that banking system was not invented in the age of the Prophet (pbuh). So banks remain beyond the fold of this restriction.
Another group of people says that Arabic Riba and English interest does not carry the same meaning. But as far as the dictionary and practical meanings are concerned, both Riba and interest express the same meaning. A detailed discussion about it can be found at the beginning of the book. In the holy Quran Allah SWT emphatically says وَأَحَلَّ اللهُ الْبَيْعَ وَحَرَّمَ الرِّبَا "Allah has made business Halal (permitted) and interest Haram (forbidden) (Al-Baqarah: 275)."
Majority of the general people are not really aware of this dictate of the holy Quran. This is why it is important to make them aware of this divine revelation to them with appropriate importance. In order to highlight the harmful aspects of interest, the fact that should be very clearly explained at first is that as income derived from interest is Haram anything associated with interest is also Haram and living earned by adopting Haram means is strictly forbidden in Islam. The Prophet (pbuh) says:لَعَنَ رَسُولُ اللهِ -صلى الله عليه وسلم- آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ "Among you the people who takes interest, and pays it and records the calculation of it and witnesses to it are all subjected to the curse of Allah" (Muslim H/1598; Mishkat H/2807).
According to the authentic Hadeeth, to stick to Halal earning is one of the basic preconditions for the acceptance of prayer (Muslim H/1015; Mishkat H/2760). Hence there is no possibility of acceptance of our prayer whatever may be by Allah SWT if our earning is not Halal. From this point of view all our prayers and worships will be fruitless if we fail to abandon interest and all other haram sources of income. The ultimate result is the deprivation of mercy of Allah and sure severe punishment in the world Hereafter. So in order to keep our Iman steadfast we should leave no stone unturned to earn in Halal ways and take appropriate steps in discarding all kinds of Haram means. Real success in the life of a Mu’min actually lies in the attainment of Halal and abandonment of Haram. To attain it a continuous and sincerest effort is of utmost importance.
The goal of abolition of interest can be attained through creating extensive public awareness. Generally governments hardly take initiatives to do anything beneficial or essential for the people unless people themselves actively press their demand for it. So steps for eradicating interest should be well designed, pragmatic and people oriented. The first essential move should be the creation of mass awareness. Since a large section of our people is yet uneducated, the task is somewhat difficult and troublesome, but not impossible because the people of our country are very religious minded. If they are properly motivated and made understood about the dictates of Islam and how to achieve it, elimination of interest from the society and economy would be a question of time but not unattainable. The following measures may be taken into consideration to achieve the goal.
Firstly, we can take the help of the khuthba of Salatul Jum‘a. People of the locality assemble in the mosques to attend Salatul Jum‘a as many as fifty two times a year. In the Khutba various Islamic matters are discussed. Along with those matters if the Imams discuss the harmful aspects of interest with examples and how much damage does it cause to the economy consciousness to avoid interest will gradually be created among the people.
Secondly, Imams and religious leaders deliver lectures in many occassions, especially in the Tafseerul Quran Mahfils. Thousands of people gather there. If in those congregations positive aspects of the Islamic economy along with the harmful aspects of the interest based economy are discussed, it will touch the mind of the people, awaken the spirit in them which may help in avoiding interest resulting in the implementation of the Islamic economy.
Thirdly, wall writing and postering is another effective way to make the general people conscious about the harmful aspeces of interest. Through this measure the dreadful effects of interest and importance of Halal earning can be highlighted beautifully and attractively. Colourful posters with big characters and beautiful designs usually attract the attention of the people. Similarly beautiful slogans and catchy words of wall writing will touch the heart of the people. In the developing countries, apart from the political, social and cultural organizations, the governments themselves take resort to this step to motivate the people and get the message well circulated and understood even in the far flung areas of the country.
