DEATH OF CAPITALISM ECONOMICS

DEATH OF CAPITALISM ECONOMICS

SHARIA AND ECONOMIC OPPORTUNITY

With the failure of capitalism to build prosperity of mankind on earth, then the issue of economics is increasingly widespread deaths among the scholars of the world. Many experts who specifically wrote the book on The Death of Economics, among others Paul Omerod, Umar Ibrahim Vadillo, Critovan Buarque, etc..

Paul Omerod in the book The Death of Economics (1994). Wrote that economists are stuck in a mechanistic ideology of capitalism that did not have the power to help and overcome the economic recession in the world. The market mechanism which is a form of capitalist systems tend to be applied in concentration of wealth in certain groups of people.

Similar Omerod book, there are also Umar Vadillo from Scotland who wrote the book, "The Ends of Economics" which sharply criticized the injustice of the monetary system of capitalism. Capitalism would have done "robbery" of the wealth of developing countries through the monetary system of fiat money that actually is usury.

Of the various analysis of economists to conclude, that economic theory has been dead for several reasons. First, the Western economic theory (capitalism) has created a very deep economic injustice, especially because of the monetary system only benefits the West through the hegemony of paper currency and the system of usury. Second, the economic theory of capitalism is not capable of alleviating the problem of poverty and income inequality. Third, the paradigm does not refer to the interests of society as a whole, so there is a dichotomy between individuals, communities and countries. Fourth, economic theory is not able to align hubungana between the countries in the world, especially between developed countries and developing countries. Fifth, terlalaikannya natural resource conservation.

The reasons for this is that by Mahbub al-Haq (1970) regarded as the sins of capitalist development planners. This conclusion is so obvious when discussing the economic theory associated with development in developing countries. Meanwhile, recent developments indicate that the gap between high-income countries and low-income countries, continues to be an indication that globalization has not shown a benefit performance for poor countries. (The World Bank, 2002).

In line with Omerod and Vadillo, recently reappeared leading economic scientist named E. Stigliz, the holder of the Nobel economics prize in 2001. Stigliz is the Chairman of Economic Advisory Team President Bill Clinton, World Bank Chief Economics and Professor of Columbia University. In his book "Globalization and Descontents, he explores the impact of globalization and the role of the IMF (the main agent of capitalism) in overcoming the economic crisis, global and local. He stated, globalization is not much help poor countries. Due to globalization of people's income was also not increased in many parts of the world. Implementation of open markets, free markets, privatization, as the IMF formula for this cause economic instability developing countries, not vice versa as far west that globalization was touted to bring the benefits .. Stigliz revealed that the IMF failed in its mission to create a stable economic stability.

Because of the failure of capitalism that, since the beginning, Joseph Schumpeter doubted capitalism. In this context, he questioned, "Can Capitalism Survive"?. No, I do not think it can. (Can capitalism survive?. No, I do not think that capitalism can survive). Furthermore, he says, "Capitalism Would fade away with a resigned shrug of the shoulders", Capitalism will fade / die with the cessation of its responsibility for welfare (Heilbroner, 1992).

In line with economists' view of the above, economists Fritjop Chapra in his book, The Turning Point, Science, Society and the Rising Culture (1999) and Ervin Laszio in the 3rd Millennium book, The Challenge and The Vision (1999), reveals that the conventional economic (capitalism) system based on usury, has weaknesses and mistakes are great in a number of premises, particularly the economic rationality that has ignored the moral. The weakness that caused the economy (conventional) did not succeed to create economic justice and prosperity for mankind. What happened is the opposite, the sharp disparities between countries and communities with poor countries and rich people, as well as among members of society within a country. They further asserted that in order to improve this situation, there is no other way except to change the paradigm and vision, is to do a turning point in civilization, in the sense of building and developing the economic system that has values ​​and norms that could be accounted for.

The turning point of civilization Chapra Fritjop version fits with the idea when it gives an introduction Kuryid Ahmad Umar Chapra book, "The Future of Economics: An Islamic Perspective (2000), which requires changes in the economic paradigm. The same was written by Amitai Etzioni in the book, "The Moral Dimension: Toward a New Economics" (1988), namely the need for paradigm shifts (paradigm shift) in the economy.

In line with the views of scientists at the top, Critovan Buarque, an economist from the University of Brazil in buknya, "The End of Economics" Ethics and the Disorder of Progress (1993), unleashes a lawsuit against the capitalist economic paradigm that ignores the values ​​of ethics and social issues.

Capitalist economic paradigm that has caused negative effects for economic development of the world, called Fukuyama as "Chaos Strikes" the most monumental in his book, "The End of Order." (1997), which is related to the collapse of social solidarity and family.

Although in the West, there are efforts to realize social justice, but those efforts failed, because the paradigm to be based on the philosophy of materialism and economic systems ribawi. Sterility resulting elaboration of theory and practice of American Social Philosopher, John Rawis in the book "The Theory of Justice" (1971) who responded by Robert Nozik in his book "Anarchy, State and Utopia" (1974), has become an example that represents the failure of the theory of justice Western version.

Sharia Economic Opportunity

When the economic system of capitalism experienced fragility and "death", then once again affirmed, that the opportunity (chance) of Islamic economics increasingly open wide to develop and become a solution to the world economic system. The symptoms are increasingly showing the reality when 75 countries around the world have been practicing the economic system and Islamic finance, both in Asia, Europe, America and Australia. Similarly, in the academic field, several leading universities in the world are actively developing the academic study of Islamic economics. Harvard University is a university that actively develop forums and economic studies for the shariah. In Britain at least six universities Develop economic studies Shari'ah. Similarly, in Australia by Mettwally and several European countries, as is done Volker Ninhaus. The scientists of Islamic economics, not only among Muslims but also non-Muslims.

In Indoinesia the contrary, there are still many economic experts from the Muslims who still has a secular paradigm that has not been attracted to Islam because they have not studied economics and had no knowledge about Islamic economics. If they are honest and clear mind to learn, they will be interested and chuckle in awe to see the economic advantages of this godlike.

When the economic system suffered the death of capitalism, the existence of a new Islamic economy grew in the last three decades, more and having a positive outlook and bright. Economics Sharia is a post-capitalist economic system that acts as a solution to the world economy. Hopefully the scientists of Islamic economics is a great opportunity to fill it with a very strategic economic ijtihad more creative and innovative Shariah based values ​​to create a just world economic order.

By: Agustianto
(Secretary General of the Association of Indonesian Islamic Economics (IAEI) and Lecturer of Economics Sharia Pg PSTTI UI)