ISLAMIC FINANCE AND BEYOND

I was reading one article by M, Nejatullah Siddiqui titled Islamic Finance and Beyond (http://www.siddiqi.com/mns/IFandBeyond.html) and he observed the following :

The disturbing features of contemporary finance, which would remain unaffected by the prohibition of interest, restrains on the money market and the demise of the market for debt, are the following:

1. The possibility of massive capital movements into and out of a country, which has destabilizing, effects, especially for small economies.
2. Wide exchange rate fluctuation, to the great disadvantage of small developing countries dependent on foreign trade.
3. Social, cultural and political aspects of financial globalization and multinational corporations (MNCs) dominating the market. This is especially worrisome to developing countries in Africa and Asia that do not share the sociocultural background of the regions where the MNCs are based. These countries also lack sophisticated bureaucracies, mature politicians and efficient media, which could be a guard against the possible undesirable role of MNCs.

He further enhances/strengthens the premises and promises of Islamic economics especially on the quest for justice and morality - justice and morality have to penetrate the behavior of all economic agents, including the decision-makers at the national and international level, so that all can live together in peace and harmony. Has Islamic economics something to offer in making this possible? At the heart of the Islamic economic culture lies care for others as a force tempering man's innate selfishness. In sharp contrast to neoclassical economics, which dominated the scene during the twentieth century, Islamic economics brings the social dimension of living into focus, thus downsizing individualism. It also recognizes morality as a potential motor of action and overseer of self-interest. The former, the social dimension, is compulsory; economic analysis can ignore it only to its peril. The latter, ethical action, is a potentiality in the realization of which civilizations have had different records. But no human society has been devoid of the moral dimension. Thus, ignoring it can never be justified.