Scientific and Social Theories Derived from Quran-66
Dr. Javed Jamil -
Dr. Javed Jamil
Executive Chairman
International Centre for Applied Islamics
India
Part 3
Theory of Economics – 22
Unfolding True Theory of Islamic Economics: PEACE ECOPNOMICS-1
I have described in great details the ulterior motives behind the development of the modern international economic philosophy and its effects on society. I have also shown that “Islamic Economics” has done pretty little to challenge the current philosophy, and it has been reduced to development of models that are apparently free of interest and discussion on the various aspects of Zakah. If we have to develop a proper theory of Economics based on Quran, we have to be very clear in our mind about the ultimate aims of Quran’s economic policy and how these aims are in total contrast to the aims of the current models of economics. Islamic Economics is not just about interest and Zakah; much more than that, it is about work and distribution of work, about the acceptability and unacceptability of various kinds of work, about earning, spending and investing, about wealth and generation and distribution of wealth, about the rights of all classes of people, particularly the common people and the weaker sections of society, about the ways the markets function, about the role of government particularly the tax structure and last but not least about the positive contribution of economics in making individuals, families and society peaceful, secure and comfortable. In order to challenge economic fundamentalism that rules the world today, the steps its champions have taken to strengthen its hold will have to be challenged first. Only then a model based on Quranic philosophy can successfully emerge. However, before discussing these steps, we will have to understand what economics means in the Quranic scheme of things. It will be worthwhile to repeat here what I have discussed earlier.
The aims of Islamic philosophy are different from the current philosophy.
1. The current economic philosophy that rules the world revolves around economic fundamentalism, which dominates all the spheres of life. Its overriding influence can be seen in all the programmes at every level and in every field. Islamic economic philosophy is based on the supremacy of peace, which is a comprehensive state covering individuals, family and society; human peace, health, security and welfare are the guiding factors, and howsoever strong are the economic reasons, any activity that threatens comprehensive peace cannot be permitted.
2. In Islam, economics cannot be seen or developed separately from the grand objectives of the system; the economic system has not only to work within the framework of Fundamental Rights, Fundamental Duties and Fundamental Prohibitions but has to play a proactive role in achieving those objectives. In the current economic scenario, market forces rule and play the decisive role in determining what is good or bad for society; their interests are often directly opposite to the interests of a healthy, secure and peaceful society.
3. In Islam, all actions are economic activities but it makes a clear distinction between prohibited, undesirable, desirable and highly desirable activities depending upon their effects on society. An activity that is prohibited cannot be allowed to take place; if it takes place, the culprits will have to be punished in accordance with the procedure of Law, the punishment being proportional to the dangers posed by the activity. In the current international system dominated by the market, only an activity that is supportive of the market interests is a desirable economic activity; other activities are either totally disregarded or are given minimal importance.
4. The aims and objectives of Islamic philosophy of economics are for the whole world, not just for the Muslim world. Its aims are: (1) To ensure the overall peace in society at every level: individual, family, national and international; (2) To ensure that no individual or group of individual indulges or is made to indulge in any activity that is dangerous to their own health or the health of others or for the general level of peace and security of society; (3) To ensure that all the activities are duly rewarded in accordance with their benefices for society or punished in accordance with their hazards. (4) To ensure that while individuals are given adequate freedom to engage in economic activities of their liking, society acts proactively to reverse any large scale disparities and prevent all forms of exploitation; (5) To ensure that the disabled, the less privileged, the needy and the ones who sacrifice themselves for larger aims are duly protected, socially and economically; (6) To ensure that the diverse abilities of individuals are given societal and economic support.
In the following definition, I have tried to capture the Quran’s philosophy of economics:
”Islamic Economics refers to the establishment of a world order where people, individuals or groups, are free to earn their livelihood through rightful use of the provisions of God and their abilities, natural or acquired, without the violations of the true goal of Comprehensive Peace that Quran envisages, that is within the boundaries of the three-dimensional system of Fundamental Rights, Fundamental Duties and Fundamental prohibitions, and the establishent of a system that ensures comfortable living for each and every human being including those who are in a disadvantageous position, temporarrily or permanently, due to some reason.”
