Riba and Marx's Exploitation

Paper Summary:

The paper explores the similarity between the idea of riba in Islamic law and Marx's belief that the working class is exploited by capitalist elites. The paper examines how Islamic banks inspired by Islamic law and theology differ substantively and procedurally from western banks. The paper looks at the merits of Islamic law and Marxism vis-a-vis their shared concern for less-fortunate individuals. The paper concludes that both schools of thought are exceptional at articulating the needs of poor and struggling persons, but that the Islamic school of thought appears to be the more prudent and practical.

From the Paper:

"To begin with, experts who study the Koran are generally agreed that the abolition of riba (interest) is an essential injunction of Islam. Specifically, Islamic orthodoxy holds that riba is the exploitation of the poor by the wealthy; it is, in short, an undue charge and an instance of income re-distribution, with those who need the money least siphoning it away from those who need it most. Proceeding onward, the Islamic revulsion towards interest or riba appears to lead to another innovation of Islamic economic practice: the adoption of profit-sharing in lieu of interest-bearing transactions."

Sample of Sources Used:

• Choudhury, M.A. The growth of Islamic banking. N.d. 24 Mar. 2007 <http://faculty.uccb.ns.ca/mchoudhu/Islamicbanking.htm>
• Choudhury, M.A. The principal instruments of Islamic political economy. Introducing Islamic Political Economy. 2000. Islamic Business & Finance Network. 24 Mar. 2007 <http://islamic-finance.net/islamic-economy/chap1/chap1-5.html>
• Kapeliushnikov, Rostislav I. Exploitation: A term with a variable meaning. Problems of Economic Transition, 36.6 (1993): 27-43.
• Maiburd, Evgenii M. On Marx's concept of exploitation. Problems of Economic Transition, 36.6 (1993): 44-58.
• Rose, Aknold M. Marx's influence on American thinking. Journal of Economics & Sociology, 10.2 (1951): 161-173.

More papers on Riba and Marx's Exploitation:

• Analytical Essay # 132638 : "Riba v. Marx's Exploitation"
• Comparison Essay # 135781 : "Jefferson and Marx on Human Liberty"
• Analytical Essay # 135441 : "Weber and Marx on Ideas"

APA Citation:

MLA Citation: