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I- Distinctive Features
II- Means of fair and equitable
distribution
III- Prohibited means of earning
IV- Miscellaneous subjects
Every
economic system has its own peculiar features, which form its
foundation and from which it can be distinguished and recognized.
Modern capitalism, which has emerged due to rapid
industrialization facilitated by unprecedented human advancement
in science and technology, is based on free market economy,
non-intervention or very limited intervention of state in economic
affairs, interest and banking. Socialism, which has emerged as a
reaction to capitalism, believes in complete control of state on
economy and full ownership of means of production by the state or
community. Feudalism stands for ownership of land by few persons
or families and makes majority of people tenants or serfs who work
on lands either as servants of the landlords or for meagre share
in the produce of land.
Islam, on the other hand, believes in justice and fairness in the
economic field. According to it, the man is God’s viceroy or
deputy in overall divine scheme and he has been given limited
rights of ownership of means of production. It recognises
intervention of state in the economic activity for the purpose of
ensuring welfare of its citizens. Abolition of interest,
institution of sadaqat and Zakat,
distinction between lawful and unlawful,
equitable distribution of wealth, prohibition of hoarding and
stress on circulation of wealth, concern for well being of the
poor are the distinctive features of the Islamic economic system.
We will elaborate and discuss some features of Islamic economy in
this chapter as follows:
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God provides sustenance
One
of the major features of Islamic economic system is the concept
that Allah, the Almighty God of universe, is the sustainer and
provider. Allah provides livelihood and subsistence to all of His
creatures in the universe. It is Allah who has created all means
and resources through which man earns his livelihood. Allah, in
fact, has committed Himself to feed, sustain and nourish all
creatures including human beings. It is Allah who expands or
curtails ‘rizq’ (sustenance). The Qur’an says:
-
Who hath appointed the earth a
resting-place for you, and the sky a canopy; and causeth water to
pour down from the sky, thereby producing fruits as food for you.
And do not set up rivals to Allah when ye know (better). (Al-Baqarah
2:22)
-
And we have given you (mankind) power
in the earth, and appointed for you therein a livelihood. Little
give ye thanks! (Al-Araf 7:10)
-
And there is not a beast in the earth
but the sustenance thereof dependeth on Allah. He knoweth its
habitation and its repository. All is in a clear record. (Hud
11:6)
-
Lo! thy Lord enlargeth the provision
for whom He will, and straiteneth (it for whom He will). Lo, He
was ever knower, seer of His slaves. (Bani-Isra’il 17:30)
The
conception of God’s dispensation does not, however, suggest that
one should sit idle and wait for sustenance which would
automatically come down to him. Instead of giving up struggle,
Islam rather inspires a person to do his best in order to earn his
livelihood by using all lawful (Halal) and fair means. The Qur’an
encourages struggle when it says: “And that man hath only that for
which he maketh effort, and that his effort will be seen”
(53:39-40). The revealed book of Islam encourages its followers
even on Friday to disperse in the land after finishing their
prayer and seek of the bounty of God (62:10) although Friday is
prescribed as a day of large congregational prayer for Muslims.
Ahadith of Prophet Muhammad (PBUH) also emphasise the importance
of struggle and hard work put in for earning livelihood for
oneself and one’s family.
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God is Real Owner of everything while man is merely a trustee and
beneficiary
The
heavens and the earth and everything in the universe belong to
Allah. God is the real owner of everything, al-though He has given
some rights to man for use of things required by the latter for
his existence on the earth. However, the rights given to man are
very limited, the real position of man being that of a trustee and
a beneficiary.
This
limited ownership or trusteeship bestowed on man by Allah in
respect of the wealth which is given to him is not without
significance. The divine wisdom underlying this principle of
trusteeship is that man should not hoard his wealth treating it as
his absolute ownership and deprive others from its use. Rather the
surplus wealth of man must go to his fellow-beings who are in
want. This principle has been made more clear when the Qur’an
says: “……and bestow upon them of the wealth of Allah which He has
bestowed upon you……” (24:33). Thus the whole scheme of circulation
of wealth through charity and Zakat and distribution of it through
other equitable means envisaged by Islam is based on man’s limited
right as a trustee of wealth which has been bestowed on him by His
Lord.
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Distinction between Halal (legal) and Haram (illegal)
Islam
has introduced concept of Halal (lawful) and Haram (unlawful) in
its economic system. In fact the foundations of the Islamic
economy have been laid on this concept. This concept reigns
supreme in the realm of production as well as consumption. Certain
means of earning livelihood and wealth have been declared unlawful
such as interest, bribery, gambling and games of chance,
speculation, short weighing and short measuring, business
malpractices, etc. Unlawful means of earning are strictly
forbidden and a follower of Islam is permitted to earn only
through lawful and fair means. Similarly in the field of
consumption, certain items of food are unlawful such as dead
animals, blood, swine-flesh and animals slaughtered in the name of
other than that of Allah. Even expenses on unlawful things like
drinking, fornication, pornography, things that promote obscenity
and vulgarity, lotteries and gambling are strictly disallowed.
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Equity and not equality in distribution
Islam
establishes equity, fairness and justice in the production and
distribution of wealth, and in ownership of means of livelihood.
However it recognizes that like other natural things there is no
equality among human beings as regards the economic means and
possession of worldly wealth. This inequality has been presented
by the Qur’an as a part of Divine economic order. The Qur’an does
not consider these disparities in the distribution of Divine
sustenance as punishment or reward and does not try to eliminate
them, because no two individuals have been blessed with hundred
percent equal mental and physical abilities.
