Islamic Principles for Local Empowerment and Environmental Stewardship

The material covered in these slides focuses on the transformation of Islamic banks and communities to align with Islamic principles of service, sustainability, and justice. The slides emphasize creating local and global collaborations for self-sufficiency in food, energy, and finance. This is achieved through building community-based organizations and networks that prioritize social welfare over profit maximization. The vision also includes bypassing traditional nation-state structures in favor of collective action across the Ummah, fostering trust-based, community-driven banking systems.

1. بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيم The 2nd International Collaboration Conference and Islamic Economics 2024 Wed. 11th September 2024: 10.00-10.30am Eastern Indonesian Time (WITA) Download These Slides from: bit.ly/APSEII24

2. إِنَّمَا الْأَعْمَالُ بِالنِّيَّاتِ What we achieve, by listening, thinking, and planning to act upon knowledge received, will depend on our intentions. Let us make the intention to serve the creation of God, for the sake of the love of God. Then our participation in this lecture will be an act of worship.

3. Islamic Principles for Local Empowerment and Environmental Stewardship Theme: Global Innovations for a sustainable Islamic Economics In this lecture, I aim to provide useful knowledge, relevant to taking the actions needed today, to be of service to the creation of God (all of it), for the sake of the love of Allah.

4. Useful Knowledge Enters the Heart, and leads to Action The son of Adam will not pass away from Allah until he is asked about five things: how he lived his life, how he used his knowledge , how he earned and spent his wealth, and what he did with his body "True knowledge is not merely about acquisition but about using it to purify oneself and achieve nearness to God. Knowledge must lead to action; otherwise, it becomes a burden rather than a benefit.“ Imam Ghazali: Book of Knowledge

5. Heavy Responsibility on Speaker: Provide Useful Knowledge, which leads to action! Vast majority of knowledge that I have acquired, and that I taught, could not be translated into action. The Prophet SAW sought protection from useless knowledge! The Western intellectual tradition ignores the heart – deliberately and explicitly. “I think therefore I am” – NOT: I feel therefore I am. Our heart is the driver of action and change. Islam places central importance on TAZKIYA: Purification of the heart. Corrupt hearts are blind to consequences (good or evil) of our deeds. Purified hearts can recognize good, and motivate action.

6. ظَهَرَ الْفَسَادُ فِي الْبَرِّ وَالْبَحْرِ بِمَا كَسَبَتْ أَيْدِي النَّاسِ لِيُذِيقَهُمْ بَعْضَ الَّذِي عَمِلُوا لَعَلَّهُمْ يَرْجِعُونَ Corruption has appeared throughout the land and sea by [reason of] what the hands of people have earned so He may let them taste part of [the consequence of] what they have done that perhaps they will return [to righteousness] The climate crisis has been caused by evil human actions , and can be corrected by a return to righteousness . Useful Knowledge : What are the human actions which have led to the crisis? What are the actions we can undertake to counter this?

7. Three Levels of Action: Individual: Heart, Mind, Soul, Nafs – All need training. Community: Neighborhoods, Kinfolks, Professional Group. Ummah: is like one body, it feels the pain of all the parts.

8. 1: Individual Action The heart drives our actions,

9. Our Actions are driven by desires of the heart If the hearts are corrupt, they desire evil, and we act accordingly. Purification of the hearts is first step to correct action. There are many methods for purification: Major Sufi schools (Tariqas): Qadiriyya – Founded by Abdul Qadir Gilani Naqshbandiyya – Founded by Baha- ud -Din Naqshband Bukhari Chishtiyya – Founded by Khawaja Moinuddin Chishti Shadhiliyya – Founded by Abul Hasan ash- Shadhili Suhrawardiyya – Founded by Abu al-Najib al- Suhrawardi Mevleviyya – Founded by Jalaluddin Rumi Tijaniyya – Founded by Ahmad al-Tijani

10. There are many pathways to God, but only one truth وَالَّذِينَ جَاهَدُوا فِينَا لَنَهْدِيَنَّهُمْ سُبُلَنَا ۚ وَإِنَّ اللَّهَ لَمَعَ الْمُحْسِنِين And those who strive for Us—We will surely guide them to Our ways. And indeed, Allah is with the doers of good.

11. Fundamental Principle: Change Begins From Where You Are Now To make change, we must clearly recognize where we stand. This includes an accurate analysis of our own strengths & weaknesses Everyone is different. No common recipe for change. There are broad guiding principles. There are many dimensions of Tazkiya, but we focus on those relevant to our current concerns: “ sustainable development ” All knowledge and wisdom comes from Allah T’aala. The fact that this language is not found in Quran, Hadeeth, and our intellectual tradition is a clue that this is NOT formulated correctly.