Fourthly, staging of drama, discussion and talk show in radio and television are very powerful cultural tools. Although television influences people more, the effectiveness and acceptance of radio cannot be underestimated. It is still a popular media especially in the rural areas with rivers, cannels and vast agricultural lands and where there is no electricity. Different kinds of programmes highlighting the exploitation and harmful impact of interest can be telecast in radio and television. There are many non government radio and TV channels in Bangladesh. Many programs based on Islamic ideology are broadcast from these media regularly. Through these programs, Haram earning and its evil consequences can be presented entertainingly to the public. Comprehensive discussion on exploitative features of interest may take place. In talk shows if the experts on the subject deal with the matters, hundreds of people might get insight into it and would be benefited greatly. This might arouse self-realization. As a result, it may be hoped that many of the listeners and viewers would take active initiative to avoid interest.
Fifthly, publishing of sub-editorials and articles in the newspapers not only prove educative but they leave their marks on the minds of the careful readers. Interest is economically, socially and morally detrimental. Articles may be written highlighting these aspects and published in the newspapers. If this goes on a well chalked out plan and in a systemetic manner, it will certainly stir consciousness among the people. Similarly sub-editorials appealing to the government and the leaders of the country may also be published. It may be mentioned that the column titled Rajnoitic Rangomoncho (political stage drama) published in late 1960s in the Daily Ittefaq played a pivotal role in achieving the liberation of Bangladesh. Currently some daily newspapers imbued by Islamic principles are being published in the country. If these dailies come forward to carry on this task, it will be a great service to the cause.
2. Rousing the sense of answerability for the world Hereafter
The Muslims have two phases of life, life in this world and life in the world Hereafter or life after death. Life after death is eternal but life in this world is temporary. In the life after death we have either exciting rewards or painful punishments. If we lead our life according to the ways directed by Allah SWT we shall get ever-enjoyable life in the world hereafter. But if we do the otherwise, we shall have to face serious consequences in the life after death. Allah SWT Himself has said خَالِدِينَ فِيهَا وَبِئْسَ الْمَصِير "This punishment will continue and hell is the worst place" (At-Tagabun: 10). Haram earning for living and consuming Haram things are major reasons for which the children of Adam will have to undergo severe punishment in the world hereafter. The Prophet (pbuh.) said لاَ يَدْخُلُ الْجَنَّةَ جَسَدٌ غُذِّيَ بِالْحَرَامِ (The body that is fed by Haram food will not enter into the Paradise) (Shu‘abul Iman, Mishkat H/2787). Haram food does not mean only the foods made of Haram things, but foods procured with Haram earnings are also considered Haram.
Interest, bribery, theft, speculution, adultery, hoarding, forgery, malpractices in measurement, smuggling, gambling, black marketing, deception etc. all are Haram in Islam. It has already been said that Halal livelihood is one of the preconditions of the acceptance of our prayer. Therefore, it is needless to say that Haram earning will not be of any use in the world Hereafter, rather its consequences will be dreadful. That is why, like all other Haram earnings, interest must be abandoned. Not only earning by interest but calculation and recording of interest will have to be stopped. i.e., there will be no relationship with interest by any means. Otherwise we shall have to face an awesome consequence in the world hereafter. Thus rousing the sense of answerability in the Akhirah demands utmost importance.
The devotion to Islam of the mass people of this country is enviable. But it will not be an exaggeration to say that the majority of them do not know that true worshipping of Allah lies in the obedience to the fundamental principle of Amar bil ma'ruf and Nahee anil Munkar (Enjoining the good and forbidding the evil). There are innumerable people who have confined Islam to the formalities of Salat, Siam, Zakat and Hajj. They believe that just by doing the rituals a man would be treated as a Muslim and be saved in the Akhirah. They neither try to know the basic rulings of Islam about earning, expenditure, investment, etc nor are careful about those matters. It is, therefore, necessary to create consciousness among the people in this regard.
How many of us know about the carefulness of the four rightly guided caliphs and the companions of the Prophet (pbuh), tabeyeens and tabe-tabeyeens in respect of Halal earning and consuming Halal foods? Their deeds and examples were expected to be our models to follow. Although many people are afraid of the world Hereafter, they are either ignorant of the answerability in the Akhirah or are simply careless. Either putting an excuse of necessity of the modern times or being tricked by the provocation of the Satan, they are trying their utmost to attain fabulous wealth and luxuries. To them the distinction between the Halal and the Haram has melted away. Their misunderstanding has reached to such a state that they even go to perform Hajj with the ill earned money with the intention that Allah SWT will forgive their sins and misdeeds. Alas! the moral of the authentic Hadeeth is just the opposite.
