Connect with us

Economy

Contemporary Marketing Communication and the Case of Islam

Published

on

This paper discusses specifics of marketing communication in the case of Islam with a purpose to enable better and efficient understanding with the Muslim business community.

This would mean that in order to understand Islamic people it is essential to understand that according to the doctrine of Islamic religion Muslims submit entirely to God, and are ready to give up pleasures in this world so that they will enjoy them in the next world. One should keep in mind that for Muslims, life in this world presents only a transitional phase in which they try to achieve heaven in the other, next world. Hence, against this background marketing and business communication should be very sensitive, taking well into account Islamic teachings. Failure to respect here discussed principles may cause serious damage to companies hoping to operate on Islamic markets, even prevent them from entering such markets. Marketing and business communication represent the first public steps of companies entering the market. If they make a mistake at this stage it will be hard to achieve success in subsequent stages. Particular attention is given to understanding the institution of fatwa as a form of communication and its reference to public relations.

INTRODUCTION

   The world is fast becoming a global village, although it still remains a conglomerate of different cultures, religions, nations and traditions. These differences, arising out of various cultures and societies, are also present in business, marketing and advertising as well as in traditional and legal codes of conduct and practice.

   Internationalisation refers to the increasingly international dimension of the activities of enterprises, while globalisation is based on the presumption that the world is becoming more and more homogenous at all levels (such as economy, culture, consumer behaviour). The world has actually become a single market, and the ability to compete in this global economy is not necessarily the only challenge of the business world. It also has to deal with the constant spread of international trade.

   However, along with this increasing international economic activity there is a growing need to establish successful business communication between subjects from different cultural backgrounds. For business people and academic theoreticians involved in business relations with the Islamic world it is important, in order to be successful, to become acquainted with business practices, customs, norms and other rules applicable in those countries. This is the central topic of this article, which will be explored by methods of presentation, analysis, comparison, comment and generalisation.

   This paper examines the dimensions of business communication with a special emphasis on fatwa as an element and principle of Sharia (Islamic law), which has an important role in business relations with the Islamic world. In this context it represents a set of specifically formulated rules and customs in marketing and financial operations arising from traditional Islamic culture, which differ significantly from other cultures and civilisations. Foreigners coming from other cultural backgrounds experience communicational incompatibilities in all life situations, especially in various transactions and negotiations as well as in trade and business relations. The solution, expressed as personal and business success, lies in intercultural communication. The ability to communicate interculturally enables the realisation of business goals at the international business level.

   The aim of this article is therefore to present and analyse the set of rules, norms, customs and practices in the business world, especially in business communication, for those who have a theoretical and practical interest in business relations with the Islamic world. Business communication is based on a broad range of sui generis social, political, cultural, legal and religious rules that are applicable across the entire Islamic world and are laid down in Islamic law. Thus, our hypothesis is that the lack of knowledge of said rules and practices renders it very difficult to carry out successful marketing communication with and in Islamic environments. Within this context particular attention is given to understanding the institution of fatwa as a form of communication and its reference to public relations.

THEORETICAL FRAMEWORK

General Remarks

   Many people share the idea of human universality, believing that human beings are essentially alike and able to overcome the many differences that divide us. This idea may be most convincing, but is also the most difficult to overcome in intercultural relations. Each individual develops his or her way of living over the course of one’s life and in the course of socialisation. Culture is an important element when it comes to relations between people from various backgrounds, because it broadly incorporates the common social and physical environments they share, as well as a mixture of various influences and forces that affect their personal thinking processes and communicational behaviour. Culture thus forms the model that defines the way people live and their life orientations while it also lays down prohibitions, limitations and taboos.

   The reason such value systems exist is to organise and maintain an ordered society. In order to understand the values of other people it is necessary to examine the signs of their cultures, using our own culture as support rather than as a pattern that might be taken as a benchmark of perfection.

   When we talk about Islam we refer to Sharia Law (Sharia). According to Karčić (1997b:12) this term is usually translated as Islamic law or Islamic religious code. However, it does not represent a legal system in the technical sense of the word, but a “comprehensive system of human obligations” (Ibid.). Islamic law is a practical expression of religion that incorporates rules of a religious, moral and socio-legal character. And it is an understanding of those rules that enables successful marketing communication with the Islamic world.

   Sharia represents the legal foundation of the Islamic economy. Its role lies in providing the broad outlines of the Islamic economic system and is similar to the role of any other legal system. In secular societies laws are adopted, amended or abolished collectively based on the will of certain individuals, and as such they are subject to change. However, in Islamic societies the laws are regarded as sacred and therefore unchangeable, eternal and beyond human influence or change. In Islam religion is inseparably integrated into politics and society.

   Islamic law is, like any other religious law, based on God’s will and has a special influence on the legal systems of countries with majority Muslim populations as well as on many minority Muslim communities in other countries. The desire to achieve intercultural communication is increasingly present in various spheres of modern life, especially in marketing and business communication. The need for efficient intercultural marketing and business communication is even more intensified at the global level with the acknowledgement of different cultural models that reflect diversity of cultures. The ability to adapt to others, also those coming from very different, even hostile cultures, is the necessity of our time. Productive business communication between different cultures should not remain a mere hope nor an accidental accord or pleasant event. It should include those dimensions of diversity that will overcome ignorance and discover common, mutual interests.

   Islamic law has the inherent capacity to develop and adapt to time and place. It is the duty of every generation to read the Qur’an, create its own agreement and apply its own abilities to implement it in everyday life. Islamic law is the basis of the Islamic economy. Knowledge of Islamic law enables successful marketing and business communication in the Arab-Islamic world. Islamic laws are universal, they apply to all Muslims and are binding upon them wherever they live.

   Marketing and business communication has an important role in Islamic societies. From its very beginnings Islam has stressed the importance of commerce and trade for society. Islamic societies are not isolated from the rest of the world. This means that marketing and business communication in those societies is a complex mix of the Western model and the traditional Islamic environment

   In Islamic law economic principles are based on supporting and developing activities that apply to people and are favourable for the state, such as: trade in goods that are not harmful to people, free market and free pricing, except in cases when state intervention is required, appropriate compensation for the labourer “before his sweat dries up”, prevention of fraud, protection of (private, social and state) property and means of production, caring for the poor, the disabled and those unable to work, protection of water, plants and animals, prohibition of environmentally unfriendly technologies, nationalisation of resources that belong to everyone (water, gold, oil and other natural resources etc.), and other (comp. El-Qaradawi, 1997a: 331).

   Other principles of Islamic law regulate the fields of politics, education, media, culture, family life etc., all of which directly or indirectly influence (successful) marketing communication. Megatrends in global marketing are increasingly based on special marketing programmes, which require detailed knowledge of the targeted market segment and consumer group. In order to be successful, the countries that cooperate with the Islamic world must therefore be familiar with the relevant market and with the codes of conduct that apply to any sphere of social life.

   From the theoretical point of view this article is based on some important works written by authors[1] who have dealt with issues of Islamic law, communicology, marketing, economics, political anthropology, phychosociology and politology. Therefore the central methods applied in this article include interdisciplinary comparison and generalisation with an emphasis on findings in Islamic law and communicology.

