- Home - of Knowledge
- Towards Islam
- Expressions of the Quran
- Islamic Viewpoint
- on Pentateuch
- Islamic Manifesto
- The Islamic Guidelines-1
- The Islamic Guidelines-2
- The Islamic Guidelines-3
- The Islamic Guidelines-4
- TAFSIRI GUIDE A - One
- TAFSIRI GUIDE A - Two
- TAFSIRI GUIDE A - Three
- TAFSIRI GUIDE A - Four
- TAFSIRI GUIDE A - Five
- TAFSIRI GUIDE B-0ne
- TAFSIRI GUIDE B-Two
- TAFSIRI GUIDE B-Three
- TAFSIRI GUIDE B-Four
- TAFSIRI GUIDE B-Five
- TAFSIRI GUIDE C- One
- TAFSIRI GUIDE C- Two
- TAFSIRI GUIDE C- Three
- TAFSIRI GUIDE C-Four
- TAFSIRI GUIDE C- Five
- TAFSIRI GUIDE C- Six
- TAFSIRI GUIDE D-One
- TAFSIRI GUIDE D-TWO
- TAFSIRI GUIDE D-Three
- Comments-Surah Kahaf
- USUL Al-FIQH in Islam
- Islamic Adjustments
- TIRMIDHI-1
- TIRMIDHI-2
- TIRMIDHI-3
- TIRMIDHI-4
- TIRMIDHI-5
- TIRMIDHI-6
- TIRMIDHI-7
- TIRMIDHI-8
- TIRMIDHI-9
- TIRMIDHI-10
- TIRMIDHI-11
- TIRMIDHI-12 Last
- Rules by QUDURI
- Muwatta-Ahadith-1
- Muwatta-Ahadith-2
- Muwatta-Ahadith-3
- The Islamic Attitudes
- Enlightenment-1
- Enlightenment-2
- About the term "Necessity"
- Basic Physiology
- Pre-History
The Islamic Guidelines
Muhammad Saleem Dada
visit also:
www.m-saleemdada.com/
PART-2
The Dealings in Finance (The Economics-Issue)
Before proceeding to the Economics-Issue, the manner in which the financial dealings shall manifest at the Islamic environment, it is appropriate to write few lines on the martial side of the Islamic environment; also, I would comment here briefly on the Most Basic Education at the Islamic environment too. To learn about the martial side, it is most appropriate to understand the concept of JEHAD in Islam with its pros & cons; also to understand when & where it is applicable. The set-up of martial force at these current times is quite well if it cares to put the Islamic awareness in the warriors and guides them well to avoid all atrocities keeping to Islamic teachings in view. With this spiritual development, the other thing that relates to the physical development is that the administration must highly care to provide for them the most modern weapons of the day to the best of its ability so that they must have high impression at the enemy for deterrence to wars in the best way possible; in today’s scenario, administration all over the world must rather avoid wars with high tact than to go for them; today, this attitude only favors the mankind. It also is worthy to note that there would not be any force that comprises of women at the army as this does not go well with Islamic values; but it would have such force that do have trained warrior horses as the Holy Book Quran has mentioned them by name at Surah ANFAAL-60 in preparation of the war; Al-Hamdu Lillah. It would be quite fine if there also is an appreciation to employ horses to connect cities, with stables at their ends to care for them as that would be near to the natural environment and as such, to the Islamic environment. With good measures at the spiritual level (by providing them the good Islamic education and the good manner of its application), and at the physical level (by providing them the best of weapons of the day and training them well at their usage), it is most feasible to achieve the necessary avoidance of wars insha-Allah. Here, I, MSD, would present the necessary understanding about JEHAD in brief for the benefit of all relevant persons in this significant issue; Al-Hamdu Lillah.
