To Fix Islam, Start From the Inside

Enter a tiny miracle known as microcredit.

In this season of financial turmoil, it takes chutzpah, I confess, to propose more lending as the answer to anything. But extending minuscule loans to Muslim villagers has demonstrated its worth time and again, inspiring near-perfect repayment rates that shame today's industrial banks. Better yet, microcredit has the backing of Islam. Khadija, beloved first wife of the Prophet Muhammad, was a self-made merchant who employed her husband for many years. If Muslim men are serious about emulating the life of Islam's messenger, they should have no qualms about letting their wives work for themselves. Moreover, according to traditional Islamic teachings, when a woman earns assets, she may spend 100 percent of them as she sees fit. Through microloans, Muslim women can launch community businesses that build profits and, ultimately, change cultures.

I know of a woman in Afghanistan who accepted a $200 microloan, started a candle-making venture, and used some of the returns to pay for reading lessons. She found female-friendly verses in the Qur'an and recited them to her still-illiterate husband. When he realized that these words came from God's book rather than a secular declaration of human rights, he immediately stopped beating her. Not exactly paradise, but no longer the pit of hell.

Microloans would also equip Muslim women to establish their own schools. That, too, is happening in parts of Kabul, where handwritten signs proclaim, "Educate a boy and you educate only that boy. But educate a girl and you educate her entire family." A sign aimed at the U.S. president might read: "Remember the multiplier effect of investing in Muslim women."

To be sure, Washington cannot neglect the Arab states—nor would it by embracing this approach. If anything, the baby boom in today's Middle East illuminates the urgency of microloans for Muslim women there. About 60 percent of Arabs are now under 20 years old (compared with 29 percent of Americans). In one decade (or just over two U.S. presidential terms), Arab Muslim numbers are projected to increase to 430 million. Plenty of young Arabs have college degrees, yet no prospects for work. The idle often gravitate to radical organizations. Deny this growing generation an opportunity to participate economically, and the chaos could convulse our planet.

Here again, microcredit offers a way forward: Muslim businesswomen can save not only their families and neighborhoods but also people and places beyond. Entrepreneurial mothers create spaces of commerce—and imagination—for their children. The ensuing sense of possibility will stem the globalization of grievance. That is why microcredit for Muslim women would fit seamlessly into a foreign policy that balances counterterrorism with human rights.

In adopting this policy, the new president should ally with other countries, each of which would shave a sliver of its annual security budget and pool the proceeds into a coherent microloan program. Bye-bye to the Coalition of the Willing. Hello, salaam, and possibly shalom to the Alliance of the Interdependent.