March 12, 2014

Privatization And The Ethics Of Islam

Essay : [Privatization And The Ethics Of Islam]

English Essay on "Privatization And The Ethics Of Islam"

Privatization And The Ethics of Islam

including peoples of the Muslim faith, seem to have attracted the advocates of privatization. Disturbing results are obtained when the substance and process of privatization are juxtaposed to the teaching of Islam.

In certain cases, privatization may result in the transfer of wealth from relatively weak hands (i.e., from the debtor governments of the less developed nations) to relatively strong hands i.e., consortia of international entrepreneurs). Islam teaches the opposite: It recognizes the right of the less able in the wealth of those who have greater ability or the opportunity to produce greater wealth.

The outcomes of privatization are important to peace and security. Consequently, the emergence of privatization as a cart's paw in political discourse is not good omen, for example, Abdelhak Benhamouda, Algeria's labor leader, "opposes any privatizations undertaken on the back of the workers and demanded guarantees from the government". In• most of the world "privatization" is equivalent to denationalization.

The distinction between denationalization and outsourcing is basic: outsourcing usually entails neither diminution in public accountability nor change in the interaction of individual citizens with their government; however, denationalization relieves government of further responsibility, The current rush to privatize is rooted in the widespread belief that state owned enterprises are inefficient. While there could be merit in this assumption, one might expect that specific programs would be subjected to fact finding before the complex solution of privatization is pursued.

The results of an operational review may support relatively easy solutions such as the outsourcing of specific governmental tasks or the substitution of suppliers where activities are already being outsourced. (The mere act of rebutting could have salutary effects on the performance of an existing supplier.)

Denationalization has long term effects: once accomplished, denationalization becomes virtually irreversible. Moreover, it is impractical to issue guidance as to the selection of an optimum technique for privatization.( The technical difficulties are com founded by a shortage of experienced privatization managers, particularly, persons" with the vision required to succeed in culturally diverse situations,

The most important challenge to implementers of privatization is posed by the national ethos of the host nations. Where a choice has been made to denationalize, the model of the process (Le, its nature, timing, and extent) is greatly influenced by cultural, technological, and social factors.

Muslims perceive problems with absentee shareholders: Islam obliges business owners to be concerned activists, especially with respect to the welfare of their employees and the' preservation of the environment. Islamic theologians tend to be suspicious of stock transactions; they fear that the issuers may have gained some of their profits from interest based finical deals, contrary to Islamic law. Conservative Muslims may even regard share trading as a form of (prohibited) gambling.

Also, privatization advocates have been known to ignore the employment circumstances of developing nations which may require national, provincial, or municipal governments to serve as employer of last resort. Furthermore, the act of denationalization may incorporate hidden disincentives. For example, it may curtail pre-denationalization public employment which may have brought benefits through policies designed to protect women and minorities.

A denationalized entity is subject to normal business risks; however, rarely have these risks been identified, analyzed, or controlled. One such risk, management fraud, represents a particularly dangerous threat.( Managers have literally stolen firms; they have sold or leased the assets to shell companies owned by friends or to joint ventures set up with foreign partners, in which they had• some kind of stake or guarantee of employment.

Islam aims to establish a just and moral social order through the agency of man, rooted in justice. Islam does not distinguish between the religious and the secular or between the spiritual and the temporal. Within the framework of Islamic law each person is given freedom of action subject to the limitation that the individual's actions do not violate the rights of others.

Islam's economic system is an integral part of Islamic life. The expression used for Islamic economics (iqtisad) literally means the "state of being even or equally balanced (Iqtisadi) activities are considered to represent a means for showing love of God. Some differences from Western economics, in terms of emphasis, follow:
The causes of friction have been presented n realistic terms. Unrest has been mounting over unemployment and ethical issues. In Pakistan, opposition to privatization and pressure from fundamentalists to implement, Islamic business practices continue to pose risks. Egyptian labor is strongly opposed to privatization of the state sector, fearing loss of jobs; layoffs following privatization are expected to further increase social tensions. Morocco's biggest union, the Democratic Labor Federation, believes that privatization will cost jobs and further concentrate wealth among the Casa Blanca Rabat elite. The Algerian government has called for a "social pact" to soften the flow of the movement toward a market economy; The Speaker of the Kuwait national Assembly has demanded a probe of allegations of insider trading said to have occurred in the State's latest share sale, which has already been alluded to.

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