E Rasool: World Islamic Economic Forum

28 May 2007

The third World Islamic Economic Forum is an important gathering for Muslim
countries and business people to plan the direction of their economic
activities. This takes place in a world of suspicion about Islam, and it is
largely going to be through our impact socio-economically that we will make a
difference in the perception the world has of Islam.

I, therefore, want to recall the words of Mahatma Gandhi, a person who
profoundly influenced South Africa, to remind Muslim decision makers of an
enduring principle governing Islamic practice. Gandhi said: "The things that
will destroy us are; Politics without principle, pleasure without conscience,
wealth without work, knowledge without character, business without morality;
science without humanity, and worship without sacrifice."

Gandhi said eloquently what is imprinted in the Muslim psyche, but what we
need to be reminded of from time to time, namely, that Muslims do not simply
comply with their duty, they pursue the higher objectives (the Maqasid) of
their faith and the Shariah (Law). These higher objectives are contained in the
Quran and the life of the prophet, but I want to isolate three broad
reminders.

Firstly, the Quranic description of humanity is that it is a single
community. This has never been more evident than in the current age of
globalisation with its massive movement of people, information, capital and
technology. This integrates Islam into the rest of the world so much so that
our fortunes are tied, sometimes tragically, but hopefully beneficially. The
pursuit of beneficial integration must become one of our Maqasid (higher
objectives).

Secondly, the Quran describes the Prophet Muhammad as "a mercy unto all
creation." This ascribes to Muslims and, therefore this WIEF, the
responsibility also to be a Mercy unto all creation.

It means that in the definition of creation, Muslims cannot be blind to our
responsibility to the natural world, to our environment, and generally the
needs of the non-human creation. We need to be in the forefront to prevent
global warming, to find new and cleaner sources of energy, to protect what is
left of the rainforests, and to ensure sustainability.

In terms of our responsibility to be a mercy also to humanity, our economic
efforts as the WIEF must translate the Maqasid (higher objectives) into a
responsibility for:

* greater equality so that we close the gap between the rich and poor
between and within countries, so that we overcome poverty, unemployment,
disease and hunger in the world; and greater inclusion of those marginalised,
particularly the poor in the third/developing world and women all over the
world.

Thirdly, the prophet's approach to knowledge and information is that "wisdom
is the lost property of the believers, wherever it is we must take it" means
that wisdom is cosmopolitan. This was never truer than in the golden age of the
Islamic civilisation when a cosmopolitan approach to wisdom resulted in
innovation, creativity and progress. If that was true then, then the current
state of stagnation results from a century of imitation, fear of change, and
the shutting out of the other. Mono-culturalism leads to decay.

All of these suggest that the WIEF cannot simply be a Muslim version of the
World Economic Forum. This forum has to pursue the higher objectives of social
justice, poverty eradication, economic equality, environmental protection and
overcoming the marginalisation of groups like women, blacks, and the poor.

In the conduct of business, we have to be values-driven. We must straddle
the often-competing demands of morality (doing well) and self-interest (making
profits). We have to return to the practice of using trade, investment and
tourism to build bridges between cultures, faiths, races, genders and
geographies.

We cannot, therefore, simply do business with ourselves, and those we have
historically traded with, mostly in the West and mostly on their terms. The
challenge I want to leave you with today, as Muslim countries and business
people, is that our commitment to the Maqasid (higher objectives) of our faith,
must lead us to new markets for trade, new destinations for investment, new
sources of raw materials, new places to visit, new technologies for innovation
and progress, and new approaches for sustainability.

We cannot, as Muslim countries and businesspeople, continue on the existing
path. We must ask ourselves why we are not making the kind of impact in the
world as a collection of Muslim states as a socio-economic and geo-political
level. We must ask why are the combined OIC countries' share of the World
Export Trade is less than 10% if OIC countries have 31% of the World's
population; 70% of world energy supply; and 40% of the world's raw
materials.

Maybe the answer lies in the fact we largely export raw materials without
beneficiation, we do not develop our people's potential into human capital, and
we do not harness productively our surplus capital into innovation, technology
and social justice.

If the Prophet Muhammad exhorted Muslims to "seek knowledge even into
China," then maybe the Muslim world must not only seek to do business with
China, but to follow China into the growing African market. China has emerged
as:

* Africa's growing investment partner with an investment in the last year of
$12 billion in Africa's transport infrastructure, electricity supply and water
provision
* Africa's biggest customer with one tenth of Africa's exports going to China
to the value of $19 billion
* A growing lender of capital to Africa with $7 billion being made available in
loans.

This WIEF should begin to see what drives China and India to Africa, and
ensure that we begin to shift Muslim countries' surplus and investment capital,
as well as tradeable goods to Africa. African represents a major opportunity to
realise all the highest objectives that we should pursue, but it also
represents an awakening economic giant.

1. Africa is achieving peace and democracy at an unprecedented rate: 31 of
53 countries have held safe elections in the last year allowing for the
building of institutions in Africa, investment in social and economic
infrastructure, macro-economic stability, and growing peace for the
exploitation and beneficiation of raw materials.
2. Under the New Partnership for Africa's Development (Nepad), Africa is
growing economically. In the last two years:
* average African growth in Gross Domestic Product exceeded five percent
* only three countries had negative growth
* Africa's terms of trade improved by 6,7% on the back of higher commodity
prices
* Africa had above $5 billion as a surplus in its current accounts
* the average per capita income rose by three percent.

We are not inviting you to Africa out of solidarity only, but because there
is money to be made. If you need a soft landing, then South Africa is the best
platform with its:

* democratic and stable political system
* familiar and consistent banking system
* internationally justice able legal system.

These ensure that you can do business in South Africa and from there to the
rest of Africa.

Of course, within South Africa, Cape Town and the province of the Western
Cape, remains South Africa's premier tourist destination, the centre of our
knowledge-based and creative economy, and a place where property development
still realises great returns.

Ahead of World Cup 2010, South Africa and the Cape, is a hive of investment
in infrastructure and growth in the economy. Since 11 September, Muslims have
been in search of tourist, trade and investment destinations free of
Islamophobia, South Africa represents a great such destination.

Issued by: Office of the Premier, Western Cape Provincial Government
28 May 2007