'Islamic economics the solution to economic problems'

Islamic economics has the solution to the economic problems of Muslim communities globally, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said theories developed in Islamic economics must be linked to practical policies in providing solutions to real life situations.

"Islamic economics places socio-economic justice as its primary objective. The principles of justice, fairness and equity are fundamental in Islamic economics," he said.

Speaking at the Second International Conference on Islamic Economics here today, Ahmad Husni said of the current 48 least developed countries worldwide, 21 are Organisation of Islamic Co-operation (OIC) members.

He said the economic and social development of these least-developed countries, represents a major challenge for themselves, their development partners as well as the Muslim community as a whole.

"The recent financial and economic crisis in the Eurozone and fears of a fiscal cliff in the United States, posed an additional threat to both the OIC and non-OIC countries alike.

"It is incumbent upon us to assist our OIC brothers, if not with treasure, at least with knowledge, to build their capacity to move up the economic development chain," he added.

On a number of injustices inherent in the global economy and financial architecture management, Ahmad Husni said Muslims should be able to influence it, but such an ambition would be too lofty at this point.

"However, this does not mean we are prevented from instituting change within our own domestic economies, to ensure there is equitable distribution of resources, including economic opportunity, capital and access to self-improvement skills and education.

"We must also ensure that the concept of socio-economic justice applies to all that resides within our domain as practised by Prophet Muhammad in Madinah more than a thousand years ago," he added.