HARMONISATION OF THE EASTERN PHILOSOPHY OF FINANCE IN THE ARCHITECTONICS OF THE GLOBAL FINANCIAL SYSTEM

Abstract

This article explores the harmony between Eastern philosophy and the Islamic financial system, focusing on their shared ethical principles and implications for the modern global economy. Rooted in Sharia law, the Islamic financial system operates on foundational principles such as the prohibition of interest (riba), equitable distribution of profits and risks, transparency, ethical conduct, and social responsibility. Key financial instruments include mudaraba, musharaka, and ijara, all designed to align with Sharia's mandates. Eastern philosophies, particularly Confucianism, Daoism, and Buddhism, influence the ethical principles in Islamic finance. In the economic context, Eastern philosophy fosters models prioritizing long-term stability, collective well-being, and harmonious relationships between business and society. The objective of this study is to examine the integration of Eastern philosophical principles into the Islamic financial system, highlighting how these combined ethical and moral frameworks contribute to economic stability, social responsibility, and sustainable development. This study employs a qualitative research approach, analyzing existing literature on Islamic finance and Eastern philosophy. Comparative analysis is used to identify parallels between Eastern philosophical concepts and Islamic financial principles. The analysis reveals significant alignment between Eastern philosophical principles and Islamic financial practices. Confucianism's emphasis on humanity, justice, and morality aligns with Islamic finance's focus on ethical conduct, profit and risk sharing, and the prohibition of riba. Daoist values of harmony and balance resonate with transparency and sustainable development principles in Islamic finance. Buddhist principles of mindfulness and compassion correspond with Islamic mechanisms like zakat and waqf. The implementation of Islamic financial instruments, such as sukuk, in countries like Malaysia, Saudi Arabia, and the UAE, has demonstrated substantial economic benefits, including increased investment in infrastructure and social projects. This study contributes to the scientific understanding of the integration of Eastern philosophical principles with Islamic financial systems. It presents a novel comparative analysis, highlighting the convergence of ethical and moral frameworks from Confucianism, Daoism, and Buddhism with Islamic finance principles. The research underscores the unique benefits of this integration, such as enhanced economic stability, ethical investment practices, and sustainable development. The practical significance of this study lies in its demonstration of how integrating Eastern philosophical principles with Islamic finance can enhance economic stability, ethical investment, and sustainable development. By highlighting successful case studies and real-world applications, the research provides valuable insights for policymakers, financial institutions, and investors seeking to adopt more ethical and socially responsible financial practices.