3. Introduction of Islamic economy in the curriculum
The greatest misfortune of the majority people of Bangladesh i.e. the Muslims is that there is no positive corelation between their practised belief and faith and the education they receive in the schools and colleges. In the post liberation Bangladesh, except in the primary and secondary stage of general education, there is no scope at any stage of higher and specialized education to learn that Islam has a code of life, not to speak of a complete code of life. There should be an end to it. Courses relating to the faith and religion of the majority people should be included in the curriculum at both college and university levels. It demands redesigning the whole curriculum. The nation will continue to suffer and be exploited by the conventional economic system if the young men and women who will be at the helm of affairs of administration, judiciary, law and order, trade and commerce of the country are not educated of the evils and destructive effects of interest based economy. Hence it is imperative to adopt suitable measures to enlighten them about the constructive and welfare aspects of the Islamic economy.
Education of childhood plays a strong influence on one's thinking, conscience and activities throughout his whole life- sometimes consciously, sometimes subconsciously. That is why the syllabus of schools based on a particular ideology is prepared carefully after a lot of discussion and experiments. The knowledge which is fundamentally essential to uphold national ideology, welfare of the people and to attain a prosperous society is included in the curriculum of the government-run schools and colleges. The school curriculum of the developed countries of the world bears testimony to the fact. The changes in the school curriculum of our country over the last decades are noteworthy. The glorious history of the Liberation Movement, biography of the Bir Shresthos, tree plantation, bad effect of over population and very recently horrible consequences of the AIDS are included in the text books.
Nevertheless, it is a matter of great regret that the discussion of Islamic ideals of life, Islamic code of conduct and the teachings of the holy Quran and Hadeeths have no place in this curriculum. As a result, millions of Muslim children are deprived of the knowledge of Islam and the Islamic way of life. The secularist and the leftist intellectuals play a mischievous role in this regard. The handful intellectuals adopt a very cunning strategy to attain their goal. With a view to ensuring that there might not be any room to learn and be informed about Islamic way of life at the school and college level, very often they arrange seminars, symposiums and workshops under attractive banners such as "importance of secular education", "necessity of science oriented curriculum" and place the recommendations adopted there to the concerned authorities. Established newspapers associated with them also give strong support to their agenda. Consequently the government sets up education commision which are overwhelmly dominated by the secularists. They make a compromise formula to teach the rudiments of Islam upto junior level and leave no room for other basic teachings of Islam along with the concept of a complete code of life at any stage of higher education.
In this circumstance, Muslim scholars and educationists should launch an all out effort to compel the government to incorporate lessons related to the faith and belief of the majority people of the country in the school and college curriculum. It will be of great benefit to focus on subjects like the Islamic way of life, life and teachings of Prophet Muhammad (pbuh) and the rightly guided four Caliphs, importance of amar bil ma‘ruf & nahee anil munkar in the society, necessity of Halal income, social and economic importance of Zakat and inevitable harmful effects of interest.
4. Adoption of social resistance
If we want to get red of the clutches of the frightening octopus such as interest, we need a strong social resistance. By adopting effective social resistance people can be kept away from many unsocial activities and misdeeds. If people are inspired and aroused socially difficult tasks can easily be completed. The tree plantation programme is a case in point. About thirty years ago, some regions of the country showed symptoms of gradual desertifiction. To counteract the situation initiative was taken to create public opinion regarding tree plantation. In addition to different programs initiated in the mass media activities were also undertaken to motivate young people, especially students of schools, colleges, maktabs and madrasas to take part in the program. As a social recognition for this work, prizes of cash money and medals for the best individuals and institutions were awarded annually at the city, district, division and national level. Today the nation is reaping the benefit of the programme.
