Tuesday, December 15, 2009

Jane Wells: Viva Las Vegas? Keep Watching CityCenter - CNBC

Jane Wells: Viva Las Vegas? Keep Watching CityCenter - CNBC

This is the real Dubai World. The leader of Gambling in the world. Those who do not understand Islamic Finance Should not certify. The shariah Scholar who certified Nakheel and its Parent Company Dubai World must answer this.

These Sukuk voilates first principle of Islam i.e. Maqasid Al Sharia. The income or rent Sukuk holders has received is basically from Prohibited Businesses i.e. Haram Activities ( Alcohol, Pork, Gambling, Dancing and Prostitution.). The income and guarantee of income from Haram Sources are Haram. All the income received by Sukuk holder therefore is haram and must be cleaned.
Structures and Contract are two essential things but what is more important is business model which should not voilate Maqasid Al Shariah. Even if the structure and Contract are valid but Business Model voilates Maqasid Al Shariah and indulges into Haram such structures and contracts are void. It is very important that complete value cycle of the product must be shariah compliant. The income from such void contract is Haram.

Wednesday, December 9, 2009

Dubai World and Nakheel Sukuk Not Shariah Compliant

Dubai World and Nakheel Sukuk Not Shariah Compliant

Islamic economics and finance is not just name of the few structures but they are system of life where good your deeds and intentions are counted. To have valid contract, structure must have Halal source of income, and its substantial income should not be coming from Haram (Prohibited) income. The product must satisfy Shariah compliance through out the product life cycle and not only the structure. The guarantees must come from Halal sources and rent must also come from Halal sources and not from Haram income.

The product must satisfy following requirement.

o Maqasid al Shariah
o Conditions of contract

Islamic Economic System

Islamic economics is based on the Shariah. The basic objectives are to ensure general human well-being and socio-economic justice.


The Role of Moral Values

While conventional economics generally considers the behavior, tastes and preferences of individuals as given, Islamic economics does not do so. It places great emphasis on individual and social reforms through moral uplift.

The Importance of the Hereafter

The Hereafter is a concept which is completely ignored by conventional economics, but it is one which is greatly emphasized by Islam. Because of their innate goodness, human beings do not always try to serve their self-interest.

MAQASID E SHARIAH- the Objectives of Shari'ah

Maqasid al-Shari'ah that is, the objectives of Shari'ah can be defined as below:

· Maqasid al-Shari'ah comprises those benefits/welfare/advantages for which Allah has revealed His Shari'ah.
· Maqasid al-Shari'ah aims at the attainment of good, welfare, advantage, benefits, etcetera, and warding off evil, injury, loss, etcetera, for the creatures. (All this in Arabic terminology can be stated as Masalih al-'Ibad.)
Shari'ah aims at the welfare of the people in this life and in the life hereafter, and for this purpose it has advised the people to adopt such means and measures suggested by it (Shari'ah) as may result in advantage benefit/well-being to them and may ward off evil/injury/loss, etcetera, from them, not only in this world but also in the world hereafter. Same is the philosophy behind His commands and the worships prescribed for His creatures.

Shari'ah Approves of Good and Forbids Bad:

The main objectives of the Shari‘ah are to ensure that human life is based on ma’rufat (good) and to cleanse it of munkarat (evils). It does not, however, limit itself to an inventory of good and evil deeds; rather, it lays down an entire scheme of life whose aim is to make sure that good flourishes and evils do not destroy or harm human life.
The Shari‘ah shapes Islamic society in a way conducive to the unfettered growth of good, righteousness and truth in every sphere of human activity. At the same time it removes all the impediments along the path of goodness. And it attempts to eradicate corruption from its social scheme by prohibiting evil, by removing the causes of its appearance and growth, by closing the inlets through which it creeps into a society and by adopting deterrent measures to check its occurrence.


The Shari‘ah divides ma’rfat into three categories: the mandatory (fard and wajib), the recommendatory (mandub) and the permissible (mubah).
The observance of the mandatory is obligatory on a Muslim society and the Shari‘ah has given clear and binding directions about this. The recommendatory ma’rufat are those which the Shari‘ah expects a Muslim society to observe and practise.


The munkarat (the things prohibited in Islam) have been grouped into two categories: things which have been prohibited absolutely (haram), and things which are simply undesirable (makruh).
Muslims have been enjoined by clear and mandatory injunctions to refrain totally from everything that has been declared haram. As for the makruh, the Shari‘ah signifies its disapproval either expressly or by implication, giving an indication also as to the extent of such disapproval.

Aims of Shari'ah Unchangeable

The aims and objectives of Shari'ah are everlasting and unchangeable. They are set by Allah and their application or interpretation is not left to the sweet will of any person or class.

The Definition Of Gambling ( , )

Every transaction that is based on one party's gain and another's loss, or if the transaction is obscure, is called 'gambling' ( , ) in the terminology of the Sharee'ah. In Arabic, it is referred to as Qimaar and Maysir . Since one party gains and the other loses, it falls under the definition of gambling. Gambling, therefore, can take countless different forms. In every era and every different land gambling is practised in a variety of different ways. A special way of gambling existed among the Arabs. This particular method of gambling has been referred to in the Holy Qur'aan as Maysir and Azlaam .

