THE MEANING OF INTEREST AND INTEREST BASED INSTITUTIONS IN TANZANIA-FINAL

STRATEGIC WAY FORWARD.

Verily never will God change the condition of a people until they change it themselves (with their own soul). (Holy Qur’an, Ra’d: 11).

The government of Tanzania put many efforts to conventional methods of poverty alleviations and economic growth shown in previous articles. This is evident through widening the size of the financial and non financial institutions in the country with aim to bring better life to people based on pure interest as the catalyst of sharing risks and rewards. However, these efforts have failed to achieve their objectives because of ignoring the multi-culture and multi religious aspect of the people who are the intended beneficiary of the devised strategies especially Muslims.

As a result of such structural design of the economic system, devout Muslims in Tanzania are only left with one option of doing business by their own means and with all resources they have without expecting anything from the financial system or the government. This trend shouldn’t be left to continue if the government needs to maintain a just and fair society with opportunities for all. On political perspective, such a loophole is likely to pose a threat to the political stability and social cohesion of the people. I believe, unbiased government cannot let the situation prevails in front of ugly end and acquit itself from systematic discrimination which breed the seed of discord and threatens national unity among her people.

A PROGRAMME OF ACTION.

It always pleases the ear when you hear CCM political leadership wants to follow Malaysian path of economic development to take the country from a low to a middle-income economy, starting with the 2013/2014 Financial Year. So we have witnessed the President Kikwete unveil Big Results Now initiative in Feb 2013 and the boastful reports in that we are on track. However,when you go deep on the focus areas of the initiative,there is no financial inclusion or empowerment leave alone Islamization of the economy as it focus on six priority areas;energy and natural gas, agriculture, water, education, transport and mobilization of resources. Even before going deep to examine initiatives in each of these areas, it is clear that this initiative shall move the country step ahead but not reaching the aim-from low to middle-income economy. Though we know Malaysia as country only, let us ask our Malaysian experts; does their financial system like ours? Why they have dual financial system where conventional financial institutions works in parallel with Islamic Financial institutions? Would Malaysia be able to reach where it is without strong yet enabling policy towards Islamic Financial Institutions? We need evidence based answers on these questions unless we open ourself to learn partially and act partially and so the results will be partial.

So what needs to be done? First, it is my humble view that Muslim economists and Sharia scholars must analyse various economic policies and implications on Islamic perspective and provide viable alternative in order to engage the government policy makers, regulators and legislators through a diverse channels to address this deplorable interest based financial system.Since Malaysia is our economic aspirant model, we can draw examples from Malaysia as well as other countries. This approach has been taken in the on going constitution making where by Muslim jurists met in Tanga to analyse critically the current constitution and the leading to small but insighful book called ' MAKOSA YA MSINGI YALIYOMO KATIKA KATIBA YA JAMHURI YA MUUNGANO WA TANZANIA KWA MTAZAMO WA UISLAMU.' compiled by Sheikh Salim Barahiyaan. Besides, JUKWAA LA WAISLAMU LA KATIBA under BARAZA KUU compiled Muslim opinion for the draft constitution in the making. This efforts despite not yielding results bear witness to the fact that muslims have never beeng silent in the making of better country that respect freedom of religion and promotion of justice for all. Let us not forget wise words of Professor Hamza Njozi, "It is socially and morally wrong to acquiesce to injustice. Muslims have the moral and political responsibility to expose and to fight against all forms of social injustice and discrimination even if their efforts would always end in failure. Heroic failure in fighting injustice is far better than success in entrenching an unjust order."

