(This is a partial copy of a report which was written in june 2003)
Preamble
Bangladesh besides being fortunate enough to have a large labour force (high population), high percentage of fertile lands and ample reserves of natural resources such as gas, uranium, coal, rivers etc. is still considered to be a third world country just crawling for survival. It is a country where people just live to survive. Imperialist nations using their capitalist institutions like the IMF and World bank have brought the country to its knees with debt and made it a dumping ground for their goods and products, preventing the nation to stand on its own feet by becoming self-sufficient in the food and energy sector and becoming industrialised.
Some of the unfortunate effects of the implementation of the capitalist economic system and the imperialist policies are highlighted below:
·
Over the last 30 years the per capita debt obligation of the country has increased from $6.59 in 1973/74 to $115.9 in 1998/99.
·
Every year in the budget there is a shortfall in the large revenue targets. Total budget deficit for year 2002-2003 was Tk.117.70 billion, out of which Tk.61.73 billion had to be filled by external sources such as foreign loans and donors. The rest had to be filled by domestic borrowing by issuing bonds and loan from local banks. This in turn increases the national debt placing burden on the general public to bear.
·
In these days of development and technology, huge numbers of people die from basic diseases. Over 75% do not have access to proper sanitation in terms of clean water supply.
·
The country's balance of trade has always been negative. This means, the cost of imports is always higher than the cost of exports. This makes the country extremely dependent on trade with foreign
countries.
·
Just a close look at the economy from the street level starkly reveals the disgusting state that we are in, where the earnings to expenditure ratio is so unbalanced that a person working hard whole day cannot earn enough to provide the daily nutrition required for his family.
Case of Bangladesh
A detailed study of the reality of Bangladesh assures us that the country is blessed with wealth. However, due to the mismanagement, application of the capitalist system and policies the people are deprived from this enjoyment.
The total GDP per capita and the GNI per capita figure indicates that there is enough wealth in the country to provide at least TK. 20,000 per person a year that equals to around TK. 1,10,000 per household.
There was a total of 45 Million Tons of rice production this year, while the maximum daily required nourishment in terms of rice required by an individual is 500g this equals to 182.5 KG per person a year, which equals to an estimated 25 Million Tons for a population of 140 Million.
Fish and Shrimp along with various seasonal vegetable production is enough not only to meet the needs of each and every individual but also is capable of annually earning quite large amounts of foreign revenue.
A total amount of 1.2 BCF gas is extracted per day that is used in the power, fertilizer and domestic/industrial sector. With the currently confirmed reserve of 12 trillion Cubic Feet it is capable of lasting 27 years, provided the demand is constant and efficiency in the production and usage is not improved.
Large supplies of coal mines and uranium can be used in the power sector to supplement or replace gas usage. Uranium can also, be used in the research and development of nuclear-based weapons.
The hardworking nature of the population means, it can be a powerful labour force for industrialisation, provided they are equipped with the right education, training and given a clear objective for the nation.
We can separate the discussion into the following categories: Agricultural, Energy, Industrial, and Monetary in order to offer a new vision for Bangladesh.
Agricultural Sector
Current Practices
The current reality of Bangladesh is that there are large amounts of lands owned by landlords who never make use of it themselves. Also, poor farmers are constantly being exploited by the land ijara (land leasing) system, where they are required to pay substantial amounts of money to the landlord in order to lease the land to make use of. The landlord also, has the option to keep the land under his/her ownership and never make use of it, only when there's development around the area or the price of the land has raised that is when they will either use the land or sell it at a high price
.
Because of such market curtailing and hoarding of lands in many villages it has become impossible for the poor hardworking farmers to buy land that they can cultivate to feed their family. The current system of taxation on the land is extremely unfair. The system does not take into account the production or the usage of the land at all. Every year the land has Khazna due upon it, which only takes into account the price of the land and not the owner of it (in terms of whether their needs are being met or not). Due to the vicious restructuring plan of IMF and World bank, Bangladesh is prevented from usage of agricultural land to produce certain types of goods such as the case with the closure of the Adamjee jute mill, where Bangladesh was asked to cut-down its jute production and growth while India has been increasing it. It is estimated that by itself, South-East Asia’s demand of jute based products, cannot be met over the next five years.