JEHAD (in the meaning of QITAL) is one of the most important commands of Islam and it has nothing to do with terrorism, as it means in Islamic terminology to fight those people in the way of Allah, who become grave danger to the life style of Islam to punish them then and there so as to end such threat; this is because the Muslims are the force of Allah at the world. There are three things that are directly related to JEHAD; they are MUJAHIDA, that is included in JEHAD, which means the stoppage of FITNAH from the inside by practicing Islam especially at the individual level; and TABLIGH, that also is included in JEHAD, which means to spread the teachings of Islam far & wide so that it reaches all peoples of the world; and QITAL (armed fight against the disbelievers, either by attack of Muslims on them or either in defense against them), that also is included in JEHAD, which means to stop the enemy of Islam to become any threat from outside, to the Islamic way of life; here, I discuss JEHAD in this last meaning; Al-Hamdu Lillah. JEHAD does not represent any personal motives but it actually is the manner to punish those people who after getting the message of Islam, the collection of commands of Allah, reject it; note that the basic stance of Muslims towards all those that are not Muslims is of Neutrality. The Muslims fight JEHAD in defense or initiate it where no option remains available but its initiation asks for few conditions that we all would insha-Allah study soon; it is better that we Muslims do not take the initiative for JEHAD today as that would cause Muslims and also non-Muslims to kill innocent persons that might be unintentional due to the very deadly weapons in use at war today; human error is not out just by setting a target to hit even with the modern sophisticated weapons in use today and even if these weapons take the aid of the man-made satellites that are fully in his control. I, MSD, prefer that we Muslims humbly ask Allah to take His revenge directly from the enemy, with acceptance of our incapability to fight them with caliber due to our own folly of not making preparation for worthy response to any challenge that they might give us; certainly Allah is capable of doing anything He intends though we Muslims certainly are His appointed force. The Holy Book Quran tells us that Allah is AZIZ and HAKEEM; the first means that He brings His will immediately by His authority when He intends and the second means that He sets all events in such manner that they come to manifest His will at the time that He has appointed for it; certainly He only has the true authority; Al-Hamdu Lillah. JEHAD is to save the weak peoples of the world and also to pave way for the existence of an Islamic environment and its defense; it does not mean to kill any innocent person intentionally or unintentionally. Note for conditions of such JEHAD that is initiated by Muslims, that it needs to express the Islamic teachings to the enemy most clearly; it also needs that Muslims do fight that strictly under the command of the wise & courageous Muslim Commander (appointed by the righteous Muslim AMIR committed to Islam) who has great support of significant number of Muslims without any significant challenge to his command at war; these are among the five most important conditions for JEHAD; the other three are that each of the warrior himself shall be such Muslim who avoids major sins with commitment to Islam and that Muslims have gathered necessary physical force to fight the enemy with high caliber and that the enemy has not only rejected Islam but even the offer to formulate a respectable pact with Muslims in clear terms; missing of any of these five conditions renders the initiative to JEHAD unnecessary though it certainly is valid at defense quite well. Although Muslims do understand well that JEHAD (in the meaning of QITAL) is one of the main commands, in addition to the five commands termed as the five pillars of Islam, yet practically the problem in respect to JEHAD as of now is highly great for us Muslims. Mainly, the problem is that Muslims are totally lacking in modern sophisticated weaponry that the challengers to Islam have with them in plenty; even if Muslims do have its possession, initiation of JEHAD would still remain an extreme moot point as it becomes the highest risk to lives of innocent weak persons whom it would save rather than obliterate. In short, initiation of JEHAD (QITAL) is not truly an option for us Muslims in the world today and if JEHAD does exist somewhere, it is purely in self-defense for which no condition is to be seen but we Muslims have to fight it as best as we can in the given situation; indeed, all praise belongs to Allah, the true Lord. Let us now proceed-on here to some comments on the Most Basic Education at the Islamic environment before proceeding to the main topic that is the Economics-Issue.
As a rule, please note that the education is useless if it does not eventually guide near to Allah as that is how Islam takes the righteous education for Muslims; they must attain all the necessary education but certainly ask by it to remain sincere to Islam, the word of Allah, without any external force whatsoever; Al-Hamdu Lillah. In this matter, note here that the education for the old DARSE-NIZAMI might continue-on unchallenged by the Islamic environment as it does guide well to the KITAB and the SUNNAH with better attachment to them; moreover, the ULAMA are now getting the strength to answer the modern challenges by only few necessary adjustments to it and as such, it has shown its worth quite well even at these current times. As for the Most Basic Education, note that those male persons that are unable to go for DARSE-NIZAMI or the high level of education (the explanation of which I, MSD, would insha-Allah take-up ahead in this paper) due to any excuse, they would still have the offer to take this Most Basic Education here at the Islamic environment that would comprise of three years in total only; the administration would manage it for them asking them on and on to at-least get this Most Basic Education without any force to them to getting it necessarily and without any strictness whatsoever at the study-process. The admission to this would remain from the nine years of age up-to twelve years; and there would be no such discipline as to wear some specific uniform for this and there would be no charge to this or any examination whatsoever; the administration would provide the student all text-books to read here and the timing would be three hours that would preferably be 8 to 11 in the morning. The first year at the Most Basic Education would comprise of the study of the Basic Arabic so that the student might read and understand the Holy Book Quran without any translation, to the needed extent; here he would also learn the reading & writing of the National Language whereas the text book to read & write would provide the basic necessary teachings of Islam. At the second year for the Most Basic Education, study of Arabic would go-on but in addition, the student here would also study history related to his native land and he would also study here the basic Mathematics; and he would read the compilation of 40 Ahadith by IMAM-NAWAVI (may Allah provide His REHMAT to him) at this second year. At the third year of the Most Basic Education, the student would hear to any of the most basic authentic TAFSIR of the Quran in his native language with attention by modern means and he would read Ahadith too at this year in Arabic, preferably at “RIADH-US-SALIHIN” that also is beautifully compiled by IMAM-NAWAVI, so that he remains well-attached to Arabic and with that, learns Ahadith too in addition at-least at the basic level; here, there would be no study except for TAFSIR and except for the esteemed compilation of Ahadith by NAWAVI; Al-Hamdu Lillah. This Most Basic Education would insha-Allah make the student realize that the true authority belongs to Allah only and also that the student must keep away from secularism and from the view that the man is but an animal only; Al-Hamdu Lillah. Let us now go-on ahead to the Economics-Issue.