The Prohibition of Gambling

Islam, the all-embracing religion, not only displayed its just and moderate systems in beliefs and devotion, but also in economics and social orders. This just religion could not tolerate the unjust seizure of another person's wealth (through games of chance) which resulted in crippling the poor even more and strengthening the rich by accumulation of wealth without any effort nor could it tolerate the collection of a large amount from the poor and making it one person's property without any lawful religious reason. Consequently, gambling was declared unlawful.
In the beginning of Islaam when the Holy Prophet sallallahu alayhi wasallam was asked aboutalcohol and gambling, this verse was revealed, They ask thee concerning wine and gambling. Say: In them is a great sin and some benefit for men. The sin is greater than the benefit. (2:219) This verse is indistinct regarding the lawfulness and unlawfulness of wine and gambling. Some high-ranking Sahaabah radhiyallahu anhum understood from this verse that these things are undesirable and detestable. They began abstaining from these things immediately. Generally, the people participated in gambling and wine drinking, since a clear ruling declaring the unlawful and Haraam was not revealed and since there had been no definite decision from the Holy Prophet sallallahu alayhi wasallam . Then this verse of Soorah Maa'idah was revealed, O you who believe! Intoxicants and gambling, (dedication of) stones and arrows are abomination of Shaytaan’s handiwork: Abstain from it so that you may prosper. Shaytaan's plan is (but) to excite enmity and hatred between you, with intoxicants and gambling, and binder you from the remembrance of Allah, and from prayer: Will you not then abstain? (5: 90,91)

Islamic Commercial Law -Legality of Cause, Object and Consideration

The need to respect the precepts of Islam also results in rules concerning the cause (sabab) of the contract, as well as assets that are its objects and the consideration payable in respect of them.

Legality of Cause

The underlying cause must be lawful. A useful definition of cause can be found in the law, the ‘direct purpose aimed at by the contract’. So a contract to buy grapes is invalid if the underlying cause of entering into the transaction is to make wine.

Legality of Object

The object of the contract must be legal (mubah), ie:
- Beneficial; examples of assets which are not beneficial include vermin and animals not useful for hunting;
- Capable of being traded; examples of assets not in this category include public property (a mosque, or assets subject to a waqf), and birds not yet caught;
- Capable of being delivered; an asset not capable of being delivered is a beam in the roof of a house which cannot be removed without harming its structure;
- Lawful; wine, pork, blood and idols are examples of forbidden commodities (most schools prohibit the sale of dogs, apart from hunting dogs).

Legality of Consideration

The consideration must also be legal. For example, one cannot pay for goods with wine.
Prohibited Matters in Business Transactions
So far we have focused on one aspect of the business ethics – guidelines prescribed by Islam for conducting business transactions. Another aspect of business ethics is the various forms of unethical business practices a Muslim businessman must avoid in his business dealings. Some of these prohibited and undesirable business practices are as follows:

Dealing in Prohibited (Haram) Items

Dealing in unlawful items such as carrion (dead meat), pigs and idols is strongly prohibited in Islam. Likewise, trading in pork or intoxicants and sale of idols and statues is not permitted in Islam. A verse of the Holy Qur’an says:
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Holy Qur’an also says: O you who believe! Intoxicants and gambling [dedication of] stones and [divination by] arrows are an abomination of Satan’s handiwork: so avoid it in order that you may prosper. (5:90) The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)

Sale of Al-Gharar (Uncertainty, Risks, Speculation)
1.1. Arbitrarily Fixing the Prices
1.2. Hoarding of Foodstuff
1.3. Exploitation of one’s Ignorance of Market Conditions

Dubai World Sukuk and Nakheel Sukuk

The company which has its substantial income coming from Casino’s, Alcohol, and Prostitution can issue sukuk and guarantee it. Where whole company philosophy and business model is based on Haram income can issue Shariah compliant product. In this situation not only the issuer but also Shariah Scholars are at fault.

“Dubai world Sukuk and Nakheel Sukuk are not Shariah Compliant and Islamic”
Just by saying Sukuk and Structuring it like Sukuk, it can not become Shariah Compliant. The Shariah Scholars who certified it are answerable Here and Hereafter for promoting Haram in the name of Halal.

