Islam prohibits a lot of customs and practices for some very solid reasons and riba is one of them. In fact, riba is said to be one of the practices which have been prohibited by the Holy Quran in the strictest way.
According to Islam, riba is an unearned or effortless profit. Islam had put an end to this unjust practice which was prevalent in the period of Jahilliyah. Christianity and Judaism are also averse to this practice. Besides these monotheistic religions the Greek philosophers such as Pluto and Aristotle also spoke against interest. Their doctrine was that a piece of money could not create another and they loathed interest as being an unjust practice.
Gradually, the modern economists started presenting arguments to justify the concept of interest by showing that Bible’s condemnation of interest is not applicable to a modern economy.
There is not a single theory of interest amongst the economists which can explain convincingly the origin and cause of the practice of interest.
The reputed Western economist Roy Harrod had stated in his popular book ‘Towards a Dynamics Economics’ that the capitalism can be saved from doom only by abolition of interest. According to him an interest-free society would be an absolutely new type of society.
If we delve deeper into the topic of riba, we find that riba can adversely affect the society in 3 ways: financial, moral and social.
In my next posts, I shall discuss about the social, the economic and the moral evil of riba.
Keep Me In Your Prayers.