Taking the existence of inequalities as a part of divine scheme,
the Qur’an advises its followers not to covet those things in
which Allah has made some of them excel others. By exalting some
of you over others in rank or by favouring some of you over others
in provisions, God in fact tries and tests the human beings
whether they are thankful to Him in good circumstances and patient
in bad ones.
Although, Islam does not believe in hundred percent equality in
distribution of economic means, yet it does not allow the
difference between the rich and the poor to reach an
uncontrollable limit where the rich role in luxury and the poor
live in misery, hunger and deprivation. Islam in fact stands for
socio-economic justice and ensures fair and equitable distribution
of wealth and income.
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Elimination of Exploitation
Elimination of economic exploitation of the weak by the strong is
another element of Islamic
economic system. Many steps have been
taken by Islam in this direction. Riba or usury is one of the
worst instruments of human exploitation and this has been
abolished root and branch. Other means of human exploitation such
as bribery, gambling, speculative transactions, fraudulent
practices, prostitution, embezzlement, etc. have also been
prohibited in Islamic society.
Interest of the weaker classes of the society like women, orphans,
slaves, labourers, consumers, etc. have been protected through
detailed legislation by Islam.
The
women were treated as chattel and were denied the status of human
being before emergence of Islam. Islam restored their human status
and gave them equal social and economic rights along with men. In
the economic field, for example, women have been given rights to
own property, to acquire property and to dispose it off at their
discretion. They are given right of inheritance from their
parents, their husbands, their children and near relatives. They
are allowed to work to earn their livelihood through any dignified
profession or vocation of their choice. The orphans are another
economically exploited class in society as their property is
generally devoured by their guardians and near kindred. Islam has
declared devouring the property of the orphans a major sin. The
Qur’an warns the devourers of orphan’s property in these words:
“Lo! Those who devour the wealth of orphans wrongfully, they do
but swallow fire into their bellies, and they will be exposed to
burning fire” (4:10). The slaves were perhaps the most exploited
class in human history. Islam declared the emancipation of slaves
as the most pious act and enjoined upon its followers to set the
slaves free and thus earn God’s pleasure. The Qur’an has made
emancipation of slaves an expiation of some kinds of sins of the
believers. The Muslim men and women were encouraged to marry the
believing maids and slaves in preference to non-believers even if
the non-believers were very rich and good looking. Islamic state
is obliged to financially assist the slaves for their manumission
out of its Zakat revenues.
Islam
has protected the labourers against the economic exploitation by
the capitalist by providing that fair wages should be fixed before
employing the labourers and that they should be promptly paid
their wages before their sweat dries up. To eliminate the
exploitation of the tenants by the landlords, Islam almost
abolished Jagirdari (feudal) system. Interests of consumers have
been protected by ordering ban on certain exploitive business
malpractice like hoarding, monopoly, speculation, and
short-weighing and short-measuring.
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Principle of moderation
Islam
prescribes policy of moderation to its followers in every walk of
life and enjoins upon them to avoid extremes. In economic system
the believers are recommended the principle of moderation in
earning of wealth as well as in expenditure of money. The
believers should be neither too greedy for wealth so as to spend
all their times and energies for acquiring it through all legal or
illegal means nor they should be too lazy and lethargic to earn
wealth through lawful means for their lawful needs. Similarly they
should be neither too miser in spending wealth for their needs and
needs of the poor around them nor they should be too extravagant
to squander wealth on luxuries and illegal and immoral acts.
Rather they should follow middle course in earning wealth by
lawful means and in spending wealth on their needs and needs of
the have-notes in the way of Allah. Moderation is the best policy
in the sight of Islam.
The
Qur’an and the traditions of Prophet Muhammad (PBUH) on moderation
are:
-
And let not thy hand be chained to
thy neck nor open it with a complete opening, lest thou sit down
rebuked, denuded. (Al-Qur’an 17:29)
-
And those who, when they spend, are
neither prodigal nor grudging; and there is ever a firm station
between the two; (Al-Qur’an 25:67)
-
Abu Hurairah reported that the
Messenger of Allah said: Moderation in expenditure is half of
livelihood, and love for people is half of wisdom, and good
questioning is half of learning. (Bukhari)
-
Matref-b-Abdullah reported that the
messenger of Allah said: The best of affairs is their mean.
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II- Means of fair and equitable distribution
For
fair, just and equitable distribution of wealth, Islam prescribes
positive as well as prohibitive measures. Positive measures
include Zakat, laws of inheritance and other compulsory and
voluntary contributions (Sadaqat). Prohibitive measures comprise
abolition of interest, prohibition of hoarding, and above all
prohibition of all immoral, unfair, unjust and unlawful means of
acquiring wealth which, in fact, are the major cause leading to
concentration of wealth in few hands. However in the section we
will discuss positive means of distribution only.
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Zakat and other compulsory contributions
Zakat
is the first such measure which helps the state and the Muslim
community in fair distribution of wealth. It is collected from the
rich and is distributed or spent on the poor and the needy. Other
compulsory levies collected by the state also help the cause of
elimination of poverty and fair distribution. Such levies and
collections are in the form of taxes and compulsory contributions.
Taxes collected by modern Islamic state also enable such state to
spend for the poor.