Islam and Marketing Communication

   The article analyses communication strategies in the Islamic world and their influence on business cooperation and communication with Western and other cultures. It is based on the mental pattern of a member of the Islamic community that defines the conduct of a Muslim as a religious person and affects marketing communication. It presupposes that the cultural patterns of behaviour arising from Islamic law determine the manner in which marketing communication is carried out in this part of the world.

   In the research process special emphasis was placed on the notion of fatwa[2], which lays down the rules regarding how Muslims should behave in unclear or questionable situations and that often relate to business activities and other fields of work and life (e.g. trade and communication with non-Muslims). Fatwa is a solution or answer to a concrete problem based on Islamic law that is issued by the mufti on a case-by-case basis. It represents an important institution in Islamic law, its role being to bring Sharia closer to the people in terms of the present time (everyday life) and place. Various public relations techniques must be applied in order to present a fatwa to the general or religious public. Those who issue fatwa must be well familiar with its mission, its aims and goals, relations with the media, writing texts for the public, preparation of public speeches and many other details. Inevitably the media plays an important role in this process. The aim of the person issuing fatwa is to create public opinion among a social community that would reflect the spirit of Sharia law. Since fatwa is issued in spoken and written form, public relations techniques regarding the written text also play an important role. Although the institution of fatwa means one-way communication within the Islamic community and society, such opinions must be unconditionally implemented. Fatwa is based on the teachings of the Koran (Qur’an), and God’s will is irrevocable.

   Note should also be taken of the social exchange process, which has been a constant feature of civilised societies and their inherent mechanisms. Exchange occurs due to the unequal distribution of the necessary resources among people and is indented to address and eliminate the lack of appropriate means of satisfying individual needs and desires. Exchange methods have developed continuously throughout the evolution of civilisations and actually enabled them to evolve in many respects. Therefore it may reasonably be suggested that “the exchange process is the most important mechanism that enables the functioning of society” (Jančič, 1996: 45).

   Without knowing the specificities of the Islamic world and all the dimensions of its social system it is impossible or at least very difficult to establish and carry on any successful business activity. It requires two-way communication between the Eastern and Western ways of thinking, and accepting the differences between those societies. Despite all of the differences between Islamic and Western institutions and economic systems, there is intensive cooperation between the two worlds.

   The aim of Islamic law is to regulate all areas of human activity, not only those that may entail legal consequences. According to Islamic theory Sharia represents the body of criteria that enables one to differentiate between law and non-law. Sharia is a complete moral and legal system that directs the regulation of all areas of human behaviour with the aim of achieving harmony with divine law. Islamic lawyers believe that adherence to Sharia rules and principles not only brings an individual closer to God but also ensures development of a just society in which each individual has the opportunity to realise his or her capabilities, which in turn enables and gives rise to progress that benefits everyone. In other words: religion as a set of values and beliefs establishes goals and ideals to be implemented by society, while Islamic law lays down the code of conduct to be followed by Muslims if they wish to realise those goals.

   Generally, Islam places a strong emphasis on communication. The Qur’an contains certain ayahs[3] that point to the differences between people and the need to get to know one another. A very good example is the following ayah: “O mankind, indeed We have created you from male and female and made you peoples and tribes that you may know one another.” (Al-Hujurat: 13). The Qur’an also lays stress on trade and commerce, such as the following ayah: “O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another].” (Al-Nisa: 29).

   Sharia is a literal understanding of everything that Allah has prescribed in order to regulate human life. It is manifested in the fundamental postulates of religious belief as well as in the basic principles of power, morality, everyday behaviour, science etc. (Kutb, 1996: 90). Islamic attitude to law and Islamic law (in the modern European sense) are notions that are often misunderstood or only partly understood in Europe. In order to understand Islamic law in its core sense one should start by dealing with theological rather than legal issues (Nielsen, 1986).

   From the Sharia point of view it is understandable that in Islam it is not possible to separate different spheres of human life as is possible in the modern West where – as Max Weber has taught us in considerable detail – the value fields of ethics, science, religion and art are separated and governed by the law of non-interference and intrinsic autonomy (Weber, 1956). In Islam the language of morality constantly borrows from the metaphoric language of art, while religious prayer may easily turn into a political pamphlet without triggering any feelings of inner inconsistency or violation of formal taboos. This results in the very complex nature of Islamic language and a direct existential experience. Any simplification of that language would seriously undermine such experience. In order to understand jihad, for instance, one should have a look at the root of the concept. In Islam the root is the Qur’an itself (Debeljak, 1994:14).

   Knowledge and understanding of Islamic codes and rules is a precondition for successful marketing and business communication both for Muslims communicating with the Muslim and non-Muslim worlds and for non-Muslims communicating with the Muslim world.

   In Islamic law the principles of economy are based on supporting and developing all activities that are intended for the people and are favourable for the state. Those principles include:

          trade in goods that are not harmful to people,

          free market and free pricing except in cases when state intervention is required,

          appropriate compensation of the labourer “before his sweat dries up” (the hadith),

          prevention of fraud,

          protection of (private, social and state) property and means of production,

          caring for the poor, the disabled and those unable to work (zakat, sadaqah),

          protection of water, plants and animals,

          nationalisation of resources that belong to everyone (water, gold, oil, mines and other natural resources etc.) (El-Qaradawi, 1997a: 331).

   According to the classic methodology of Islamic law the basic goal of any individual activity in society is to create benefit and eliminate disorder (Sušić, 1996: 26-53). Other principles of Islamic law regulate the fields of politics, education, media, culture, family life etc., which in one way or another directly or indirectly affect successful marketing and business communication and any business activity.

   Communication plays an important role in human history. We could say that the history of mankind is actually the history of communication, especially in modern societies. Communication is something that is with us at birth, and follows us through life until death. The communication process is based on information transfer.

   EnciklopedijaSlovenije(1999: 390-391) describes marketing communication as the public presentation of organisations and the offer of products, services and ideas with the aim to improve their market position under competitive circumstances. Expressions of advertising and (economic) propaganda are also used to denote marketing communication. The term marketing communication is generally accepted as an expression denoting various forms of communication between organisations and their environment. Traditional forms of marketing communication (the so-called promotional mix) include personal sales, advertising, sales promotion, publicity and public relations. The central form of marketing communication is advertising, i.e. ordered, paid and signed creative mass communication. Media by which advertising messages are communicated include newspaper, radio, television, Internet, posters, banners, brochures, catalogues, display windows etc. The goal of advertising is to generate consumption of products or services as well as to enhance the reputation of organisations. Moreover, advertising is also used for non-commercial, public interest issues. The level of creativity employed and achieved often approaches the level of art. Advertising often uses exaggeration in order to achieve certain effects, sometimes even as it flirts on the border of the ethically acceptable. Some countries limit advertising freedoms with regard to certain products (tobacco, alcohol, medicines, weapons) as well as content and means of advertising via legal restrictions and regulations as well as advertising codes and practices.

   Marketing communication is a special form of communication process where the company is usually the message sender and the consumer is the message receiver, the whole process being targeted at the consumer. The aim of all marketing communication activities is to establish a connection between suppliers and consumers. Communication is an exchange rather than a one-way flow of information. Speaking to someone does not necessarily mean communicating with that person. Communication occurs the moment the recipient actually receives the message that the sender intended to convey to him/her, and reacts to it. Rejection of the message, misinterpretation and/or misunderstanding of it etc. are examples of ineffective communication (Ule, Kline, 1996: 53).

