Folks,
This posting is a video on Islamic finance from CNBC news.
I wanted to return to the topic of Islamic finance for several reasons. First, if you are a Muslim or who have Muslim neighbors its important to understand the personal finance choices that are available for the Islamic faithful.
On a broader note, there are sociological implications to Islamic financial system. On average, Muslim countries have much lower cultural output then western countries…fewer books, less scholarship, fewer television programs, fewer works of art, etc. Of course, I’m no expert, but if thinkers like Max Weber and Milton Friedman are correct, then economic systems have a big impact on culture.
Next, America in engaged in two wars in Muslim countries – Afghanistan and Iraq. Part the reason for the conflict is simply a lack of understanding between differing expressions of Western and Islamic values. The way around this is to increase understanding – in banking systems in particular. In my view, global investment in other countries can help prevent the kind of conflicts we’re currently involved in.
Finally, Muslims are the original capitalists. Many western financial concepts like corporations, limited liability companies, tariffs, etc. were all originally conceived of in Islamic countries in the 13th century.
Please do watch the clip, it gives you a run down on the bare bones basics.
There’s more at wikipedia and Forbes.
Best,
James
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