Another levy is Sadaqat-ul-Fitr which is prescribed by the Prophet
on every well-to-do Muslim who possesses property equal to the
Nisab of Zakat. It is to be paid for all the members of the
family, even for servants and slaves, according to the rate fixed
by the Prophet per head, before the prayer of Eid which is
celebrated after the fasting month of Ramadan every year.
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Laws of inheritance and will
Law
of inheritance followed by a community plays a vital role in
setting the pattern of distribution of wealth among its members.
Those communities who adopt law of primogeniture, which makes the
eldest son to inherit the whole of the property of his father,
have concentration of wealth in few hands. Those communities who
confine the inheritance to only male children and exclude the
females also have a narrow base of distribution. Only those
communities who confer the inheritance on a larger number of heirs
without any discrimination between males and females have
broad-based pattern of distribution.
Islamic law of inheritance is perhaps the only such law in the
world which conceives a very broad-based distribution pattern.
This law not only makes the male and female children of the
deceased his legal heirs but also includes among his legal heirs
his spouse or spouses and his parents. In case the deceased leaves
on children and no parents, his estate goes to his brothers and
sisters and sometimes even to his distant kindred. In case a
deceased person leaves behind him no near or distant relatives,
his property may go to the community or the state for benefit of
all the members or the citizens.
Similarly law of will or bequest prescribed by Islam helps the
cause of distribution of wealth. According to this law, a Muslim
is allowed to bequest his property up to one-third of it in the
favour of some charity, institution or a person other than his
legal heirs.
The
law of will generally inspires rich and well-to-do Muslims to
bequeath some fortune in the path of God for charitable causes
like relief of the poor, education and medical relief, etc. This
law has helped, in Islamic society, the establishment of waqfs,
trusts, hospitals, educational institutions. This law, thus
promotes Jihad against poverty, misery, disease, ignorance and
illiteracy and in this way it helps transfer of wealth from the
rich to the poor.
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Monetary atonements
Monetary atonements have been prescribed by the Qur’an for certain
sins and faults such as failure to keep fasts of Ramadhan,
unintentional murder, intentional oaths, putting away wife by
Zihar, etc. Those who commit some sins, offences or omissions
intentionally or unintentionally have been enjoined upon by the
Qur’an to make prescribed charity in expiation of these sins.
These
prescribed monetary atonements are also a channel of flow of
wealth from the well-to-do to the poor people.
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Charity and alms-giving
If Zakat and other compulsory charities fail to satisfy
the needs of the poor, the state can either impose taxes or
motivate the rich to donate voluntarily and generously to help
eradicate poverty and want.
Voluntary charities to earn the pleasure of God Almighty are
rewarded in this world as well as in the next one. They also help
in
flow of wealth from the rich of the community to the poor and
the needy. Thus the cause of distributive and social justice is
achieved through this voluntary measure.
The
Qur’an commands the believers:
Spend your wealth for the cause of Allah, and be
not cast by your own hands to ruin; and do good. Lo! Allah loveth
the beneficent. (Al-Baqarah 2:195)
The
Prophet of Islam said:
Islam
does not prescribe any limit for charity. The Holy Qur’an says:
And they ask thee what they ought to spend. Say: That which is
surplus” (2:219). Thus a believer is encouraged to spend all of
his wealth in the path of God which is over and above his needs.
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Feeding the poor
Feeding the poor is one of the voluntary charities and is a very
common practice among the generous and God-fearing Muslims.
Rewards for this act are very numerous and both the Qur’an and the
Prophet of Islam exhort the believers to feed the poor and the
needy. This measure is also a good step to mitigate want and
misery from the Islamic society. The relevant Verses and Ahadith
are:
-
The Qur’an exhorts the believers: “And feed with
food the needy wretch, the orphan and the prisoner, for love of
Him” (76:8)
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The Prophet said: The best charity is to satisfy a
hungry belly. (Baihaqi)
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Good loan to Allah
It is
Grace of Allah, the Almighty God that any expense incurred by a
person in His path on charity or alms to the poor is regarded by
Him as goodly loan to Him and He undertakes to repay it manifold.
The rich are inspired to give loan to God in the form of helping
the poor people and to earn many times big reward for this.
According to Abdullah Yusuf Ali: “Spending in the cause of God is
called metaphorically “a beautiful loan”. It is excellent in many
ways: (1) it shows a beautiful spirit of self-denial; (2) in other
loans there may be a doubt as to the safety of your capital or any
return thereon: here you give to the Lord of All in Whose hands
are the keys of want or plenty: giving, you may have manifold
blessings, and withholding, you may even lose what you have. If we
remember that our goal is God, can we turn away from His cause?
According to Abul A’la Maududi: “Good loan” is that which is lent
without any idea of personal gain or interest but is given with
the sole intentions to please Allah. Allah in His bounty credits
the wealth thus spent in His Way as loan to Himself. He promises
that He will not only return the actual debt but increase it
manifold, provided that it is a goodly loan in the real sense and
is lent merely to please Him and for the sake of those objects he
approves.”