12. Reduce Attachment to Worldly Possessions لَن تَنَالُوا الْبِرَّ حَتَّىٰ تُنفِقُوا مِمَّا تُحِبُّونَ ۗ وَمَا تُنفِقُوا مِن شَيْءٍ فَإِنَّ اللَّهَ بِهِ عَلِيمٌ You will never attain righteousness until you spend from that which you love. And whatever you spend, indeed, Allah is Knowing of it This is the highest level. If you cannot do this (and most people cannot) start by giving away small amounts – aligned with your own capabilities. Choose the right level of challenge: Not so high that it breaks you, and not so low that it does not create change.

13. Why is this important? At the heart of this crisis is overproduction, enabled by the Industrial Revolution. Overproduction requires excess consumption. This is created by an education which develops the desire for luxurious lifestyles. Islam prohibits Israf and Tabzeer, and counsels us to live lightly on this earth. Getting to a sustainable pathway for humanity requires us to lead simple lifestyles, aligned with the concept of “de-growth”

14. What is Sustainable Development ? The Rise and Fall of the Market Economy (2010). Rev of Islamic Econ, Vol. 14, No. 2: https://ssrn.com/abstract=2142803 Industrial Revolution set off a chain of events which radically transformed Western societies. Capitalism is built on a vicious circle: produce more, increase desires for consumption (addictions), labor more to earn for excess consumption, and to enable excess production. This process is depleting planet of resources. Sustainable development asks how we can slow down the process. Instead, we need to get out of this vicious circle.

15. First Step: Learn How Our Minds and Hearts have been shaped by capitalism We must free ourselves first, before we can take actions to free others, as needed for collective action. Western education is designed to mass produce human resources, interchangeable parts for use in production process. Counter: Learn Who You Are! http://bit.ly/AZwya Every moment of our lives is infinitely precious, not a commodity for sale on the market. All of the treasures on the planet are not sufficient to buy us, because God has purchased our lives in return for Jannah.

16. Understanding Capitalism Religious Wars Raged for Centuries, Devastating Europe. European intellectuals sought to build a secular society. Rejection of God, Life-after-Death, Judgement, led to conception of man as an animal, driven by desires. Society is a jungle. Capitalism is built on individualism, hedonism, competition, greed. Islamic societies are built on social responsibility, striving for success in the Akhira, cooperation, and generosity.

17. Actions to take for individual progress Recognize the hold of Nafs-e-Ammara: We have been trained to obey our desires. This is the essence of capitalism, and the central lesson of modern economics. Allah T’aala teaches us that this is the path to destruction: Surah Al-Jathiyah (45:23): أَفَرَأَيْتَ مَنِ اتَّخَذَ إِلَـٰهَهُۥ هَوَىٰهُ وَأَضَلَّهُ ٱللَّهُ عَلَىٰ عِلْمٍ وَخَتَمَ عَلَىٰ سَمْعِهِۦ وَقَلْبِهِۦ وَجَعَلَ عَلَىٰ بَصَرِهِۦ غِشَـٰوَةً ۖ فَمَن يَهْدِيهِ مِنۢ بَعْدِ ٱللَّهِ ۚ أَفَلَا تَذَكَّرُونَ Have you seen the one who takes his desires as his god and Allah has left him astray with knowledge, sealed his hearing and his heart, and placed a veil over his sight? Who will guide him after Allah? Will you not then remember?

18. Practical Strategy: Give up one thing that you do, in obedience to your desires, and replace it by one thing you do, for the sake of the love of Allah Choose the one thing which you recognize that you are capable of. Do NOT make too big a sacrifice, or you will be in danger of slipping. Take small steps towards good. "إِنَّ هَذَا الدِّينَ مَتِينٌ فَأَوْغِلُوا فِيهِ بِرِفْقٍ“ This religion is strong (firm), so enter it gently.

19. Walking towards Allah! "مَنْ تَقَرَّبَ إِلَيَّ شِبْرًا تَقَرَّبْتُ إِلَيْهِ ذِرَاعًا، وَمَنْ تَقَرَّبَ إِلَيَّ ذِرَاعًا تَقَرَّبْتُ إِلَيْهِ بَاعًا، وَمَنْ أَتَانِي يَمْشِي أَتَيْتُهُ هَرْوَلَةً" If someone draws near to Me by a handspan, I draw near to him by a cubit. If someone draws near to Me by a cubit, I draw near to him by a fathom. And if someone comes to Me walking, I go to him running.

