Thursday, July 05, 2007

Islamic Economics: Iqtisad al Islamy

ISLAMIC-WORLD.NET: Islam uniquely considers distribution as the economic problem, and Muslims do not share the obsession of capitalists and communists with production. Because Islam differentiates between the basic needs and luxuries, there exists no concept of relative scarcity of resources in Islam. The resources available on earth are sufficient to secure the basic needs (food, clothing, and shelter) of fifty billion human beings. Such a misunderstanding has concealed the reality that starvation, poverty, and economic backwardness, result from maldistribution exasperated by man-made laws and systems. Under the Islamic system, Nigeria alone could support the whole of Africa, as occurred in the past when, under the system of Islam, Africa sent food to relieve the famine in Medinah during the rule of Omar bin al-Khattab.

By using labels like "Third World" and "First World," this economic conspiracy has worked behind a deceived populace who fail to realize that the "Third World" countries are actually First World in terms of resources. While organizations like Mercy International and UNICEF keep the masses content under the circus act of "humanitarian aid," the capitalist machine works behind the stage to gobble up the resources of the world.

The implementation of Islam would eliminate the stranglehold by which the elites control the polices of the world and milk its resources. Unlike the current systems, Islam will not impose any limits on the amount of wealth that an individual can acquire, thus creating and maintaining an incentive to work. The shortsightedness of limiting production stems from the man-made ideologies that fail to understand the nature of creation. Because the Islamic system reflects the wisdom of the Creator, then the implementation of Islam will provide a society conducive to life that will address the needs of humanity based on the correct understanding of life. Muhammad (saaw) said, "The son of Adam, if he had two valleys of gold, would desire a third and would not be satisfied till he bites the dust."

While generating massive abundance and wealth of resources by eliminating all the restrictions and oppressive systems that prevent production, Islam will safeguard against abuses of exploitation in acquiring wealth by limiting the way in which wealth is acquired. For instance, Islam denies the "free" market of Capitalism which has led to the situation of "survival of the fittest". Such an unrestricted environment has led directly to the current situation where multinational companies have scavenged the resources of the world like parasites unrestricted in their "freedom." Under the Khilafah, natural and vital resources would be categorized as public property and a right of every citizen of the state - Muslim or otherwise - in accordance with the Prophet's (saw) Hadith that states, "The humans have a right to three things - water, green pastures, and fire-based fuels (An-Naar)."

In Islam, public revenue from oil and natural resources would be used to secure the needs of the whole Muslim Ummah, and not to line the pockets of casino owners. The Khilafah would provide public and vital resources without charge to cover the needs of every individual and family, and the monopolies that multinational corporations maintain to dictate the lives of the people would dissipate.

The Shariah also defines certain rules that regulate company structure, effectively preventing abuse and corruption. For instance, Islam forbids monopolies by outlawing the hoarding of wealth (Al-Ihtikar), and eliminating copyright or patency [sic] laws that would open the avenue for potential monopolies to develop. Also, Islam protects the ownership of businesses and companies by restricting ownership of companies only to those who contribute both capital and effort to the company or business, thus effectively putting the seal on such concepts as "corporate takeover" from ever becoming a reality. Introduction (more)

Introduction to Shari’ah

What is Usury (Riba)?

Contracts in Islamic Commerce and Their Application in Modern Islamic Finance

Monetary & Fiscal Policy in Islam

Trade & Business in Islam

Mark Alexander