   Most authors regard communication as an exchange of information. This article is focused on the exchange of information related to marketing and business communication of modern companies and companies that are fully or partly based on Islamic law.

   Although exchange as the basis of marketing was familiar to numerous early theoreticians the pioneering work in this field was carried out by McInnes (1964). The latter pointed to the role of market as the focal point of (economic) exchanges between suppliers and buyers. According to McInnes markets result from the social intercourse between people, when the makers and users of economic goods and services seek to satisfy needs and desires through exchanges. He defined marketing as “any ‘motion’ or activity that actualises the potential relation of the producers and consumers. Thus marketing is basically related to the market. The work of marketing always begins with the discovery of market potential. The concept of marketing in its widest sense, therefore, is any activity which actualises the potential market relationship between the makers and users of economic goods and services.” (Jančič, 1996: 47).

   Communication occurs in a social context and is determined by it. Messages are given their meaning within certain social contexts, e.g. within a group, institution etc. Communication is based on the common social knowledge of its participants as well as their history and their expectations, plans and anticipation for the future (Ule, Kline, 1996: 29).

FATWA AS A FORM OF COMMUNICATION  

   As an institution of Islamic law fatwa may significantly affect communication in certain societies. Certain fatwas may result in the limiting or prevention of communication, especially when they concern the prohibition of trade between Muslims and Jews. This may also cause other forms of cooperation to be discontinued. Nevertheless, the basic aim of fatwa is to regulate relations in a society by eliminating disorder, establishing a spiritually healthy society and creating social welfare. This is based on the principle that Islam is there to help people and not make their lives difficult.

   The institution of fatwa has developed as an expression of the cautelar nature of Sharia law that is reflected in efforts to prevent any form of behaviour that might jeopardise the ideal social order. In the Qur’an the term fatwa and its synonyms refer to the clarification of ambiguous or disputable issues. Giving such clarifications was one of the tasks of the Prophet Mohammad. However, in terms of Sharia law the above terms do not carry the usual technical legal meaning. In the former case clarifications embody the norms of the Qur’an, while in the latter case they carry the normative custom of God’s Prophet (Karčić, 1997b: 64).

   There are some similarities between fatwa and the institution of responsa in Roman law, but also significant differences that reveal the specific Islamic character of fatwa. Roman law uses the institution of responsa which comprises a body of opinions given by lawyers on disputable issues that arise during or in relation to court proceedings or when they are theoretically justified (Stojčević, 1978: 37). In the beginning responsa were given by lawyers who enjoyed their students’ trust. From the reign of Octavian Augustus onwards this function was performed only by select lawyers with whom the princeps vested certain powers in order to ensure uniformity and control of justice. Formally responsa did not have any legal force, although usually an ordinary judge could not reject the opinion of an authoritative lawyer. In the 5th century all legal acts were given legal force and the function of reponsa lost its significance with the introduction of the extraordinary procedure.

   The institution of fatwa is an important communicological element of the Islamic provenience. Unlike responsa which only deals with legal issues within the system that separates law from religion, fatwa embodies both legal and religious norms with ethical features. In Islamic law the lawyer’s creative role can only be expressed in areas that are not regulated by obligatory texts, while in Roman law there are no such situations. The change in Islamic law occurred with the introduction of the notion of “closing of the door of ijtihad”, which reflected on the legal character of fatwa, and for which there is no comparable component in Roman law. So the institution of responsa evolved along another path (comp. Đozo, 1996).

   Muslim countries did not have the same control over the development of legal doctrine as is known in Roman law, where the function of respondere was vested as a privilege only in certain lawyers. Besides being issued by official and private muftis, fatwa’s authority depended primarily on the power of the argument on which it was based.

   Ijtihad is an Islamic discipline that aims to clarify the fundamentals of Islamic law. It is one of the most important specifics and features of Islamic culture, as it proves the general relevance and contemporary applicability of Islamic law regardless of time and place, while at the same time ensuring its existence and perfection. Ijtihad is a means of finding direction and applying Sharia rules to all cases and life situations. It confirms the specific nature of Sharia as the conclusion and final testament to all previous divine laws. Since the Muslims believe it is the last revelation from God and that there will be no new divine revelations, it contains all the features and capacities to cover all human needs.

   Ijtihad is closely related to the institution of issuing fatwas. A mujtahid[4] is an Islamic scholar who is competent to independently offer opinions and solutions in Islamic jurisprudence (fiqh). In order to issue a fatwa one must have a very good knowledge of the situation for which fatwa is required, especially an understanding of the mental state of the person requesting fatwa and the general understanding of the time and place in which such a person lives.

   Fatwas are issued by muftis who are not fully comparable to mujtahids in all aspects. Mujtahids have their own methodology for resolving legal questions and are independent of other legal schools and political power, while the same does not hold for muftis. Truly a mufti can be a mujtahid, but the history of Islam has shown that his function is mainly to defend the constitutionality of the order that is based on the legal solutions laid down by a certain school of law (Džananović, 1999: 14).[5]

   In Islamic law, which regulates and sanctions the behaviour of individuals within an Islamic community, fatwa is a special form of communication of religious leaders with their followers and various publics (business people, men, women, members of other religious communities etc.).

   Fatwa is a form of order, provision, instruction, interpretation, call for action or motivation that is issued under certain social, political, economic, cultural, religious, demographic and other conditions. It is issued by Islamic religious leaders who belong to the so called ulamas, i.e. the senior or highest religious scholars whose lowest title is mufti.

   In judicial circles no one but a capable scholar who correctly and thoroughly understands the religion is allowed to form and offer the Sharia opinion. Otherwise he may declare something allowed which is prohibited, and something prohibited which is allowed, abolish certain obligations and oblige people to do what Allah does not oblige them to do, approve or introduce novelties, declare believers to be non-believers and forgive non-believers for not believing. Each and all of these acts are potentially dangerous since they arise out of a lack of knowledge or fiqh by people who dare issue fatwas and do as they please. We witness this today, when religion has become a place where the flock grazes as it pleases. Everyone who has a tongue or a pen speaks or writes about religion, although the Qur’an and Sunnah as well as the good predecessors of Islamic ummah seriously threatened those who dare enter this dangerous zone of religion without fulfilling the necessary conditions and proving readiness. And it is difficult to fulfil and prove such conditions and readiness (El-Qaradawi, 2000: 55).

   Fatwa is therefore a publicly issued, declared, verbally or otherwise issued order, provision, instruction, information, interpretation, final decision, legal opinion etc., which is, in the Islamic world and unlike in Roman law, an expression of God’s will and as such poses no other sanctions except for the moral ones which the religion interprets as punishment in this and other (posthumous) worlds. Unlike the obligatory nature of orders in other cultures and civilisations, fatwa is a constituent element of Islamic law that is based on the teachings of the Qur’an and is binding for all Muslims in relations both within the Muslim environment and within internal and external non-Muslim environments.

   Thus fatwa can be understood as a constituent institution of Sharia law that uses the holy Muslim book the Qur’an to explain what is not prescribed in detail or not sufficiently understood due to the time of occurrence, complexity and multiple dimensions of everyday life under modern conditions. Fatwa is a supplementary interpretation that points to obligatory behaviour in concrete circumstances of everyday life and daily political, economic and cultural situations. In order to understand the notion of fatwa it is important to know that fatwa emerge in times of crisis, under extraordinary circumstances and in spiritual moments of the Islamic community. When everything follows the settled or determined path there is no need for regulation through fatwa. Punishment for breach of fatwa is usually of a moral-religious nature and expressed through contempt and excommunication from the social community, which is regarded as a very severe sanction in the Islamic world, where the traditional feeling of belonging is very strongly present.