Proposed Agricultural Policy
A total re-organisation of the agricultural policy according to Islam can ensure that the state is fully selfsubsistent in food and also, its capability of earning foreign revenues.
Abu Yusuf narrated in Al-Kharaj from Amru bin Maymun and Haritha bin Mudhrab:
"Umar bin Al-Khattab sent 'Uthman ibn Hanif at the land of Iraq and he ordered him to survey it. On each Jareeb (a patch of arable land) whether it was cultivated or overflowed with water, but could be usually used, he put one Dirham and one Qafeez" (about 16Kg).
In view of the evidences we can extract the following rules and policies:
·
Bangladesh is Kharaji land, which means that the neck (the land itself) belongs to the state as a State property. This means, the state has the ultimate right to grant it or take it away from anyone that misuses the land.
·
The benefit of the land (i.e. the utilisation of it in terms of buying, selling, harvesting etc.) belongs to the one who it is granted to.
·
The state takes revenue from the harvest of the land called Kharaj. This revenue amount is taken from the estimated usual production of the land with the principle not to create injustice to the landlord or the state treasury. The state can use this revenue to build the states infrastructure as well as to meet the needs of those individuals who cannot provide for themselves.
·
Islam prohibits the leasing of the land. Therefore, any landlord who does not make use of the land himself has two options - either sell the land or grant it to someone who will make use of the land without expecting any benefit in return. If the landlord does not conform to either of the above two options then the state has the right to take the land away from the landlord and grant it to the one who can make usage of it.
·
Islam prohibits the hoarding of the land that is not being made use of. Therefore, any land, which is owned by someone, who does not make use of it and it, has passed 3 years, the state can take this land away from this person's possession and grant it to someone who can utilise it.
In the re-organisation of the land focus is given on the utilisation and productivity of the land, not on ownership for the sake of it. The state will encourage the usage of the latest agricultural methods and technologies to increase the efficiency and productivity of the land so that the state becomes fully self-sufficient in this regard.
Energy Sector
Current Practices
Petrobangla is a state corporation that manages some of the energy matters such as gas and coal. Besides Petrobangla has the necessary skills and the ability to manage the discovery and production of gas fields which the government has prevented it from doing so by cutting down its funds. These observations were made at the recent National Policy Review Forum meetings. One such case is here Petrobangla was prevented from carrying out a seismic survey by not providing it with the funding it needed that amounts to Tk.300 crore.
Due to the ill-allocation of funds and the bad intention of the imperialist states to prevent countries like Bangladesh from becoming self-sufficient in the energy sector, Petrobangla, somehow was forced to enter in to what is knows as Production Sharing Contracts (PSC). These contracts ensure the discovery, production and operation of our gas fields will be carried out by those capitalist companies. The technical knowledge will remain with them. Ultimately, they have the power to dictate policies with regards to gas sales and increases of production so that they can get maximum return for their investments.
Proposed Energy Policy
We observed earlier that Bangladesh has high reserves of natural gas, estimated to be in the order of 12 trillion cubic feet. It has also substantial reserves of coal mines, uranium and facilities for Hydro based electricity power station.
Islam defines the energy to be of the public property the shared benefit of which is enjoyed by the public, the state takes the management role of such utilities or resources and it is absolutely forbidden to surrender such ownership to an individual company. Ibn 'Abbas narrated that the Prophet (SAW) said: "Muslims are partners (associates) in three things: in water, pastures and fire ," reported by Abu Dawud. Anas narrated from Ibn 'Abbas adding, "and its price is Haram (forbidden)"
The word 'fire' in the hadith is understood to mean energy.
The following policies can be implemented with regards to the energy sector in Bangladesh:
Prioritise funding in the existing state operations. Funds that are spent on value-less activities such as countless monuments, bridges, cultural functions and sporting activities can be taken away and reallocated to the energy sector to acquire machineries that are capable of fulfilling the requirement of the energy sector.
