The British author, in an interview published today by the French news magazine L'Express, said his ordeal by religious fanatics determined to violently avenge what they construed as blasphemy should have served as a wake-up call to the world.
Instead, after the September 11, 2001 attack on America and the massacre in Paris in January this year of cartoonists and staff at the Charlie Hebdo satirical weekly, and with the ongoing rampage of the brutal Islamic State group in the Middle East, Rushdie said some writers and other people were too cowed to talk freely about Islam.
The "politically correct" positions voiced by some -- including a few prominent authors who disagreed with Charlie Hebdo receiving a freedom of speech award at a PEN literary gala in New York in May -- were motivated by fear, Rushdie said.
"If people weren't being killed right now, if bombs and Kalashnikovs weren't speaking today, the debate would be very different. Fear is being disguised as respect," he said.
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Iran's government said in 1998 it had suspended the murder fatwa, though other regime organs insist it remains in place.
"Extremism constitutes an attack against the Western world as much as against Muslims themselves," Rushdie told L'Express.
"Keeping silent does not help Muslims.... Fighting extremism is not fighting Islam. To the contrary, it defends it."
Rushdie, 68, has lived since 2000 in the United States and was knighted in Britain in 2007.