Second, Muslim leaders should embark on a countrywide campaign to sensitize Muslims students in the country to know the objective of education in Islam and study in Islamic/Muslim Universities which offers Islamized courses in various professions so as to become future leaders who can incorporate Islamic teachings in various policies, legislations and practice. Parents and Muslim Youth councillors in our Islamic schools should also spearhead this initiative and urge students to understand islamic perspective on the field in which they want to speacialize. I remember one time, a relative was admitted at the Institute of Tax Administration (ITA) in Dar es Salaam and sought my opinion should he take it or opt out? I categorically asked him to pursue the course but to know from the beginning that whatever he is going to study has no reference to Sharia and hence have a duty to undertake jointly a study on Islamic Public Finance Management specifically on permissible ways for the government to raise revenue. Second, never to aim with such knowledge to work on the government to impose those taxes without challenging what he learned but aim to work in order to reform practices which violate Sharia rules and incorporate practices which pleases the Almighty. Understanding the challenge ahead, he opted accountancy with IT whose challenge seems manageable for him. Again i met a friend who is teaching Taxation at IFM, and reminded him that he has a duty to expose the flaws of our taxation theories, laws and practices and provide an alternate ways to raise and administer public revenue in a ways pleased by the Almighty. People dont know that there are ways to raise revenue apart from countless taxes imported from the west without being questioned and examined. I once said, PAYE is a burden to workers, unjust and unislamic, a student asked me how can a government run the government without it and if there is country that doesnt have it? As to the later part of the question there is no PAYE in Oman, UAE, KSA, Qatar, Yemen, Kuwait among others as to the former part in short can be answered if we examine how these countries run their affairs. We need as Muslims to understand our religion rules of the show in every field of study- take what is compatible and reject all that contradict our rules and principles.

Third, lobby groups. Muslim must focus on economic and financial empowerment of the people by forming lobby groups to lobby the government towards Muslim inclusive policy decisions and lobby parliamentarians towards Islamic oriented legislations.

Fourth, establishment of vibrant Islamic financial institutions such as Islamic banks, Islamic Funds, Islamic MFI, Zakat Funds, Islamic Insurance among others and push the government towards positive recognition and enabling, fair-play legal and regulatory
environment for them to succeed.

Fifth, external links and support must be well used and sought towards realization of above mentioned action points where necessary. Hence, there is a need to form cordial relationship with foreign representative organs such international governmental and non-governmental organizations outside the country to assist towards realization of this .

TANZANIA AS A SECULAR STATE.

The programme of action will face challenges during implementations. One of them is the old argument that our government is secular state hence cannot adopt religious oriented solutions which promote a certain faith. The Achilles' heel of the claim isn’t emanating from the theory but from the practice.Brother Abu Aziz wrote the following words in his letter to Attorney General after Mwembechai saga on Tanzania as a secular state:

"Tanzania is, constitutionally, a secular state however repugnant that secularism may be to some of us for being a Freemasonic concept which seeks to ‘remove’ God from all aspects of public matters and confine religion to personal matters only. It has been said that “The secular state is a state which guarantees individual and corporate freedom of religion, deals with the individual as a citizen irrespective of his religion, is not constitutionally connected to a particular religion nor does it seek either to promote or interfere with religion” (Smith, 1963).

Secularism therefore implies a range of factors – no intrusion of religion into politics or state patronage of any religious organization; no parochial and sectarian tendencies; no alienation or marginalization of people on religious grounds; no discrimination in education, commerce or employment on religious grounds and so on. Basically, a secular state perceives the society as multi-religious and multi-cultural and constantly strives for national unity and consensus. It is not enough for the government to merely say, “it has no religion”. It must earnestly work for those goals and must be seen to be truly secular."

If we reach consensus on above understanding of secular state, i believe there is no other barrier except our intentions.From this point,I reiterate that Islam professes the oneness of God and demands its followers to abide by Sharia in very aspect of their life. Tanzania constitutions guarantee freedom of worship as a fundamental human right. It is the obligation and responsibility of the government to protect and ensure inviolability is preserved without bias or prejudice. Taking all discussed matters into considerations, the government has a role to play to ensure no side of its population is left without economic upliftment or financially included hence it should set effective procedure of mutual consultation with Muslim scholars on economic and financial matters. Doing this will open the door for Muslims Scholars to assist the government in this issue of national interest which affects all citizens of this nation.