In effect, Islamic economics is nothing but a model of economics conforming to the Islamic aim of Grand peace, which has three essential constituents: peace at the individual level (Physical, mental, social, psychological and spiritual health), family peace (healthy relationship between spouses, betweeen parents and children and among children) and social peace (total security to all including security against crimes, exploitaion, deprivation and oppression). Thev modern economic system nased on economic fundamentalism threatens peace at all these levels; it hardly cares abiout them for it gives supremacy to the economics, particularly the interests of market forces and their cronies. Islamic economics can therefore also be called Peace Economics, a term which I have introduced for the secular version of Islam based philosophy of economics meant not just for Muslims but for the whole world. I will first discuss the basic features of the Theory of Peace Economics, derived from Quran and its application and implications. Then I will discussion the methodology by which we can switch over from economic fundamentalism to peace economics.
Aims of Peace (Islamic) Economics
I have given a definition of Economics based on the economic philosophy of Quran. The readers may want to know the Quranic derivation of the definition. I will discuss this in brief here. He first part of the defintion says:
Islamic Economics refers to the establishment of a world order where people, individuals or groups, are free to earn their livelihood through rightful use of the provisions of God and their abilities, natural or acquired,….
Quran says:
* It is He Who hath created for you all things that are on earth; (2: 29/A)
* It is We Who have placed you with authority on earth, and provided you therein with means for the fulfilment of your life: small are the thanks that ye give! (7: 10/A)
* It is He Who has made the earth manageable for you, so traverse ye through its tracts and enjoy of the Sustenance which He furnishes: but unto Him is the Resurrection. (67: 15/A)
It is notable that God is talking of the whole earth, which has been made “manageable” for human beings. The duty of man is to develop a system for the whole earth, not just for specific regions or communities. Muslim being the followers of the System of God, it is their duty to work for the establishment of a world order based on God’s directives.
The words, “rightful use of the provisions of God” are also important. God has established an equilibrium in the atmosphere and has asked man not to disturb that balance:
“The Firmament has He raised high, and He has set up the Balance (of Justice), In order that ye may not transgress (due) balance. So establish weight with justice and fall not short in the balance. “ (55:6-8)
In these verses of Suran Rahman, “samaa” refers to the sky of the earth and “Meezan” t refers to the equilibrium in the atmosphere of the earth. Any activity that causes disturbance in the environment of the earth is not the rightful use. Quran also directs man: "Make not mischief on the earth," (2:11)
Quran also speaks of diversity of ends:
Verily, (the ends) ye strive for are diverse. (92: 4)
So, human beings have to use their abilities in the best possible ways.
The second part of the definition says:
….without the violations of the true goal of Comprehensive Peace that Quran envisages…
Islam lierally means peace and Quran’s ultimate aim is to establish peace. Those who endeavour to establish peace in this world will also have peace in the Hereafter.See the following verses:
“The System in the sight of God is that of PEACE (Islam).” (3: 19)
(Islam, literally, means Peace and is defined as total submission to God.)
"This day have I perfected your religion for you, completed My favour upon you, and have chosen for you Islam as your religion. (5: 3/A)
The literal translation of the above verse will be:
“This day I have perfected your System for you, completed my favour upon you, and have chosen for you Peace as your system.”
“But God doth call to the Home of Peace: He doth guide whom He pleaseth to a way that is straight.” (10: 25)
The third part of the definition says:
….that is within the boundaries of the three-dimensional system of Fundamental Rights, Fundamental Duties and Fundamental prohibitions…
Quran clearly defines Fundamental Rights, Fundamental Duties and Fundamental Prohinition. The following verses give the Fundamental rights, duties and prohibitions:
Right to earn
* O ye who believe! Give of the good things which ye have (honourably) earned, and of the fruits of the earth which We have produced for you, and do not even aim at getting anything which is bad, in order that out of it ye may give away something, when ye yourselves would not receive it except with closed eyes. And know that God is Free of all wants, and worthy of all praise. (2: 267/A)
Poor and other taxes: Rules
* ..practise regular charity………….(2: 43/A)
* They ask thee how much they are to spend; Say: “What is beyond your needs.”(2: 219/A)
* What God has bestowed on His Messenger (and taken away) from the people of the townships,- belongs to God,- to His Messenger and to kindred and orphans, the needy and the wayfarer; In order that it may not (merely) make a circuit between the wealthy among you. So take what the Messenger assigns to you, and deny yourselves that which he withholds from you. And fear Allah. For Allah is strict in Punishment. (59: 7/A)
Forbidden economic activities