Thursday, December 3, 2009

Why Dubai Failed

Why Dubai Failed
Many people may have given many reasons for failure of Dubai. Dubai was glaring example of flourishing economy and success. This story is deceptive. The success is build on very shaky foundation, basically there are no foundations there and any structures built without foundations is going to collapse one day or other. Dubai builds whole business on Haram element – (Prohibited) by Allah for which failure in both the worlds are clearly mentioned.
These reasons are as below.
1. Interest based financing – high leveraged financing.
2. Economy based on gambling and Haram trade
3. Tourism – serving of alcohol and drugs
4. Dancing, music, night club and prostitution
5. Trade in Haram Food
(Income from Haram source is Haram)
The Punishment for Dealing with Riba (Interest and Usury)
“Those who devour usury will not stand except as stand one whom the Evil one by his touch hath driven to madness. That is because they say: “Trade is like usury,” but God hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge); but those who repeat (the offence) are companions of the Fire: They will abide therein (for ever).”
- Quran Verse 2:275 (Chapter Al-Baqara)
To understand the wisdom behind such prohibition we need to be first aware of 2 key Islamic principles on wealth-creation.
1. Islam permits increase in capital through trade and, at the same time, it blocks the way for anyone who tries to increase his capital through lending on interest (riba) - whether it is at a low or a high rate.
Allah Almighty says : “O you who believe, do not consume your property among yourselves wrongfully, but let there be trade by mutual consent…?
- Quran verse 4:29 (Chapter An-Nisa)
I would also like to point to another prohibited means of earning - ‘gharar’ (transactions based on speculation/gambling).
The Hadith of Prophet says:
Do not buy fish in the sea, for it is gharar. (Ibn Hanbal)
Buying ‘fish in the sea,’ or alternatively, ‘what is in the womb’ highlights the speculative nature of the transaction.
2. ‘Gharar’ (speculation/gambling) violates the principle that all parties have both complete knowledge and access to the product before the transaction.
In summary, Quran forbids both risk-less gain, as in the case of Riba (Usury), and transactions based entirely on risk, as in ‘Gharar’ (Speculation/Gambling). Islamic Shari’a encourages Muslims to be “risk neutral” and earn profit through neither seeking speculative gain nor hoping to lock down all risk with fixed returns.
Ibn Majah recorded that Abu Hurayrah said that the Messenger of Allah said,
(Riba is seventy types, the least of which is equal to one having sexual intercourse with his mother.)
Continuing on the subject of prohibiting the means that lead to the unlawful, there is a Hadith that Ahmad recorded in which `A'ishah said, "When the Ayat in Surat Al-Baqarah about Riba were revealed, the Messenger of Allah went out to the Masjid and recited them and also prohibited trading in alcohol.'' The Six collections recorded this Hadith, with the exception of At-Tirmidhi. The Two Sahihs recorded that the Messenger of Allah said,
`Ali and Ibn Mas`ud narrated that the Messenger of Allah said,
(May Allah curse whoever consumes Riba, whoever pays Riba, the two who are witnesses to it, and the scribe who records it.)
(276. Allah will destroy Riba and will give increase for Sadaqat. And Allah likes not the disbelievers, sinners.) (277. Truly, those who believe, and do deeds of righteousness, and perform the Salah and give Zakah, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.)
Allah Does Not Bless Riba
Allah states that He destroys Riba, either by removing this money from those who eat it, or by depriving them of the blessing, and thus the benefit of their money. Because of their Riba, Allah will torment them in this life and punish them for it on the Day of Resurrection. Allah said,
(Say: "Not equal are Al-Khabith (evil things) and At-Tayyib (good things), even though the abundance of Al-Khabith may please you'') ﴿5:100
Ibn Jarir said that Allah's statement, (Allah will destroy Riba) is similar to the statement reported of `Abdullah bin Mas`ud, "Riba will end up with less, even if it was substantial.'' Imam Ahmad recorded a similar statement in Al-Musnad.
Giving Short Measures
The community of the Prophet Shu‘ayb (sws) was known for practicing it with impunity. Consequently, they were destroyed for their persistence in deceit and disbelief in Allah and His Messenger. Allah the Almighty has repeatedly commanded exactitude in weights and measures. One of the verses says: And give full measure when you measure, and weigh with a just balance. That is good and better in the end. (17:35)
So the earthquake seized them and they lay (dead), prostrate in their homes. Those who belied Shu 'aib, became as if they had never dwelt there (in their homes). Those who belied Shu aib, they were the losers.
Then he (Shu 'aib) turned from them and said: "0 my people! I have indeed conveyed my Lord's Messages unto you and I have given you good advice. Then how can I sorrow for the disbelieving people's (destruction)." Surah 7: 91-93
The Prohibition of Gambling
[The Quran 5:90] O you who believe, intoxicants, and gambling, and the altars of idols, and the games of chance are abominations of the devil; you shall avoid them that you may succeed.
Dealing in Prohibited (Haram) Items
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1)
The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
"They ask thee concerning wine and gambling. Say, 'In them is great sin and some benefit for men; but the sin is greater than the benefit."
(Qur'aan 2:19)
• On the authority of Abu Huraira (may Allah be pleased with him), who said: The Messenger of Allah said: “Allah the Almighty is good and accepts only that which is good. Allah has commanded the Faithful to do that which He commanded the Messengers, and the Almighty has said: “O ye Messengers! Eat of the good things, and do right..” (Quran 23:51). And Allah the Almighty has said: “O ye who believe! Eat of the good things wherewith We have provided you..” (2:172). Then he mentioned [the case of] a man who, having journeyed far, is disheveled and dusty and who spreads out his hands to the sky [saying]: O Lord! O Lord!-while his food is unlawful, his drink is unlawful, his clothing unlawful, and he is nourished unlawfully, so how can he be answered!” (Muslim).
Zinna - Prostitution
Islam has prohibited certain professions and industries to its followers because they are harmful to the beliefs, morals, honor, or good manners of the society.
Prostitution: Prostitution, for example, is legal in many countries of the West; permits and licenses are issued to those who ply this trade, and prostitutes enjoy rights similar to other professionals. Islam absolutely rejects and condemns this practice, and forbids any female, free or slave, to earn money by selling her sexuality.
Dancing and Other Erotic Arts: Similarly, Islam does not permit sexually exciting dancing or any other erotic activity, such as suggestive or obscene songs, provocative dramas, and every type of rubbish which some people today term "art" and "progress."
The fact is that Islam prohibits every sort of sexual contact and sexual relationship outside marriage. This is the secret behind the significant words of the Qur'an prohibiting fornication and adultery (both of which are known as zina in Arabic). And do not come near zina; indeed, it is an abomination and an evil way. (17:32) This indicates that not only is zina forbidden, but likewise anything which brings one near to it. Everything to which we have referred above, as people are well aware, for example, provocative dances and songs, constitutes "coming near zina;" these things are certainly intended to tempt, excite, and lead one toward such sin. And what havoc they wreak in the lives of people!
Manufacturing Intoxicants and Drugs: Earlier we saw that Islam prohibits any participation in the promotion of alcoholic beverages, whether it be in their manufacture, distribution, or consumption, and that anyone who participates in any of these is cursed by the Messenger of Allah (peace be on him). The case of other intoxicants and drugs, such as hashish, cocaine, and the like, is the same; manufacturing, distributing, or consuming any of them is haram. In short, Islam prohibits the Muslim to work in any industry, business or profession which deals in, or promotes, anything which is haram.
Any economy based on Haram can’t succeed.
Definition of best human according to Islam –The meaning of the Quran - 49:13 “O mankind! We created you from a single (pair) of a male and a female, and made you into nations and tribes, that ye may know each other (not that ye may despise (each other). Verily the most honored of you in the sight of Allah is (he who is) the most righteous of you. And Allah has full knowledge and is well acquainted (with all things).”
Sura: 69. Al-Haqqah
(69:5) Then the Thamud were destroyed by an awesome upheaval;
(69:6) and the Ad were destroyed by a furiously raging wind-storm
(69:18) That will be the Day when you shall be brought forth (before Allah) and no secret of yours shall remain hidden.
(69:19) On that Day, he whose Record is given to him in his right hand *12 will say: “Lo! Read my Record! *13
*12 The record's being given in the right hand will by itself show that the concerned person's account is clear and settled and he is appearing in the Divine Court as a righteous man and not as a culprit. It is probable that at the time the records are distributed the righteous man himself will extend his right hand forward to receive his record. For on account of the good treatment that he would have received right from the moment of death till his appearance in the Plain of Assembly at Resurrection, would have given him the satisfaction that he was there to be blessed and not to be punished. At many a place in the Qur'an it has been explicitly stated that right at death itself it becomes clear to every man whether he is entering the next World in a blessed or wretched state. Then from the moment of death till Resurrection the righteous man is treated like a guest and the evil man as a culprit under custody. After this, froth the time the second life starts on the Day. of Resurrection, the condition and state of the righteous is entirely different from the condition and state of the disbelievers, hypocrites and culprits.
*13 That is, he will be overjoyed as soon as he receives his record and will show it to his companions. In Surah Al-lnshiqaq: 9, it has been said "He will return to his kinsfolk rejoicing."
(69:20) Verily I was sure that I would be handed over my account.” *14
*14 That is, ". He was fortunate because he had been conscious of the Hereafter in the world and had lived his life with the belief that he would have to appear before God one day and render his account to Him.
(69:25) As for him whose Record will be given to him in his left hand, he will exclaim: “Would that I had never been given my Record,
(69:26) and had not known my account.
(69:35) today he has been left here friendless;
(69:36) and has no food except the filth from the washing of wounds,
(69:37) which only the sinners will eat.”
Allah Has Destroyed People Who Involved in Haram ( Prohibited)
(7:4) How many a township We have destroyed! Our scourge fell upon them at night, or when they were taking midday rest.
(7:5) And when Our scourge fell upon them their only cry was: 'We are indeed transgressors.' *5
*5. People can learn a lesson from the tragic fate of those nations that spurned God's Guidance, and instead followed the guidance of others; and they became so degenerate that their very existence became an intolerable burden on the earth. Eventually, God's scourge seized them. and the earth was cleansed of their filthy existence.
(7:10) We assuredly established you in the earth and arranged for your livelihood in it. Little do you give thanks.

