The Economic System of Islam — Page 53
53 Barriers to Illegitimate Accumulation of Wealth in Islam Prohibition of Interest ( Rib a ) Islam forbids lending and borrowing of money on interest, which also entails certain limits on commerce. It is ironic that this coun- try’s intellectuals tend to look with favour on Communism, and yet are inclined to support an economic order based on interest. The fact of the matter is that interest has been the most important cause of economic and financial catastrophes in the world. Interest enables a shrewd and clever businessman to accumulate vast amounts of money, which then enables him to control markets or establish large factories, thereby reducing many people to per- petual economic subservience. If one were to examine the list of the world’s richest men, it would be found that it was made up of mostly people who owe their rise to interest. They start with a small amount of capital but soon establish a reputation of creditworthi- ness, which allows them to leverage their small personal capital many times over via bank borrowing and overdrafts, thereby be- coming super-rich in just a few years. There are others, who may not have any significant amount to invest, but use their wit and contacts to cultivate relationship with bank managers to borrow large sums of money. Only a tiny percentage of the rich make their entire money from personal capital. Interest is one of the most destructive economic forces in the world and a major hurdle that stops the poor from moving forward. It is thus imperative that mankind rid itself of interest. If the rich