During the Asian financial crisis of the late 1990s, Malaysian Prime Minister was widely portrayed in the West as Southeast Asia's most strident voice. This was after Mahathir had lashed out at the International Monetary Fund (IMF) and international financial speculators for downgrading Malaysia's economic ratings and accusing Asian countries of economic mismanagement. The terrorist attacks of 11 September, however, have resulted in a significant re-appraisal of the outside world's view of Mahathir. Last May, Mahathir visited Washington where he was hailed as a progressive leader of a modern Islamic state and a staunch ally in America's war against terrorism. On 3 November, Mahathir inaugurated the Islamic Financial Services Board (IFSB) in Kuala Lumpur, the Malaysian capital. The body is expected to act as the world's main regulator of financial institutions offering services that comply with Islamic Shari'a. In his opening speech at the inaugural event, Mahathir surprised guests by attacking the West and its financial institutions for their prime role in widening income disparities around the world. On the sidelines of the board's launch, Gamal Essam El-Din spoke with Mahathir in his office in Putrajaya (south of Kuala Lumpur). You are perceived in the West as both Asia's most strident voice and the Islamic world's outspoken champion. How do you see America's war against terrorism one year after 11 September? The 11 September attacks have left everyone angry. The people of the United States feel angry and want to take revenge. The people in the Islamic world are equally angry because they generally believe that America's war against terrorism is more against the Islamic world than against [Osama] Bin Laden's Al-Qa'eda. To solve the present tensions between America and the Islamic world, we have to find out why terrorists resort to launching violent attacks against the West. In my personal view, people do not destroy buildings and kill people unless they have strong reasons to do so. America has deplorably failed in finding out these reasons and eliminating them. In our part of the Islamic world, we strongly believe that the causes of Islamist terrorism are to be found in Palestine. Historically, Muslims have always lived in peace with the Jews. The relationship between the Jews and the Muslims was far better than the relationship between the Jews and the Christians. This lasted until the creation of the state of Israel out of Palestinian land. It is the seizure of this land and the transfer of Jews from Europe to live on it that sowed the seeds of terrorism against the West. Most Muslims believe that the land of Palestine was given as a gift to the Jews at the expense of the Palestinian people and with no regard to the Islamic world. In other words, Europe aimed to ease its problems at home after World War II by enabling the Jews to seize Palestinian land. Not only this. The West undertook to arm the Israelis to the teeth and made public assurances that it would ensure Israel's military superiority over the Islamic world. Under these conditions, the Palestinians were left to their own destiny and it was natural that several organisations began launching terrorist attacks against the West under Islamic slogans. So, in my personal view, the roots of the 11 September attacks can be traced back to the seizure of the land of Palestine 54 years ago. The United States has to realise this fact if it is to win its war against terrorism. Again, it has deplorably failed to do so over the past year. What are your thoughts on the current confrontation between the US and Iraq? Malaysia has condemned sanctions against Iraq long before the 11 September attacks. I'm not going to say whether Saddam Hussein is good or bad. The question is why America insists on punishing a country whose people have no choice in electing their leaders democratically. It is the people, rather than the country's leaders, who are being punished. I sent my wife to Iraq to examine conditions there. She told me that children are dying and most people live without basic medical care and food. Iraq is devastated by wars and sanctions. America now claims it wants to help the Iraqis but, in fact, it is a war against Saddam Hussein and this is not the way to help Iraqis. A war against Iraq will be a big American mistake. It will lead to the worsening of conditions, not only in Iraq, but also in the entire Islamic world. This war will make Muslims around the world more antagonistic towards America. It will help terrorist organisations bring in more recruits in a new Jihad against the US. What do you think of the West's view that the lack of democracy in the Islamic world is responsible for the proliferation of Islamist terrorism? Islam is a democratic religion. Prophet Mohamed never said that his children or relatives must rule after him. The four caliphs after Prophet Mohamed (Abu Bakr, Omar, Othman