A morsel of Halaal food
Eating haraam gives rise to every type of infamy. Whereas, the halaal morsel is the cause of every kind of goodness and charity. Numerous traditions praise the acquisition of livelihood through lawful means. For example the Holy Prophet (s.a.w.s.) says, "Worship consists of seventy parts and the best part is earnings by lawful means." (Safinatul Behaar) The Messenger of Allah has also said, "When a man eats halaal food an angel stands over his head and prays for his forgiveness till he finishes eating." (Safinatul Behaar) The Prophet has remarked in a similar vein, "One who strives to earn his livelihood in a lawful manner from morning till night, achieves salvation." (Safinatul Behaar) The Holy Prophet (s.a.w.s.) states that Allah has said:
"I will not care on the Day of Qiyamat from which door he enters Hell, the person who does not care from which door he earns money in this world." (Behaarul Anwaar) The Prophet of Allah (s.a.w.s.) has also mentioned the following tradition: "One who does nor care from which way he earns wealth in this world will be sent to Hell in Qiyamat and I shall not care from which way he is made to enter it." (Behaarul Anwaar)
(Surah Nisa 4:2) It should not be that in a hurry to obtain livelihood you obtain it through illegal ways, before Allah provides you with the halaal sustenance that He had decreed for you."

Wednesday, November 18, 2009

Hunger - Reasons and Remedies - I

Can Hunger be managed by symbolic fast and hunger conference of FAO

What are the causes of hunger? The first and fore most reason given by the FAO is the non availability of enough food and resources for the poor. I do not agree with it. There are more than enough resources available but they out of reach of the poor. They are concentrated in very few hands globally.

· Half the world — nearly three billion people — live on less than two dollars a day.
· The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people) is less than the wealth of the world’s 7 richest people combined.
· Nearly a billion people entered the 21st century unable to read a book or sign their names.
· Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.
· 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, 270 million have no access to health services. 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
Not enough resources?
Is this the real issue?
I do not think that this is issue?