FATWA AND PUBLIC RELATIONS

   In order to evaluate fatwa as a form of largely public (and often also mass) communication within the categorial and conceptual structure of modern aspects of public relations, we should examine the basic principles of this increasingly important form of social (functional) public communication from the point of view of religious marketing, multiculturalism, ecumenism, sociology of religion, history of civilisations, ethnology, social anthropology, psychosocial aspects of geography etc.

   The first aspect is the informative component of public relations and fatwa. Fatwa is both an instruction and a legal opinion, representing information per se as well as the subject or object of information. Its intentional logic a priori means it contains information within and on the content of fatwa. Fatwa thus fulfils this component of public relations.

   The ontogenesis of the category of public relations is already contained in fatwa as an institution, notion and category. In its essence fatwa is thus a series of precisely selected public relations between the Islamic community (institution) and the public (religious believers). Fatwa is public communication that creates and counts on created public relations (based on the Qur’an and Sharia law) with the Islamic community, religious believers inter se and with external subjects (in the political, economic, religious, social, cultural and other spheres). As such fatwa belongs to what is regarded as classical public relations activities.

   If viewed from the aspect of the persuasive and binding component of public relations, fatwa (by informing, instructing and drawing attention to a concrete problem) always convinces the public (religious believers) of something and persuades them to certain behaviour, adapting the presupposed (through marketing research) value systems of Muslim customs and behaviour as regulated by the norms of the Qur’an, Sharia law, the hadith etc. In this connection fatwa represents an essential and constituent part of public relations. Its goal is not to provide neutral information but information pro domo sua, which triggers (re)active behaviour according to given instructions.

   The media play a special role in presenting fatwa to the public. It is a channel through which to reach the public. It includes largely special interest-based media such as professional and scientific publications targeting certain publics. Despite the key importance of media for public relations many PR practitioners are so busy with media coverage that they forget why contacts with the media are so important. They see the media as the publicity channel for their activity and thus believe that media coverage as such means that they address and influence several publics – none of which is far from the truth. Media includes both personal communication and specialised publications. The truth is that mass media is probably the main channel for reaching the public and as such is closest to public relations practitioners (Hunt, Grunig, 1995: 43-44). One should not forget the special role of religious media, which provides a detailed explanation of fatwa. Religious media is particularly important in non-Muslim countries where no such explanation is provided in the general media.

   Fatwa is issued in spoken or written form by the religious leader. It contains all the dimensions of promotion which unlike advertising (which pushes the object of the advertisement towards the consumer) pulls the consumer (religious believer) towards the object of promotion. Fatwa usually does not represent classical business communication. There is no negotiation or agreement – an authoritative decision is made in advance determining who is entitled to say, instruct, teach, search, write and declare and who should listen, be instructed and unconditionally respect what is prescribed or regulated with fatwa.

   In this respect fatwa does not enjoy or embody the two-way nature and equality principle typical of communication in the framework of public relations. Nevertheless, it does retain the co-orientational aspect, since respect for the Qur’an, Sharia law and hadith norms have been placed in advance on the (forced and voluntarily accepted) pedestal of perfection.

   This gives fatwa – as opposed to the basic philosophy of communication in public relations – an autocratic and metaphysical dimension. As such it can represent communication only in the case of prior acceptance and respect for Islam as religion, Allah as the almighty creator and master of this world and heaven, Mohammad as God’s last Prophet, and Islamic law as the conclusion of all prior findings.

   This certainly is the case in most of Islamic world, especially in those parts where religion has not been attributed a lay character through secularisation. There fatwa means two-way communication in which the teacher and the student roles are determined and assigned in advance, all wrapped in the divine holiness of Allah, who is personified as the great imam (religious and community leader) or ulama (with mufti the lowest title in terms of issuing fatwas).

   Public relations are a mild form of informative propaganda and communication activity whose aim is (unlike in advertising) to cultivate a long-term positive psychosocial attitude towards or opinion of a certain economic, political or religious issue. We are not what we think we are but as others see us. It is up to us to make a series of communicational activities to determine how others will see us.

   The concept of interaction covers all processes taking place between two or more persons as well as between an individual and a group of people or between groups of people. The most important process of social interaction is communication, i.e. the exchange of information. Social interaction and communication are important aspects of social psychology and other social sciences. However, social sciences evaluate social interaction and communication from the point of view of social and cultural systems rather from the point of view of individuals who are involved in interaction. The essential aspect of social interaction is that its participants constantly react to each other, trying to adapt their behaviour to their own intentions and to the expected or perceived intentions of their partners (Ule, 1997: 198-199).

   In the case of fatwa this two-way communication does not exist in the public arena. Instead it is a one-way order and those to whom it is directed must unconditionally respect it. The sanction for not following or executing a fatwa is of a moral character.

   In principle fatwa represents one-way communication, although it contains some elements of two-way asymmetrical communication (scientifically supported persuasiveness, established feedback relationship and examination of opinions), being a form of scientific persuasion based on the teachings of the Qur’an. Moreover fatwa also contains some elements of two-way symmetrical communication (mutual understanding, dialogue, balance and valuation of understanding), its goal being to overcome eventual conflicts within a society or religious community and to establish good relations with strategic publics. Fatwa is therefore a complex concept when it comes to public relations. It is actually based on the Qur’an, which requires unconditional respect and affords little or no chance for polemicising.

   The religious community should be responsible towards its publics in order to establish and maintain good relations with them. In general it should be responsible towards society as a whole. However, society is a large and ambiguous community. It is far easier to recognise the publics as groups on which the religious community can exert an effect. In order to be responsible, the religious community should answer to its public for the consequences of its actions. Responsibility means symmetrical (mutual) communication with its publics. Such communication creates productive relations that are (well) suited to the religious community. Consequently, public relations and public responsibility have become almost synonymous terms. The religious community can not enjoy good public relations if it does not act responsibly toward its publics.

CONCLUSION

   This article discusses Islamic communicational elements stemming from the Qur’an as the specific and basic conditions for understanding Islamic people (due to the complexity of this subject and the limitations of the size of this article a certain level of generalization was applied). It stems from the hypothesis that it is the lack of knowledge of the above discussed rules and practices that renders it very difficult to carry out successful marketing communication with and in Islamic environments. Hadiths as communicological norms enable a Muslim to establish better communication in relation to God, the Prophet Muhammad, fellow people and everyday life as regards religious and secular issues, as well as general communication within Islamic society and beyond. The substance of hadiths is testament to the readiness of Islamic people to respect divinity, to follow the life and work of the Prophet Muhammad, and apply hadiths to regulate life in the Islamic community as well as relations with other communities.

