The financial crisis is not a new phenomenon in the world of Capitalism. The US and Europe have gone through several recessions and/or depressions for the last hundred years. Unlike all crisis and turmoil of the past, this time around, the financial crisis raised serious concern about the plight of Capitalism, the backbone infrastructure of the current financial and economic system.
The current crisis has spurred numerous studies addressing the plight and future of Capitalism. This is a major deviation from previous crisis, where the emphasis has been on recovery, risk analysis, and damage assessment.
When stock and commodity markets hit rock bottom in 2008, capitalism was viewed as seriously sick. As astonishing as history could be, the Islamic Ottoman State was viewed as the sick man of the world in the late 19th century; then, Capitalism was emerging as the healthy splendid one. Today and after a long century of success, Capitalism is becoming the sick man of the world; Islam, though, is emerging as the healthy and splendid one.
Scores of politicians, thinkers, religious leaders, economists continue to assert that moral crisis and lack of fundamental ethics and virtues can lead to serious failures in the financial and economic arena. Greed can indeed bring down a powerful system like Capitalism. The role played by morals in the production of wealth and of its distribution will be discussed in this book.
There is no doubt that the Islamic financial system is more moral and stable than the current one based on Capitalism. However, I should warn that the Islamic financial system will not be able to provide the full expected results from an Islamic system, unless the environment in which it operates is cooperative and homogenous from the Islamic perspective. What the current financial crisis has shown is that Islam has a different way of organizing the financial matters of a society. It has also shown that it has the potential of building a more stable financial system. Such a stable system can only be fully functional when the other systems in the society which has a direct impact on the financial system are in line with the financial system. This book argues that the Rise of Islam is a comprehensive rise which brings up the economic system together with the political system, and the moral system together with the legal system. This will be discussed in greater details in this book.