Islamic countries today face significant economic hardships. Out of the 57 Islamic nations in the world, 45 are classified as poor, while the remaining 12 are primarily wealthy due to their oil reserves. This raises a crucial question: why are Muslim countries struggling with poverty despite their rich historical contributions to science, philosophy, and governance? Is there an inherent link between religion and economic downturn, or are there other underlying reasons?
When analyzing the world map, it becomes evident that the regions experiencing the most wars and conflicts are predominantly Islamic. The Middle East and North Africa have been hotspots for military conflicts for decades, leading to economic instability, population displacement, and destruction of infrastructure. Cities such as Mosul, Damascus, and Beirut have been devastated by wars, and their economies have collapsed. Additionally, inflation and food insecurity are rampant. For example, in Somalia, a dozen eggs cost 400 rupees, making even basic necessities unaffordable for many. Iran and Iraq face similar inflationary pressures, with the cost of essential goods skyrocketing.
While many people believe that terrorism and war are the primary reasons for economic decline in these nations, this is only a surface-level observation. The root causes are much deeper and more complex.
Wars and Their Impact on Muslim Countries:
Wars and internal conflicts have had devastating effects on Islamic nations. Many of these conflicts stem from historical geopolitical rivalries between Sunni-led Saudi Arabia and Shia-led Iran. This religious-political divide has led to proxy wars across the region, further weakening economies and deepening poverty.
The war in Yemen serves as a prime example of how external influences shape internal conflicts. The country has been turned into a battlefield, with Saudi Arabia backing the Sunni government and Iran supporting the Houthi rebels. As a result, millions have been displaced, infrastructure has been destroyed, and the economy has crumbled. Similarly, Lebanon, Syria, and Iraq have suffered due to prolonged conflicts fueled by external interventions and sectarian divisions.
The Role of Democracy and Political Instability:
Many believe that the transition from dictatorship to democracy leads to economic prosperity. However, in Islamic countries, attempts at democratic reform have largely resulted in further instability.
The Arab Spring, which began in 2010, was initially seen as a movement towards democracy and freedom. It was sparked by the self-immolation of Mohamed Bouazizi in Tunisia, which triggered mass protests against authoritarian regimes. However, apart from Tunisia, most of these nations saw their economic and political conditions worsen after the uprisings. Countries like Libya, Syria, and Yemen descended into chaos, with warlords and extremist groups seizing power, leading to prolonged conflicts and economic collapse.
Even in cases where democracy was established, it remained fragile. In countries like Egypt, democratic movements were quickly suppressed, and authoritarian rulers regained power, preventing meaningful economic reforms from taking place.
Economic Challenges in Islamic Countries:
One of the fundamental barriers to economic growth in Muslim nations is the financial system. Many Islamic countries follow Sharia law, which prohibits interest (riba) in banking transactions. This significantly limits the ability of businesses to obtain capital for expansion, stifling economic growth.
Unlike Western financial systems, where banks thrive on interest-based lending, Islamic banks operate on an equity-sharing model. This means that instead of charging interest on loans, they take a stake in the borrower’s business. While this system has its merits, it also exposes banks to significant financial risks. If a business fails, the bank incurs a loss, leading to financial instability. This model has contributed to the failure of several banks in Islamic countries over the past decades.
Another major economic challenge is gender inequality. In many Islamic nations, women face severe restrictions that prevent them from fully participating in the workforce. As a result, nearly half of the population is underutilized, reducing productivity and economic output. Countries that have encouraged female workforce participation, such as Malaysia and Turkey, have shown better economic progress compared to more conservative nations like Saudi Arabia and Afghanistan.
The Decline of Scientific and Intellectual Advancements:
The Islamic world was once at the forefront of scientific innovation. The Golden Age of Islam (8th to 13th centuries) was marked by groundbreaking advancements in mathematics, medicine, astronomy, and philosophy. Scholars such as Ibn Rushd (Averroes), Al-Khwarizmi, and Ibn Sina (Avicenna) made significant contributions that shaped modern science. The House of Wisdom in Baghdad served as a global hub for knowledge and intellectual discourse.
However, a drastic shift occurred that led to the decline of scientific progress in the Islamic world. The destruction of the House of Wisdom during the Mongol invasion was a significant blow, but an even greater setback came from within. A growing movement against rational thought and scientific inquiry took hold, replacing intellectualism with religious orthodoxy. This shift suppressed critical thinking and innovation, causing the Islamic world to fall behind in scientific and technological advancements.
The Role of Madrasas and Religious Influence on Education:
Education plays a crucial role in the development of any nation. Unfortunately, in many Muslim countries, the education system is dominated by religious institutions known as madrasas. While these schools provide religious education, they often lack a strong curriculum in science, technology, and modern subjects.
Many students who graduate from madrasas lack the necessary skills to contribute to a modern economy. Unlike Western nations, where universities emphasize critical thinking and research, many Islamic nations prioritize theological studies over scientific advancement. As a result, these countries have significantly lower contributions to global research and development. For example, while Israel produces over 22,000 scientific publications annually, the combined output of all Muslim-majority nations is less than 10,000.
The Root Cause of the Decline:
The decline of Islamic civilization can be traced back to the political decisions made during the Abbasid Caliphate. The introduction of the Nizamiya Madrasa system by Nizam al-Mulk shifted education towards religious orthodoxy, suppressing scientific thought.
The Asharite ideology, which gained prominence during this time, discouraged rational thinking and emphasized blind faith. This ideological shift had long-term consequences, leading to the decline of intellectualism and scientific progress in the Islamic world. Over time, this rigid approach to education and governance created societies that were resistant to change and modernization.
The Need for Reform and a Balanced Approach:
For Muslim nations to achieve economic prosperity, they must embrace modernization and reform. The separation of religion from politics is essential for progress. Many successful nations, including those in the West, have maintained a clear distinction between religious institutions and governance, allowing for scientific and economic advancements.
Saudi Arabia’s Crown Prince Mohammed bin Salman has attempted to introduce reforms, such as granting women more rights and promoting technological development. However, he faces strong resistance from religious leaders who fear that modernization will undermine their influence.
If Islamic nations are to compete on a global scale, they must prioritize education, encourage scientific research, and implement economic policies that foster growth. By learning from history and adapting to modern advancements, Muslim countries can break free from the cycle of poverty and reclaim their place as leaders in global progress.
Conclusion:
The economic struggles of Muslim-majority nations are not solely due to external factors like war and colonialism but also internal structural weaknesses. Political instability, outdated financial systems, resistance to scientific progress, and gender inequality all contribute to their economic decline. However, with strategic reforms and a shift towards modernization, these nations can rebuild and prosper. The path forward requires bold leadership, investment in education, and a willingness to embrace change.