   The basic principle of Islam is that all secular activities, including those of an economic nature, are lawful and permitted except for those that are explicitly prohibited in the Qur’an. Islamic law enables Muslims to discover and know what is good for them, to enter freely into transactions, to conclude agreements and carry out secular activities fairly and impartially. Islamic law leads Muslims through their lives. Thus they are guided by Sharia also in communication. Companies intending to operate on a market that is partly or entirely based on Islamic law should take into account these principles in all dimensions of their activities on that market. Understanding the basic principles of Islamic religion, Islamic law, its sources, Sharia rules, ijtihad and religious-law schools is a precondition for successful marketing and business communication on Islamic markets. An important fact to bear in mind is that Islamic law adapts to the spirit of time and place. This is supported by ijtihad, which updates and harmonises Sharia rules to suit contemporary life. However, adaptation and application of Islamic law to modern societies requires a thorough knowledge of Islam. If such knowledge is lacking adaptation will not be appropriate, and market and business communication will be based on false foundations.

   In order to understand Islamic people it is essential to understand that according to the doctrine of Islamic religion Muslims submit entirely to God, and are ready to give up pleasures in this world so that they will enjoy them in the next world. For Muslims, life in this world is only a transitional phase in which they try to achieve heaven in the other, next world. Against this background marketing and business communication should be very sensitive, taking well into account Islamic teachings. Failure to respect those principles may cause serious damage to companies hoping to operate on Islamic markets, even prevent them from entering such markets. Marketing and business communication represent the first public steps of companies entering the market. If they make a mistake at this stage it will be hard to achieve success in subsequent stages.

   As regards various recently emerging situations and issues, the concept of ijtihad as a special institution of Islamic law provides answers to all of today’s questions that concern Muslims. Ijtihad establishes communication between an Islamic scholar (mujtahid) and the Islamic religious community, and represents a perfect case of two-way symmetrical communication. On the other hand the institution of fatwa represents, in principle, one-way communication, although it contains, as a form of scientific persuasion based on the teachings of the Qur’an, some elements of two-way asymmetrical communication. Moreover fatwa also contains some elements of two-way symmetrical communication, as it aims to overcome eventual conflicts within a society and/or to establish good relations with strategic publics. Fatwa is therefore a complex concept when it comes to public relations. It is based on the Qur’an, which demands unconditional respect and affords little or no room for polemicising.

   Although at first sight it may seem that marketing communication in the Islamic world is a one-way process and that Islamic societies are based on one-way communication, detailed analysis of Islamic law paints a different picture. This is borne out by the institution of fatwa, which contains some elements of two-way asymmetrical and symmetrical communication. Having in mind the above presented and discussed, it is our opinion that this article has proved on a general level the validity of our hypothesis. However, for a detailed and comprehensive analysis an additional and more extended research would be necessary.

   Marketing and business communication in Arab-Islamic societies is a mix of Western concepts and the rules of Islamic law within an individual’s traditional environment. The specific mix of elements in this equation depends on the environment or the country where marketing and business communication is carried out. The typical Islamic person is sensitive, traditional and reserved towards the West. Against such a background marketing and business communication has to be employed in the most appropriate manner, and should be adapted to the specific environment if it is not to fail, either in part or entirely.

References

Ahmed, Akbar. 1993. Living islam. London: BBC Books.

Al-Harran, Saad. 1996. Islamic Marketing Strategy. Malaysia: Longman.

Al-Hujurat: 13. http://quran.com/49/13 (24.10.2014)

Al-Nisa: 29. http://quran.com/4/29 (24.10.2014)

Ayish, I. Muhammad. 1998. Communication Research in the Arab World: A New Perspective. The Public, Journal the European Institute for Communication and Culture, Vol. V (1998), 1. Pp. 33–57.

Debeljak, Aleš. 1994. Islamska “sveta vojna” med duhom in telesom. Časopis za kritiko znanosti, let. XXII, 1994, št. 170-171, stran 14.

Džananović, Ibrahim. 1999. Idžtihad u prva četiri stoljeća islama. Sarajevo: Fakultet islamskih nauka Sarajevo.

Đozo, Husein. 1996. Fetve u vremenu. Srebrenik: Ilmija.

El-Gazali, Mohamed. 1998. Vjerovjesnikov sunnet između šerijatskih pravnika i znanstvenika hadisa. Tuzla: Muftijstvo Tuzlansko.

El-Qaradawi, Jusuf. 1997a. Halal i haram u islamu. Sarajevo: Ljiljan.

El-Qaradawi, Jusuf. 1997b. Suvremene fetve (izbor). Tuzla: Harfo-Graf.

El-Qaradawi, Jusuf. 1999. Univerzalni model društvenog života. Tuzla: Muftiluk tuzlanski.

El-Qaradawi, Jusuf. 2000. Razumijevanje prioriteta. Sarajevo: Bemust.

Enciklopedija Slovenije. 1999. Zvezek XV. Ljubljana: Mladinska knjiga.

Garaudy, Roger. 2000. Živi islam. Sarajevo: El-Kalem.

Grunig, Hunt. 1995. Tehnike odnosov z javnostmi. Ljubljana: DZS.

Guenon, Renė. 1997. Osvrti na tesavuf i tao. Sarajevo: DID.

Hamidullah, Muhamed. 1993. Uvod u islam. Jeddah: IIRO.

Huntington, Samuel. 1998. Sukob civilizacija i preustroj svjetskog poredka. Zagreb: Izvori.

Jančič, Zlatko. 1996. Celostni marketing. Ljubljana: FDV.

Južnič, Stane. 1977. Socialna in politična antropologija. Ljubljana: Partizanska knjiga.

Karčić, Fikret. 1997a. Istorija šerijatskog prava. Sarajevo: Fakultet islamskih nauka u Sarajevu.

Karčić, Fikret. 1997b. Studije o šerijatskom pravu. Zenica: Bemust.

Karčić, Karić. 1998. Šerijatsko pravo u savremenim društvima. Sarajevo: Fond otvoreno društvo BiH.

Kutb, Sejjid. 1996. Znakovi na putu. Tuzla: Muftijstvo Tuzlansko.

McInnes, W. 1964. A Conceptual Approach to Marketing. In: R. Cox, W. Alderson and S. Shapiro (eds). Theory in Marketing. Homewood, IL: Richard D. Irwin. Pp. 51–67.

Nielsen, S. Jorgen. 1986. Islam Law and Its Significance for the Situation of Muslim Minorities in Europe: Report of study project, Churches’s Committee on Migrant Workers in Europe Expert Group on Islam, Oegstgeest, November 21, 1986.

Nomani, Farhad, Rahnema, Ali. 1994. Islamic Economic Systems. New Jersey: Zed Books.

Sadeq, Abdul Hasan. 1992a. Financing Economic Development. Malaysia: Longman.

Sadeq, Abdul Hasan. 1992b. Readings in Islamic Economic Thought. Malaysia: Longman.

Sayyid, Tahir. 1996. Readings in Microeconomics An Islamic Perspective. Malaysia: Longman.

Schuon, Frithjof. 1996. Dimenzije islama. Sarajevo: El-Kalem.

Stojčević, Dragomir. 1978. Rimsko privatno pravo. Beograd.

Sušić, Mustafa. 1996. Usulu-l-fikh (Metodologija islamskog prava). Sarajevo: IZBiH.

Ule, Mirjana. 1997. Socialna psihologija. Ljubljana: FDV.

Ule, Mirjana, Kline, Miro. 1996. Psihologija tržnega komuniciranja. Ljubljana: FDV.

Vreg, France. 2000. Politično komuniciranje in prepričevanje. Ljubljana: FDV.

Weber, Max. 1956. Wirtschaft und Geselschaft. Tübingen: J. C. M. Mohr.