The
Holy Qur’an says:
If ye lend unto Allah a goodly loan, He will double
it for you and will forgive you, for Allah is Responsive, Clement,
(At-Taghabun 64:17)
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Hoarding forbidden, circulation of wealth encouraged
The
Holy Qur’an says:
-
They who hoard up gold and silver and spend it not
in the way of Allah, unto them give tidings (O Muhammad) of a
painful doom, on the day when it will (all) be heated in the fire
of hell, and their fore-heads and their flanks and their backs
will be branded therewith (and it will be said unto them): Here is
that which ye hoarded for yourselves. Now taste of what ye used to
hoard. (At-Taubah 9:34-35)
-
That which Allah giveth as spoil unto His messenger
from the people of the townships, it is for Allah and His
messenger and for the near of kin and the orphans and the needy
and the wayfarer, that it become not a commodity between the rich
among you. (Al-Hashr 59:7)
In
the verse given at serial no 1 above, the Qur’an forbids hoarding
of wealth by the threat of severe punishment, while in the verse
at serial no 2 it encourages distribution of wealth among the poor
so that it may not remain confined to the rich only.
Hoarding of wealth has been condemned by Islam with threats of
severe punishment whereas circulation of wealth has been
encouraged. This measure not only forces the hoarded wealth out of
coffers of the rich but also ensures its flow into investment
channels ultimately helping its natural distribution.
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III – Prohibited means of earning
Following means of earning income have been declared haram
(forbidden) to a follower of Islam:
Interest (Riba)
Islam has strictly prohibited
riba (usury or interest) to its followers.
According to the Qur’an, Riba, which is generally translated into
usury, decreases one’s wealth whereas Zakat increases it. Charging
of Riba in the sight of the Qur’an tantamount to declaring of war
against Allah; while in the words of Prophet Muhammad (PBUH) , a
dirham of usury a man devours with knowledge is greater (in sin)
than thirty six fornications. During the times of the Prophet,
Riba was not only charged on money loans but was also charged on
exchange of commodities in barter transactions. So the Prophet
prohibited Riba in both the forms. Some modern economists have
tried to distinguish bank interest from Riba and have held that
bank interest is not prohibited. But majority of the Muslim
scholars are unanimous in holding that Riba in every form is
prohibited including bank interest.
Some
of the Verses of the Qur’an and traditions of Prophet Muhammad
which forbid interest are:
-
Those who swallow usury cannot rise
up save as he ariseth whom the devil hath prostrated by (his)
touch. That is because they say: Trade is just like usury; whereas
Allah permitteth trading and forbiddeth usury. He unto whom an
admonition from his Lord cometh, and (he) refraineth (in obedience
thereto), he shall keep (the profits of) that which is past, and
his affair (henceforth) is with Allah. As for him who returneth
(to usury) Such are rightful owners of the Fire. They will abide
therein. (Al-Qur’an 2:275)
-
O ye who believe! Observe your duty
to Allah, and give up what remaineth (due to you) from usury, if
ye are (in truth) believers. And if ye do not, then be warned of
war (against you) from Allah and His messenger. And if ye repent,
then ye have your principle (without interest). Wrong not and ye
shall not be wronged. (Al – Qur’an 2:278-279)
-
O ye who believe! Devour not usury,
doubling and quadrupling (the sum lent). Observe your duty to
Allah, that ye may be successful. (Al-Quran 3:130)
-
Abu Sayeed al-Khodri reported that
the messenger of Allah said: Don’t sell gold for gold unless like
for like and don’t increase something of it upon something, and
don’t sell silver for silver unless like for like and don’t
increase something of it upon something, and don’t sell the absent
therefrom for the present. In a narration: Sell not gold for gold,
nor silver for silver unless like for like. (Bukhari, Muslim)
-
Abu Sayeed reported that Bilal came
to the Holy Prophet with Barni dates. The Prophet asked him:
whence is this? He replied: There were old dates with me and I
sold out for them two sa’as for one. He said: Alas! Veritable
interest! Don’t do (it), but when you intend to purchase, sell the
dates for purchasing another kind, and then purchase therewith.
(Bukhari, Muslim)
-
Osamah-b-Zaid reported that the
Messenger of Allah said: Usury is in promise. And in another
narration he said: There is no usury in what is hand to hand.
(Bukhari, Muslim)
-
Omar reported that the Messenger of
Allah said: Gold for gold is interest unless in hand to hand
(transaction); silver for silver is interest unless in hand to
hand (transaction); wheat for wheat is interest unless in hand to
hand (transaction), barley for barley is interest unless in hand
to hand (transaction), and date for date is interest unless in
hand to hand (transaction). (Bukhari, Mulim)
-
Abu Hurairah reported that the
Messenger of Allah said: I came across a people in the night in
which I was taken to heaven. Their bellies are like houses wherein
there are serpents which can be seen from outside their bellies. I
asked: O Gabriel! Who are they? He said: These are those who
devoured usury. (Ahmad, Ibn Majah)
-
Jaber reported that the Messenger of
Allah cursed the devourer of usury, its payer, its scribe, and its
two witnesses. And he said that they are equal (in sin). (Muslim)
-
It is
reported that the Holy Prophet, on his last Pilgrimage and in his
last address, said: “Every form of interest ( ‘Riba’ ) is
cancelled; capital indeed is your which you should have, wrong
not, and you shall not be wronged.
Thus
the Qur’an and Ahadith (traditions) of the Prophet have used the
term ‘Riba’ which has been translated by the scholars as ‘usury’
or ‘interest’. We do not find the definition of this term in the
Qur’an or in Hadith. The Arabic word Riba literally means
‘increase in’ or ‘addition to’ any thing over and above its
original size or amount. In the terminology of Islam, Riba
signifies any unlawful addition by way of interest to a sum of
money or goods lent by one person to another.
