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Why I Hate The 
IPL<http://feedproxy.google.com/~r/IndianMuslimsBlog/~3/mYWLC23TqUY/?utm_source=feedburner&utm_medium=email>

Posted: 26 Apr 2010 12:47 AM PDT

*Dr. Shah Alam Khan*,

To qualify as an Indian, it is essential that you love cricket, it is
important that you gossip, it is vital to fall in love with pelvic thrusting
actors and cajoling actresses on the celluloid screen and it is
quintessential that you make money the quick (and sometimes the wrong) way.
The saga of Indian Premier League (IPL), the beleaguered cricket league of
India, is no exception to these general rules of Indianness.

The vulgar display of money, power and beauty is there for all to see. From
selfish business tycoons to iconic players, all adorn the masala called IPL.
It is surely entertainment at its best. The kind of recipe which made a
friend’s eighty-five year old grandma vouch for a team (it’s a different
matter that she can’t make out why the two brothers, called “mid off” and
“mid on” play for every team!)’. IPL is fun as long as it confines itself to
the cricketing field. Last week the game spilled over, flooding our fragile
democratic institutions and drowning a lot in its wake.

To believe that all what happened in the last couple of weeks is the result
of an ego clash between Lalit Modi and Shashi Tharoor would be rather stupid
and naïve. In fact are we being made to believe that a shrewd businessman
and a newly crowned politician do have an ego? Doesn’t make sense to me. In
all its three years of existence, IPL was not about cricket. It was about
money. About a lot of money! The unprecedented value of the IPL was too much
to be resisted by all – politicians, administrators, business moguls, cine
stars. Everyone wanted a piece of this rich pie. But are we really
interested in the Tharoors, Pawars, Ambanis and Modis? Corruption in the IPL
does not really worry me. From the day of its conception the IPL was not a
sanctum sanctorum. “Brand IPL” as it is tried to be labeled by those who
believe in the politics and power of “brands” was a hot bed of vested
interests. It was an outlet for black money. Yes, they also played cricket
to keep the likes of us think that the league represented a sport so close
to a billion Indian hearts.

The financial aspects of IPL are not only murky but an eye opener for those
who thought that India was a poor nation with more than forty percent
population living below the poverty line. The total value of IPL, which even
Mr Modi cannot predict with surety, is expected to be around 70000 crores.
This unaccounted money is available to the richest people of India. No doubt
the rich got richer in the IPL. Compare this to a cumulative expenditure of
mere Rs. 27.59 crores in the prestigious National Rural Guarantee Scheme of
the Government of India for the state of Orissa in 2008-09. The Orissa
example is even more glaring as this is the state where hunger deaths are
reported on a regular basis. Some may argue and correctly so, that it is
foolhardiness to compare a government scheme with a privately owned sporting
event which is meant for entertainment. Sure, but this is the best way to
show how India entertains and Bharat survives under one roof. The contrast
of IPL money and the lack of it in governmental schemes shows the divergence
of thought and responsibility which goes in making India a nation of such
huge contradictions. It is this thought process which gives birth to
Maoists, Naxals and other elements of state defiance. With the muck and
shame of IPL written large on the faces of corporate and political class of
India, words of our Hon. Home Minister, Shri P Chidambaram sound so hollow,
“we shall counter the Maoists with force. They are the gravest internal
security threat to our country”. How can we even expect to believe a word of
what he says? Maoists, Naxals, Naga Militia. Are any of these a bigger
threat to the nation than the financial scamsters of IPL? Shouldn’t the
equation be set right now? May be one Maoist for every thug involved in the
IPL? How about “neutralising” the threat of Lalit Modi and his brigade
before “neutralising” the alleged mastermind of the Dantewada massacre,
Ramanna Paparao?