Note that previously just a century ago, there was not much pressure on the common man as an individual to achieve his good sustenance with his good efforts. But now, since a century or so, there are hindrances that he faces to get even his necessities that relate to his economics; this negatively affects his endeavors for working for AKHIRAT, the true life. Economics was not given such concentration few centuries back as to make it some subject for study or to assume theories for it with conditions to almost every such theory yet since couple of centuries or so from the very time when the west took the man as a form of an animal only and thought that secularism is the basic attitude to deal with issues at hand, it formulated theories to it and made it some sort of subject that in its view claimed attention; as the substantial number of common men even at the west did not appreciate to give such high attention to the physical & material necessities at that time, the persons who initiated such thought got some good thrashing that certainly they deserved well; Al-Hamdu Lillah. But going ahead, please note that in the previous century, two compilation of Economics’ theories posed as Economics Systems commonly, that were named as Capitalism and the Socialist-Theory; now only the former stays in practice though not without challenge. We saw the continuous bitter tussle between this Capitalism and Socialism (the Marxist version) in the previous century, both represented by high number of non-Muslims for each that headed them respectively. Muslims got themselves foolishly involved in this bitter tussle though they should have left these people, who cared for the worldly life only, at their unworthy task; each of these sides was trying to prove its own Economics System better whereas the Muslims have their own stance in Economics that asks of them utmost simplicity in taking the needed worldly items only with total care towards AKHIRAT; Al-Hamdu Lillah. But having said this, it is better to acknowledge that there is some small margin for defense to give to Muslims for their foolish involvement in this bitter Economics tussle as many of their countries came to independence from the western imperialism at the time of this tussle without any clear outline for them to work in that given situation at the scenario of the modern recognition of Economics. Taking Economics as an established subject as of now, please note well that the main difference that causes all other differences in Economics between Muslims and non-Muslims is that we Muslims have the unique understanding of Economics by Islam that clarifies it by the true belief. For the practicing Muslims, it needs only simple efforts keeping to Islam to get their necessary sustenance whereas anything that is beyond it, is the blessing of Allah that He has provided to them as bonus in which they would care for the needy as much as possible for them; Al-Hamdu Lillah. For the clarification to this statement, please note that we Muslims have to reserve our total vigor for the sake of AKHIRAT only, keeping to the commands of Allah Who only is the true Lord; He tells us that all that we possess is actually His property and we are custodians (trustees) to it; as such, the point to note here is that Islam, the word of Allah, asks for simplicity in all activities that relate to Economics. Note here that we find the same two negative points at the base of Capitalism and at the base of Socialism (the Marxist version) too that they both take the man as an animal only and ask him on the basis of secularism, for competition to go ahead towards the worldly status only without care to anything other than it as that is their ultimate achievement in all their endeavor. Let us consider the respective salient features of these both Economics Systems briefly so as to actually understand better the set-up of Economics that Islam appreciates in essence; Al-Hamdu Lillah.
