Re: Islamic socialism resulted in utter destruction of Pak economy
Agree with most of these points with minor departures.
The major difference is that in some muslim societies, that includes pakistan, circumstances have made business development very very difficult and islam has become the single biggest factor in such impediment. To put together so called 'islamic' banking, isnurance and financing deals people are going through unnecessary convulsions.
i think peope are afraid to stand uo and say certain things (whether they are edicts or merely evolved practice) have to be changed. that's what leads to the medieval impression, IMO. they have been accused of blasphemy if they think in terms of change.
If you're talking about the avoidance of interest in an "Islamic" (and I'm only talking about theory, because like I've been saying, there is no real Islamic country these days) civilization, then that really shouldn't be the root of all economic problems in a country.
The Islamic empire was, in its height, a money mine. They didn't have interest.
Furthermore, interest is great for the lender, not so much for people like me who are cutting coupons at the moment just to work with the budget I have. The money I'm going to be oweing banks and the government in some years is going to be ridiculous. The concept of buying something when you can't afford it, whether its through the help of credit or interest, etc has its pitfalls. You're seeing that currently in the US with real estate bubble bursting and a possible and pretty scary credit crunch.
Its simple. If you can't afford it, don't buy it. But with interest loans and credit, people are going off and buying stuff they can't afford and they're getting carried away with it. Its bound to have negative effects. As much as I do like capitalism, it, like any other economic system, has its problems.