Zuhajli, Wehbe. 1976. Idžtihad u islamskom šerijatu. Rijad: Univerzitet u Rijadu.

 


[1] El-Qaradawi (1997a and b, 1999, 2000), Nomani, Rahnema (1994), Sadeq (1992a,b), Sayyid (1996), Al-Harran (1996), Ayish (1998), Karčić (1997a), Karčić, Karić (1998), Sušić (1996), Ahmed Akbar (1993), Garaudy (2000), Schuon (1996), Guėnon (1997), Đozo (1996), El-Gazali (1998), Kutb (1996) and Hamidullah (1993).

[2]A legal opinion based on Sharia law issued by a mufti or mujtahid (an Islamic scholar who is entitled to issue fatwas).

[3] A verse or statement in Qur’an.

[4] An Islamic scholar who is entitled to independently give opinions and solutions regarding Islamic law.

[5] For example, the renowned mujtahid El-Qaradawi (1997b: 141-142) in his book Modern Fatwas laid out some of the most important fatwas that relate to the life of Muslims.

Continue Reading
Comments

Economy

Indonesia’s political will is the key to a successful carbon tax implementation

Published

on

Authors: I Dewa Made Raditya Margenta, and Filda C. Yusgiantoro*

A carbon tax should be overviewed as an oasis of post-pandemic recovery. The proper carbon tax scheme will solve two of Indonesia’s extensive homework; reducing greenhouse gas (GHG) emissions and boosting revenue to support economic recovery. In the end, Indonesia’s political will is crucial in completing this mission.

Recently, the carbon tax has become an exciting topic of discussion in Indonesia. This carbon tax is introduced in a revised General Taxation Law bill and becomes this year’s Indonesia National legislation Program. According to the bill, the government plans to collect a carbon tax of IDR 75,000 (US$ 5.25) per tonne of GHG  (tCO2e). The carbon tax could target emissions on the use of fossil fuels such as coal, diesel, and gasoline by factories and vehicles.

The introduction of the Carbon Tax is quite astounding. Previously, the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Pandjaitan, said that President Joko Widodo planned to issue a Carbon Trading regulation in December 2020. However, there has been no signal that the regulation will be issued until now.

Implementing a carbon tax is seen as a strategic step for the government to reduce GHG emissions and boost state revenue to increase development funds. As a result, the carbon tax scheme must be well constructed, specific, and well-targeted so that the carbon tax implementation can recover the environment and Indonesia’s economy.

However, the carbon tax implementation will not succeed without strong political will and commitment from the government.

Carbon tax as a climate action plan

As the sixth-largest GHG emitter in the world, Indonesia becomes vulnerable to climate change impact. According to the Ministry of Environment and Forestry of Indonesia, the transportation and manufacturing sectors contributed to around 64% of 2017 national GHG emissions. This number will rise considering the increase in energy demand and manufacturing activities to stimulate the economy. Therefore, a new climate policy, such as a carbon tax, needs to be promoted as a climate action plan.

As an economic-environmental instrument, a carbon tax is more straightforward to address this issue. Also, the revenues gained from this tax can be recycled to support green development. Thus, the target of this tax must be well identified, and the carbon tax scheme must be designed correctly to avoid a deadweight.

Singapore can be the lead example to emulate its carbon tax scheme. Based on Singapore’s climate action plan, the tax is applied to the facilities that emit abundant GHG annually. They also promote clean and simple carbon tax to preserve fairness, uniformity, and transparency. Its carbon tax scheme, which takes place from 2019 to 2023, will be reviewed by an impact assessment in 2022.

From Singapore, Indonesia can learn that the scheme may have the flexibility to respond to the dynamics that will occur, including the opportunity to move towards a carbon trading scheme in the future. Besides, having a solid political like Singapore will give Indonesia’s carbon tax implementation an upper hand.

Building Indonesia’s political will for a climate action plan

Indonesia’s successful climate action plan relies on various variables such as GHG emissions reduction, identifying the most appropriate instruments, and introducing new climate policies. However, all of these variables are highly dependent on political will.

Indonesia’s political will on climate mitigation would be a perfect start and a powerful tool to take immediate action in climate mitigation initiatives. Instead, Indonesia’s political will may face a political challenge during the policymaking process. A lengthy policymaking process of the New and Renewable Energy Bill is one of the examples. Hence, Indonesia’s political will to address climate change at the beginning of the policymaking process is crucial.

Gaining public trust and being severe are essential steps that should be carried out before introducing a carbon tax.

At first, the government must improve its accountability and transparency, reflecting on what Singapore has shown. Indonesia should also consider complementary economic policies that minimize a carbon tax’s negative impacts on business and household sectors.

Then, Indonesia could consider removing fossil fuel subsidies and replacing them with direct subsidies to low-income households.

Finally, Indonesia should guarantee that the obtained revenue from the carbon tax will be recycled for green development and improving community welfare.

Conclusion

In brief, implementing a carbon tax in Indonesia will determine the nation’s and its citizens’ future.

Ensuring the carbon tax implementation will be on point, Indonesia’s political will is the brain, which can be seen from a carbon tax scheme and the supporting policies. The success of this policy will be seen from intensive GHG reduction, positive economic growth, and improve Indonesian people’s welfare simultaneously.

*Filda C. Yusgiantoro, Ph.D., chairperson of Purnomo Yusgiantoro Center and an economic lecturer in Prasetya Mulya University


Continue Reading

Economy

Central Bank Digital Currencies: What do they offer?

Published

on

The decision of the government of El Salvador to adopt bitcoin as legal tender has invited mixed reactions from around the globe. Notwithstanding the pros and cons of the issue, the message is loud and clear – digital currencies are here to stay.

The total market cap of bitcoin has reached 600 billion US dollars by March 2021. Cryptocurrencies have captured the imagination of rich and poor alike. The percentage of cryptocurrency users has been steadily increasing in countries facing financial instability and grappling with weak currencies. Latin America has seen large scale activity in bitcoins, especially in countries like Venezuela and Columbia. Nigeria likewise has emerged as a hub for bitcoin trade given the challenging economic climate in the country. The Central Bank of Nigeria (CBN), in a February directive, had warned banksand financial institutions of facilitating payments for cryptocurrencyexchanges.Cryptocurrency trade has grown to such volumes that it can’t be overlooked by the state actors.

States and Central Banks unable to buck the trend are contemplating their own version of digital currencies. So, do ordinary citizens gain something from the Central Bank Digital Currencies (CBDC’s)?

Societal and Environmental concerns

Experts have already pointed out serious pitfalls of allowing a free hand to decentralised currencies outside the regulatory framework of the governments. Crime syndicates use cryptocurrencies as safe conduits for money laundering, cross-border terrorist financing, drug peddling and tax evasion. Recently an FBI operation, “Trojan Shield”, which busted a criminal underworld along with the seizure of millions worth of cryptocurrencies, further echoed the proximity of criminals with the crypto-world. Several cryptocurrency frauds have unearthed in recent history. The widespread popularity of cryptocurrencies has diluted the globalstandardson KYC (Know Your Customer) and AML (Anti Money Laundering), providing room for criminals and lawbreakers. 

The energy-intensive nature of cryptocurrency mining has raised concerns about its impact on climate change and pollution. China and Iran have recently put stringent controls on bitcoin mining owing to environmental pollution and power blackouts. It is bizarre that the total electricity used for bitcoin mining surpasses the total energy consumption of all of Switzerland.