There are two types in basic points that the Capitalism presents as the system of Economics; one of these two comprising of three points, goes well with the Islamic viewpoint taking it in general keeping them inside the Islamic basic matters of belief & practice while the other comprising of two points, goes against the Islamic viewpoint. Note that Capitalism takes the term LAISSEZ-FAIRE (that means presently the free Economics System relating to the Market with minimum of Government interference), and its three somewhat plus points are (1) the right to keep personal property and to take-up any economic activity albeit within the legal-framework of the land, (2) the personal material gains as the incentive to establish the economic activity and for the stability of the Market (this assumes that the personal incentive would certainly lead to the stability at the collective level and at the Market by rules of demand & supply), (3) the specification by the law for the rights of the employer and the employee. Now, these three do go well with the Islamic viewpoint for Economics (micro in general), with this addition respectively at the individual and the collective sphere that the personal incentive must remain to the Islamic values and the law of the land must also comply to the Islamic values keeping them clear in expression so as to limit the financial dealings when & where necessary. This necessary addition implies that these points are good to apply for such environment where this Islamic concept does apply well at the lives of all Muslims that Allah only has the true authority and Muslims have to obey His commands in actual in all what they do here in this world; Al-Hamdu Lillah. Now, the other type in these basic points that comprises of two points of Capitalism, clearly challenges the Islamic teachings as each of these both points here negate the clear commands of Allah, the true Lord; one of them is based on the concept of getting material gains by the already standing stable financial status, from other persons instead of caring to provide for their necessities while the other concept is based on competing with others for the financial status in the worldly life; these both concepts are represented in Capitalism respectively by the name of (4) Interest and (5) Free Competition at Market (without any care to morality even if it has to care about the law of the land). These two, Interest and Free Competition, respectively are taken to cause the stable set-up for the market due to its ability to control inflation and to cause the good quality of the product by competition in the production of wealth. In contrast, Islam takes these both i.e. interest and the free competition in worldly finances, as the cause of the concentration of the wealth into hands of already wealthy persons and as the cause of wastage of the precious time respectively; as such, even if it refines the quality of the product, it does cause to deteriorate the quality of the life of the man in the true sense as he is born to care for the commands of Allah only and for no other reason. Note also in contrast, even with the acceptance of the individual claim to possessions, Islam clarifies that everything with the man is in truth of Allah only and he is but a trustee to use it by his own good affinity with FITHRAT (the voice inside the man that asks to live at the right path) in accordance with the commands of Allah, the true Lord. Indeed, the commands of Allah ask to refine totally the distribution of wealth too with refinement in attainment of wealth to get betterment at the lives of the fellow-beings. As we all students have to see issues here by Islam, we need to be clear that Islam prohibits interest totally and even competition in the worldly matters except that occurs without intention, but it asks all Muslims to care only for AKHIRAT in the best possible way at the worldly life; Al-Hamdu Lillah. Let us consider the salient features of another Economics’ system that has little impression as of now, yet that arose as formidable challenger to Capitalism in the previous century; however, instead of making things better, that made the Economics issue even more taxing to the man; that was Socialism.
The Socialist-Theory, that I, MSD, would term simply as Socialism ahead, was actually reaction based on hatred against the atrocities of Capitalism that had no care whatsoever for even the basic necessities of the needy; that care is actually in accordance to the asking of the FITHRAT of the man. The point to note here is that even Socialism had its base at the European mind-set that has the same two concepts at work that are secularism and the idiocy of considering the man as an animal only. This retaliation to Capitalism that came through Socialism was, by the Islamic viewpoint, actually a wrong in retaliation to a wrong of another nature as Socialism assumed that those that are allergic to Capitalism being its victims would certainly care for the needy; like the false Capitalist assumption that the personal incentive would lead to the stability at the Market trusting the men related to financial dealings as committed to make the society better in general, this Socialist assumption also proved to be false. As this whole system of Economics was based on retaliation due to hatred, it proved even more costly to the values that were humane and that had always been respected at all times & at all places in the history of the mankind. When put into practice by the name of eliminating the authority of the wealthy capitalists who had but little care to the needs of the poor and the laborer, it created another group of such wealthy officials at different levels that got the authority and used it the same way as the wealthy capitalists, without any care to the needs of the poor and the laborer. As such, it proved to be Capitalism at its worst as practically, the people at the head of the system that got the authority to decide the economics for the masses, were totally given to pleasures of life at the world considering the man nothing more than an animal; as result to that, they remained totally averse to practice of the commands of Allah, the true Lord; they justified this latter attitude by the name of Secularism. Even