Exploitation –is the single most important cause of Hunger. There are different types of exploitations- Economic System, Political System, Social System
The present system is at the core of the poverty. This system works towards concentration of wealth in few hands. The present financial system has benefitted few individuals at the cost of putting vast majority in pool of hunger. The present financial crisis has wiped out 38 trillion US dollar of wealth from economy. The biggest question now, do we really need a system which is played like casinos. These are called derivatives officially (gambling product which is legally allowed in system). Presently there are more 600 trillion US dollar derivatives contract exists which is 10 times bigger than size of global economy.
This exploitation is basically failure of multilateral institutions UN, IMF and World Bank. They are suppose to promote peace, justice and equality in the world. They remained mute witness of the exploitation are became the instrument of exploitation.
The only solution “Change Has Arrived”, Change the system, only changing color will not work; there is immediate necessity to change the complete system, “In and Out”.
Acute causes of poverty:
Warfare: The material and human destruction caused by warfare is a major development problem. For example, from 1990 to 1993, the period encompassing Desert Storm, per capita GDP in Iraq fell from $3500 to $761. The drop in average income, while a striking representation of the drop in the well-being of the average Iraqi citizen in the aftermath of the war, fails to capture the broader affects of damages to the infrastructure and social services, such as health care and access to clean water.
Colonial Histories: One of the most important barriers to development in poor countries is lack of uniform, basic infrastructure, such as roads and means of communication. Some development scholars have identified colonial history as an important contributor to the current situation. In most countries with a history of colonization, the colonizers developed local economies to facilitate the expropriation of resources for their own economic growth and development.
Centralization of Power: In many developing countries, political power is disproportionately centralized. Instead of having a network of political representatives distributed equally throughout society, in centralized systems of governance one major party, politician, or region is responsible for decision-making throughout the country. This often causes development problems. For example, in these situations politicians make decisions about places that they are unfamiliar with, lacking sufficient knowledge about the context to design effective and appropriate policies and programs.
Corruption: Corruption often accompanies centralization of power, when leaders are not accountable to those they serve. Most directly, corruption inhibits development when leaders help themselves to money that would otherwise be used for development projects. In other cases, leaders reward political support by providing services to their followers.
Social Inequality: One of the more entrenched sources of poverty throughout the world is social inequality that stems from cultural ideas about the relative worth of different genders, races, ethnic groups, and social classes. Ascribed inequality works by placing individuals in different social categories at birth, often based on religious, ethnic, or 'racial' characteristics. In South African history, apartheid laws defined a binary caste system that assigned different rights (or lack thereof) and social spaces to Whites and Blacks, using skin color to automatically determine the opportunities available to individuals in each group.
Debt is an efficient tool. It ensures access to other peoples’ raw materials and infrastructure on the cheapest possible terms. Dozens of countries must compete for shrinking export markets and can export only a limited range of products because of Northern protectionism and their lack of cash to invest in diversification. Market saturation ensues, reducing exporters’ income to a bare minimum while the North enjoys huge savings. The IMF cannot seem to understand that investing in … [a] healthy, well-fed, literate population … is the most intelligent economic choice a country can make.
Many developing nations are in debt and poverty partly due to the policies of international institutions such as the International Monetary Fund (IMF) and the World Bank.
Their programs have been heavily criticized for many years for resulting in poverty. In addition, for developing or third world countries, there has been an increased dependency on the richer nations. This is despite the IMF and World Bank’s claim that they will reduce poverty.
When IMF donors keep the exchange rates in their favour, it often means that the poor nations remain poor, or get even poorer. Even the 1997/98/99 global financial crisis can be partly blamed on structural adjustment and early, overly aggressive deregulation for emerging economies.
This is one of the backbones to today’s so-called “free” trade. In this form, as a result, it is seen by some as unfair and one-way, or extraction list. It also serves to maintain unequal free trade as pointed out by J.W. Smith.

Resources available on Earth for All Human

Earth is the third planet from the Sun and takes 23 hours, 56 minutes to spin on its axis one time.

Size: Earth has a diameter of 7,926 miles (12,756 kilometers).The planet Earth is a planet of oceans. The total area of the Earth is approximately 510 million square kilometers and the oceans cover about 71 percent of the Earth's surface, which is about 360 million square kilometers.
There are a total of 5 oceans, and they are the Arctic, Pacific, Atlantic, Indian, and the Antarctic Ocean. Out of these five, there are three major oceans, the Atlantic, Pacific, and the Indian Ocean. They account for 90 percent of the area covered by oceans. The Pacific Ocean is the largest of oceans, its area is 181 million square kilometers, which covers nearly a third of the Earth's surface. The Atlantic Ocean is the second largest, covering 94 million square kilometers, and the Indian Ocean is the third largest, covering about 74 million square kilometers.
The oceans' tremendous presence causes it to have a huge effect on the planet and our civilization. It is greatly responsible for the climate of the Earth. It regulates air temperature and supplies moisture for rainfall. The ocean also provides us with food, energy, minerals, and a cheap method of transportation. Without the oceans, the Earth wouldn't be able to sustain life.
Surface: From space, Earth looks like the blue water world it is. About 70 percent of Earth's surface is covered with water, and 97 percent of all that water is in the salty oceans. Only 3 percent of Earth's water is freshwater — the water we drink.Earth is covered with mountains, volcanoes, lakes, rivers, and oceans. Most of the surface material is made of rocks — high in silica, iron, and magnesium.