On
the basis of practice prevailing at the time of emergence of
Islam, the Muslim jurists have classified ‘Riba’ in two types,
namely: “Riba-an-Nasia” and “Riba-al-Fadl”. The former is in cash
loans whereas the latter is in barter transactions of goods.
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Bribery
Bribery eats justice and gives birth to many socio-economic evils.
Islam has not only prohibited bribery but has also condemned both
the parties to its transaction to Hell in the next world. Bribery
is a major sin and a culpable crime in an Islamic state.
Therefore, earning wealth through bribery is absolutely illegal (Haram).
Let us see what the Qur’an and the Sunnah say about it.
-
And eat not up your property among yourselves in
vanity, nor seek by it to gain the hearing of the judges that ye
may knowingly devour a portion of the property of others
wrongfully. (2:188)
-
Abdullah-b-Amr reported that the Messenger of Allah
cursed the bribe-taker and bribe-giver. (Abu Daud, Ibn Majah)
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Devouring wealth of orphans
The
orphans are the weakest and the most exploited class in human
society. They are generally the easiest targets of those near
relatives and guardians to whose care they are left. Unscrupulous
persons do not feel any moral compunction and devour the property
of the orphans with impunity. Such persons have been warned by the
Qur’an as follows:
-
Give unto orphans their wealth. Exchange not the
good for the bad (in your management thereof) nor absorb their
wealth into your own wealth. Lo! that would be a great sin. (An-Nisa
4:2)
-
Lo! Those who devour the wealth of orphans
wrongfully, they do but swallow fire into their bellies, and they
will be exposed to burning flame. (An-Nisa 4:10)
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Earning through dealing in wine and gambling
Wine-drinking has been prohibited by the Qur’an and denounced as a
great sin. The Prophet of Islam has declared manufacture,
purchase, sale and transportation of wine illegal and unlawful.
According to the Prophet, every intoxicant is unlawful (Haram) and
thus, by implication, consumption of and trade in narcotics, wine,
opium, heroin, etc. is illegal. Therefore, income generated
through transactions connected with narcotics is forbidden.
Earning through gambling and games of chance is also prohibited by
Islam. The word used by the Qur’an for gambling is ‘maisir’ which
literally means ‘getting something too easily’ or getting a profit
without working for it’. Gambling can briefly by defined as
wagering money or other valuable things upon the outcome of an
event or making money upon some chance. Thus it is a game of
chance by which you either win or lose.
Gambling and all games of chance have been strictly prohibited by
the Qur’an. According to the Qur’an, gambling, as wine-drinking,
is devil’s handiwork through which he seeks to cast enmity among
the people and turns them away from remembrance of God.
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Embezzlement
Embezzlement means betraying of trust and unlawfully appropriating
property belonging to others. Acquisition of wealth through
embezzlement of public money or individual’s property has been
strictly forbidden to a believer in Islam.
The
Qur’an says:
O ye who believe! Betray not Allah and His
messenger, nor knowingly betray your trusts. (Al-Anfal 8:27)
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Hoarding, monopoly and black-marketing
Business of monopoly and hoarding of necessities of life has been
condemned by Islam. Especially holding back or storing up of food
grains, eatables and other articles of daily use for getting
higher prices in times of scarcity and crises is absolutely
unlawful (Haram). In times of scarcity and non-availability of
food items, hoarding of such items becomes the worst type of human
exploitation and hence a major crime and great sin. Making undue
profits from such business of exploitation and black-marketing is
illegal.
Hoarding has been condemned by the Qur’an and Prophet Muhammad
(PBUH) as follows:
-
And let not those who hoard up that
which Allah hath bestowed upon them of His bounty think that it is
better for them. Nay, it is worse for them. That which they hoard
will be their collar on the Day of Resurrection. Allah’s is the
heritage of the heavens and the earth, and Allah is informed of
what ye do. (3:180)
-
Ibn Omar reported that the Messenger
of Allah said: Whoever stores up food-grains for forty days,
intending thereby a dear price, becomes free from Allah and Allah
is free from him. (Razin)
-
Abu Omamah reported that the
Messenger of Allah said: Whoso stores up food-grains for forty
days, and then gives it in charity, it will not be an expiation
for his sins. (Razin)
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Short weighing and short measuring
Business malpractices such as wrong measuring and wrong weighing
have been very common in the nations of old as of today. This
device of spurious weights and measures is adopted by unscrupulous
traders to harm the interests of customers and earn undue profits.
The practice of short measuring and short weighing while giving
and over-measuring and over-weighing while taking has been
condemned by the Qur’an and the Sunnah of the Prophet of Islam as
under:
-
And unto Midian (We sent) their
brother Shu’eyb. He said: O my people! Serve Allah. Ye have no
other God save Him! And give not short measure and short weight.
