Beirut Economic Crisis Presentation

The short presentation that I gave at the Press Conference held in Beirut on Friday the 3rd of April.


In the Name of Allah, the Beneficent the Merciful

In the quagmire of the economic crisis with toxins billowing out from the United States of America and other Western Capitalist nations…after the failure of Socialism to provide a stable and secure economic life for the people… after Capitalism sank deeper into successive crises revealing its failure, it is now obvious that Capitalism has failed to provide an economic solution to the current crises - instead is increasing the crises even further.

With this failure of Capitalism, and since many are now asking for a more sound economic system, Hizb ut-Tahrir held a global economic conference in which many intellectuals and economists from around the world gathered on Saturday, 7 th Muharram 1430 A.H. 3rd January 2009 Khartoum, Sudan. More than 6,000 attended in response to the call of the Party. 10 speakers from 10 different regions and all world continents spoke.

The conference began at 10:00am with the blessed recitation of the Holy Qur’an followed by a statement on the events of Gaza and an explanation of Hizb ut-Tahrir’s proposed Islamic solution of victory for the people of the Gaza strip. The statement also mentioned how the response to the massacre in the Gaza Strip is well-known and does not require analysis or debate. Likewise, the response also does not lie in the resolutions of those nations that created the entity of Israel and continue to support it. Rather, the only response is mobilising the Armies and unify the soldiers able to engage. There is no other way.

Thereafter, the conference had its opening speech of the `Alim `Ata’ b. Khalil Abu Rashta, the global leader of Hizb ut-Tahrir in which he classified the political ruling class of the major superpowers and divided their economists into two types: the first type are those that turn a blind eye to the corrupt foundations of Capitalism that generated this crisis in the first place directing their attention to only treating the consequences and effects. The second type include those who restrict their thought to two ideological systems, namely Socialist-Communism which failed and finally collapsed and Capitalism which is faltering but has yet to collapse completely. These economists refuse to even consider – Islam.

the Conference had 3 sessions

Four papers were presented during the first session:

The first paper entitled “Capitalism carries within itself its own Failure and Generates Crises” by `Abd Allah `Abd al-Rahman explains the reality that there is no good in Capitalism which only serves the interests of a specific class keeping the rich richer and the poor - half of the world which is living on less than 2 dollars a day.

The second paper entitled “Birth of the Current Economic Crisis – Its Causes and Effect” was delivered by Abu’ l-`Izz `Abdus -Salam explaining the magnitude of the current economic crisis which is neither normal nor short-term.

The third paper entitled “The Impact of the Economic Crisis on Indonesia” was presented by Professor Revrison Baswir.

The fourth paper entitled “The impact of the Economic Crisis on Bangladesh and Pakistan” was presented by Dr. Mahmud Osman.

Three papers were presented during the second session:

The first paper entitled “The Impact of the Economic Crisis on Turkey” was given by Professor Haluk Erdogan, who said that the impact of this crisis is reflected in the Turkish families. Many families live in extreme anxiety coupled with growing unemployment.

The second paper entitled “The Impact of the Economic Crisis on the Arab Countries” was delivered by Abu Ahmed Yusuf. He highlighted the growing unemployment, poverty and crime, a lack of opportunities and even increasing divorce rates.

The third paper entitled “The Economic, social and ideological impact of the Crisis in Europe” was delivered by Andreas de Vries. Andreas highlighted the inextricable links between the European and US banks which exported the excesses brought on by its housing bubble and the securitisation of that debt. He also highlighted the growing unemployment and depression amongst the population and social unrest that some academics forecast may lead to a bringing down of the current political order, of which Iceland is only the first.

Three papers were also presented during the third session:

I presented the first paper entitled “The Impact of the Economic Crisis on the West - Britain and America”. I mentioned that the US is the most indebted nation, at more that $10 Trillion. And this amount is increasing rapidly, with their endeavour to save their bankrupt banking system – but not those in debt! The enormous growth in debt/credit (100 Trillion) and derivatives which are mostly gambling contracts is clearly out of control and massively destabilizing.

The second paper entitled “The Failure of Current Solutions” was presented by Abed Mustafa where he indicated that all treatments carried out by States whether individually or collectively failed to address the crisis, because these countries did not dare to say that the crisis lay in the capitalist system itself. What is necessary, however, is to demolish the basis and the foundations and to search for a viable solution upon its ruins, because mixing and matching (i.e. a patchwork) does not work and the damage is now beyond repair! The Capitalist ideology is a threat and danger to the whole of humanity, including the peoples of the Western capitalist world.

The third and final keynote paper entitled “Only the Islamic Economic System under the Khilafah State can provide crisis free Economic justice” by Professor Abu Khalil Ibrahim Osman explained the difference in the Islamic economic system which ensures a decent life for all people, Muslims and non-Muslims as long as they live under the shade of Caliphate A State which will guarantee their security and livelihood regardless of their religion, race and ethnicity. Whoever strives for it will be guided and live a good and wonderful life. But if other systems are taken instead, you will see the misery and hardship suffered by those who live by it.

Allah spoke truly when He said:

فَإِمَّا يَأْتِيَنَّكُمْ مِنِّي هُدًى فَمَنِ اتَّبَعَ هُدَايَ فَلا يَضِلُّ وَلا يَشْقَى


وَمَنْ أَعْرَضَ عَنْ ذِكْرِي فَإِنَّ لَهُ مَعِيشَةً ضَنْكًا

“But when there comes to you from Me a guidance, then whoever follows My guidance, he will not go astray nor come to grief.
But he who turns away from My Reminder, for him is a life of hardship” (Taha 123 124)