with the verbal denial of interest and financial competition in theory that Capitalism professed, they could only manage a system of total bondage to the man where his true self was suppressed and where he was again treated as an animal that must remain sensibly trained to commitment to the authority of its master just to get its sustenance at the minimum without ever caring for Allah, the true Lord. Due to the hatred that rests at its base, there is nothing worthy in it that Islam may appreciate and it certainly is blessing of Allah that the world has seen its end; Al-Hamdu Lillah. The salient features of Socialism are (1) Hatred of the Capitalist (the Bourgeoisie) and the assumption that the man is not trustworthy in his possessions (2) Concentration of wealth in hands of the Laborer (the Proletariat) that must plan Economics for the masses so it is the administration of Economists in theory that provide the products and services having utility on the basis of the concept “from each, according to his ability and to each, according to his needs” (3) the assumption that frustration in economics of the man leads him to alienation from all peoples of the society where he becomes unable to work for the good of his own and the society; the planned Economics would end this alienation as it would end the frustration caused by slavery to earnings (4) the assumption that the history of the man is the clash of different aspects of the society with each other and as such, he develops on. These were the main postulates on which Socialism took its grounds; note that these postulates comprise not only of the teachings that Karl Marx provided, but also of theories that Hegel and Darwin had presented and that had their high influence on those too that took-up Capitalism. Note that according to Islam, theories given by these persons were not liable to respect and had no firm grounds to claim their validity then and even now; they challenge the Truth for certain, yet they were publicized highly then by the west as they challenged their religious leaders head-on for whom they had developed extraordinary hatred; this publicity then led to much acceptance of secularism there and also to the acceptance of the idiotic concept about the man. Certainly, the man is free to live according to his will taking care to rights of the fellow-beings without any such pressure from outside that ask him to curb his good economic activities; certainly the Truth always has remain one only while the wrongs have taken many colors to challenge it and all these wrongs always lost their challenges against it and even if it seemed at times that they would leave their evil marks on the mankind yet they never were able to do so; certainly there never was a time that the man was an animal in physique that came to the form as of today by the survival of the fittest but actually the survival of the fittest relates to his spiritual side that only those lived on well here without any troubles who recognized well that Allah has created everything and the man must obey only His commands in principle; this truly is the concept of history of the man; Al-Hamdu Lillah. Let’s view the Islamic guidance about Economics that would insha-Allah bring the fault of both these Economics Systems at fore and clarify the just attitude in financial dealings at these current times; Al-Hamdu Lillah.
The best manner to put Islamic Guidance here seems to present it into few relevant statements that might clarify much of Economics, the Islamic way. Then insha-Allah it would be convenient to extract the points to note from this section with most of them directly related to Economics, the Islamic way. The relevant statements to note are that (1) By the Islamic Guidance, the Muslims believe that all men have to obey Allah, the true Lord, at all issues of life in principle, as the life is an examination for the man who is not only Physique but also Spirit and he achieves power by the true belief and the righteous deeds according to it; indeed, all that is given to him is AMANAT of Allah that all persons must use only according to the commands of Allah; Al-Hamdu Lillah (2) By the Islamic Guidance, the man must live preferably at necessities asking material things for the worldly life at the level of the need only yet he must use all his ability towards getting the best at AKHIRAT; this implies that the competition at the worldly life for material enhancement is not worthy of consideration but it must highly be for the advancement at AKHIRAT; please note that even the economic activity as all other activities when performed according to the Islamic commands, is commitment to the commendable slavery to Allah though to give time totally to it is not appreciable as that leads only to the greed for the high worldly status with time by attainment of wealth (3) By the Islamic Guidance, the man has to remain in focus actually; the simple matter to note is that it is the man who becomes better if Economics or anything of social value relating to him needs betterment rather than the betterment of the material things outside him (4) By the Islamic Guidance, there would be care that the material resources to production of wealth do not waste; the more important side relates highly to its distribution at the collective level that must remain to the teachings of Islam (5) By the Islamic Guidance, the concept of LAISSEZ-FAIRE taken-up by Economics (by the Capitalist System) is well to apply in controlled sense at the Islamic environment as it is valid when the Islamic values manifest well in practice at the individual and also at the collective level; then only the Market would remain at stability being near to perfection and being beneficial for sustenance to even those who live by their necessities only; note that Islam does put the investment at the economic activity at some risk yet does not tolerate any adversity to the labor; this asks to avoid usury totally at Economics; the Administrative policy has to see to this care about the security of the labor rather than the investment that comes in the business as an asset only to the wealthy mostly; that policy however must apply without any unpleasant attitude towards the wealthy and on the contrary, it must