Develop local skills set so that the internal labour force is capable of managing the discovery, production and operation of such gas reserve plants.
Not allow any imperialist nation or multinational company to take ownership of our natural resources.
Any shortfall in the funds, skills or technologies can be covered by the advance sale contracts, maintaining the ownership and the benefit at the hand of the public.
The state will encourage research and development in the field of efficient usage of this energy matters such as; gas, uranium and coal. So it makes the state fully self-sufficient in the energy field as well as encouraging the industrialisation around such energy sectors.
Industry and Education Sector
Industry is a very important pillar in the economic life and economic progress of any nation. New developments in the technological sector have significantly improved the quality and diversity of products that we can all enjoy. Various automation processes have definitely increased the efficiency and the volume of production. Therefore, Islam sees this to be a part of the Islamic economic life to be always at the leading edge in the competitive market when it comes to industry and technology. It is obliged on the state to ensure that the state is not only just self-sufficient but also able to compete in the world market and lead.
Bangladesh is fortunate to have such a high labour force, if equipped with the right skills and techniques with a concentration on the quality control the country can have a booming industrial sector.
The following policies can be implemented with regards to the industrial sector in Bangladesh:
Encourage research and development in the usage of local resources and materials in the manufacturing plants, such as Jute, Gas, Uranium, fish, poultry etc. The IMF and World Bank through the imposition of conditions when giving loans have prevented Bangladesh from investing in such sectors. We find very few reverse chain industries in Bangladesh that are fully capable for self-subsistence. Even the industries that are currently in operation such as garments, ceramics and agro-based rely heavily on the import of raw materials, capital machineries and technical expertise from abroad.
Encourage the establishment of industries that manufactures machines that are capable of manufacturing machineries for production industries. Not being able to do that means we will not be able to reduce the cost of production and continue depending on the foreigners with regards to what we can produce. The cost of capital machinery imports in the year 2001-2002 was in the order of $2.6 billion.
Have a development plan for raising a wide variety of skills and techniques of the labour force. Encourage existing companies to invest in the development of their workers. The current education system and the industrial practices towards the development of the workforce seem to be completely hopeless. The education system seems to teach useless subjects and techniques that are either out-of tune with the time or completely irrelevant to the industrial requirements. Therefore, unless the focus of the education system is changed to be industrial based a strong industry producing creative products cannot be achieved. The current brain drain needs to be checked and their technical skills need to acknowledged by the State and utilised for the nation. Today, thousands of educated people roam our towns and cities looking for jobs – the current state has no clear plan as to how to engage this technical workforce into the development of the country i.e. the current education system is completely detached to the developmental needs of the nation.
Since, Islam absolutely, prohibits hoarding of wealth such as gold and silver, everyone is encouraged from their Aqeedah to re-invest their money on various ventures as well as in the research and development to increase the efficiency and quality of their products so that the wealth is in constant circulation. This is contrast to the current system, which encourages the storage of money in banks in the form of FDR, preventing the circulation of the wealth and containing it within the few.
The state will need to apply a very strict foreign trade policy whereby malicious nations are identified and taken necessary action against so that the country does not becoming a dumping ground for their products. This will be applied on the basis of the foreign trade rules defined by Shariah. Unless a state like Bangladesh is developed to be self-sufficient, has a strong industrial backing and its requirement for imports is minimised, it is extremely dangerous to have an open market policy to allow strong economies like, the US, UK, Australia, China and India to dominate our market with their products. We have seen some of the side-effects of having open market policy with our close neighbour India, who supply subsidised spices and vegetables during the seasonal production period of our country that results in our product getting rotten and thrown in wastage, all because our products turns out to be more expensive than the Indian products, due to high production costs associated with it.
Every citizen of the state is obliged to secure the state against dependency on foreign powers and goods. Therefore, obliging them to make their economy stronger and self-sufficient by utilising the locally produced goods and products as well as encouraging the exports of it.
A very stringent quality control policy will be applied to ensure that the product produced is of the highest of standards capable of competing in the open market by its own merits.
