Islamic finance: Redundant, costly, but emotional, religious appeal
जून 18, 2012 टिप्पणी करे
Likes of Swamy, including me, are trying to defend principled Indian liberalism. We have all seen what “principled liberalism” means in a country where muslims are in a majority. Turkey might be an exception out of 50+ such nations, but we are not prepared to take such a risk. Being very honest here. You should be honest too.
Next comes Islamic finance jurisprudence of a market estimated at $300-$500 billion. Let me tell you that the cash flows are almost the same, just a little higher, as in “normal” market economic jurisprudence. It is structured differently to cater to the sentiments of muslims worldwide. It is actually just a little more costly because a little higher risk is associated to the cash flows.
The current economic jurisprudence is much simpler and cheaper than Islamic jurisprudence simply because it has further evolved over one more thousand years, which is an underestimate because last 50 years has been like last 950 years alone. Islamic finance is that far behind, but who can make muslims understand, so industry happily makes a little bit more money.
The providers in Islamic finance market are obviously banks of developed world, but subscribers are all religiously devout muslims, who unfortunately do have a biased agenda. In fact that is why they want Islamic finance!
Finally, when you do agree that there exists principled Indian liberalism, which includes existing financial system that is cheaper and better, and when we all realize that money has no religion as such then why do we need Islamic finance?
guunjan 