rather take even their assistance to it; please remember that Muslims are brothers and that is valid at Economics too (6) By the Islamic Guidance, it is not that the factors of the production of wealth are Land, Labor, Capital and Entrepreneur but it mainly is the REHMAT (the Blessing) of Allah that leads to the satisfaction of the material and the spiritual needs of the man; note that all good material things attained by good efforts even, are actually the FADHL (unique type of bonus) to an individual from Allah according to Islam; He has provided all elements, gold & silver included, in plenty according to His will so strictly speaking, the theory in Economics that there is scarcity of means to the unlimited wants so that is asked satisfaction by preference, is not appreciated by Islam as Islam asks to live simple with certain check to wants by conscious efforts at life at the world; so Islam challenges the basis to current practice of Economics but that strictly by Islam makes the man truly normal at life at the world rather than taking normalcy at deciding material needs by making preferences (7) By the Islamic Guidance, Capital and Labor are the two sources among others to the satisfaction of the material needs; Islam asks to care sincerely for its teachings for them too; Capital is rather personal asset (for Islam values the man) enfolding even the land and with that all other assets. This is contrary to the current concept that the business set-up is a separate entity than the owner, though for Accounts, it is quite well to take this concept yet assets to the business need to be counted as personal where the rulings of Islam are applied; this also implies that I, MSD, write without any reservation that Islam does not appreciate Joint Stocks Companies and in fact, any notable big business; these big businesses, Joint Stocks Companies included, might be tolerable when limited by number at some necessity but dealings of big businesses does have most high reservation by Islam; micro and macro of Economics have to be redefined by Islamic values; however, the dealings related to banks is feasible without interest and unnecessary competition; more about this later-on (8) By the Islamic Guidance, the practice of giving & taking of Interest of any sort is an extreme evil that has to be avoided totally at Economics without care to any material loss whatsoever as certainly, Interest in itself is a loss to the Islamic values (9) By the Islamic Guidance, the unnecessary Competition for the worldly financial benefits taking it up as an economic activity is not appreciable at any time anywhere though it is bearable if it occurs among Muslims in the same business incidentally at the Market, without their intention to provide losses to each other (10) By the Islamic Guidance, heavy debts for the establishment or even the operation of the business is not appreciable; it is especially bad when it is asked for some big business in form and volume and even more so, when such debt works on the paper only, increasing the credit side of the receiver’s account at the bank and as such, causes the savings of the ordinary people to flow towards the already wealthy segment of the society; this enables this wealthy segment to adversely affect the economics of the ordinary person by their selfish decisions if they will so collectively (11) By the Islamic Guidance, the Muslim person must live at necessities or at the financial status that is not much elevated than that; there are three positions regarding wealth that are fine in the Islamic Society where Muslims try to fulfill their duties well; the best is the status of the person who lives at poverty fulfilling his necessities and obligations but does not have much to save (the Prophet PBUH lived at this status by choice); the second to best is the status of the person who does save a good amount even after spending on his necessities and obligations with convenience yet this saving does not put him into the wealthy persons of the society; the third status is of the person who has property, possessions and plenty of wealth and he is taken among the wealthiest persons of the society. However, no one of this last category shall be much far away from the upper margin of the second one in the Islamic environment. By this detail it is clear that in the Islamic environment, there would be no person who would be deprived of his basic necessities (the status of MEHRUMEE) and at the other side, there would be no person who would consider that he is able to do anything he likes due to huge amounts of his wealth that he has in spare. Both of these persons lose their self-respect and as such, they do not care about the self-respect of others around; the presence of these both that is the status of deprivation of necessities being below the status of poverty and at the other side, the status of undue command over people around due to having extreme quantity of wealth at hand respectively, are totally against the Islamic values so the administration would see by its policy in Economics that there shall remain none of these both in the Islamic environment as it asks only for simplicity and not for any complexity; Al-Hamdu Lillah (12) By the Islamic Guidance, money that contains general acceptance for the exchange of different things, tangible or intangible, having utility must remain as the means of exchange only; it must never become a commodity in itself as that leads to interest and affects the distribution of wealth adversely that must remain necessarily in accordance to ADL (literally meaning Justice – that is why care is to be taken for the righteous distribution of wealth rather than to how much the total earnings of the nation has risen; the wealth must flow to the needed appropriate site that is towards the needy); note that collection of ZAKAH and its dispense is related to the administration when it runs according to Islam keeping to it in belief and in practice, at the Islamic environment and I, MSD, would provide some detail to it ahead insha-Allah; if the administration is not Islamic in the true sense, then the Muslims need to provide ZAKAH by themselves to the appropriate site (13) By the Islamic Guidance, the Government must exercise its authority