In the same way we have to take steps to emulate public opinion in order to eliminate interest from the society. Once strong anti-interest spirit prevailed in the society. But now interest has enveloped every economic activities. The usurers in the villages are known as Mahajan (money lenders). On account of affluence they earned due to money lending they have occupied important place among the social leaders. Similarly, their counterparts in towns and suburbs occupied important places in all the activities. It is no wonder that non-practicing Muslims, even the leftists have occupied the position of President and Secretary of the local mosque committees. Earning through interest is no more considered a matter of disgrace. If we do not try to resist it now, this dangerous evil and antisocial element will destroy the economy and the society as well wherefrom it might not be at all possible to stage a comeback. This is why strong social resistance is required. The stronger the resistance will be the weaker will be the base of interest. At a certain period it will collapse and perish. Few action programs to achieve the purpose are suggested below:
(i) Ceasesion of relationship with usurers
Relationship should be ceased gradually with the persons who are known as usurers in the society. At the initial stage village Mahajans and money lenders of the suburbs and towns may be targeted for this purpose. They must be made to understand that because of their involvement with interest people are avoiding their company or simply shun them. This might seem difficult, but if people come forward with strong will and determination it will not be impossible at all.
(ii) Electing no usurer as public representative
No usurer should be elected as representative to any public body. If they are nominated as candidates, extensive publicity must be launched so that people do not vote for them. People should be made to understand that because of the activities of those people exploitation, oppression and tyranny will continue to prevaile in the society.
(iii) Socially boycotting the usurers
We should not give our sons and daughters to marriage with those whose parents are involved in interest/usury. Besides this, avoiding the attendance to their funeral prayer may also be a good preventive measure in this respect. In Bangladesh 50-60 years ago people in the rural areas hesitated, even denied to accept lunch and dinners of the usurers. But deep attachment with capitalist countries and lack of proper Islamic knowledge have dramatically changed the scenario.
(iv) Generating mass movement
A strong mass movement may be generated to remove the rules and regulations where payment of interest in lieu of fine is made compulsory by the government. For example, if anybody fails to pay land revenue in time he is bound to pay the revenue along with the interest. Government can impose a system of fine in lieu of interest. Why must we pay interest while it is against our belief and faith? It is, therefore, necessary to form public opinion so that the government is compelled to withdraw interest system as soon as possible from such cases and may introduce appropriate Islamic measures.
The action plans discussed above are no doubt difficult to implement. Many people will resist the initiatives initially but that should not refrain us from launching the programes. No work is easier in the life of a Mu’min. Nevertheless necessary and appropriate initiatives may gradually be taken collectively by turn with firm Tawakkul on Allah.
5. Resistance to unnecessary social expenditure
As a social being we are to attend and arrange different social programs at times. Problems arise when these programs become the showdown of luxury and opulence. Morever, in our country, there are many rituals considered as religious but actually they are not. For instance, arrangement of a feast on or after 40 days of death of a near and dear one inviting the people of the locality and the adjoining villages to attend the same has become customary. This is a popular practice costing huge sum of money. Celebration of one's son's circumcision and arrangement of feast for the invited guests and compel them to bring gifts is another example to the point. What is more, there are many anti-Islamic events in our society like celebration of birthday, wedding anniversary, death anniversary etc. Customs and rituals added to Islamic wedding ceremony force the incumbents to spend a huge amount of money. Because of imitating the alien culture, many rituals specially Pan-Chini (system of seeing the bride), Gaye Halud (using liquid turmeric on the body of the bride) and the like along with the dreadful dowry system play a vital role in the once simple Islamic wedding ceremony. Now-a-days accepting dowry has taken the guise of gift to avoid current strong anti-dowry movement.
Very often many newly rich persons spend extravagantly to draw attention of the people to elevate them into a higher social strata. In most cases they have amassed the wealth from doubtful and haram sources. When any person of the lower or middle class strata is forced to arrange such festivities there arises a human problem. The social leaders order them to do this and that otherwise they will be boycotted in the locality. Unfortunately these people do not have the ability to bear the expenditure of those alien rituals or so called custom. Finding no other alternatives they have either to sell their properties or to take loans on interest. Generally the rate of interest of this kind of loan is a great deal higher than any ordinary loan. The reason is the creditors very well know that the incumbent has no other alternatives. Obviously such loans are unproductive and falls in unnecessary category, thus it is very difficult to repay the loan. In order to repay the loan the incumbent has to sell the remaining piece of his cultivable land and even the belongings of his home. Thus thousands of small and marginal farmers are reduced to landless peasants annually. As for service holders they meet this expenditure either by taking loans from friends and relatives or from the provident fund but many are forced to take resort to illegal means.
