By TwoCircles.net staff reporter,
Kochi: The veteran economist and member of Kerala State Planning Board Dr K Rama Chandran has said that the absence of ethical values in economic dealings and problems inherent in market economy are the basic reasons behind the current economic crisis. The eradication of interest from economic system and injecting ethics to economics are the only way to solve the crisis. He said when delivering key note address in the seminar conducted by Jamaat-e- Islami Hind, Kerala on “ Global Economic Crisis and Islamic Banking”.
The economic theories that we studied and taught for the long period has failed to give any solutions to the present problems. The invisible hands – demand and supply – are the force that distribute the produced goods and services in the economy. It will lead to wider inequalities because goods and services are getting only to those who have the purchasing power. 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 should be considered, the economists should study this without prejudices, he added.
Islamic banking is not a solution for all problems. But its operation will contribute to the 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 contributes economic discipline. Dr. Ausaf Ahmed of Delhi opined in his inaugural address.
T. Arif Ali, Ameer, Jama’at-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 the topic “Islamic Finance in India, does it make sense?” Dr. P. Ibrahim, Pondichery University presided the function. H. Abdul Raqeeb, Prof. P.P Aabdul Rasheed and Dr. Saeed Ramadan also addressed the seminar.