سودی نظام: عالمی معیشت پر اثرات اور اسلامی متبادل کا تجزیاتی مطالعہ

The Usurious System: An Analytical Study of Its Effects on the Global Economy and the Islamic Alternative

Abstract

This research paper examines the pervasive influence of the interest-based (usurious) system on the contemporary global economy and analyzes its multifaceted effects from both conventional and Islamic perspectives. The modern world economy is fundamentally structured around interest, which permeates every aspect of banking, government fiscal policy, corporate finance, international trade, and individual consumer credit. Despite its universal acceptance as a seemingly indispensable component of modern financial systems, this paper argues that the interest-based system harbors inherent contradictions and generates numerous negative consequences. These include widening economic inequality, wealth concentration among the already affluent, financial instability, recurrent economic crises, unjust distribution of resources, and the exploitation of vulnerable borrowers. Furthermore, the study highlights the deep moral, ethical, and social crises engendered by the normalization of usury. From the Islamic perspective, interest (Riba) is not merely an economic issue but a fundamental moral and spiritual transgression prohibited by clear and unequivocal texts of the Qur'an and Sunnah. The Islamic economic system, rooted in justice (Adl), benevolence (Ihsan), and human welfare (Falah), completely prohibits interest, as it fosters exploitation, oppression, and the unjust accumulation of wealth. The Qur'an declares engagement in interest-based transactions as a declaration of war against Allah and His Messenger, indicating the gravity of this prohibition. This study explores the definition and Islamic legal ruling on Riba, its various types, and contrasts it with Halal trade. It argues for a paradigm shift towards an ethical, just, and sustainable economic model based on Islamic principles of risk-sharing, asset-backed financing, and social justice, which can address the systemic flaws of the conventional usurious system.