B. Economic Programes
6. Establishment of adequate Sharia‘h based financial institutions
To keep the economic activities in motion in modern time the need for banks, insurance and other financial institutions can hardly be over emphasized. But all conventional financial institutions are interest based, and therefore, can not be accepted by the Sharia‘h. To resolve the problem, more than three hundred Sharia‘h based banks, insurance and investment organizations have been established in the Muslim world in the last four decades. Many experts are of the opinion that it is not possible to make this institutions fully Sharia‘h based, because state economy is based on interest and capitalist one by the same token. So along with their Sharia‘h limitations Islamic banks and financial institutions face various legal obstacles in almost all Muslim countries.
Nevertheless Islamic banks and financial institutions are playing a commendable role in the countries they are operating in. Flow of deposit and investment performance of them not only equals to conventional banks but some times excells in. For example, in Bangladesh, eight Islamic banks are currently operating and Islami Bank Bangladesh Limited (IBBL) has so far received best award five times from the Global Finance for its extraordinary performance.
It may not be out of place to mention that during the Khilafat of the Umayyahs and the Abbasiads interest was not in practice in any form in the whole Muslim world while the Muslim bussinessmen conducted thier bussiness worldwide. Their caravan travelled through the famous silk route from Xinxian of China to Granada and Cordoba of Spain. Their ships traversed through the mighty oceans from Malakka to Zanjibar. They bought and sold goods worth millions of Dinars on every business trip which lasted for 3-4 months on average. It required huge capital also. How did they manage the need for such capital? How could they buy and sell commodities and complete business deals complying with the Shari‘ah regulations?
The ready and simple answer is they used to follow the Sharia‘h permitted various methods for this purpose. Prominent and important among these were Mudarabah, Musharaka, Bai-Salam, Bai-e Muajjal, Murabaha, Istisna‘, Jua‘lah, Ijara, Ijara bil-Bai etc. They never felt the need for borrowing or lending on interest. Islamic banks and financial institutions established in Muslim and non-Muslim countries throghout the world are following the same methods and principles to attract deposit and invest their funds in business and commerce. Their success stories are written in gold letters and critics are envious of their progress and success.
7. Implementation of Qard Hasan and Mudharaba policy
Qard Hasan (interest free loan) and Mudaraba policy can create employment opportunity for those people who lack in capital but efficient in entrepreneurship and expert in trade and commerce. This two methods also open up avenues for income for those who have idle money but are not capable physically to work or undertake any economic activity. Interactions of these two groups of people will create more jobs and increased flow of capital in the market. It is a matter of great regret that these two very important modes of Islamic financing are not available in this country while mosque based Qard Hasan and society based Mudaraba are operative in neighbouring India and Sri Lanka where the Muslims are minority. It is now imperative to implement these policies in this country. It requires motivating the rich people to give Qard Hasan. If the initiative could be mosque based then trusted and actually capable persons would recieve finance to work. This would alleviate poverty and help reduce the economic gap between the haves and have-nots.
There is no denying of the fact that it needs time to start Mudaraba policy in any country for it requires change in the conventional law and also to find out people of pristine character. Through Mudaraba efficient, honest and hardworking people can participate actively in the economic development of the country contributing both in employment and production. Moreover, necessary measures may be taken to change the attitude of the rich people. They need to be motivated to use their money in Islamic way. Consequently it might be easier to get loan from them without interest (Qard Hasan) in distressed situation. Special laws may be enacted by the government for the purpose. For example, for Qard Hasan amount of money income tax will not have to be paid and for Mudaraba, the owner of the capital will pay tax just above the stipulated amount of profit. It is expected that rich Muslims will respond to these moves.
