In the previous article, we saw how people are unaware of any other economic system due to the prevalence of certain factors. Read about these factors and know about The Existence of an Islamic Economic System. (Insert the link of the previous article)
It can be thus clearly seen that the present system is only geared towards profit and economic benefit and in which people fall by the wayside. That is the clear difference to the Islamic economic system! Contrary to the capitalist view, Islam regards the fair distribution of goods and not production as the main economic problem.
From the point of view of the West, there is a relative scarcity of available resources, while the desire to consume them is infinite. That is why one concentrates on producing more in order to be able to meet the growing needs of the people. In the Islamic economic system, the focus is on people and their basic needs.
Islam distinguishes between the primary basic needs and the other secondary needs. Nobody can deny that there are enough resources around the world to satisfy the basic needs of all people. The Prophet describes these basic needs as follows: "The son of Adam (man) has no better right than to have a house to live in, clothes to cover his nakedness with, and a piece of bread and some water." This hadith makes a clear statement that shelter, clothing, and food are the fundamental needs of man.
In a state in which the Islamic sarica is implemented, the economic problem of man is correctly recognized and solved. It is the task and duty of the state to apply an economic system in which it is possible for every Muslim as well as a non-Muslim citizen to meet their primary needs. If a citizen is unable to meet one of these basic needs, the state is obliged to intervene in a supportive manner.
In addition, the state creates the optimal framework conditions so that people can satisfy their additional needs as best they can. The West sees the economic problem quite differently. Material and economic prosperity is the focus and goal of capitalist life. Islam teaches us that the real goal of life is to obtain the pleasure of Allah through a righteous life guided by the sarica.
On the one hand, material prosperity is certainly important and necessary, on the other hand, it cannot be the ultimate goal and the focus of our thoughts and actions in life. Acquiring and owning property is seen as necessary, but not as an aim in life. All actions, of course also in the economic field, are directed by the Sarica, and accordingly, the whole economic system is based on this foundation.
That is why there are clear guidelines in the Islamic economic system with regard to property, its power of disposal and its distribution. First of all, everything that exists belongs to Allah Most High. Humans only have the right to use these goods and are obliged to manage them responsibly:
"Believe in Allah and His Messenger and give from him whose heirs he has made you "
However, this does not mean that private property is prohibited. Man can also call goods and property that he has legitimately acquired his property. The sources of income for private property can be diverse. It arises either through one's own performance, for example through work or through inheritance or donation, but also through grants from the state.
In addition to private property, Islam distinguishes between public and state property. Public property is understood to be goods that belong to the community, whose property is shared by all citizens of the state. These include water, forests, pastureland, but also crude oil and other mineral resources.
The Prophet (ace) says in a hadith: "Muslims are partakers of three things: water, pastureland, and fire." From this hadith it emerges that water, but also, for example, oil, coal and all energy sources such as electricity, etc. is public property, i.e. property of all Muslims and thus the property of the Ummah.
It cannot be privately owned by any individual or company or owned by the state. Because these three types of property must be clearly distinguished. The public property must be available in some form to the citizens of the state free of charge. The state takes on the promotion and management of these goods on behalf of the Umma and passes them on to them in the form of free services.
I.e. there are no electricity or water bills in the Islamic State for normal consumption. A certain amount of KWh electricity or cubic meters of water can be obtained for each household. An unusual idea for someone who grew up in a capitalist environment. The public property also includes public facilities such as mosques, schools, hospitals, which are no more allowed to be in private hands than rivers or lakes.
State ownership includes, for example, large companies such as heavy or armaments industries. The Islamic State is obliged to intervene in economic activity if Islamic regulations are violated. He must see to it that the equilibrium in society is established and maintained and that property is distributed fairly. The state should encourage competition, but prevent monopolization and the hoarding of goods in order to achieve high prices by reducing the supply on the market. Islam also strictly rejects the hoarding of money: State ownership includes, for example, large companies such as heavy or armaments industries.
"Now those who hoard gold and silver and do not spend it for Allah's sake proclaim a painful punishment!" (Al-Taubah 9, Aya 34). In the Islamic State, monetary and financial policy is characterized by the Riba ban, which would be an impossible idea in the West. Because the interest system is a cornerstone of the capitalist economic system.
For people who think capitalistically, it is a matter of course in the interests of economic progress and profit. An obvious example of the disadvantage of the interest rate system is the mischief that credit policies have wreaked in developing countries. Islam prevents such developments from the outset by strictly rejecting any form of interest or interest transactions. The evidence from the Qur'an and Sunnah is abundant and clear.
"Those who devour interest should look no different than one who is seized by Satan and driven to madness. This is supposed to be so because they say: Trade is the same as taking an interest" (Al-Baqara 2, Aya 275)
Islam clearly defines the permitted ways of acquiring money and enriching property, as well as the handling of this money, and calls on Muslims to follow its laws and regulations without restriction. The permitted ways of earning money are marked out by corresponding laws and the forbidden paths are accordingly clear.
Enrichment through theft, gambling, prostitution, trading in Islamically forbidden things, etc. is prohibited. There is no freedom of property formation in the sense of capitalism in Islam. The state, which performs public functions and services, manages public and state property and has to manage income and expenditure. This is taken over by the treasury (Bait al-Mal). Here the taxes of the citizens and the profits from the generated public property are paid in, administered, and distributed from there.
The distribution is at the discretion of the head of state, except in the case of zakat income. Because these may only be issued for those eight groups of people who are expressly mentioned in the Qur'an. The Zakat income must be collected and distributed centrally by the state and must not be mixed with other income, as it is one of the fundamental duties of Islam.
Interest-free loans are granted from the state treasury, investments are made in public projects, government grants are granted, etc. In exceptional cases, the government can levy a special tax on Muslims if there are not enough funds available to make the necessary payments.
This overview shows that the Islamic economic system, compared to other systems, is the only serious alternative that focuses on human well-being and not on quick economic profit or increased production. Islam knows no World Bank credits, no exploitation and no two-class society.
Therefore it is necessary to establish a state in which this system can be used. People should be given the opportunity to convince themselves of the fairness and practicability of this system. Many examples from history bear witness to the success of this system and could also come into play again today if the Muslims remember that Islam is a comprehensive order of life that encompasses all areas of life.
For the Muslims will only find their way out of this misery when they are again conscious that Islam is perfect because the Qur'an says:
"Today I have perfected your Din for you and fulfilled my grace to you and approved Islam as the order of life for you!" (Al-Maida 5, Aya 4)
Read this article to get a Some Mindblowing Facts About Economics.
Also, read this article to get an Overview of the Indian Economy.
Written By - Khaled Hamed
Edited By - Bhanu Jain
0 Comments