The Development of Islamic Banking and its Importance in the Emergence of Economic Democracy
In June of 2001, a Symposium on Islamic banking and finance was held in Malaysia. This is the text of a welcoming keynote speech given by former Malaysian Prime Minister, Dr. Mahathir Bin Mohamad.
Dr. Mohamad describes some steps already taken by Malaysia to address the difficulties imposed by the current global financial regime. Most important among these is the formation of bilateral trading agreements with third world countries that utilize credit clearing, eliminating the need for payment in US dollars or any other outside currency. He suggests the emergence of an Islamic trading bloc based upon such bilateral and multilateral trading agreements.