8. Adoption of Zakat based programs
To eradicate interest from all walks of life and to help the poor and the needy there is no alternative to the adoption and implementation of Zakat based programes. Neither there is any other suitable alternative to it nor there is any scope to compromise with it. From the days when collection and maintenance of Zakat fund and its proper distribution by the governments of the Muslim countries were abandoned deprivation, disparity and poverty became widespread. This is the fundamental reason for which the needy and the poor are forced to take loans on interest. The needs could be well mitigated had there been proper distribution of zakat.
Over and above, if the governments of the Muslim countries could collect Zakat and Usher using financial and administrative channels the amount would be adequate enough to meet the demand of the hardcore poor. A tangible and sustainable social security network can be developed out of this fund. Poor men and women of the village and suburbs may be granted financial assistance from such fund in the form of capital which they would use for self-employment. It would be deemed as their own capital, never to be returned and no profit would be shared with any one, not to speak of paying interest on it in any form.
Money due to Zakat and usher can be utilized to meet both productive and unproductive needs. The basic needs of the poor and sudden victims of natural calamities can be fulfilled through this fund. If their needs are not fulfilled from any such generous source they will be forced to take loans on interest to survive. But if they were helped from the Zakat fund, be it for unproductive or productive purpose, they will not have to pay interest, not to speak of sharing the profit. No question of refunding the principal sum arises because it is a charity prescribed by Allah SWT. The concerned beneficiary may become self reliant gradually which can hardly be dreamt of in the case of so much publicized micro credit.
If any country wants to attain full employment she needs, in the words of Keynes, her ball of economic development rolling which depends on increased number of people engaged in working creating increased demand for goods and services. This demands a big push which is dependent on increased supply of capital and enthusiastic entrepreneurs. Entrepreneurship development helps begging hands turn into working tools. This target can be achieved through micro finance supplied by the Zakat and Usher fund. Human resource development is an essential component for national development. So if a simultaneous program for poverty alleviation and human resource development can be launched for the hardcore poor a lasting social peace and development can be attained. To transform the poor people into effective manpower it is necessary to provide them with education, training, health care service and housing in addition to food and clothes. Programes launched on interest based credit could never fulfill these requirements adequately. But if the Zakat fund is used through a well chalked out plan the program can very well help attain the desired goals.
The Bangladesh Bureau of Statistics (BBS) conducted its last survey in 2005 using Direct Calorie Intake (DCI) method to determine the number of hardcore people in the country. The survey revealed that 40.4% of the population (i.e. 56 million people) belonged to this category. (Bangladesh Economic Review, 2011, Ministry of Finance, Government of the People's Republic of Bangladesh , June 2011, p. 182).
The government has launched different programes of action designed in the Poverty Reduction Strategy Paper (PRSP) to bring the hardcore poor within the Social Safety Net Program (SSNP). Unfortunately, the fund earmarked for the program is much less than the adequate. If the government enacts laws to collect Zakat and Usher annually then that fund can be used on a permanent basis for this program. Neither any foreign aid and donation will be required for the purpose nor will the NGOs have the chance to cultivate poverty in the rural areas.
One may raise a pertinent question that how much money can be collected in a poor country like Bangladesh from Zakat and Usher sources. This can very well be calculated from the annual reports of the Bangladesh Bank and the reports of crop production published by the Ministry of Agriculture. It shows that a minimum of Tk. 40 billion can be collected annually if appropriate laws are enacted for the purpose. This large sum can be utilised for the people who fall within the perview of the social safety net program (SSNP). A sustainable and exhaustive social security programe should include programes such as pension for the widows and the disabled persons, financial assistance for the marriage of poor girls, assistance during advanced pregnancy and post natal care, supply of nutritions and medicine to the poor children, building of hygienic and environment friendly toilets for the poor, rehabilitation program for the people whose homes are burnt or swept away by flood. Moreover, if during the lean season the marginal farmers and landless workers are provided with minimum financial assistance from the Zakat fund, the demand for interest based loans will evaporate.