20. 2: Collective Action: Community Building local communities is essential

21. Building the Neighborhood Community وَاعْبُدُوا اللَّهَ وَلَا تُشْرِكُوا بِهِ شَيْئًا وَبِالْوَالِدَيْنِ إِحْسَانًا وَبِذِي الْقُرْبَىٰ وَالْيَتَامَىٰ وَالْمَسَاكِينِ وَالْجَارِ ذِي الْقُرْبَىٰ وَالْجَارِ الْجُنُبِ... Worship Allah and associate nothing with Him, and be good to parents, relatives, orphans, the needy, the near neighbor, the distant neighbor..

22. Rights of Neighbors " Jibreel kept advising me about treating neighbors well until I thought he would make them heirs ."(Sahih al-Bukhari and Sahih Muslim) " Whoever believes in Allah and the Last Day, let him not harm his neighbor ."(Sahih al-Bukhari and Sahih Muslim) " He is not a believer whose stomach is filled while his neighbor goes hungry ."(Sunan al-Kubra by Al-Bayhaqi)

23. Rebuilding Masjid Communities يَأْتِي عَلَى النَّاسِ زَمَانٌ لَا يَبْقَى مِنَ الْإِسْلَامِ إِلَّا اسْمُهُ وَلَا يَبْقَى مِنَ الْقُرْآنِ إِلَّا رَسْمُهُ، مَسَاجِدُهُمْ عَامِرَةٌ وَهِيَ خَرَابٌ مِنَ الْهُدَى، The FORMS of the masajid remain, and the buildings are beautiful, but the CONCEPT is no longer present. The nucleus for change is building masjid communities. The community gathering is the source for gathering information, building social relationships, and taking collective action on needs.

24. Creating Masjid-Based Community Service Organizations MKJ: Munazzamatul Khidmatul-Jama’ah : منظمة خدمة الجماعة provides services to local community. Primary focus: social welfare. Primary Principle: Self-Help and Self-Reliance. Those with excess should be persuaded to give to those in need. Everyone should be encouraged to adopt simpler life-styles. This will reduce: consumption, production, labor. This will free time to build social relationships, as well as time to build our relationship to God. Capitalism has destroyed the family in the West.

25. Start Where You Are/Do What You Can It can be very difficult to launch a MKJ – requires investment of time and effort. Rivalries & Dirty Politics in Masjid are common. If united Masjid Committee cannot be persuaded, find a small group of like-minded people, and start and informal masjid-based service organization. After successful start, more will join. Do not go below two – that is, do not start on your own – we want to build community, and two is the minimal number required.

26. Process Versus Outcome Western social sciences are outcome oriented: win or lose. Islam is process oriented. Success lies in recognizing and fulfilling the orders of Allah – at the present moment. Doing so is success, and failing to do so is failure. This does not depend on outcome of actions. Standard Excuse for Failure: We will start work WHEN … Islamic Government is established, corruption is reduced, etc. etc. Start work now, with what you have, within your current environment. You are not asked for outcomes, only to be part of the change. See: bit.ly/HelSUS (Becoming the Change).

27. MKJs as WAQF The masjid is a natural waqf property, and KJO’s can be organized as Waqf in places where there is GOOD waqf law. Currently this is not true in most Islamic countries. Alternative organizational forms can be found, and perhaps fatwa can be obtained. Incomes can be produced by putting some shops on Masjid land. With a united masjid community, many pathways open up. KJOs can apply for zero-interest finance. Develop community business projects, infrastructure etc.

28. Infrastructure Already Exists Beauty of MKJ is most masajid have committees and finance. Ensure board has representation from social classes, and at least one outside member, from neighboring committee. Also ensure rotating chairmanship. Avoid local elite capture. Green Projects: Focus on self-reliance in energy and food. Avoid waste, and do recycling. Try to create ecological awareness. Change begins where you are. Take one step in the right direction. Utopians are the biggest obstacle to change! Big dreams & frustration, due to outcome orientation.

29. Local Currency Systems KJOs can issue Local Currency for provision of service. They can give food coupons, redeemable at local restaurants. They can similarly issue vouchers for purchases which can only be made locally. Local Businesses can redeem these vouchers at the KJO. KJOs can also arrange health insurance with local hospitals or doctors, for the community. Possibly payable in local vouchers. Creating Local Credit Union, or Partnering with Local Islamic Banks opens up a whole range of new possibilities. Green Loans for garbage recycling or solar panels, skill development, long term education or health loans (like 30 year mortgages).

30. Role of Government? Government can act as an enabler, which would be very helpful. A standard legal structure for MKJs. Generally, post-colonial governments have continued colonial policies, exploiting the masses, and extorting money, to enrich themselves. Wael Hallaq “Impossible State” argues that states are inherently opposed to Islamic government methodologies. Empirically, nation-states were setup in the Islamic world as a part of deliberate divide and rule strategy (see: A Peace to end all Peace, David Fromkin).