IPL even described socialism in its own new way. According to a report
released just before the end of IPL2 (2009) by the equity research firm
IIFL, Rajasthan Royals, the team representing Jaipur would have made the
highest profit of Rs 35.1 crore in the group matches of the second edition
of the tournament even when their performance was below par compared to
their champion status of 2008. Knight Riders, which finished at the bottom
in the league table in South Africa, nevertheless ended up with the third
highest profit of Rs 25.8 crore in IPL 2. King’s XI representing Punjab,
which also did not make it to the semis, just beat Kolkata to second spot
with a profit of Rs 26.1 crore. How interesting is that! Teams doing poorly
in terms of cricket will not necessarily fare poor in their financial gains.
It looks as if Lalit Modi and his gang of franchises have defined what could
be called as “IPL Socialism”.

The IPL also represents a loot of public funds, my and your money, which
doesn’t even get noticed. Each day & night match of the IPL played under
flood lights, consumes electricity enough to run 500 average Indian homes
for a month. The provision of subsidised electricity doesn’t make things any
different. It is believed that the average electricity bill for a single day
and night cricket match of the IPL is more than 15000 US Dollars. For those
interested in numbers, this is the government’s expenditure on health for
ten adult Indians if they live up to an age of 70 years (at the rate of 21
dollars PPP). Water, a deficient resource in cities like Mumbai and Delhi is
used to keep the fields green during the IPL. This, in a country which is
now at the top of the childhood malnutrition charts of the globe with lack
of clean water being the primary cause of a large number of infant and
childhood morbidity and mortality.

The money and its earthy use in the IPL is a matter of shame for each
Indian. We all love cricket but surely not in a way in which Lalit Modi
packed it for us. The very fact that a large part of our society is still
deprived of basic daily needs including food should always weigh heavily on
our conscience. Why are we as civil society becoming oblivious to the needs
of the common Indian? How can we even accept an Agriculture Minister
presiding over the functions of the IPL when hundreds of farmers are
committing suicide day in and day out? How are we justified in condemning
the Maoists when the Indian society gives them an IPL every now and then? If
the law of the land does not permit theft, how can it allow this
unprecedented day light robbery? The vulgarity of IPL stands defiant. If Mr.
Lalit Modi and his band of filchers cannot feel for the poor they should at
least respect poverty.

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 Interest-free Microfinance: Best Tool For Poverty
Eradication<http://feedproxy.google.com/~r/IndianMuslimsBlog/~3/dGhFpRDaxX0/?utm_source=feedburner&utm_medium=email>

Posted: 25 Apr 2010 06:54 PM PDT

*By Abdul Aziz V. K,*

The interest-free microfinance can be defined as provision of financial
services to those people who are denied access to the financial market;
opens new perspectives, and empowers people who can pursue projects with
their own resources, and who lack assistance, subsidies and dependence.
Besides, it provides financial services to those, who are traditionally non
bankable, mainly because they lack guarantees against a loss risk.

In the spirit of Islam that goes beyond mere profitability, this new
financial system aims to maximize social benefits as opposed to profit
maximization. This can be done through creation of healthier financial
institutions that can provide effective financial services also at
grassroots levels. Some authors (Al Harran, 1996) argue that Islamic
finance, if inserted in a new paradigm, could be a viable alternative to the
socio-economic crisis derived out of interest-based economic system.

Both Islamic finance and microfinance seem to be concepts surrounded by a
“fashionable aura” in Muslim as well as other developing countries. Banks,
financial institutions, MFIs, NGOs are taking keen interest and most of all
in the relation between the two, especially when it comes to fighting
poverty. Strange enough, even if the interest is high, there are very few
examples of actual MFIs operating in the field of Islamic finance and
Islamic banks involved in microfinance.

Microfinance is a very flexible tool, whose models can be replicated but
require to be tailored on the local socio-economic and cultural
characteristics; and secondly, the potential demand for tailored
microfinance services is still largely unmet. Some surveys proved that there
is a high demand for Islamic Micro-financing especially in low and middle
income predominantly Muslim societies.

At a very basic level, the disbursement of collateral free loans in some
cases constitutes an example of how Islamic banking and microfinance share
common aims. Thus, the Islamic banking and microcredit programs may
complement each other in both ideological and practical terms. Even if they
both constitute fairly new trends in the financial environment, the
inclusion of Islamic finance and microfinance in the activities of the
traditional banking system evolved in a quite similar way.

Three main instruments of Islamic finance; mudaraba, musharaka and murabaha,
are tools generally used to design successful microfinance program.

