Islamic banking and the collapse of capitalism
The global financial crisis has shaken the foundation of capitalism all over the world, from the rich North to the poor South, from democratic regimes to dictatorial ones. Voices were raised everywhere; I am talking of course about the Muslim writers and intellectuals who predicted the collapse of capitalism, and the bankruptcy of capitalist countries, announcing that the Islamic financial system would soon prevail. After the dust settled around the US financial institutions, and the subsequent impact of the US financial crisis on the global financial system emerged, it became clear that this collapse will not be limited to US financial institutions alone; it will affect many financial institutions worldwide.
This financial collapse has also resulted in a crisis of confidence following the international credit crisis. This crisis further expanded to include the real economy worldwide, and it has shown the extent to which international markets are linked to, and affected by, one another. The prices of oil and basic commodities, and the transport, tourism, and real-estate markets have declined significantly worldwide, while purchasing power has also been weakened. On the other hand unemployment rates worldwide, from New York to Dubai, have soared, and charitable organisations all over the world have suffered. All sectors have suffered, including even the sports sector, for example Honda has pulled out of Formula One racing. No regime or country is immune from this [economic] crisis.
The world has woken up and realised the importance of the tie between the world economy and the US economy, and it has felt the impact of this connection during the economic crisis, more so than it did in times of prosperity. The crisis also revealed the spread of capitalist ideology and its permeation throughout the world’s political regimes, even the autocratic regimes such as China. It also revealed that those most harmed by the economic crisis are the developing countries and the emerging economies around the world, which inc