9. Innovation of appropriate strategy for small financing
Capital is urgently needed for employment of the poor but otherwise efficient people. The capital they ask for is small but that is also not easily available to them. To meet this demand microcredit as a strategy for poverty reduction has spread in less developing countries and our country is no exception to it. At present in Bangladesh more than 1000 small and big, national and local NGO's are engaged in this work.
Microcredit has spread its tentacles over the whole country and enveloped the economy like a spider web. But has the economic condition of the poor, specially the rural women who are the biggest client of micro credit, really been changed for the better? There are only some microscopic examples of success which are publicized worldwide. To generalize these sporadic successes and reach a positive conclusion based on it will neither be logical nor scientific. Credit and interest are intertwined. The NGOs provide loan which is to be repaid on installment basis along with the fixed rate of interest. Finding no other alternatives to get credit poor men and women take this loan. The rate of interest of this loan is much, much higher than the commercial bank loans.
It is observed from various field researches conducted for Ph.D. degree of different universities of the country that the reduction in poverty level of the rural women through the NGO provided credit is negligible. Neither they attained self reliance nor their net poverty reduced. The main reason is that the debtors had to pay a big chunk of their income as interest along with the principal amount. As a result they have a very little surplus left in their hand. They wait for another loan. If they fail to get the loan, their employment opportunity comes to a halt again. Moreover, many of the clients of the NGO's face critical situation to pay the installment with the interest due.
Pathetic news are published almost regularly in the daily newspapers of the country that fieldworkers of the NGO's tear away tins from the roofs of their defaulting clients, snatch away their milch cows and so on. They even forced the married women to give away their nose-opal to pay for the installment. This is considered a grave social insult in the rural society. Reports of committing suicide, especially of women clients, for insulting behaviour by the field workers of the NGOs meted out to them after the failure to pay the installment on time, are on the increase.
To get rid of this situation alternative Islamic policies should be practiced. It is the need of the day to introduce micro financing replacing micro credit. Measures should be taken to adopt policy of investment, not disbursement of credit. To begin with it is desirable to launch Participatory Investment Scheme. It is an alternative to Mudaraba policy. In this policy an agreed portion of the profit earned will be paid to the concerned NGO and the rest will be retained by the entrepreneur. If the project fails to earn a profit the entrepreneur will have nothing to pay except the principal amount. Since there is no condition to pay a prefixed rate of interest, the entrepreneur will be greatly relieved for he will have to pay only a portion of the profit earned. Thus the maximum amount of the hard earned profit will not go to the hands of the NGOs. Small entrepreneurs will actually be benefited in this program. It may be initiated as a pilot scheme. It should be considered as an effective strategy to eradicate interest from the grass root level.
10. Avoidance of luxurios way of life
Indulgence in luxury and pompousness gradually forces a man to drift away from simplicity and spend thriftness. If regular income fails to satisfy the need for luxurious way of life credit is sought to meet the expenses. There is no other way but to take loan if one wants to build a luxurious house, buy a car of letest model or follow a fashionable lifestyle. This is the opportune moment for interest to enter in a house. The alternative way to earn money to satisfy these needs is corruption or adoption of malpractices. It is already told that credit and interest are interwoven. So willingly or unwillingly one agrees to pay interest to borrow money to meet the conspicuous consumption.
Moreover, interest has taken its root in durable household commodities, electrical and electronic appliances and fashionable items that are being sold on installment payment basis. Companies are out to sell durable consumer goods on competitive basis and on installment payment system where interest as an element is concealed very tactfully. Conventional commercial banks are advertising continuously in colourful ways to get loans from them on ‘very easy terms and conditions’ to meet the conspicuous consumption needs and fulfill the desires of the family. They are innovating new products all of which are interest based. Credit card is such an innovation whose interest rate soars upto 25%. The middle class people can seldom overcome the lure of the advertisements but can hardly bear the burden of it, because it has made purchases easier and quicker and turned into a culture by now. The grave consequence of the credit card culture (CCC) is that it shattered the economic backbone of the USA middle class and was one of the important causes of the financial disaster of 2007-2008. Its aftershock has reached all the European countries.To get rid of this probem we are to give up luxury, should not try to imitate others and stay away from conspicuous consumption.
