Appendix to Report

Appendix to Report The Challenge of Economic Policymaking in the IEA Creating value and improving the efficiency of resource use is an important need which the Islamic government must address. During the period of Islamic rule (2022-24_ we have succeeded in stabilizing the macro economy but growth remains very low – only about 2 percent in 2023. Aggregate demand remains depressed and there is little evidence of structural change in output production. Afghanistan is potentially a rich country with vast natural energy and mineral resources but they remain greatly underutilized. Effectively utilizing these resources requires the application of management and macro-economic technologies. But the problem is that currently available management technologies are embedded in the capitalist value systems. They are products of knowledge systems which promote and justify the universalization of capitalist individuality – an individuality dominated by hasad and hirs. Moreover their injudicious application leads inevitably to the gradual subjugation of the national economy to the global capitalist imperialist system. Outright rejection of these technologies is not a realistic option but an alternative comprehensive policy paradigm is not yet available – it has to be gradually constructed through revolutionary practice as has been historically demonstrated that theory always follows practice. The process of constructing an alternative policy paradigm must therefore at present involve the de-valorization of existing management and economic technologies through mitigation of their negative ethical impact on inviduality and society – i.e. their tendency to promote hirs and hasad. This requires: a. The creation of non-capitalist property forms through for example economic planning, the designing of IEA enterprises as Auqaaf, promoting community managed cooperatives etc. A non-capitalist property form is one which is focused on the promotion of virtues (Sabr, Tawakkul and Infaq) and regards the growth in the efficient utilization of resources as a means for the promotion of these virtues (and other socially valued ends such as enhancement of national economic self-sufficiency and jihadi capability). b. The integration of the economic policymaking and implementation process with a nationwide Dawah organization with its presence at the enterprise, district, communal, provincial and central levels and a continuing evaluation of the impact of economic activity on the moral and religious consciousness and behavior of managers, employees, markets, consumers and communities c. Breaking down the Chinese wall separating economic administration from Dawah organization and from the political decision making process. Ulema and technical experts must continually functionally interact with each other. Ulema must undergo continuing training in current management technologies and economists and technical professionals must be continually trained in fiqh, kalam and above all in the spiritual Islamic disciplines

d. A principled rejection of all riba and gharar based rational financial transactions and rejection of participation in global money and capital markets and in participation in financial schemes of international private and government based firms and institutions (Islamic Development Bank, ADB, World Bank, IMF etc.) e. Developing non-riba and non-gharar based tradition of investment schemes with countries being expelled from the global financial system (Russia, Iran, Venezuela, Cuba) and with Islamic groups in friendly Muslim countries (Iran, Pakistan, Turkey, Qatar, Malaysisa) f. Issuance of a production (GDP) based national currency, formulation of a comprehensive currency and credit planning mechanism, development of a tamveeli system based on mudarba, musharka and ijara contracts, rejection of all those Islamic financing schemes which lead to participation in global riba and gharar based money and capital markets. No money and capital market must be set up in the IEA. It may be hoped that these measures will gradually devalurise current management and economic technologies and pave the way for the gradual development of Islamic property forms in IEA.