*Islamic Microfinance is growing rapidly*

The Banker (2007) estimated the total assets of Islamic financial products
at US$500.5 billion and the Islamic finance industry’s 100 largest banks
have posted an annual asset growth rate of 26.7 percent, outpacing the 19.3
percent growth rate of their conventional counterparts.

The global Islamic finance industry is rapidly growing. In the past 30
years, the industry has witnessed the development of over 500
Sharia-compliant institutions, whose reach now spans 75 countries (KPMG
2006). These institutions include 292 banks (fully Islamic institutions and
those institutions with Islamic subsidiaries), 115 Islamic investment banks
and finance companies, and 118 insurance companies.

Despite its origins in the Middle-East, the Sharia-compliant banking has
proved popular with Muslims in other countries as well, leading to the
development of new Islamic banks across North Africa and Asia. Of the total
global Islamic finance market, 36 percent is located in the Gulf Cooperation
Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and
UAE), 35 percent in non-GCC Southwest Asia and North Africa, and 23 percent
in Asia (primarily Malaysia, Brunei, and Pakistan) (The Banker 2007).

Over time, Islamic financial services also have expanded well beyond the
Muslim world and are offered not only by Islamic banks, but also by Islamic
subsidiaries of international financial institutions. Islamic financial
services are currently provided in countries such as India, China, Japan,
Germany, Switzerland, Luxembourg, the United Kingdom, the United States, and
Canada. The United Kingdom, which currently ranks tenth in The Banker’s
listing of “Top 15 Countries by Sharia-compliant Assets” (2007), has
recently announced its aim to make London a global center for financial
markets in the Muslim world.

*Government Promotion of Islamic Microfinance*

In the case of larger Islamic banking industry, government regulations can
play a significant role in the expansion of the Sharia-compliant
microfinance.

Indonesia today provides a supportive regulatory framework and has licensed
35 new Islamic rural banks in the past five years. The State Bank of
Pakistan, which already has a legal and regulatory framework in place for
conventional MFIs, also developed guidelines in 2007 for the rapid expansion
of Islamic microfinance.

Although there is ample evidence of demand for Islamic microfinance
products, it however requires that low-income clients are comfortable that
the products offered are authentically Islamic. Critics of Islamic finance
products suggest that the pricing of some products offered as
Sharia-compliant too closely parallels the pricing of conventional products.
For example, some institutions offer murabaha where interest appears to be
disguised as a cost markup or administration fee. Islamic finance sometimes
suffers from the perception that it is simply a “rebranding” of conventional
finance and not truly reflective of Islamic principles.

Consequently, low-income populations, who often rely on local religious
leaders to address questions of religion, must be convinced of the
authenticity of Islamic financial products if Islamic microfinance is to
reach its full potential. Greater efforts should be explored to (i) increase
collaboration between financial experts and Sharia experts on product
authenticity, (ii) encourage exchange of experiences among religious leaders
(particularly those serving poor populations at the local level) relating to
Sharia compliance of microfinance products, and (iii) educate low-income
populations, in collaboration with local religious leaders, on how financial
products comply with Islamic law.

Throughout the Muslim world, microfinance (Islamic or otherwise) is still
seen as a philanthropic activity rather than a business enterprise.
Consequently, in the context of Islamic microfinance, there is a growing
tendency to view zakat (funds donated pursuant to the Muslim obligation to
pay alms) as a source of funding. Indeed, given the underlying principle of
Islamic finance to promote the welfare of the community, zakat funds appear
ideally suited to support Islamic microfinance. However, a heavy reliance on
charity is not necessarily the best model for the development of a large and
sustainable sector, and more reliable, commercially motivated streams of
funding should be explored.
————————————————–
Mr. Abdul Aziz Valiyaveetil is an Indian national currently working as the
Director of Al Hayat Int’l School, Jeddah. He has got vast experience in
Conventional Banking (Federal Bank, India), for around 15 years and Islamic
Banking (Al Rajhi Bank, Islamic Banking and Int’l Banking division, Head
Office, Riyadh) for more than 10 years.  His contact mail: [email protected]

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