and Ali) were elected democratically. Autocracy replaced democracy in Islam only after Mu'awiya seized power. Autocracy, however, is not an adequate cause for terrorism, and democracy, by itself, is not a guarantee for progress. Both Islamic and European countries lived under autocratic rule for centuries, but this did not breed terrorism. I stick to my viewpoint that it is the seizure of the land of Palestine, with the holy places on it and with no just solution for the situation over the past 50 years, that has finally led to the escalation of terrorist attacks and the rise in tension between the West and the Islamic world. In Malaysia, we are trying to project a modern view of Islam. The Qur'an says you must be prepared to defend yourself against your enemies. You cannot do this by interpreting Islam in a rigid or extremist way or by resorting to terrorist attacks. The right way to do this is by acquiring knowledge and investing in sophisticated machinery and equipment. Muslims cannot use arrows in modern wars just because Prophet Mohamed used them in his wars. We have to defend Islam by modernising ourselves and proving that our religion is not in conflict with the modern world. In Malaysia, we are moving from the manufacturing age to the information technology (IT) age. We have managed to attract some of the most prominent multinational IT companies to invest here. How do you assess the state of cooperation between Malaysia and the Islamic world? I think we should really get closer together. There is a lot of business and trade between Malaysia on one side and Europe and America on the other. Much of this business and trade can be redirected to the Islamic world. The problem is that many Islamic countries, especially in the Arab world, lack a proper legal framework and consistent policies to encourage cooperation. The economic policies of many of these countries are bizarre. They have to be stable, transparent and consistent in order to attract investments. However, we are particularly interested in investing in Gulf countries, especially in the emirate of Dubai. In Bahrain, we have a very big centre for our products. We have asked Petronas, the national petroleum company of Malaysia, to invest in transportation, oil and gas exploration projects in Sudan. What about your call for the adoption of the gold dinar as a trade currency among Islamic countries? As you may know, the gold dinar was the single currency of the Muslim world until the collapse of the Ottoman Empire in 1924. Trade flourished and a prosperous Muslim rule was established based on knowledge, a strong economy and global conquests. Through trade, Islam also spread to the farthest corners of the earth. In recent years, however, Islamic currencies have become tools of speculation and manipulation. In 1997, George Soros, an international speculator, attacked the Malaysian currency (Ringgit) to the extent that Malaysia was on the verge of collapse. When I criticised him, he described me as the prime monster, rather than the prime minister, because I called for changing the basics of the international monetary system. I also suggested that the gold dinar be adopted in trade deals among Islamic countries to cushion them from foreign currency risks and protect the sovereignty and wealth of Islamic nations from the ravages of globalisation. Tell us about the launch in Kuala Lumpur last week of the Islamic Financial Services Board (IFSB)? The IFSB was suggested some time ago but its creation became very important after 11 September. It is aimed at reinforcing the stability of the Islamic banking system and making it a global force in the face of conventional Western markets. In their anger and blind revenge, I expect that the Americans might cause problems for this unique gathering of Islamic financial institutions. But if we persist and act rationally, we will be able to build a sound and strong Islamic financial system. You surprised the world this year by announcing your intention to retire next year after 21 years in office. How do you feel about that as the new year approaches? I made my announcement last June before the annual convention of the ruling United Malay National Organisation (UMNO). Immediately after this, I was persuaded to stay on. I allowed myself to be persuaded because I had promised to attend certain events in Kuala Lumpur next year. One is the summit meeting of the non-alignment movement in February 2003 and the other is the summit meeting of the Organisation of the Islamic Conference (OIC) in October of the same year. I have taken it upon myself to finish the job of organising these two events and ensuring their success. Once finished, I will leave. I still do not have any plans of what to do after I leave. I will not hesitate to make use of my experience in serving Malaysia's interests if I'm asked to do so. But I'll do this without being in any official post.
