Learning Unit 14: Economic State of Affairs in OIC Countries PDF

Learning Unit 14 Economic State of Affairs in OIC Countries  In the Islamic economic system, the government is empowered to undertake all programs that are helpful to the development and the well-being of the community (ummah), where collective action, as opposed to individual action...

Learning Unit 14 Economic State of Affairs in OIC Countries  In the Islamic economic system, the government is empowered to undertake all programs that are helpful to the development and the well-being of the community (ummah), where collective action, as opposed to individual action, is called for and when individuals fail in their duty to follow the rules laid down by the Almighty and to confront and stand up to transgressors and oppressors. 2  Thus the central purpose of public policy is to promote the goals of a healthy society where individuals can flourish and develop as envisaged in the Quran and implemented by the Prophet (saw) in Medina. In the realm of human economic pursuits, Islam encourages economic prosperity and development. Islam embraces capitalism, but capitalism with a strong dose of morality and justice —the type of capitalism advocated by Adam Smith in his less quoted book, The Theory of Moral Sentiments. 3  But Islam goes much further in stressing the foundation of justice and the practice of equity in everything on this plane of existence. In fact, to our mind, the absence of morality, fairness, and justice is the Achilles’ heel of today’s capitalist system, as being played out in the global crisis that has enveloped the world since 2007. It is a crisis that will continue for many years to come, not only because of economic and financial mismanagement but because of injustice, human selfishness, and inept public policies. 4  In Islam, public policy embraces these areas: 1. Public sector governance (accountability, efficiency, stability, regulatory and supervisory quality, enforcement, and absence of corruption and violence) 2. Integrity of the legal system (judicial independence and impartial courts) 3. Preservation of human freedom 4. Absence of all discrimination (gender, religious, ethnic, sectarian, and tribal) 5. Preservation of the environment (water, air, biodiversity and habitat, and treatment of depletable resources as capital) 6. Promotion of all policies that promote economic and social prosperity in line with the Islamic vision 5 The Organisation of Islamic Cooperation (OIC) The Organisation of Islamic Cooperation (OIC) is the second largest organization after the United Nations with a membership of 57 states spread over four continents. The Organization is the collective voice of the Muslim world. It endeavors to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world. The Organisation of Islamic Cooperation (OIC) The Organization was established upon a decision of the historical summit which took place in Rabat, Kingdom of Morocco on 12th Rajab 1389 Hijra (25 September 1969) following the criminal arson of Al-Aqsa Mosque in occupied Jerusalem. The Organization has the singular honor to galvanize the Ummah into a unified body and have actively represented the Muslims by espousing all causes close to the hearts of over 1.5 billion Muslims of the world.  The Organisation of Islamic Cooperation (OIC) The Organization has consultative and cooperative relations with the UN and other inter-governmental organizations to protect the vital interests of the Muslims and to work for the settlement of conflicts and disputes involving Member States. In safeguarding the true values of Islam and the Muslims, the organization has taken various steps to remove misperceptions and has strongly advocated elimination of discrimination against Muslims in all forms and manifestations.  Current economic state of various Islamic countries Saudi Arabia: High dependency on oil revenue, which constitutes a significant portion of GDP. Recent efforts towards economic diversification through Vision 2030, focusing on sectors like tourism, technology, and entertainment. Political stability, but challenges in transitioning from oil-dependent economy.  Current economic state of various Islamic countries Malaysia: Diversified economy with contributions from manufacturing, services, and agriculture. Successful industrialization drive, transitioning from an agrarian to an industrial economy. Challenges include addressing income inequality and navigating global market fluctuations.  Current economic state of various Islamic countries Turkey: Mix of modern industry and traditional agriculture, striving for economic stability. Political factors impacting economic growth and stability, particularly in recent years. Emphasis on export-led growth and regional economic integration.  Factors Influencing Economic Development in Islamic countries 1. Oil Dependence 2. Diversification Efforts 3. Political Stability Challenges Faced by Islamic Economies 1. Unemployment 2. Income Inequality 3. Globalization's Impact  Success Stories Malaysia's Industrialization Transformation from an agrarian to an industrial economy through policies like the New Economic Policy (NEP). Development of manufacturing and technology sectors contributing significantly to GDP.  Success Stories UAE's Diversification Shift from oil-dependent to diversified economy through investments in sectors like tourism, real estate, and finance. Economic free zones attracting foreign businesses and fostering economic growth.  Success Stories Indonesia's Islamic Finance Development and success of Islamic finance models promoting ethical and Shariah-compliant banking. Growth of Islamic banking industry providing financial services in adherence to Islamic principles. Discussion… The end…