Lo! I see you well-to-do, and lo! I fear for you the doom of a
besetting Day. O my people! Give full measure and full weight in
justice, and wrong not people in respect of their goods. And do
not evil in the earth, causing corruption. (Al-Qur’an 11:84-85)
-
Woe unto the defrauders: Those who
when they take the measure from mankind demand it full, But if
they measure unto them or weigh for them, they cause them loss. Do
such (men) not consider that they will be raised again unto an
awful Day: The day when (all) mankind stand before the Lord of the
Worlds? (Al-Qur’an 83:1-6)
-
Ibn Abbas reported that the Messenger
of Allah said to the owners of measurement and weight: You have
been certainly entrusted with two affairs about which the former
nations before you were destroyed. (Tirmizi)
-
Ibn Abbas reported: Treachery does
not appear in a nation but Allah throws fear into their hearts,
nor fornication becomes wide-spread in a nation but death becomes
frequent in them, nor does a nation decrease weight and measure
but provision is cut off from them, nor does a nation pass order
unjustly but murder becomes prevalent among them, nor do a nation
break a treaty but the enemy becomes powerful over them. (Malek)
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Prostitution and immoral professions
Fornication and adultery have been banned by Islam and declared a
major crime in an Islamic state. Therefore, earning income from
prostitution and adultery is strongly prohibited. By implication,
all professions and vocations which directly or indirectly promote
adultery in society such as obscenity, pornography, blue films,
dancing, and sex-songs become unlawful (Haram). The verses of the
Qur’an and Ahadith of the Prophet of Islam concerning prostitution
and adultery are:
-
And come not near unto adultery. Lo!
It is an abomination and an evil way. (Al-Qur’an 17:32)
-
And of mankind is he who payeth for
mere pastime of discourse, that he may mislead from Allah’s way
without knowledge, and maketh it the butt of mockery. For such
there is a shameful doom. (Al-Qur’an 31:6)
-
Rafe-bin-Khadiz reported that the
Messenger of Allah said: Price of dog is impure, earning of a
prostitute is impure, and earning of a cupper is impure. (Muslim)
-
Abu Mas’ud al Ansari reported that
the Messenger of Allah forbade the price of dogs, earning of
prostitutes and fore-telling of a sooth-sayer. (Bukhari, Muslim)
-
Abu Hurairah reported that the
Messenger of Allah prohibited the price of dogs and earning of
singing girls. (Sharhi Sunnat)
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Other unlawful means
Islam
has prohibited earning of income through profession of singing and
dancing. Income of magician, soothsayer, foreteller and a painter
of life portraits is also unlawful. Earning of income through
unfair trade practices like fraud, deception, misrepresentation
and sale of defective things or the things which are yet not in
possession of the seller is strictly prohibited. Speculation and
forward transactions are also un-Islamic. Injunctions of
the
Qur’an
and Hadith on this issue are:
-
O ye who believe! Squander not your
wealth among yourselves in vanity, except it be a trade by mutual
consent, and kill not one another. Lo! Allah is ever Merciful unto
you. (4:29)
-
Jaber reported that the Messenger of
Allah forbade Mukhabarah, Muhaqalah and Muzabanah. Muhaqalah is a
man’s selling corn for one hundred Farq or wheat, and Muzabanah is
to sell dry dates upon the heads of date trees for one hundred
Farq. And Mukhabarah is to let out land for one-third or
one-fourth (of produce). (Muslim)
-
Abu Qatada reported that the
Messenger of Allah said: Be careful of excessive swearing in sale,
because it finds market but then reduces (blessing). (Muslim)
-
Abu Hurairah reported that the Holy
Prophet forbad the sale by stone-throwing and the sale of
unpossessed things. (Muslim)
-
Abu Hurairah reported that the Holy
Prophet passed by a heap of corn. He thrust his hands therein but
his fingers touched moisture. He asked: O owner of corn! What is
this? He replied: Rain fell in it, O Messenger of Allah. He
enquired: Have you not done so over the corn so that people may
see it? Whoso acts with deceit is not of me. (Muslim)
-
Ali reported that the Messenger of
Allah forbade the (forced) purchase from a needy person, and
purchase from the inconsiderate and purchase of fruit before it
reaches maturity. (Abu Daud)
-
Waselah-b-Asqa’s reported: I heard
the Messenger of Allah say: Whoso sells a defective thing without
disclosing it continues to be in the wrath of Allah…… (Ibn Majah)
-
Abu Huzaifah reported that the Holy
Prophet prohibited price of blood, price of dogs and earnings of a
prostitute. And he cursed the devourer of usury and its giver, the
tatooer and the tattooed and the painter (of life-pictures). (Ibn
Majah)
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IV
– Miscellaneous subjects
Labour
The
term labour in Economics is used in a very wide sense. Any work
whether manual or mental which is undertaken for a monetary
consideration is called labour. Any work done for the sake of
pleasure and pastime only having no consideration of any reward or
compensation is not labour. According to Marshall, “any exertion
of mind and body undergone partly or wholly with a view to some
good other than the pleasure derived directly from work, is called
labour.” Labour in this sense includes the very highest
professional skill of all kinds as well as the labour of a mass of
unskilled workers. Thus it includes labour of highly educated
professionals like scientists, engineers, doctors, economists,
professors, lawyers, judges, accountants, diplomats,
administrators, as well as that of ordinary workers in factories,
agricultural farms, government departments, private sector, etc.
In
view of its importance in the production of wealth, Islam has laid
great emphasis on human labour. Al-Qur’an, the revealed book of
Islam, promulgates the fundamental principle regarding role of
labour when it says: “There is nothing for man but what he strives
for” (53:39). According to this verse, there is no royal road or
easy way to success. The way to progress and success in the world
is through struggle and effort. The harder a man or a people work,
the higher reward they are likely to get. According to Prophet
Muhammad (PBUH), “God loves those who work and strive for their
livelihood" and “to search lawful earning is obligatory after the
compulsory things (like prayer, fasting, belief in God)”.
