Towards a Post-Covid Global Financial System-chapter 13
The economic and social disruptions caused by the pandemic so far have been devastating. The impact it has created on the lives of common people is incon?ceivable. The social distancing rule is applied today to all human dealings, and the very mode of interactions between humans has been forced to change. Technol?ogy adoption and adaption to internet-based human dealings and interactions have become an integral part of our lives. This has resulted in an escalation of the adoption of fintech in commercial transactions. Moreover, the proportion of the world population in poverty has sharply increased. Due to this, social finance is needed more than ever globally, and the importance of collective and social responsibility has been realized.
Today, we have had the opportunity to show the world that Islamic finance is different from conventional finance. The way Islamic financial institutions have dealt with the debt moratoriums without burdening customers who have been subjected to a sudden and sustained loss of income has given hope to the world that Islamic finance is indeed an alternative to the conventional financial system. Likewise, the pandemic also allowed us to experience the social justice Islam provides via Islamic social finance tools and institutions. When the poor and needy required a helping hand, the commercial finance instruments, and products available in the market were utilized to provide them the financial relief they needed. The Islamic notion of social justice through Islamic social finance insti?tutions and instruments whereby the rich and comfortable give back to the society through shared social responsibility became a solution for those who had no means to ask for a helping hand.