Forests cover about a quarter of the world's land surface, excluding Greenland and Antarctica.
· The Amazon Rainforest covers over a billion acres, encompassing areas in Brazil, Venezuela, Colombia and the Eastern Andean region of Ecuador and Peru.
· More than half of the world's estimated 10 million species of plants, animals and insects live in the tropical rainforests. One-fifth of the world's fresh water is in the Amazon Basin.
· One hectare (2.47 acres) may contain over 750 types of trees and 1500 species of higher plants.
· At least 80% of the developed world's diet originated in the tropical rainforest. Its bountiful gifts to the world include fruits like avocados, coconuts, figs, oranges, lemons, grapefruit, bananas, guavas, pineapples, mangos and tomatoes; vegetables including corn, potatoes, rice, winter squash and yams; spices like black pepper, cayenne, chocolate, cinnamon, cloves, ginger, sugar cane, tumeric, coffee and vanilla and nuts including Brazil nuts and cashews.
· At least 3000 fruits are found in the rainforests; of these only 200 are now in use in the Western World. The Indians of the rainforest use over 2,000.
· Rainforest plants are rich in secondary metabolites, particularly alkaloids. Biochemists believe alkaloids protect plants from disease and insect attacks. Many alkaloids from higher plants have proven to be of medicinal value and benefit.
· Experts agree that by leaving the rainforests intact and harvesting it's many nuts, fruits, oil-producing plants, and medicinal plants, the rainforest has more economic value than if they were cut down to make grazing land for cattle or for timber.
· The latest statistics show that rainforest land converted to cattle operations yields the land owner $60 per acre and if timber is harvested, the land is worth $400 per acre. However, if these renewable and sustainable resources are harvested, the land will yield the land owner $2,400 per acre.
· If managed properly, the rainforest can provide the world's need for these natural resources on a perpetual basis.

Food from the Sea: Oceans cover nearly 75% of the earth's surface.

Although a large percentage of the aquatic plants and animals that eventually become human food are either captured by fishers or produced by mariculturists in the world's oceans, a significant amount also comes from fresh water. The term "seafood" commonly is used to describe aquatic plants and animals consumed by humans, regardless of source. Fisheries and aquaculture produce roughly 140 million tons of plants and animals annually. Included are finfish, mollusks (including octopus and squid), crustaceans , seaweeds, reptiles, and marine mammals: the first four categories make up the bulk of the human food that comes from the waters of the world.
Global production of farmed aquatic animals and plants in 2003 reached 55 million mt with an on-farm value of US$ 67 billion. As per statistics, aquaculture currently accounts for nearly 22% of total world catch including species used to produce fish meal and fish oil. It is continuously growing from 1987 and the production increased by 148%. Fisheries sector provides an overall 17% of the world’s animal protein intake to which the Asian countries contribute around 26%. The world per capita fish consumption is about 12 kg per year, 8 kg for developing countries and 25 kg for developed countries. The per capita fish consumption for India is even less than 8 kg per year. Thus, there is a need to increase per capita fish consumption level by increasing fish production. There is a need to exploit the food from sea as a security against under nutrition and malnutrition as sea has ample scope for continuous supply of protein rich food for socioeconomic upliftment. India has a vast coastline and seas to ensure food security through its fisheries and aquaculture policies and related S&T measures.

This seaweed plantation in Bali, Indonesia illustrates the role of Mari culture (marine aquaculture) in meeting human food demands. Global seaweed production exceeds 10 million metric tons annually.
With respect to finfish, the herring, sardine, and anchovy group is used primarily for the manufacture of fish meal. The cod, hake, and haddock group is commonly sold as fish fillets and fish sticks. Those fishes are also used to make artificial crab, shrimp, and other products that mimic more expensive seafoods.
Production of carp and closely related fresh-water species approaches that of the herring group. The vast majority of the carp produced in the world are products of China's aquaculture activity. China began culturing carp, according to some estimates, as long ago as 4,000 years. Carp continue to be very important in the diets of most people in China. Carp are also produced in significant numbers in parts of Europe, the Middle East, India, and a few other locations.
Clams and oysters dominate the mollusk category, followed by scallops, mussels, and abalone. Total mollusk production exceeds 15 million metric tons annually.

Inequality of World Food Consumption

World Food Consumption Map shows a world map where the countries of the world have been shown using different colors according to the daily food consumption in that part of the world.
The countries with the maximum food intake i.e. 3,500 calories per person are United States of America, Portugal, France, Turkey etc. Canada, Mexico, Argentina, Australia, Kazakhstan etc have an annual intake of 3,000 to 3,500 calories per person. The countries with the minimum food intake are Afghanistan, Mongolia, Chad, Ethiopia, Angola etc.With a population of about 6 billion, food consumption has become a fast rising concern. As to statistics by World Bank, population in the world is growing by more than 200,000 people a day and that has an impact on world food consumption.

