Mudharabah: Solution to Unemployment
Mudharabah : Islamic Solution to Unemployment Crisis
1
Islamic Solution to the Unemployment Crisis
Ezry Fahmy Bin Eddy Yusof International Islamic University of Malaysia (IIUM)
Economics in the Qur’an and the Sunnah
Mudharabah : Islamic Solution to Unemployment Crisis
2
1.0 INTRODUCTION
The whole world is now in the grip of a financial crisis which is far more serious than any experienced since the Great Depression. It has taken more than $3 trillion of bailout and liquidity injections by a number of industrial countries to abate somewhat the intensity of the crisis. Nevertheless, there are fears that this crisis may have exposed the world economy to a long period of economic slowdown. There is, hence, a call for a new architecture that would help minimise the frequency and severity of such crises in the future.
As the scholars in Islamic economics mostly sees from the macro perspective, from this assignment we will look it from a micro perspective where we chose unemployment that has increase tremendously as the topic of discussion. We choose some of the latest news in the unemployment matters that reported by the Economist magazine to be our literature review.
Later we will propose some solution to overcome the problem that faced by the global because of the current crisis. We believe that the financial crisis has widened the global appeal of Islamic finance and therefore the opportunity must be use wisely. It may sound idealistic, but we believe that fourty years ago no one haven’t thought that Islamic financial system could become such phenomenon like nowadays. We also believe that based on a proper understanding of the Maqasid Al-Shariah (Shariah objectives) is needed to be included in Islamic finance practically in order to achive justice in the society.
Thus, this paper is made as suggestions to the current crisis that sooner or later will affect the Malaysia economy. The suggestions will focus directly to the institutions or
1
Islamic Solution to the Unemployment Crisis
Ezry Fahmy Bin Eddy Yusof International Islamic University of Malaysia (IIUM)
Economics in the Qur’an and the Sunnah
Mudharabah : Islamic Solution to Unemployment Crisis
2
1.0 INTRODUCTION
The whole world is now in the grip of a financial crisis which is far more serious than any experienced since the Great Depression. It has taken more than $3 trillion of bailout and liquidity injections by a number of industrial countries to abate somewhat the intensity of the crisis. Nevertheless, there are fears that this crisis may have exposed the world economy to a long period of economic slowdown. There is, hence, a call for a new architecture that would help minimise the frequency and severity of such crises in the future.
As the scholars in Islamic economics mostly sees from the macro perspective, from this assignment we will look it from a micro perspective where we chose unemployment that has increase tremendously as the topic of discussion. We choose some of the latest news in the unemployment matters that reported by the Economist magazine to be our literature review.
Later we will propose some solution to overcome the problem that faced by the global because of the current crisis. We believe that the financial crisis has widened the global appeal of Islamic finance and therefore the opportunity must be use wisely. It may sound idealistic, but we believe that fourty years ago no one haven’t thought that Islamic financial system could become such phenomenon like nowadays. We also believe that based on a proper understanding of the Maqasid Al-Shariah (Shariah objectives) is needed to be included in Islamic finance practically in order to achive justice in the society.
Thus, this paper is made as suggestions to the current crisis that sooner or later will affect the Malaysia economy. The suggestions will focus directly to the institutions or
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