Global Catastrophes
and the Call for Ethical Economic Reform
Dr SHAYA'A OTHMAN
Summary
The 21st century faces
unprecedented global catastrophes—environmental degradation, climate change,
economic disparity, and social unrest—all of which challenge the prevailing
liberal and secular economic paradigms. These models, rooted in materialistic and
utilitarian philosophies, have often prioritised profit maximisation over human
well-being and environmental sustainability. As a result, they have contributed
significantly to systemic inequalities, ecological destruction, and moral
decline.
This article explores
the multifaceted nature of global crises and examines how the failure of
dominant economic ideologies has deepened these problems. It also introduces
the need for a paradigm shift—toward value-based, holistic economic frameworks.
Islamic economics, guided by the objectives of Maqasid al-Shariah, offers a
comprehensive alternative that aligns wealth creation with ethical
responsibility, environmental stewardship, and social justice.
By contrasting the
unsustainable practices of secular capitalism and the inefficacies of
state-centred socialism, this article sets the stage for the emergence of
Islamic entrepreneurship. It argues that Islamic principles—centred on divine
accountability, justice, and balance (mizan)—are uniquely positioned to offer
sustainable solutions for both human prosperity and planetary well-being.
1.1 Global
Catastrophes in the Modern Era
The world today is
witnessing complex global crises—ranging from climate change, extreme poverty,
pollution, and biodiversity loss, to inequality, forced migration, and
spiritual emptiness. The United Nations' 2030 Agenda identifies 17 Sustainable
Development Goals (SDGs), which illustrate the breadth of issues humanity
faces. Yet despite global consensus and ambitious frameworks, the targets
remain largely unmet. According to the 2023 SDG Progress Report, only 12% of
targets are on track, and progress is reversing in over 30% of indicators (UN,
2023).
1.2 Failure of
Secular and Liberal Economic Systems
The dominant global
economic system—liberal capitalism—is grounded in Enlightenment-era secularism,
which separates economic activities from religious or moral considerations. The
system idolises the “invisible hand” of the market, promotes individualism, and
often neglects social cohesion and ethical accountability.
As a result:
- Environmental degradation has worsened under deregulated industrial
growth.
- Wealth inequality has reached extreme levels, with 1% of
the world’s population controlling more than 45% of global wealth (Credit
Suisse, 2022).
- Social cohesion has fractured due to consumerism and
moral relativism.
Liberalism's failure
lies in its disconnection from higher spiritual and communal values. As Chapra
(2008) observes, the absence of a moral compass in economic systems leads to
economic growth that is unjust, unsustainable, and spiritually hollow.
Similarly, secular
socialism, while focusing on state-driven equality, often leads to bureaucratic
inefficiency and suppression of innovation. In both models, the disconnection
from divine accountability results in injustice and imbalance.
1.3 The Call for an
Ethical Economic Alternative
This ethical vacuum
calls for a reform grounded in spiritual and moral principles. The Islamic
worldview offers a comprehensive alternative through its economic model that
integrates:
- Divine accountability (taqwa)
- Justice (‘adl)
- Balance (mizan)
- Prohibition of harm (darar)
- Protection of essentials (Maqasid al-Shariah)
Islamic economics does
not reject wealth, but redefines its purpose—to serve humanity, not enslave it.
In this worldview, entrepreneurship becomes a spiritual mission, not merely a
profit-driven venture.
Conclusion
It has shown
that global catastrophes are not merely environmental or financial—they are the
direct consequences of flawed worldviews and ethical failures. Secular and
liberal economies have failed to safeguard human dignity, societal balance, and
environmental integrity. In contrast, the Islamic economic paradigm, grounded
in Maqasid al-Shariah, offers a holistic solution—integrating moral
responsibility with economic innovation. This foundation prepares us to explore
Islamic entrepreneurship not as a business tool, but as a transformative force
for global justice and sustainability.
Scholarly
References
- Chapra, M. U. (2008). The Islamic
Vision of Development in the Light of Maqasid al-Shariah. Islamic
Research and Training Institute.
- United Nations (2023). The Sustainable
Development Goals Report 2023. UN Publications.
- Credit Suisse. (2022). Global Wealth
Report 2022.
- Al-Attas, S. M. N. (1993). Islam and
Secularism. ISTAC.
- Kamali, M. H. (2008). Shari'ah Law: An
Introduction. Oneworld Publications.