Both
physical and intellectual labour have been emphasized in Islam.
The Qur’an refers to manual labour when it talks of construction
of boat by Prophet Noah, manufacture of coats of mail by Prophet
David, tending of sheep by Prophet Moses and building of wall by
Zul-Qarnain. The holy Book also refers to intellectual labour when
it relates the story of Prophet Joseph who was appointed incharge
of treasures of Egypt by its king.
Dignity and honour is attached to labour and work in Islam while
the sources of unearned income and easy gains like usury, games of
chance, etc. are despised and forbidden. Work is so much dignified
and honourable that the Prophets who are the noblest of the human
beings had engaged themselves in labour and work for earning their
livelihood. The Qur’an mentions the example of Prophet David and
Prophet Moses who respectively worked as ironsmith and shepherd.
Prophet of Islam himself pastured sheep. He did not consider any
work as menial or below dignity.
Rights of labourer and worker include: that a labourer should be
treated as a human being and not as a beast of burden; that
dignity and respect should be attached to labour and work; that
reasonable wages should be fixed at the time of employment, and
that wages should be promptly paid. All these rights were given by
Islam to the labour some fourteen hundred years ago when there was
no concept of such rights, there were no labour unions, there were
no charters of demand, there was no labour movement and there was
no concept of collective bargaining.
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Trade
Trade
(Tajarah) plays significant role in acquisition of wealth. It is
certainly superior to agriculture, service and even industry.
History is witness to the fact how individuals and communities
have gained prosperity through trade and how nations acquired
territories and built up colonial empires through trade. Islam
recognizes role of trade in acquiring fortune and greatness. There
are many verses of the Qur’an about trade and sale. The Prophet of
Islam also highlighted importance of trade. The Prophet himself
adopted the profession of trade during his youth and worked as
agent of Khadijah, a wealthy lady of Makkah, who was much
impressed by his honesty, fair dealing and trust-worthiness and
who later on became his wife. His companions Abu Bakr and Usman
traded in cloth whereas Umar carried on trade in corn. The Prophet
issued instructions to his followers to be honest and trust-worthy
in their commercial dealings as the trustworthy merchant will be
with the prophets, the truthful and the martyrs on the Day of
Judgment. His followers not only carried on maritime and land
trade throughout the then known world but also became the torch
bearers of Islam to the darkest corners of the world causing the
spread of message of Allah.
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Tenancy (Muzara’a)
Cultivation of land can be done in two ways: Either the owner of
the land may cultivate his land himself, or he may give his land
for cultivation to another person on the basis of share in produce
or fixed rental in cash. If land is given by the owner to another
person for cultivation, it is called tenancy or Muzara’a. Tenancy
is of two types: one is share-tenancy in which the tenant and the
landlord share the produce of the land in agreed proportions, and
the other is cash-tenancy in which the tenant pays the fixed rent
of the land to the land owner in cash.
The
Qur’an directly does not throw any light on the subject of tenancy
but it indirectly mentions the cultivation of land when it enjoins
upon the believers to pay the due (Zakat or Ushr) on the produce
of the land on the harvest day. However, the traditions of Prophet
Muhammad (PBUH) throw a lot of light on both types of tenancy and
lay down comprehensive rules.
Prophet Muhammad (PBUH) in his traditions has discouraged both
forms of tenancy and has enjoined upon his followers to give their
spare agricultural land to their brother Muslims gratis i.e. free
of any charge.
Views
of Muslim jurists regarding permission of tenancy, however,
differ. According to some, both forms of tenancy are prohibited
while according to others, both are allowed by Islam. The balanced
view is that share tenancy is allowed but lease or rental of land
i.e. cash tenancy is strictly forbidden as it tantamount to taking
of usury or interest.
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Debt or Loan
Indebtedness has been discouraged by Islam as it ruins the
individuals as well as nations. This can be easily known from the
severe warnings that have been given in case of debts left
unsatisfied. All the sins of a martyr are forgiven except debt.
The Prophet did not offer funeral prayer of a debtor who did not
leave behind provision for payment of his debts. The greatest of
sins with which a man shall meet Allah on the Day of Judgment is
his debt outstanding at death for payment of which he leaves
nothing. Keeping in view these warnings, great precaution should
be taken in contracting debt.
Since
the verbal agreements regarding loans lead to disputes, feuds and
litigations, the revealed book of Islam has made it obligatory on
both the parties, creditor as well as debtor, to reduce the
contract of debt into writing in the presence of two witnesses and
settle terms and conditions regarding its payment. Writing down of
contracts of loan is so much important that the Prophet of Islam
is reported to have said that those who lend money to others
without any document or evidence are not helped by Allah when they
cry for help in case of non-recovery of such loan.
The
lender can ask for some security in the shape of an asset or
property from the debtor as a guarantee of repayment of loan. It
is technically called mortgage or ‘Rahn’. The creditor is,
however, strictly prohibited to make any profit out of mortgaged
property because it would be usury. But he is allowed to drink the
milk of or ride on the animal which is a pledge if he incurs
expenses of its fodder.
In
the absence of any stipulation regarding interest in the contract,
the repayment of debt voluntarily with excess amount is lawful. It
is not riba. According to Jaber, the Prophet owed him some debt
and when he paid it back he paid excess.