Threat to sovereign power 

Decentralised currencies pose a grave threat to the sovereign power of the governments. Several States and Central Banks have thus stepped in to maintain their relevancy, by announcing their version of digital currencies, backed by sovereign guarantee. In the latest Bank of International Settlements (BIS) paper, 86% of 65 respondent central banks have reported doing some research or experimentation on Central Bank Digital Currencies.

China leads the rest

China is quite ahead in the development of its CBDC compared to all other nations. China has already distributed some 200 million yuan (US$30.7 million) in digital currency as part of pilot projects across the country. By early implementing the digital yuan, China expects to challenge the US dollar’s hegemony as the international currency. In future, China hopes to achieve more international trade through a digital yuan, which would further China’s global ambitions and effectively push plans like the Belt and Road Initiative (BRI). Moreover, it provides China with sufficient strength to effectively bypass US sanctions in any part of the world.

The Federal Reserve and the European Central Bank have taken a more cautious stance and indicated that they are not in the race for the first place. In late May, Fed Chair Jerome Powell announced plans for a discussion paper on digital payments, including the pros and cons of the US Central Bank currency. European Central Bank Chief Christine Lagarde said her institution could launch a digital currency only around the middle of this decade.

Why CBDC’s may not offer anything new

Only stringent regulations or an outright ban on decentralised currencies could control money laundering and financing of crimes through digital currencies. It is unlikely that the introduction of CBDC’s would hamper the flow of illicit money through decentralised channels. In all probability, criminal elements would still run their show through decentralised currencies where there is anonymity and the lack of regulations.

CBDC’s may perhaps offer fast and real-time settlement of payments. While this is a plus, the existing bank payment systems already provide for swift and sophisticated transaction processing. So, real-time settlements are nothing new and certainly not a novel innovation. Moreover, cross-border transfers might not see any revolutionary change because these transfers still have to go through the existing regulatory frameworks.

CBDC’s would boost the surveillance mechanisms of the State. It would put every transaction under the government scanner. Individual privacy will be a major causality if proper safeguards are not incorporated. Brighter sides are that the government could effectively target economic crimes like tax evasion with greater ease and a reduced carbon footprint.

Threat to the banking system

Though the actual modalities have not come out, reactions from Central Banks indicate that CBDC’s will co-exist with the existing fiat currencies. The new system can potentially destabilise the present banking system and the financial intermediaries. Proposed digital currencies are backed by the Central Bank, which could never go bankrupt. In the existing system, money is secured by the guarantee offered by private banks. In a period of economic instability, citizens might pull too much money out of banks to purchase CBDC’s, backed with better security and consequently triggering a run on banks.

Back to centralisation

The introduction of digital currencies is out of necessity to preserve Central banks’ legitimacy in the face of the cryptocurrency boom. It possibly will protect the citizens from the extreme volatility of decentralised currencies and may serve as safer mediums of exchange. Since it is backed by sovereign guarantee, it might also act as a better store of value. But, CDBC’s would expand the state power and cause the continuance of the regime based on “trust” in governmental institutions, which was precisely what decentralised currencies like bitcoin had intended to annul. Essentially, CBDC’s would bring in more government to our daily lives, which is rather regressive and goes against the spirit of modern libertarian values.

Continue Reading

Economy

Rise of Billionaires In India, Lobbyism And Threat To Democracy

Published

on

Let me start by asking you – Have you watched Oliver Stones’ 1987 masterpiece, ‘Wall Street’? Great! For those who haven’t, here is a quick reflection of its storyline. This movie is a premise with a promise, and exert its audience to seek an answer to one of the most neglected question in the philosophy of ethics and greed – ‘How much money is enough money?’. Michael Douglas plays an unsparing millionaire raider Gordon Gekko. Bud Fox, played by Charlie Sheen, is a stockbroker full of ambition, doing whatever he can to make his way to the top. Fox is enchanted by Gekko, and entice him into mentoring him by providing insider trading information. Although Fox is loyal to his mentor Gekko, throughout the film, he is seen asking the millionaire trader Gekko, “How much money do you need to be satisfied with? How much is enough?”. And each time Gekko ponders and thinks hard, but the truth is, he himself doesn’t know. There is a scene in the movie where Gordon Gekko uses Fox’s inside information to manipulate the stock of a company that he intended to sell off, while throwing its workers, including Bud’s father. When Bud hears about his father losing the job along with other workers, he experiences deep agony and immediately repents his participation in the millionaire’s duplicity and deception. He storms to his office and asks again, “How much is enough, Gordon?”

And, Gekko answers – (Source :Wall Street, 1987)

“The richest one percent of this country owns half our country’s wealth, five trillion dollars… You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now, you’re not naïve enough to think we’re living in a democracy, are you, buddy?  It’s the free market. And you’re part of it.”

Now, what this scene exposes is the adrenaline rush of power that wealth provides. But, what this scene also highlights is how this power of wealth has created a society where corporate empires are thriving through lobbyism, while middle-lower class are palpitating in a life of destitution. And in case you are thinking how a 1987 American classic like ‘Wall Street’ is relevant to the rise of billionaires in 2021, here is the answer – wealth, national morality and democracy all symptomatic of a thriving country. But, with the rise of billionaires in India, this is exactly what is at stake.

Corporate Political Activity (CPA) – When Corporations Colonizes The State

Luis Fernandez said, “Either we can have democracy or a great amount of wealth concentrated in the hands of few. We cannot have both”. So, what did he mean by this? For starters, hoarding of wealth not only gives you the liberty to buy luxury goods, but it also gives you the freedom to buy votes, laws, and legislation. How? Well, corporate involvement in any democratic ecosphere is usually manifested into a corporate political activity (CPA). This corrupts the democratic process by excluding the citizens from policy decision-making. Thereby, privatizing profits for corporation and socializing the loss among citizens(Daniel Nyberg,2021). So, how is this accomplished? It’s achieved through a specialized team of people called – Corporate Lobbyists. They act as a mediator between the political parties and the corporation they work for. But, what do these billionaires lobby against? Mostly tax deregulations. However, the devil hides in details – Most billionaire monopolists lobby against anti-force entrustments, giant banks lobby against risk regulations, polluters in the private sector lobby against environmental regulations, and private corporations lobby against public services. Each one of these is detrimental to the growth of any democracy because lobbyists act out in the interest of billionaires and influence government policy-making by taking in no account of public interest (Mehrsa Baradaran, 2019). In simple words – they suggest extraneous elements in decision-making and subvert the public interest in areas like infrastructure (highways, airports, and massive scale projects under the Jawaharlal Nehru National Urban Renewal Mission in 63 cities), natural resources, and energy (gas, oil, petrol, energy), telecom (3G and 4G technology),military (weapons and aircrafts), mining (where giant corporations have developed stakes making billions on India’s tribal heartland), and agribusiness (seeds, privatization of agriculture sector), etc. And, how does this work? Keep reading.