Report documents extreme levels of global wealth inequality

A report released Tuesday by a United Nations group documents the staggering levels of global inequality in household wealth. The report gives a partial portrait of a world society characterized by extreme concentrations of wealth in the hands of the richest sections of the population, with the position of much of the remainder ranging from general economic insecurity to dire poverty.
According to the report, published by the World Institute for Development Economics Research (WIDER) and based on data from 2000, the top one percent of the world’s adult population (about 37 million people) owns 40 percent of the world’s wealth, while the top two percent owns over half and the top 10 percent owns 85 percent. Wealth is defined as physical and financial assets minus liabilities.
In contrast, the bottom half of the world’s adult population—or about 1.85 billion people—owns collectively only one percent of the world’s assets.
This means that the top one percent of the world’s adult population owns 40 times more than the bottom 50 percent, and nearly 3 times more than the bottom 90 percent.
· First ever study of global household assets· 50% of world's adults own just 1% of the wealth
The richest 1% of adults in the world own 40% of the planet's wealth, according to the largest study yet of wealth distribution. The report also finds that those in financial services and the internet sectors predominate among the super rich.
Europe, the US and some Asia Pacific nations account for most of the extremely wealthy. More than a third live in the US. Japan accounts for 27% of the total, the UK for 6% and France for 5%.
The UK is also third in terms of per capita wealth. UK residents are found to have on average $127,000 (£64,000) each in asset, with Japanese and American citizens having, respectively, $181,000 and $144,000. All data relate to the year 2000.
The global study - from the World Institute for Development Economics Research of the United Nations - is the first to chart wealth distribution in every country as opposed to just income, for which more comprehensive date is available. It included all the most significant components of household wealth, including financial assets and debts, land, buildings and other tangible property. Together these total $125 trillion globally.
The report found the richest 10% of adults accounted for 85% of the world total of global assets. Half the world's adult population, however, owned barely 1% of global wealth. Near the bottom of the list was India, with per capita wealth of $1,100, and Indonesia with assets per head of $1,400.

India Rejects Blame for Higher Global Food Prices

Politicians across the Indian political spectrum are condemning President Bush's remark, linking high food prices in the West to a growing middle class in India.
Indian experts, citing data from here and from the United States, say American per capita food consumption is three to five times that of Indians. Ecologist Shiva argues Indians, overall, are eating less, not more, despite a growing middle class here. "Per capita consumption of food has dropped from 177 kilograms per capita per year to 152 in the last decade and a half. Instead of Mr. Bush citing that 350 million middle class, he should be citing the Indian children being denied. One million a year are dying for lack of food," added Shiva.

Sunday, November 8, 2009

Water Grid to Sustainable Growth of GCC

Saudi Arabia plans to phase out production of all water-intensive crops that have depleted the desert kingdom's scarce water supplies, Saudi's water and electricity minister said yesterday."We have a plan to phase out all the production of water intensive crops in order to preserve water," said Abdullah bin Abdul-Rahman Al Husayen on the sidelines of an industry conference in Dubai.The crops include wheat, soya beans and animal fodder, he said, declining to comment on when the crops will be phased out. "It would be best to grow these kinds of crops outside Saudi Arabia."Agriculture accounts for 66 per cent of human water consumption worldwide, according to the World Water Council. And in Saudi Arabia where the resource is already scarce, the government is towards more conservation in the agriculture sector.The kingdom needs around 2.6 million tonnes of wheat annually, and the government said last year it would rely entirely on wheat imports by 2016."Imports and growing water intensive crops outside Saudi is a more feasible option for us," said Husayen.Like other wealthy Gulf states, Saudi Arabia has been buying foreign farmland in Asia and Africa to secure food supplies after inflation had nearly doubled the price of food last year.So far foreign investors have acquired some 15-20 million hectares of farmland in poorer countries since 2006, according to the International Food Policy Research Institute.

Food security will remain a significant issue for the Middle East and North Africa due to supply uncertainty on one hand and a growing population and looming water shortage on the other, a report from Standard Chartered (StanChart) Bank said.Although food prices have dropped by a third from the peak of mid-2008 food crisis, prices are now rising again and are 80 per cent higher than the recent low in mid-2002."This marks the resumption of a longer-term trend of rising prices, driven by the increasing cost of agricultural production to meet the inexorable rise in demand for food commodities," it said.While Mena, particularly GCC, has the financial resources to purchase food commodities, it is nevertheless facing the issue of how to feed its rapidly growing population while also maintaining living standards.The report, The end of cheap food, says the region is inclined to import more food to address this problem.But the whole region still faces a further long-term food security risk, as it relies on the proceeds of hydrocarbon sales to buy food, it said.Mena is a highly import-oriented economy as it faces a shortage of water resources, which makes it difficult to grow water-intensive crops such grains. Besides, there is a large demand from a young, growing population.

RIYADH: Saudi Arabia, which leads the six-nation Gulf Cooperation Council in terms of ambitious organic farming projects and by setting up a private sector Saudi Organic Farming Association (SOFA), is currently mapping out a comprehensive action plan for the development of organic farming and food.
Saudi Minister of Agriculture Fahd Balghunaim, who was elected president of the 10-member SOFA board of directors, said, “The Saudi government has been backing the initiative to promote organic farming with the help of the German technical agency GTZ.
“Custodian of the Two Holy Mosques King Abdullah has donated SR10 million, while Crown Prince Sultan has given SR5 million to support this initiative and to ensure the production of organic food to the highest standards and quality.”
The project initiative known as “Introduction of Organic Farming into Saudi Arabia” is being promoted by GTZ, said Agriculture Minister Balghunaim.
The GTZ is also responsible for preparing the organizational set-up for SOFA, while offering its expertise to the ministry in order to prepare a regulatory framework for organic farming in Saudi Arabia.
The SOFA, he said, was also entrusted with the task of monitoring organic production, protecting farmers and promoting consumer awareness. The move is in line with the policies of European countries, which are also working on the development of organic farming and food as agreed in the Copenhagen Declaration.