If a
debtor is in straitened circumstances and is not in a financial
position of repaying his debt, then the creditor should postpone
his demand to the time when the financial position of the debtor
improves and he is able to repay it. However, if the creditor
remits the debt as almsgiving, it would earn him high rewards from
God.
If a
poor person dies with unpaid debt leaving no property for its
discharge, Islamic state is responsible for its payment provided
the debt is genuine and the Islamic state is financially in a
position to do so. It can repay such debts from its Zakat funds
also. The Prophet, as first head of the Islamic state, accepted
this responsibility when the state under him attained sound
financial position.
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Social Security
The
term social security has recently come into common usage. However,
this term has not been exactly defined. So every individual and
community assigns to it meanings of his or her own liking. Broadly
speaking, social security embraces in its fold social assistance,
provision of basic necessities of life, social insurance against
risks of hazards (such as sickness, old age, unemployment), public
maintenance, etc.
The
Islamic concept of social security originates from some of the
Verses of the Qur’an and the Ahadith which enjoin upon the
believers to help their poor and needy brothers in-faith who are
unable to fulfil their basic human needs. From such Verses and
Ahadith, it is clear that Islamic state being guardian of the poor
and helpless is responsible for providing the barest necessities
of life to its poor and needy citizens. In the income of the state
from Zakat, spoils of war and Fai, the Qur’an has especially
mentioned the share of the poor and needy. Besides making the
Islamic state responsible to provide for the poor, Islam also
enjoins upon its rich followers to help their poor relatives,
friends and neighbours.
Basic
human needs or the barest necessities of life have been defined by
the following Verses of the Qur’an and Hadith of the Holy Prophet:
-
There is therein (enough provision)
for thee not to go hungry nor to go naked; nor to suffer from
thirst, nor from the sun’s heat. (Al-Qur’an 20:118-119)
-
The son of Adam has no better right
than that he would have a house wherein he may live, and a piece
of cloth whereby he may hide his nakedness, and a piece of bread
and some water. (Tirmizi)
Thus
the basic human needs, according to the Qur’an and the Sunnah,
include food, clothes and house.
Many
Muslim jurists of classical age have taken the notion of state
responsibility for meeting the basic human needs of every eligible
citizen so seriously that according to them the allegiance of the
Islamic state depends upon this condition. If the state fails to
provide basic needs to its citizens, it forfeits its right to
their obedience.
From
its very inception at al-Madinah in the early seventh century, the
Islamic state accepted its responsibility towards the poor and the
destitute. The Prophet of Islam as the first head of this state
initiated the policy of providing economic assistance to the needy
and the poor from the state treasury although this tiny state
during his time had meagre resources which were always under
pressure due to constant wars. He utilized the limited revenues of
the state collected from Zakat, Khums and Fai to meet the needs of
the poor, orphans, widows, the disabled, debtors, slaves,
prisoners of war and those who were unemployed.
Prophet’s policy was followed by Abu Bakr, his successor, who
continued helping the poor and the needy. It was, however, during
the time of Umar, Abu Bakr’s successor and second caliph of
Islamic state, that the scheme of social security for all was
established on permanent footing as the state had expanded to
include in its fold many rich countries like Iraq, Syria and Egypt
and its revenues had substantially increased.
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Social Justice
The
term “social justice” is of recent vintage. It first appeared in
political debate in the early nineteenth century. It was employed
by political thinkers like John Stuart Mill and its use has since
become widespread. Social Justice implies that overall pattern of
distribution in a society ought to be brought into line with
principles of justice.
Islam, as religion of nature, understands that human beings are
born with varying gifts. As they differ in their bodies and their
features so they differ in their mental and other capabilities.
Their environment, their circumstances and their hereditary gains
also differ. In this situation their can be no possibility of
economic equality. Thus the existence of economic inequalities
among the human beings is but natural. It is also there because
Islam allows individual initiative in earning wealth and gives
right of private ownership of property. Moreover, existence of
inequalities in economic and social life is part of Divine scheme
whereby God tests the people to know who are good and who are bad.
To this fact, the Holy Qur’an refers when it says: He it is who
hath placed you as viceroys of the earth and hath exalted some of
you in rank above others, that He may try you by (the test of)
that which He hath given you……. (6:165)
However, despite recognizing inequalities as natural part of
Divine world order, Islam permits differences in wealth within
reasonable limits only. It does not tolerate that these
differences should grow so wide that some people live their life
in absolute luxury while millions are left to lead a life of
abject poverty and misery. It does not allow economic disparities
to turn into an extreme position wherein millions of have-not’
become serfs and slaves in the hands of few ‘haves’ of society. In
other words, we can say that Islam does not believe in equal
distribution of economic resources and wealth among the people
rather it believes in equitable, just and fair distribution. It
bridges the gulf between the rich and the poor by taking very
effective measures to modify the distribution of wealth in favour
of the poor.
Islam, on the one hand, ensures just and equitable distribution of
wealth among the people and, on the other hand, provides social
security to the poor and the destitute in the form of the
provision for basic necessities of life. Besides that, Islam also
protects the weak from the economic exploitation by the strong.
All these are various aspects and manifestations of what is called
Islamic social justice. Thus social justice (which is also
referred to as economic justice or distributive justice) according
to Islamic conception includes three things, namely: (1) fair and
equitable distribution of wealth, (2) provision of basic
necessities of life to the poor and the needy, and (3) protection
of the weak against economic exploitation by the strong.
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