As a newcomer to the World Islamic Economics and
Finance Conference (WIEFC) which was first held at the Pearl Continental Hotel,
Lahore on 3 and 4 January 2018, I was left speechless when a prominent Iranian
economist recently highlighted the profound insights of a book launched during
the 7th WIEFC at Minhaj University Lahore on 27 January 2024.
It was then that i realized a defining feature of the WIEFC
is its prestigious book-launching segment. For example, during the recently
concluded 8th WIEFC at Minhaj University Lahore on January 25-26 2025, six new
books were unveiled including The Routledge Handbook of Islamic Economics and
Finance, Artificial Intelligence and the Future of Islamic Finance and Global
Environmental Sustainability and Islamic Ethics.
The book praised by the Iranian economist, Beyond IMF: The
Emergence of Muslim Common Waqf (MCW) as an Alternative for Islamic Countries
authored by Prof. Dr. Hussain Mohi-ud-Din Qadri, captivated my interest.
After acquiring and reading it, I found it to be a
groundbreaking work that offers a revolutionary framework for addressing the
persistent economic challenges faced by Muslim-majority nations.
With its bold critique of the current global financial
architecture and a visionary proposal for the establishment of the Muslim
Common Waqf (MCW), the book is a clarion call for economic self-reliance and
collective empowerment in the Islamic world.
The International Monetary Fund (IMF) often regarded as a
safety net for struggling economies, has long been a subject of controversy,
particularly in developing and Muslim-majority countries.
Dr. Hussain not only critiques the IMF’s policies but also
provides a concrete, actionable alternative in the form of the MCW—a
shariah-compliant framework designed to foster economic sovereignty and
sustainable development for the muslim ummah.
At the heart of this book is a comprehensive critique of the
IMF’s role in perpetuating debt dependency among developing nations
particularly those in the muslim world.
Dr. Hussain lays bare the socio-economic costs of IMF
programs, highlighting how stringent conditionalities and high-interest loans
often exacerbate poverty, inequality and underdevelopment.
He argues that the IMF’s one-size-fits-all approach has
failed to address the unique economic and cultural contexts of Muslim-majority
nations, making the case for an alternative financial model rooted in Islamic
principles.
While the IMF’s mission is to promote global financial
stability, its approach has frequently drawn criticism for exacerbating
economic and social inequalities particularly in muslim-majority nations.
First of all, the IMF often imposes rigid economic reforms
on borrowing nations such as austerity measures, subsidy removals and
privatization of public assets.
While intended to stabilize economies, these measures
disproportionately impact the most vulnerable populations, leading to increased
poverty and inequality.
Secondly, countries under IMF programs are often required to
reduce spending on healthcare, education and social welfare to meet fiscal
targets.
These cuts undermine long-term human development, especially
in nations already grappling with high poverty and inequality.
Moreover, the IMF’s high-interest loans and cyclical
borrowing conditions trap nations in a perpetual state of debt dependency.
For Muslim-majority countries, these challenges are
compounded by the Shariah prohibition on interest-based lending, making IMF
loans fundamentally incompatible with Islamic principles.
In addition to that, the IMF’s focus on market
liberalization often comes at the cost of social equity and justice. Its
approach tends to prioritize foreign investment and economic reform over the
well-being of local populations, prompting a growing call for alternatives
aligned with the ethical and community-focused principles of Islam.
*Introducing the MCW: A Shariah-Compliant Solution*
In beyond IMF, Dr. Hussain introduces the Muslim Common Waqf
(MCW) as a transformative financial framework that addresses the shortcomings
of the IMF and provides Muslim countries with a sustainable path to economic
independence.
The MCW is rooted in the Islamic tradition of waqf
(endowment) and zakat (almsgiving), leveraging these principles to establish a
self-sustaining pool of funds for development, disaster relief and
socio-economic advancement.
Dr. Hussain draws inspiration from the Ottoman Empire, where
waqf institutions were instrumental in funding public welfare projects from
education to healthcare.
These historical examples highlight the transformative
potential of waqf as a tool for socio-economic development and provide a
blueprint for the MCW’s implementation.
Key Features of the MCW Framework include:
1. Collaborative Resource Mobilization: The MCW encourages pooling financial
resources from OIC member states, wealthy individuals, and private entities.
Contributions may include cash, property, and other assets, all managed
transparently under Shariah principles.
2. Shariah-Compliant Investments: The framework employs Islamic finance
mechanisms such as Musharakah (partnership) and Mudarabah (profit-sharing) to
ensure ethical and sustainable investments.
3. Strategic Development Goals: Funds are directed toward critical
sectors like education, healthcare, renewable energy, and infrastructure,
ensuring long-term socio-economic growth.
4. Debt Relief and Self-Reliance: The MCW provides an alternative to
high-interest borrowing by offering Shariah-compliant financial assistance.
This empowers nations to reduce dependency on external financial institutions
and reclaim their economic sovereignty.
5. Technological Integration: Advanced technologies like blockchain ensure
transparency and security in fund management, while AI optimizes investment
strategies for maximum impact.
6. Robust Governance: Independent oversight committees and digital
accountability mechanisms safeguard the fund’s integrity and ensure that
contributions are used effectively.
Proposed structure of the MCW includes its Central
Committee, comprising representatives from OIC member states, financial experts
and Shariah scholars which oversees the allocation of funds, ensures compliance
with Islamic principles, and monitors project outcomes.
Its Secretariat, meanwhile, acts as its operational arm,
responsible for implementing policies, managing investments, and evaluating
project proposals.
*Practical Applications of the MCW*
The MCW’s scope extends beyond financial assistance,
encompassing a wide range of practical applications:
• Infrastructure Development: Funding for projects such as roads, hospitals,
schools, and renewable energy plants can accelerate development in underserved
regions.
• Disaster Relief and Recovery: The MCW serves as a financial safety net for
countries affected by natural disasters or humanitarian crises.
• Educational Advancement: Investment in educational institutions and
vocational training centers can address skill gaps and enhance human capital
across Muslim countries.
• Energy and Technology: Supporting renewable energy projects and technological
innovation fosters sustainable growth and positions Islamic countries as
leaders in global sustainability efforts.
*Why the MCW Model Deserves Global Support*
The MCW is more than an alternative to the IMF—it is a
paradigm shift in global finance. By prioritizing justice, equity and community
welfare, the MCW aligns with the core values of Islam and offers a roadmap for
sustainable development.
The MCW model stands out because it can enable muslim
nations to break free from the constraints of interest-based financial systems
and reclaim control over their economic destinies.
By directing funds toward public welfare, the MCW fosters
social equity and addresses systemic challenges like poverty and inequality.
Moreover, the MCW also promotes unity among OIC member
states encouraging collaboration and shared responsibility for collective
prosperity.
Beyond IMF is more than a critique of existing financial
systems—it is a visionary guide for a just and sustainable economic future. Dr.
Hussain’s proposal for the MCW is a beacon of hope for Muslim nations seeking
to overcome economic dependency and foster resilience through collaboration and
innovation.
The time for action is now. Policymakers, scholars and
leaders across the Muslim world must embrace the MCW framework, recognizing its
potential to transform the financial landscape of the Ummah.
By uniting under the principles of Islamic finance, Muslim
nations can build a future defined by economic independence, social justice and
collective progress.
The MCW is not just an alternative; it is a revolution. It
is a call for solidarity, self-reliance and the pursuit of prosperity grounded
in the ethical and moral teachings of Islam. Let us rise to the challenge and
make this vision a reality.
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