The 5th Islamic Economics Workshop Was Held In Sakarya

05 April 2017

Interest is the Main Source of the Current Economic Problems

Interest has to be completely abolished for the permanent solution of the financial problems. For the solution of the financial problems, the field of interest-free applications should be enhanced, and the new applications like cooperative banking, real estate certificates, solidarity and cooperation funds, micro finance and crowd funding should be led up in the legislation.

The 5th Islamic Economy Workshop, which was organized by Islamic Economy Research Center (IKAM), Scientific Studies Association (ILEM), and Turkish Economic Enterprise and Business Ethics Association (IGIAD), and hosted by Sakarya University Application and Research Center of Islamic Economy and Finance (ISEFAM), was held this year in Sakarya between March 31st and April 2nd, 2017. The event started in Center for Islamic Research (ISAM) on March 31st, 2017 with an opening panel having broad participation, took place with 6 sessions in total, in which important discussions were made, in Sakarya for two days.

The fifth of "Islamic Economy Workshop", which is one of the most global organizations in its field and academicians from universities in many different countries participated in, was carried out under the heading of "Interest from the Perspective of Islamic Economy". Experts and academicians from Turkey accompanied those academicians, who participated in the event from a wide geography from Norway to Malaysia.

Before the panel, on behalf of Organization Committee Lütfi Sunar, the President of IKAM, and Süleyman Kaya, Director of ISEFAM made opening speeches. Necmettin Kızılkaya, from Istanbul University and the chairman of the opening panel, Ahmet Tabakoğlu from Marmara University, Mehmet Ali Akben, President of The Banking Regulation and Supervision Agency (BDDK), Mabid Ali Al-Jarhive from INCEIF, and Ayhan Karahan, President of IGIAD, took place as speakers in the panel.

"Islamic Economy Is Not Just About Finance"
Sunar, mentioned that "Islamic Economy Workshop" produces new perspectives and new solutions for the current economic problems. Sunar continued his speech as such; "This is a program we have been organizing with different universities in Istanbul for 5 years as IKAM. We will be discussing the issue of interest, which leads to many social, political and economic problems and essentially takes part in today's economic problems, with different dimensions in this workshop. We will look for solutions to the problems emerging about how an interest-free economic system, which is maybe the most authentic dimension of the Islamic economy, will be established. The program will last for 3 days, scientists from different countries of the world and a large number of academicians from Turkey will contribute to the program as well. Both for Turkey and the world, we hope that the Islamic economy will contribute to the formation of a more just, livable world. The Islamic economy can be handled in relation to finance from time to time, but Islamic economy is not just about finance.”

Interest Issues Have Been Widely Discussed
In the workshop the issue of interest has been discussed from different dimensions. In the first session, the topic of interest was discussed in terms of both financial and social justice and philanthropy. In the second session, the interest insights of the classical period that shed light on the historical process of interest were evaluated. In the third session of the workshop, money transfers of Islamic banks with debt financing channels were discussed and interest-free financing structures were discussed. The fourth session allowed interest to be handled in accordance with religion and to be discussed by the participants. In this session, while the process of converting an interest-bearing bank into an interest-free bank was handled in terms of Islamic law, in addition, a survey on interest sensitivity of the religion personnel in Turkey was also shared with the participants. In the fifth session of the workshop on the second day, alternative solutions to investors' interest bearing borrowings were evaluated, crowd financing was considered and the role of the state in the interest-free economic system was examined. The last session took place with the presentations about the negative effects of interest on welfare distribution and the relation of interest to Murabahan, which is used, in interest-free financing methods.
During the evaluation session at the end of the two-day workshop, a declaration was issued on the issues that were created by interest in accordance with religion, finance, social justice, law and many others. The declaration, which was emerged as a result of the discussions made by the participants of the workshops consisting of academicians, representatives of NGOs and the industry.