Turkish President Recep Tayyip Erdogan said the tools of Islamic economics are “key” to “getting out of crisis” as the global economy continues to suffer from the Coronavirus pandemic.
Addressing the 12th International Conference on Islamic Economics and Finance, Erdogan pointed out the problems in the current economic system.
“Over-financing has created a bloated economic model, which acts only over concern about unearned income, without considering social and human costs,” he said. “Contrary to what has been promised, the distribution of income and wealth is gradually deteriorating all over the world, and the gap between the countries widened.”
The loss of over 435,000 lives worldwide is not only because of COVID-19, but also because of the rich and poor divide, he pointed.
“In some countries, people without health insurance were left to die,” he said.
The solution to such problems, he said was the Islamic economic system that “rejects the interest system.”
He stressed that Islamic banks that are more holistic have managed to survive the current crisis.
Turkey is positioning itself as a hub for participation banking (name given to Islamic banks located in Turkey and in other pan-Islamic countries), Islamic finance and economics.