A History of Interest and Debt: Ancient Civilizations (Islamic Business and Finance Series)

With the spread of interest-based transactions, major problems such as inequality, poverty and debt-based slavery have emerged. Those who practiced professions such as usury have, despite the negative connotations attributed to them, contributed extensively to the construction of the conventional financial system in the global economy, suggesting that the core concepts in this practice need to be analyzed in greater depth and from a historical perspective. This book analyzes the evolution of interest-bearing debt transactions from ancient times to the era of Abrahamic religions. In modern times, interest is strictly prohibited by Islam, but this book demonstrates that it is a practice that has been condemned and legally and morally prohibited in other civilizations, long before Islam outlawed it. Exploring the roots of this prohibition and how interest has been justified as a viable practice in economic and financial transactions, the book offers deep insight into the current nature of finance and economics, and the distinctive features of Islamic finance in particular and enables researchers to further delve into a review of interest-free financing models. Islamic finance, or alternative financial methods, have become extremely popular particularly in the aftermath of global financial crises, suggesting that they will attract further interest in the future as well. The book is primarily aimed at undergraduate and graduate students but, as it avoids the use of technical jargon, it also speaks to a general readership. It will appeal to those who have an interest in financial history, particularly the history of debt as well. Cover Half Title Series Information Title Page Copyright Page Dedication Table of contents About the editors Contributors Foreword Preface Acknowledgments Chapter 1 Introduction to interest and debt Introduction The interest-bearing debt: conceptual framework Theory of interest Interest-bearing debt in ancient civilizations Conclusion References Chapter 2 Dynamics of social life in ancient Mesopotamian civilizations as historical precursors of interest/riba within ... Introduction Relationship between religion and society in ancient civilizations Temple state Water, state and politics Economy and trade Conclusion Notes References Chapter 3 Interest-bearing debt in ancient civilizations: Sumerian era Introduction Nature of interest-bearing debt in ancient civilizations and legal foundation Interest-bearing debt in Sumerian society Sumerian temples and interest-bearing debt Conclusion Notes References Chapter 4 The merchant societies and usury: Assyrians and Babylonians Introduction Assyrian and Babylonian era Interest-bearing debt in the Assyrian and Babylonian era Role of temples in interest-bearing debt Legal arrangements on interest-bearing debt Goodness and changing interest rates Conclusion Notes References Chapter 5 Social costs of interest-bearing debt in Ancient Greece Introduction Ancient Greek society and economy Interest-bearing debt in Ancient Greece Conclusion Notes References Chapter 6 Debt and politics in Ancient Rome Introduction The social structure and economic development in Ancient Rome Interest, slavery and social cost in Ancient Rome Conclusion Notes References Chapter 7 Interest-bearing debt in Ancient Egypt Introduction Ancient Egypt and economy Redistribution and the market economy Interest-bearing debt in Ancient Egypt Debt cancellation in Ancient Egypt Conclusion Notes References Chapter 8 Interest and debt in Ancient China Introduction Economic and social life in Ancient China Interest-bearing debt in Ancient China Conclusion Notes References Chapter 9 Dynamics of interest-bearing debt in Hinduism Introduction Scriptures and reform initiatives Karma philosophy and caste system Hindu approach toward interest-bearing debt Types of interest in Holy Scripture and interest ban The variance of bans and regulations on interest and its evolution with time Conclusion Notes References Chapter 10 Interest and debt in Buddhist economic doctrine Introduction A doctrine of Midway in reconciliation with nature: Buddhist economy Money in Buddhist economy How Buddhism approaches debt Conclusion Notes References Chapter 11 Interest and debt in the ancient era Introduction The interest and debt in ancient civilizations Conclusion Notes References Index "With the spread of interest-based transactions, major problems such as inequality, poverty and debt-based slavery have emerged. Those who practiced professions such as usury have, despite the negative connotations attributed to them, contributed extensively to the construction of the conventional financial system in the global economy, suggesting that the core concepts in this practice need to be analyzed in greater depth and from a historical perspective. This book analyses the evolution of interest-bearing debt transactions from Ancient times to the era of Abrahamic religions. In modern times, interest is strictly prohibited by Islam but this book demonstrates that it is a practice that has been condemned and legally and morally prohibited in other civilizations, long before Islam outlawed it. Exploring the roots of this prohibition and how interest has been justified as a viable practice in economic and financial transactions, the book offers deep insight into the current nature of finance and economics, and the distinctive features of Islamic finance in particular and enables researchers to further delve into a review of interest-free financing models. Islamic finance, or alternative financial methods have become extremely popular particularly in the aftermath of global financial crises, suggesting that they will attract further interest in the future as well. The book is primarily aimed at undergraduate and graduate students but, as it avoids the use of technical jargon, it also speaks to a general readership. It will appeal to those who have an interest in financial history, particularly the history of borrowing practices as well"-- Provided by publisher This book explores the roots of the prohibition of interest and how interest has been justified as a viable practice in financial transactions. It offers insight into the current nature of finance and economics and the distinctive features of Islamic finance, and enables researchers to review interest-free financing models.