Monetary Policy
Islam does not determine any specific item with which the exchange of goods, services and benefits had to be compulsorily conducted. Rather, Islam has given the human being a choice to use any medium that is mutually accepted in the society. However, when it comes to exchange of a commodity or services to a monetary unit then this monetary unit has to be based on the bi-metallic Gold or Silver standard.
Islam has linked gold and silver to a set of fixed rules such as; blood money, penalty for cutting the hand of the thief, payment of Zakat etc. thereby making gold and silver to be the currency of the state. Islam prohibits the hoarding of gold and silver, due to the fact that hoarding of such will have a negative impact on its circulation, which is an absolute necessary due to the fact that it is used as a medium of exchange.
Islam prohibits the charging of interest or giving of interest. It defines, interests to be money on money. Which means exchange of 100g of gold for 110g will be considered earning of 10% interests, which is absolutely forbidden.
Since the state’s currency is based on gold and silver, if the value of gold rose in comparison with other commodities, the value of the currency in comparison with other commodities would rise as well. If the value of gold decreased in comparison with commodities, the value of the currency would also decrease. The state will use gold currency in its foreign and domestic transactions, or it will use it used a paper money which can be exchanged for gold. This paper money could either be for domestic use and for making payments abroad or solely for making payments abroad, on condition that this exchange for has a fixed price. In other words, it would still be following the gold standard on condition that the paper unit can be exchanged for a specific quantity of gold, at a fixed price and vice-versa.
Throughout the history of money and up until the First World War, the whole world operated the gold and silver standards. No other standards were known to the world until then. However, when the colonialists mastered the various styles of economic and financial imperialism, and began using currency as a means of colonialism, they established different monetary standards. They considered bank deposits and nonexchangeable banknotes, which had no reserve of gold or silver as money. This has pushed countries like Bangladesh to recently adopt the free-floating exchange rate mechanism. Via this mechanism the world slowly moves to the indirect pegging of its currency to the dollar. This in turn gives control to America to influence other countries economies and currencies with a slight change of policy from its Federal Reserve.
The benefit of using gold standard and silver standard:
The gold standards rids the central banks and governments from printing ample amount of paper money as and when they like, due to the fact that issuance of banknotes over the limit will not be able withstand the demand for gold which will also increase. Therefore, they will always tend to maintain a reasonable ratio between what they issue in terms of banknotes and gold reserves. Due to the stability of the gold prices the rate of inflation will be much more stable. This will benefit the poor.
·
Having the gold standard necessitates its free circulation, thereby encouraging import and export of gold, which leads to monetary, financial and economic stability.
·
Uncertainty of exchange rate usually discourages international trade and creates instability. Gold standard on the other hand, ensures the stability of exchange rates between countries and the stability of the exchange rates in turn leads to a boom in international trade, as it gets rid of the uncertain fear of exchange rate.
·
Since, the state will encourage other currencies in the world to move to the gold standard this will result in the movements of commodities, money and people form one country to another would be easier and the problem of hard currency will disappear.
·
The gold standard would help each country to preserve her gold, for there would be no gold smuggling form one country to another, and countries would not need to exercise control in order to protect their wealth, for gold would only leave the country for legitimate reasons as price for commodities or salaries for workers.
Draft Economic Policy Based Upon Islamic Principles
The Islamic Khilafat State will dismantle the existing capitalist system and restructuring the entire economy on Islamic principles. It should adopt the following policies:
·
Push a strong Islamic culturing policy throughout the entire society using all forms of mass communication available i.e. radio, television, newsprint, internet etc that all actions must be performed according to the commands and prohibitions of Allah (SWT) and our aim in life is not just getting material gains by any means possible, rather it is to attain Jannah in the Hereafter. This will root out the corrupted thoughts and practices amongst the people and encourage working together for the interest of the country. The understanding that needs to be developed is that we are only guardians of the wealth that Allah (SWT) has provided. Therefore, ownership, usage and its distribution are fair and according to His (SWT)'s commands.
·
Special emphasis on pushing this Islamic culture through all government sectors to build the Islamic political culture of ‘looking after the affairs of the people’ rather than looting their wealth.
