AS a newcomer to the World Islamic Economics and Finance Conference (WIEFC) which was first held at the Pearl Continental Hotel, Lahore on 3 and 4 January 2018, I was left speechless when a prominent Iranian economist recently highlighted the profound insights of a book launched during the 7th WIEFC at Minhaj University Lahore on 27 January 2024.
It was then that i realized a defining feature of the WIEFC is its prestigious book-launching segment. For example, during the recently concluded 8th WIEFC at Minhaj University Lahore on January 25-26 2025, six new books were unveiled including The Routledge Handbook of Islamic Economics and Finance, Artificial Intelligence and the Future of Islamic Finance and Global Environmental Sustainability and Islamic Ethics.
The book praised by the Iranian economist, Beyond IMF: The Emergence of Muslim Common Waqf (MCW) as an Alternative for Islamic Countries authored by Prof. Dr. Hussain Mohi-ud-Din Qadri, captivated my interest.
After acquiring and reading it, I found it to be a groundbreaking work that offers a revolutionary framework for addressing the persistent economic challenges faced by Muslim-majority nations.
With its bold critique of the current global financial architecture and a visionary proposal for the establishment of the Muslim Common Waqf (MCW), the book is a clarion call for economic self-reliance and collective empowerment in the Islamic world.
The International Monetary Fund (IMF) often regarded as a safety net for struggling economies, has long been a subject of controversy, particularly in developing and Muslim-majority countries.
Dr. Hussain not only critiques the IMF’s policies but also provides a concrete, actionable alternative in the form of the MCW—a shariah-compliant framework designed to foster economic sovereignty and sustainable development for the muslim ummah.
Critique of IMF Policies and the Need for Alternatives
At the heart of this book is a comprehensive critique of the IMF’s role in perpetuating debt dependency among developing nations particularly those in the muslim world.
Dr. Hussain lays bare the socio-economic costs of IMF programs, highlighting how stringent conditionalities and high-interest loans often exacerbate poverty, inequality and underdevelopment.
He argues that the IMF’s one-size-fits-all approach has failed to address the unique economic and cultural contexts of Muslim-majority nations, making the case for an alternative financial model rooted in Islamic principles.
While the IMF’s mission is to promote global financial stability, its approach has frequently drawn criticism for exacerbating economic and social inequalities particularly in muslim-majority nations.
First of all, the IMF often imposes rigid economic reforms on borrowing nations such as austerity measures, subsidy removals and privatization of public assets.
While intended to stabilize economies, these measures disproportionately impact the most vulnerable populations, leading to increased poverty and inequality.
Secondly, countries under IMF programs are often required to reduce spending on healthcare, education and social welfare to meet fiscal targets.
These cuts undermine long-term human development, especially in nations already grappling with high poverty and inequality.
Moreover, the IMF’s high-interest loans and cyclical borrowing conditions trap nations in a perpetual state of debt dependency.
For Muslim-majority countries, these challenges are compounded by the Shariah prohibition on interest-based lending, making IMF loans fundamentally incompatible with Islamic principles.
In addition to that, the IMF’s focus on market liberalization often comes at the cost of social equity and justice. Its approach tends to prioritize foreign investment and economic reform over the well-being of local populations, prompting a growing call for alternatives aligned with the ethical and community-focused principles of Islam.
Introducing the MCW: A Shariah-Compliant Solution
In beyond IMF, Dr. Hussain introduces the Muslim Common Waqf (MCW) as a transformative financial framework that addresses the shortcomings of the IMF and provides Muslim countries with a sustainable path to economic independence.
The MCW is rooted in the Islamic tradition of waqf (endowment) and zakat (almsgiving), leveraging these principles to establish a self-sustaining pool of funds for development, disaster relief and socio-economic advancement.
Dr. Hussain draws inspiration from the Ottoman Empire, where waqf institutions were instrumental in funding public welfare projects from education to healthcare.
These historical examples highlight the transformative potential of waqf as a tool for socio-economic development and provide a blueprint for the MCW’s implementation.
Key Features of the MCW Framework include:
1. Collaborative Resource Mobilization: The MCW encourages pooling financial resources from OIC member states, wealthy individuals, and private entities. Contributions may include cash, property, and other assets, all managed transparently under Shariah principles.
2. Shariah-Compliant Investments: The framework employs Islamic finance mechanisms such as Musharakah (partnership) and Mudarabah (profit-sharing) to ensure ethical and sustainable investments.
3. Strategic Development Goals: Funds are directed toward critical sectors like education, healthcare, renewable energy, and infrastructure, ensuring long-term socio-economic growth.
4. Debt Relief and Self-Reliance: The MCW provides an alternative to high-interest borrowing by offering Shariah-compliant financial assistance. This empowers nations to reduce dependency on external financial institutions and reclaim their economic sovereignty.
5. Technological Integration: Advanced technologies like blockchain ensure transparency and security in fund management, while AI optimizes investment strategies for maximum impact.
6. Robust Governance: Independent oversight committees and digital accountability mechanisms safeguard the fund’s integrity and ensure that contributions are used effectively.
Proposed structure of the MCW includes its Central Committee, comprising representatives from OIC member states, financial experts and Shariah scholars which oversees the allocation of funds, ensures compliance with Islamic principles, and monitors project outcomes.
Its Secretariat, meanwhile, acts as its operational arm, responsible for implementing policies, managing investments, and evaluating project proposals.
Practical Applications of the MCW
The MCW’s scope extends beyond financial assistance, encompassing a wide range of practical applications:
• Infrastructure Development: Funding for projects such as roads, hospitals, schools, and renewable energy plants can accelerate development in underserved regions.
• Disaster Relief and Recovery: The MCW serves as a financial safety net for countries affected by natural disasters or humanitarian crises.
• Educational Advancement: Investment in educational institutions and vocational training centers can address skill gaps and enhance human capital across Muslim countries.
• Energy and Technology: Supporting renewable energy projects and technological innovation fosters sustainable growth and positions Islamic countries as leaders in global sustainability efforts.
Why the MCW Model Deserves Global Support
The MCW is more than an alternative to the IMF—it is a paradigm shift in global finance. By prioritizing justice, equity and community welfare, the MCW aligns with the core values of Islam and offers a roadmap for sustainable development.
The MCW model stands out because it can enable muslim nations to break free from the constraints of interest-based financial systems and reclaim control over their economic destinies.
By directing funds toward public welfare, the MCW fosters social equity and addresses systemic challenges like poverty and inequality.
Moreover, the MCW also promotes unity among OIC member states encouraging collaboration and shared responsibility for collective prosperity.
Beyond IMF is more than a critique of existing financial systems—it is a visionary guide for a just and sustainable economic future. Dr. Hussain’s proposal for the MCW is a beacon of hope for Muslim nations seeking to overcome economic dependency and foster resilience through collaboration and innovation.
The time for action is now. Policymakers, scholars and leaders across the Muslim world must embrace the MCW framework, recognizing its potential to transform the financial landscape of the Ummah.
By uniting under the principles of Islamic finance, Muslim nations can build a future defined by economic independence, social justice and collective progress.
The MCW is not just an alternative; it is a revolution. It is a call for solidarity, self-reliance and the pursuit of prosperity grounded in the ethical and moral teachings of Islam. Let us rise to the challenge and make this vision a reality.
Dr. Kamarul Zaman Yusoff was a participant at the 8th World Islamic Economics and Finance Conference (WIEFC) representing Universiti Utara Malaysia and The Future Research.
