Education is not for the Intellectually Timid

It doesn't happen that often--maybe because students don't care to say anything about it--but occasionally someone in class would argue that some comments/discussions about certain belief systems are offensive and disrespectful. The other day, a student said, "I don't pay thousands of dollars to have my beliefs insulted." Presumably she meant that certain topics should be off limits because she's uncomfortable with anything that may undermine her sacred beliefs. She pays thousands of dollars to get an education--in my opinion, education means more than vocational skills--but is she interested in paying for an education that sharpens critical skills? How about, the value of arriving at a conclusion after examining the facts and weighing the validity of the arguments?

The piece of paper a university awards should mean that the title holder has critical skills, can analyze, can amend, construct reasonable arguments, connect the relevant dots, and, yes, maintain a curious mind. How about learning something that may be outside one's comfort zone? Is this valuable?

Now, on the question of respect. As a principle it's a good one: respect every individual's human dignity; respect their rights; respect their claims to own conscience and opinion. But, why should their beliefs be granted automatic respect? Yet, denying automatic respect to a point of view does not mean people don't have the right to have whatever opinion they deem appropriate or their right to express it. Simply put, I do not recognize any right of de facto respect. Opinions, theories, belief systems should be evaluated on their merits. How can anyone demand that such be afforded sacred status? What's sacred for me may be laughable to you, and I'm OK with that! So, should you!

To take it a step further, if you claim sanctity for your beliefs, it may be an indication of weakness. Instead of having the force of arguments to defend your views, you rely on censorship for protection. I realize that many people don't want to be challenged so they seek supporting views only. Of course, this is their right. Of course, it's their right to feel any way they want. They can create filters and avoid places that present challenges. However, they should be prepared to have their views tested when they enter an institution where intellectual pursuits involve critical examination of ideas and beliefs.

How do we know things? Seriously, how do we know if something is true & valid? Maybe I should ask instead, do we care to know?

If we do, then the scientific method is the best tool we have to understand and accumulate precious knowledge! This involves open discussion, challenges, reason, evidence, review, and a way to amend.

I'm naturally suspicious of claims of divine revelation. I don't think profound knowledge or truths should be revealed only in secret and to a very few people. Especially when such statements can't be put to a test or subject it to an intellectual challenge. As someone claims the right not to be offended, I claim the right to free speech and rational thought. Above all, I claim the right to be human!

And, that's my theory!

Islamic Banks: Have They Eliminated Interest, or Just Changed its Name?

"Those who charge usury are in the same position as those controlled by the devil's influence. This is because they claim that usury is the same as commerce. However, GOD permits commerce, and prohibits usury. Thus, whoever heeds this commandment from his Lord, and refrains from usury, he may keep his past earnings, and his judgment rests with GOD. As for those who persist in usury, they incur Hell, wherein they abide forever" [The Koran]

The rise of Islamic Banking over the past 40 years into an institutional financial structure spread over the globe has been a phenomenon that has attracted lots of interest. As is often the case whenever a new idea arises it s rise is associated with many falsehoods, half truths and unfulfilled promises. The whole concept of Islamic Banking rests on 4 Qoranic verses that speak against Ribaa (2275-81; 3:130-2; 4:161 and 30:39). Although the Arabic word Ribaa does not mean interest rate yet the four schools of Islamic jurisprudence have interpreted Ribaa to imply interest rates. In the opinions of many that interpretation could easily have been usury. In that case the idea of “Islamic Banking” would no longer appear to be inviolable.

The Islamic Development Bank, the largest Islamic Bank, is a breath of fresh air in the stultified field of economic development. How appropriate it is to give interest free loans to the developing nations instead of burdening them with huge debt service and strict conditionalities a la World Bank and the IMF. But this idea of interest free banking which rests strongly on the two sources of (1) Ijma, Consensus, and (2) Qiyas, analogy, becomes more problematic in other areas.

It should be clear from the above that the basis on which interest free banking rests does not sanctify the idea but in fact is an attempt to replace the interest rate income with a substitute that achieves the same objective as the banished instrument. This is nothing short of a process that seeks conformity with the letter of the prohibition against Ribaa but not its spirit. Since income that flows from trade and risk sharing is considered to be Hallal, lawful, Islamic Banks have adopted Profit Loss Sharing (PLS) as a replacement for the Lender-Borrower Haram, forbidden, relationship.

The Mudarabah and Musharakah, the most popular methods to avoid interest rate income are structured so as to yield the same income that traditional interest rates would have produced in traditional banks. Such a cumbersome structure makes Islamic Banks less competitive than traditional ones. It might be instructive in this regard to recall the words of the Islamic Pakistani economist Ahmad: “”No single Moslem country is running its financial institutions without resorting to interest… no one knows how to do it…they resort to some kind of subterfuge..change the name of interest and you have abolished interest”.

An even more scathing criticism is delivered by Dr Hasanuz Zaman who writes:
".. many techniques that the interest-free banks are practicing are not either in full conformity with the spirit of Shari’ah or practicable in the case of large banks or the entire banking system. Moreover, they have failed to do away with undesirable aspects of interest. Thus, they have retained what an Islamic bank should eliminate. "

The current Sharia prohibition on Ribaa renders consumption loans very difficult to structure and as a result the practice of financing trips and personal purchases under Islamic Banking rules becomes harder to structure and implement. Furthermore, a real challenge of Islamic Banking is the ability to develop effective tools that Central Banks can employ in transacting their monetary policies.

Equity and justice, the hallmarks of an Islamic society, do not have to be incompatible with a banking system that charges interest rates. All what is needed to make traditional banking acceptable to the Moslem believer is an act of Ijma, consensus, by Islamic fiqh whereby a distinction is made between usury and a regular interest rate. Once the Islamic Ulamah agree to equate Ribaa with usury then the often cited reason for the prohibition of Ribaa in the first place, ruinous borrowing and the need for Adl, justice, in protecting the weak and the poor would have been met.

Moslem societies do not have to invent financial instruments to perform the function of what is already being done but albeit under a different name. Islam can enrich us all by emphasizing the importance of ethics in the economic sphere but it does not need to reinvent the wheel in order to accomplish that.