·
Re-organise the tax department and set-up a unit specifically for collecting Zakat money and its distribution to the eight categories of people mentioned in the Qur'an. The proper zakat collection and distribution will ensure the eradication of substantial poverty in our society.
·
Re-organise the agricultural land distribution and impose Kharaj on the estimated production of the land. Promote agro-based research and industries to make the country self-sufficient.
·
Throwing large sums of money into the current vision less, unproductive, outdated education system is simply a waste of valuable resources. Hence a total reshaping of the education system will be needed. Abolish the current divide between the madrasah system and general system and integrate into one education system. The Khilafat State will discourage our educated people from leaving the country and give them the vision and incentive to work for the country.
·
The education system will produce the Islamic thinking and character. Rather than focusing on obtaining certificates for certificates sake, the education policy will be to develop the skills, knowledge and sciences in the people necessary for industrialisation of the country.
·
Remove the ownership of public utilities and natural resources from the private sector and bring it to the governments' management. Re-allocate funds to promote research in those fields, develop existing skills and promote building of industries around them.
·
Focus on the re-allocation of funds from useless government functions and departments, cultural activities and sports sectors to industries and research as immediate priority.
·
Attention needs to be given to the health and environment sector as a matter of urgency. It is the right of each individual to live a healthy life, the duty of which is upon the state to ensure this. Even with various developments in medicine people in Bangladesh still die of basic avoidable diseases. The whole medical practice has been turned into a business with much suffering to the people. The State must take measures to root out corruption in the health sector.
·
Withdraw from the shackles of the colonialist institution like IMF, World Bank and WTO. Reject their financial help and oppressive terms and conditions.
·
Engage in no free-trade policies with countries like India, USA, Australia and Britain until the state's economy is strong enough to compete with the subsidised product. Also, prevent our country from becoming a dumping ground for their products by pushing for development of industries using local materials and skills.
·
The security of the nation is highly important, especially when the State desires to become self sufficient – this may go against the wishes of other nations. The State will have to be particularly active and vigilant of the designs of colonialist powers and aim to expose their plans thus winning other developing nations onto its side. Hence foreign policy and defence related expenditures are a high priority for the Khilafat State.
Conclusion
For the last thirty years the people of Bangladesh have suffered at the hands of a group of greedy, selfcentred ruling elites who have implemented the oppressive capitalist system to do no more than further their own interests. Even in the 21st century millions of people in Bangladesh live without decent access to food, clothing and shelter, let alone health care and education. Our governments have always told the public that Bangladesh is a poor country and therefore no more can be done for the people. While these corrupt politicians have siphoned crores and crores of takas and built their palaces the hardworking people of the country have struggled for their basic livelihood. Today every family struggles and lives in uncertainty. Every family goes through the misery of poverty while our rich ruling class enjoys the benefits of their rampant and inhuman corruption.
In the name of development, aid and loans the Western imperialists have time again come to Bangladesh to pursue their corrupt, imperialist policies. They have only one aim i.e. to make Bangladesh a market for their products and to prevent this country, like the rest of the developing world, to ever acquire selfsufficiency.
Surely the time has come for the people to realise the hegemony and oppression of capitalism. Capitalism is a man made system designed to oppress the masses and benefit the few. Secularism, democracy, freedom are no more than a smokescreen to disguise the ugly face of capitalism. There is only one way for the people of this country to liberate themselves from the clutches of capitalism.
That is to unify the nation behind the correct, comprehensive ideology of Islam. Allah (SWT) created man and his society and gave clear laws and rules to organise the society in such a way that one group cannot oppress the other. This is unlike the democratic system where a group of corrupt ‘lawmaker’ make laws for the nation to suit their interests. The Khilafat system is a unique political system that will implement the systems of Islam, eradicate the oppressive poverty and inequality and give the society an objective and a vision that will drive the country towards development and prosperity. More importantly, it will liberate the people from the worship of man to the worship of Allah, the Creator and Sustainer of the Universe.
No comments:
Post a Comment