when most necessary towards the Market to keep it to necessary morals that Islam asks for; it must not put unnecessary burden upon the wealthy at the Islamic environment to collect taxes keeping it to the minimum for its requirement but trust them rather than officials at collection of taxes with tolerance; the Government has the right to formulate such law keeping to Islam that it takes taxes on necessary level for its genuine needed expenses and even for the provision of all convenience to the common-man as much as possible; the Islamic environment must come to such setting that all that are wealthy here co-operate themselves with the Government on matter of taxes (and these taxes must strictly be minimum besides utility bills); it would be allowed to the common-man here to deposit any tax that he intends towards the Government though the wealthy here would provide taxes by the ratio that is specified at their Net Profits by the Government and even at this, the trust on them would be the keyword rather than the trust on officials put on the collection of taxes; note well that ZAKAH is something other than these taxes of the Government that must run all the administration strictly by Islam (14) By the Islamic Guidance, the last but not the least is that the officials at any post at the administration at the Islamic environment must necessarily be QAVI (capable to perform their tasks well) and AMIN (honest to perform their tasks well); it is true that the failure of Socialism as an Economics System was much due to its false assumptions yet the corruption of officials was also among the main reasons for that; certainly the Islamic environment needs Muslim men committed to Islam in all good tasks to take Economics as Islam defines it ahead with most high caliber. These are the features that do lead to understand Economics well by the Islamic Guidance and to put it into practice; Al-Hamdu Lillah. Note that I, MSD, intended to provide the basics to Economics for practice at the minimum level by the Islamic viewpoint keeping at the balance to provide them comprehensively and yet briefly. We all Muslims have to present Islam clearly to enable all understanding persons who do value the Truth, to understand it well in practice; that would lead to the betterment of the environment in all ways at the individual and at the collective level insha-Allah. The striking thing is that with these statements in application and without the two high wrongs, that is secularism and the erroneous notion about the man, Economics would manifest well with the assistance of the Administrative-Issue (that sees to the application of Islamic rulings at the Market) and the Legal-Issue (that sees to justice in the attainment and especially in the dispense of the wealth to keep the balance according to Islamic rulings at the working of the Market) insha-Allah; it would provide space even to the person who has meager resources, to live with ease at his life at the world; it would enable him to work for AKHIRAT which in actual, is the only true wealth; Al-Hamdu Lillah.
For some detail of the statements for Economics in the Islamic manner, please note that the Holy Book Quran tells about the person who provides his service for some task or is chosen to that, must have two necessary attributes that is he would be QAVI (capable to perform his task well) and AMIN (honest to perform his task well); Surah-NAML-39 and Surah-QASAS-26 use these terms to clarify the best of workers for a given task while Surah-Yousuf-55 provides the same guidance by the terms HAFEEZ (other word for the broad meaning to the term AMIN) and ALEEM (other word for the broad meaning to the term QAVI); Al-Hamdu Lillah. With the Administrative-Issue and the Legal-Issue working well for Islam at the collective level, and QAVI and AMIN persons, working well for Islam at the individual level, it is not difficult to understand the application of Economics with other things by Islam at the Islamic environment comprehensively; Al-Hamdu Lillah. In addition to this, I, MSD, would take-up the subject of Banking too by Islam very briefly at this place as it is highly mentioned at Economics by Islam in the current era and occupies significant status at the subject.
Generally, the bank is such an institution today that keeps the deposits and the assets of account-holders and then performs different tasks by those deposits and assets at its disposal; it is these tasks that need address here as the deposits & assets can be provided to Banks considering them trustworthy institutions as individuals trust each other and taking them as WAKIL where necessary, keeping to the Islamic Guidance; note that some problems that do arise at the Banking System as of now is when the deposits are designated as AMANAT as then the Bank has no rights to use it as it wills even in the good benefits of the account-holders and the complexity that comes with such designation, does cause problems by FIQH. The most important tasks of these banks that are taken as the indispensable part of the current dealings in Economics include (1) to keep the savings of the people secure for them in Savings Accounts, in Current Accounts and in Lockers to provide them on demand providing them interest on their Savings Accounts and charging them on provision of other services; they manage transactions for them therein (2) to provide debts to investors asking interest on rates higher than the rates given to the Savings of the relevant Account-Holders (3) to earn by discounting Notes Receivables provided to them giving the possessor of it that provides it to them lesser amount than its true value at the Market (4) to provide service for transactions with foreign traders taking their service charges for that provision; this also includes transfer of funds from one place to another (5) to issue their documents of financial nature to participate in the current Economics with the permission of the Central Bank; note that these all banks need permission of the relevant Central Bank for their financial role at a given place; also note that these are the main tasks that the banks usually manage at economic activities of a given place. With these points, it is easy to deduct the four keywords that relate to