You must be aware of the ongoing farmers’ protest since last year. It is strictly against two issues. First being the ‘three new farm laws’ introduced by Modi government. Second, being the agitation against India’s two richest billionaires – Mukesh Ambani and Adani, who are close to Modi and is believed to profit from these new farm laws. These two billionaires have been eyeing India’s farm sector for a while now. In 2017, Ambani expressed his interest in investing in the agriculture sector. His Jio Platforms, today, is leveraging its partnership with Facebook to dilate into this domain with Jiokrishi app, which will ease out the farm-to-fork supply chain. The company’s records suggest that it source(ed) 77% of its fruit directly from farmers. Now, currently, the farmers take their produce to wholesale markets, governed by APMC (government body). APMC in every State decides the price it will pay to the farmers for their produce. Remember, this market becomes the central point for government acquisition of food grains. With the new farm laws, a giant corporation can directly approach the farmers, buy and pay for the produce at an agreed amount. In short, this new farm law aims to abolish this structural network and privatize it. But, this is just structural damage for farmers. As I mentioned earlier, the devil hides in details – The news laws do not make a written contract between the farmers and corporations mandatory. This means that if there is a conflict of interest between both parties, it will be extremely difficult for farmers to prove that a corporation has breached that agreement. Additionally, this law states that a farmer has no right to take these disputes to an independent judiciary for justice. Instead, they would have to reach out to two bodies – a conciliation board (district-level administrative officers) or to the appellate authority. Now, both of these bodies are dependent on government, which can potentially revert the case in favor of corporations. This law also has a grave danger of impacting the minimum support price that government bodies offer to farmers in case of a declined price fall for their produce during a particular season. The farmers here are sailing on a boat of uncertainty, economic chaos, and policy madness —- all favoring the interest of the giant corporates instead of the public; more specifically, the farmers, who are the beating heart of an agrarian economy like India.

Remember, The Rafael deal? The deal was given to a Ambani brother, who had minimal to no experience in aircraft. Rafael offset contract has been given to Reliance Defense, which was formed 12 days before the announcement of the Rafael deal. ‘Mediapart’, a French-language publication, quoted Francois Hollande (2018), “It was the Indian government that proposed this service group (Reliance), and Dassault which negotiated with Ambani. We had no choice. We took the interlocutor who was given to us.” Two weeks back, the French newspaper ‘LeMonde’ dropped a bombshell stating that the French authorities passed off Anil Ambani’s $162 million tax after Modi-led NDA government negotiated Rafael deal with France based Dassault Aviation. Another example- Back in 2018, when the Modi government approved the privatization of six airports, it also relaxed the prerequisite requirements. BJP allowed companies with no prior experience in this sector to present their bid. After deliberation, all six airports were given to Gautam Adani, the second-highest billionaire in India with no history of running airports. Today, in 2021, Adani Airports has acquired 23.5% stake in Mumbai International Airport Ltd(MIAL), and is set to extend the stakeholding percent to 74%, which will give Adani group the ownership of the upcoming Navi Mumbai airport in which MIAL holds majority stakes. His other ventures in sectors like Adani green energy, power, and transmission hold a close-by narrative. His Carmichael coal mine project in Australia has earned him an infamous ‘climate change villain’ title. Tax deregulations is the primordial goal of corporate lobbyists, and they seem to be winning. The Indian government last year announced that it had reduced the rate of tax for certain existing companies at 25.17% , the lowest since 2010. There is an extra tax deduction of 15% from earlier level of 25% for start-ups. One would argue that the low tax rate would increase international corporate investments. But recent studies show that businesses are moving to countries like Bangladesh, Vietnam, Indonesia for labor-intensive operations. Thereby, failing to bring employment to the country.

Figure 1: The rate of tax imposed on corporates by the Indian government in the last ten years

Figure 2: Mukesh Ambani’s $2 billion house overlooking the slums of Dharavi – The world’s largest slum. Source of the image : www.thecharette.org

Tax deregulation, tax invasion, and corporate lobbying are not the only problems that manifest with the rise of billionaires in India. The most chronic and malignant effect is the ever-widening gap between the rich and poor, threatening economic justice and social cohesion in a society. This economic gap is so dilated that it becomes a life of excess for these billionaires and destitution for the rest of the 1.38 billion Indians. According to Forbes magazine, the third richest Indians – Mukesh Ambani ($84.5 billion), Gautam Adani & family($50.5 billion) and Shiva Nadar($ 23.5 billion) own 60% of the country’s wealth. India’s top three richest people have added over $100 billion between them. In fact, since the initial lockdown in March 2020, India’s top billionaires increased their wealth by 35% during COVID-19 pandemic. According to Oxfam report, India’s top 100 billionaires witnessed their fortune increase by staggering number of Rs 12.97 trillion. This amount could have provided every 364 million poor Indians a cheque for ₹94,045 each. So, what was the economic status of the working class? They suffered abominably during COVID, while billionaires thrived. The study, ‘State of Working India 2021 – One year of Covid-19’, by Azim Premji University, revealed that the economic recession caused by the COVID-19 has pushed 230 million Indians below the poverty line. This number accounted for and contributed to the global increase in poverty by a whopping 60% in 2020. The study shows the loss in monthly income earning for all kinds of workers. The fall was 17% for temporary salaried jobs, 18% for self-employed, 21% for daily wage workers, and 5% for permanent salaried workers. This ever-widening gap of economic inequality in India goes against every fiber of true democracy, where public resources and rights like healthcare, education, COVID relief financial aids, etc., instead of being elevate, are subverted. Gabriela Bucher, Executive Director of Oxfam International said, “Rigged economies are funnelling wealth to rich elites who are sailing through the pandemic in luxury and ease, while those on the frontline of the pandemic — medical assistants, healthcare workers, and market vendors — are struggling to pay the bills and put food on the table”. Existence of these billionaires in any society is symbolic of a theocracy thriving and a democracy that’s palpitating. Times like these demand a moral obligation to question, resist and fight against the economic injustice, not just for ourselves, but for our children and many generations to come by. Remember, power seeks self-preservation first and foremost. The billionaires will do anything and everything to continue hoarding resource, wealth and pass it to their heirs. So, the question is not – when will this stop? But, what are you going to do about it?.

Continue Reading

Publications

Latest

Europe47 mins ago

Geopolitics For Giants And Dwarfs

Authors:  Zlatko Hadžidedić and Adnan Idrizbegović June 2021 was far more than just dynamic in terms of global politics: President...

Science & Technology4 hours ago

Say “hello” with the sixth generation of mobile network (6G)

The recent introduction of 5G across the globe  has directed the interests of telecom experts to the development of the...

International Law7 hours ago

Human Rights violation in Palestine: A serious concern

Palestinians had long been victim of brutal Israeli assailant forces. The innocent Palestinians civilians and children are not only victim...

East Asia11 hours ago

Centenary of the Chinese Communist Party: 100 years of Prosperity and Greatness

Since its establishment, the Communist Party of China has made many national contributions and has become the main engine of...

Tech News14 hours ago

ACCCIM and ANBOUND Co-Hosted Forum on Digital City Development in the Post-COVID Era

After more than a year since the emergence of the Covid-19, our modern world faces unprecedented threats to our public...

Economy16 hours ago

Indonesia’s political will is the key to a successful carbon tax implementation

Authors: I Dewa Made Raditya Margenta, and Filda C. Yusgiantoro* A carbon tax should be overviewed as an oasis of...

Middle East19 hours ago

Syria’s difficult rebirth

It is now ten years since a peaceful demonstration against Bashar al-Assad’s regime organised by students in Deraa was brutally...

Trending