Water and Food is Greatest of Challenge and Sustaianble Development is Solution- Water Grid is the Future for Dry GCC

Presently waste water is treated and dump into the sea but this is just waste of the resources. When there is water scarcity and every drop of water is precious much more is required to be done. When GCC is talking leadership is talking of single GCC market, Single economy and Single Currency. The work on single Electric Grid is already underway and progressed very well. This success will definitely encouraging and soon there will be single Railroad for GCC.
The biggest challenge of the century is Food and Water. What are we doing for it?
Think……….it is the biggest challenge………………….. Food and Water
Solution has to be innovative. And one of best option at hand instead of throwing treated waste water in the sea develop water grid, make desert green and provide this water for agriculture.
Single water grid for GCC
Where treated waste water is flow into single pipeline and supplied across the desert to make it green and Agriculture land. This will be most beneficial option. Instead of throwing treated waste water into sea let us use it to make advance of desert and for agriculture. Clean, and green sustainable future.
Major Issues and Challenges Arising from Topography, environment and weather conditions
· Water
· Agriculture
· Environment
· Health

ü Limited water supplies of variable quality
ü Increasing gap between demand and availability
ü Lack of a comprehensive strategy for water resources
ü Fragmented institutional framework
ü Limited enforcement of legislation to protect water resources
The Desalination and Advanced Water Reuse becomes and extremely important tool in the Integrated Water Management. The establishing optimized models and example of effective implementation of desalinated projects trough IWPP will provide in short term the critically needed desalinated water.To meet the challenge, large-scale dual-purpose power/desalination plants are built to reduce the cost of production of electricity and water. Thermal energy extracted or exhausted from power plants is used effectively in the desalination process. In the author’s estimate, over 30,000 MW of power is combined with desalination plants in the largest use of the cogeneration concept. There are unique conditions in the many arid countries and particularly in the Gulf where peak demand for electricity rises significantly during summer mainly because of the use of air-conditioning, and then drops dramatically to 30-40% of summer capacity. This creates situation that over 50% of power generation are idled. In contrast, the demand for desalinated water is almost constant. Water can be stored while electricity storage is not practical. Cost-effective integration of three proven technologies, desalination, power and aquifer storage recovery (ASR) can secure a reliable, sustainable and high-quality fresh water supply for the Gulf States. The seasonal surplus of unused idle power could be used by electrically driven desalination technologies RO and Hybrid Systems including NF/RO/ MSF process in combination with ASR creating a system of Desalination/ Aquifer Storage and Recovery (D/ASR). The ability to store and recover large volumes of water can contribute to the average downsizing of power and water facilities with substantial operational cost savings. D/ASR provides strategic reserves of potable water, to prevent damage or depletion to existing oasis or aquifers, for controlling salt-water intrusion, or improvement in water quality. D/ASR is of strategic importance to the Middle East
Today the Water availability and security is even more of a critical concern and became a more important priority for the Middle East Region. In addition, the critical need for a reliable water supply creates an opportunity for the leadership to demonstrate its management abilities by supporting a program to substantially improve the availability of water and provide security of its supply.Fresh water is no longer the infinitely renewable resource that we once thought it was. Unlike oil, fresh water has no viable substitute. The sea is the unlimited source from which we can create new fresh water through desalination This century demands creative solutions. It requires effective integration of energy resources to generate power and to economically create and store desalinated water. Confronting the water challenge is essential to a country’s sustainable development and to the security of its communities. Water will be the most important resource of this century. The GCC countries installed over 15.9 million m3/day desalination plants, equal to 42% of global installed capacity and which constitute over 50% of all municipal water supplies. Equally important, most of the countries have only one to three-day of water supply in storage, meaning that if the plants providing the desalinated water or the pipelines transporting the water to the cities were disrupted, major water shortages would immediately be the result.The Middle East countries, particularly the Gulf Cooperation Council States- GCC is the biggest users of desalination technology a 42%, and significantly more over 60% of the world’s seawater desalination capacity. It is in the Abu Dhabi where commitment for new desalination capacity is the greatest. To meet the challenge, large-scale dual - purpose power/desalination plants are built to reduce the cost of production of electricity and water. Sewage treatment capacity will have to more than double over the next six years, according to new MEED Insight report GCC Wastewater 2009.
Utilities are seeking to meet robust demand and replace antiquated infrastructure, it says.
Despite the onset of the worst economic downturn in a decade, the outlook for the GCC wastewater sector - one of the most active over the past five years - remains bright, the report says, with almost $10bn of investment planned in new treatment capacity up to 2015.
The existing wastewater infrastructure has been under severe pressure since 2004 when strong economic growth, an expanding population base and an upsurge in real estate activity led to significant increases in sewage inflows and serious overloading at treatment plants across the region.
The late 2008 collapse in the oil price and subsequent real estate downturn put a brake on the runaway growth in demand, particularly in Dubai where leading real estate developers have cancelled or reduced in scope a string of sewage treatment plant (STP) projects in response to the real estate crash.
Across much of the region, the existing STP infrastructure is more than 20 years old and incapable of meeting today’s demands, both in terms of handling volumes and treating effluent to international standards. It has become a priority, therefore, for utility providers across the region to take existing plants out of service and replace them with new capacity.