Once again, a Muslim leader has fraudulently proclaimed that Shariah-Compliant Finance is a solution to the “global financial crisis.” This time the proclamation came from Jusuf Kalla, vice president of Indonesia.
This runs counter to reality, which is that Shariah Financial institutions and products have suffered right along with other vehicles and sectors. In fact, the sukuk, or Islamic bond, market all but dried up earlier this year amidst a rash of defaults.
This passage gives a little more insight into Vice President Kalla’s motivation–and it also gets right to the heart of Shariah Finance:
“Islamic world should adopt its own economic system to reduce economic gap amidst ‘non-real transactions’ in the global trade,” he said in the opening speech at a seminar titled “the Islamic World and the Future of World Civilizations”, here.
According to Kalla, Islam population, accounting for 25 percent of total world’s population, will not suffer if Islamic values in its economic system was implemented properly.
Kalla urged all Muslim countries to adopt Islamic economic system to change the non-real economic paradigm.
“This is our chance to change the world because this (Islamic economy) is from Allah. We could make the world better,” he said.