31. 3: Collective Action: Ummah Microeconomics: Based on community, not individuals Macroeconomics: Based on Ummah, not nation-states

32. Collective Action: Larger Groups are more effective Nation-States were “imagined communities” – they were able to defeat city-states. The feeling of allegiance to nation was artificially produced, to create collective identity, to help in wars! The Ummah is also an imagined community, but very powerful because it is addressed as the best Ummah in the Quran. It is best because it is for the welfare of all mankind (not divisive like nations)

33. Learning from experience There is no hope from Islamic nation-states: these are too firmly embedded in hegemonic power structures. If effective collective action was not possible for Palestine, it is impossible. But we can go around, and bypass, nation-states, and work for collective action at the level of the Ummah. Principle of do what you, with whatever you have. Change starts from where you are. BUT: ensure effective moves, no tokenism, no gestures.

34. Thinking out of the box Feudal Lords => City States => Nation-States => MNCs Are there other forms of social organization? Can we create a united Ummah, without modern political structures? Allah T’aala asks for a feeling of unity. The “Mwakhat” pairing of Muhajir and Ansar: A unique solution to a specific problem. Similar solutions are possible today.

35. Linking communities locally Food and Energy self-sufficiency One way: create rural, self-sufficient, ecological communities Second way: pair rural and urban communities as sisters. Urban communities receive food and agri products in exchange for urban goods. A win-win solution. Other complementary pairings are possible. Electronic exchange boards, where items available in one community can be swapped. Also, community credit cooperatives can be built.

36. Linking Communities Globally Natural Institutional Structure: Daily prayers for neighborhood community, Jum’a for a cluster of communities. Eid ul Fitr for city wide community. Eid ul Adha for entire Ummah. Many kinds of exchanges are possible to link communities around the globe. Marriages could be settled around Hajj! Also, talents could be traded by creating sister communities around the globe. One example: Pakistan is just beginning its olive industry. Turkey has very advanced olive industry. Pakistan has a huge coast line, ready for Palm Tree plantations. Malaysia has advanced industry. INFORMATION is key – we need “Uber” style thinking.

37. 4: A New Vision for Islamic Banks See: http://bit.ly/AZibf

38. Problems with Conventional Banking Credit Creation: 90% of money in financially advanced economies. Private Profits, Public Losses => recurrent crises. Chicago Plan: Shift money creation to Government. Not Viable: Governments are also controlled by High Finance. Third Option: Shift money creation to Islamic Banks. But this is to be done for public service, not private profits. This is aligned with “Islamic” label, and could be forced by public pressure and fatwa’s.

39. How would this work? Profit Maximization (PM) is supposed to be a survival strategy. PM => shareholder value; it increases Bank Manager salaries. Let Islamic Banks be non-profit public sector entities, designed to serve public, instead of maximizing profits. The staff of Islamic Banks will earn salaries proportional to skills and time, like other sectors. Long run survival will be guaranteed by service to communities.

40. Multiple Directions for Growth Governments could back Islamic Banks, provide alternative regulations and support. Islamic Banks can provide wide range of social services to the communities. Credit Creation can be backed by Trust in communities (as it was in early Islamic Era, from Andalus to China). This model is well-coordinated with the KJOs proposed earlier. It would also be possible to create a global Islamic currency, using global linkages between Islamic Banks, and building on community trust, bypassing OIC and nation-state.

41. Pragmatics: Disruptive Innovation Start small, introduce local community banks with vision. Enforce dual bottom line on Islamic Banks. Get them to report social services provided, and also assess social harm. Gradually win over banks to prioritize service over profits. Crypto is an illusion – asks you to place trust in blockchains, but every institution is run by people and programmers. Community based trust is real ands solid, and proven trustworthy

42. Ending Dua: اللهم ارزقنا علمًا نافعًا، وقلوبًا طاهرةً، وأعمالًا ترضيك. اللهم أعنّا على العمل بما علمتنا واهدنا لخدمة خلقك ابتغاء محبتك. واحفظنا من علم لا ينفع، وطهّر قلوبنا حتى نسير على طريق الصلاح. إنك أنت العليم الحكيم O Allah, grant us the knowledge that benefits, hearts that are pure, and actions that lead to Your pleasure. O Allah, help us to act upon the knowledge You have bestowed upon us and guide us to serve Your creation for the sake of Your love. Protect us from useless knowledge and purify our hearts so that we may walk on the path of righteousness. Verily, You are the All-Knowing, and You are the All-Wise Download These Slides from: bit.ly/APSEII24