* Do no mischief on the earth, after it hath been set in order, but call on Him with fear and longing (in your hearts): for the Mercy of God is (always) near to those who do good. (7: 56/A)
* Say: the things that my Lord hath indeed forbidden are: shameful deeds, whether open or secret; sins and trespasses against truth or reason; assigning of partners to God, for which He hath given no authority; and saying things about God of which ye have no knowledge. (7: 33/A)
No bars, no casinos
*Forbidden to you (for food) are: dead meat, blood, the flesh of swine, and that on which hath been invoked the name of other than God, that which hath been killed by strangling, or by a violent blow, or by a headlong fall, or by being gored to death; that which hath been (partly) eaten by a wild animal; unless ye are able to slaughter it (in due form); that which is sacrificed on stone (altars); (forbidden) also is the division (of meat) by raffling with arrows.(5: 3/A)
* They ask thee concerning wine and gambling. Say: “In them is great sin, and some profit, for men; but the sin is greater than the profit.” (2: 219/A)
No usury
* Those who devour usury will not stand except as stand one whom the Evil one by his touch hath driven to madness. That is because they say: “Trade is like usury,” but God hath permitted trade and forbidden usury. (2: 275/A)
No hoarding
* And there are those who bury gold and silver and spend it not in the way of God; announce unto them a most grievous penalty...(9: 34/A)
The Evil one threatens you with poverty and bids you to conduct unseemly. God promiseth you His forgiveness and bounties. And God careth for all and He knoweth all things...(2: 268/A)
O ye people! Eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy. (2: 168/A)
Say: Who hath forbidden the beautiful (gifts) of God, which He hath produced for His servants, and the things, clean and pure, (which He hath provided) for sustenance? Say: They are, in the life of this world, for those who believe, (and) purely for them on the Day of Judgement. Thus do We explain the signs in detail for those who understand. (7: 32/A)
(Saying): “Eat of the good things We have provided for your sustenance, but commit no excess therein, lest My Wrath should justly descend on you: and those on whom descends My Wrath do perish indeed! (20: 81/A)
Right to inherit and bequeath
* From what is left by parents and those nearest related there is a share for men and a share for women, whether the property be small or large,-a determinate share. (4: 7/A)
In the coming pages, we will deal with the fundamental prohibitions, duties and rights in a little more detail.
The last part of the definition says:
…and the establishment of a system that ensures comfortable living for each and every human being including those who are in a disadvantageous position, temporally or permanently, due to some reason.”
It is clear from the Quranic directives that the aim of Quranic philosophy of economics is not only to ensure total peace in society but also to make life comfortable for each and every member of society, especially the weaker sections:
* What God has bestowed on His Messenger (and taken away) from the people of the townships,- belongs to God,- to His Messenger and to kindred and orphans, the needy and the wayfarer; In order that it may not (merely) make a circuit between the wealthy among you. So take what the Messenger assigns to you, and deny yourselves that which he withholds from you. And fear Allah. For Allah is strict in Punishment. (59: 7/A)
It is clear from the above verse that Quran shuns economic disparity and takes steps to reverse the flow of the money in a way that the circulation is not confined to the rich. Quran also give advices regarding honesty and moderation in spending:
Honesty in trade
* Give just measure and weight, nor withhold from the people the things that are their due..(7: 85/A)
Moderation in spending
* This is the Book; in it is guidance sure, without doubt, to those who fear God; who believe in the Unseen, are steadfast in prayer, and spend out of what We have provided for them... (2: 2-3/A)
* Those who, when they spend, are not extravagant and not niggardly, but hold a just (balance) between those (extremes)..
Tridimensional System of Islam
As already explained, Islamic social system is three dimensional in contradistinction with most of the contemporary systems that are two-dimensional with one dimension (duties) considerably weaker than the other (rights). The modern approach is influenced by economic fundamentalism that seeks to commercialise both strengths and weaknesses of human beings. In order to commercialise weaknesses, it is necessary that “prohibitions” should be totally prohibited and greater emphasis should be given to rights not duties. In Islamic social system, on the other hand, the above-mentioned rights as individual, member of family and member of society are harmonised with duties and prohibitions. In the edifice of Islamic society, duties form the foundation, rights the roof and prohibition the walls; a building cannot be a building without any of the three, and all the three must be adequately planned and built.
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A system cannot be deemed complete unless it categorically answers three questions: what is one enjoined to do, what is one permitted or entitled to do and what is one prohibited to do? A proper balance between these three is the most wonderful aspect of Islamic constitution that makes it far superior model to the other systems.
Contd….
Next chapter: Economics of FUNAMENTAL PROHIBITIONS