the definition of “Bank” in the current era; these are to promote the financial dealings by “Interest”, “Huge-Transactions”, “Debts”, and “Unreal-Money”. Please note well that according to Economics by the Islamic way, all these have the feature of being “unworthy” for financial transactions as the first one mentioned here is totally HARAAM (strictly prohibited) while Huge-Transactions & taking Debts for business operations are exceedingly MAKRUH (most detestable except where they might become bearable in today’s scenario at the Islamic environment due to manifest necessity and Allah knows better). The fourth of these terms i.e. “unreal-Money” baffles designation; there is concept of “URFI-THAMANIAT” in FIQH (that means to take something as valuable enough for trade though it actually does not possess value and example for this might be the sand that has some rightful chemical use in this current era and is fine to trade by the rightful owners keeping to Islamic teachings though in itself it is not among goods to trade) yet that concept even is invalid to see at this matter as URF-SAHIH (the recognition of something as valid) can never apply at something the ruling of which is already provided by NUSUS (the Holy Book Quran and the Sunnah of the Prophet PBUH) in clear terms; note that Islam does not allow to change the acceptable instrument of exchange into some stocks in trade and it guides for even the actual stocks in trade that they would be tangible that are well to take into possession so as to make business out of it; here at Economics as of now, not only the money is treated as stocks in trade for interest but it also has no actual transfer of value as Islam takes the term “value” because its dealing remains to paper only with its status as totally intangible; it is darkness into darkness. These both misguide the persons involved in the economic activity to take interest and to ask for erroneous ways to gain wealth for them in the name of free competition. It seems that Satan has put all evil efforts at Economics of the current era and with time, it is getting worse by the Islamic viewpoint; the practicing Muslim person must always ask Allah for total safety in this matter; Al-Hamdu Lillah. In a nutshell, if the Banking System as of now can avoid these four things remaining as an authorized WAKIL to its account-holders, especially avoiding the first and the last, it could come to the Islamic manner operating well in the Islamic environment; that clearly needs detachment from the international monetary dealings because just as banks need commitment to the Central Bank, the Central Bank of the place has its commitment to these dealings. But without any clarification to this statement about the international finance, I, MSD, would leave the matter as any detail to it would certainly be putting hands into the hornet’s nest without any high benefits from it. However, there are beautiful writings and some wonderful booklets on the Islamic manner of Economics that are presented by the reputable ULAMA even in English today, that do discuss the placement of the international finance at Economics by Islam; these might assist better for understanding of the Banking System according to Islam, and even Economics in general. The Banking System is certainly tolerable and it is better that banks do play their important role in Economics at the Islamic environment even when it needs them to come also to business in general and even when it needs to tolerate some monopoly for them in some particular commodity (though not of the common need) within specific limit. Please note that it is extremely difficult in this current era to guide to righteousness the persons that have their impression at the field of Economics as of now; the notable point is that Economics, as the established subject in practice as of now, is only recognized generally by the standard of Capitalism without any concern to see to the Islamic manner for it and so even the bright ones among these Economists go for betterment of the material side of life only keeping to the outlook that the west has developed over the couple of centuries gone-by. When there is denial to recognize Allah, the true Lord, by the name of secularism and with that, when there is denial to recognize even the man’s own self by taking it as an animal form, it is impossible for any person to guide such persons though that guidance remains with all goodness of intention; such people take guidance from their minds only keeping to the wrong concepts they have and that easily falls prey to Satan. May Allah save all practicing Muslims from the evil of the current adversities that relate to Economics; Al-Hamdu Lillah. Let us take the matter of ZAKAH now at the end of this account of dealings in finances as it does occupy a very important place at the Islamic teachings and as such, at the Islamic environment; basically the following note on ZAKAH is from my commentary on Tirmidhi by the name of “Notes on Tirmidhi-Ahadith”, that is one of the most esteemed books of Ahadith; Al-Hamdu Lillah.
ZAKAH is one of the five pillars of Islam and it is the only obligatory SADAQAH in general to be paid at the specified possessions besides FITR (that is sometimes also named as ZAKAH) yet the Muslim person shall not ignore other SADAQAH (all amounts that are given in sympathy to the needy for good returns at AKHIRAT) too if he is capable to make that; first of the pillars is to express the words of belief i.e. KALIMAH that there is no god but Allah and Muhammad (PBUH) is the (last) Messenger of Allah and with that a person comes into the fold of Islam (as he believes in the three fundamental matters of Islamic belief by this statement and he needs to say it time and again to denote his commitment to Islam); second is to observe SALAH daily; third is to pay ZAKAH; fourth is to keep SAUM (Fasts) in the ninth month of HIJRAH-calendar i.e. the holy month of Ramadhan; fifth is HAJJ that means to pay visit to the Holy KAABAH at MAKKAH at least once in the whole life-time in the last month of HIJRAH (DHIL-HAJJAH) and perform the holy rites that the Prophet (PBUH) has taught. When the Muslim person does these five plus MUJAHIDA (keeping to Islamic teachings overcoming the desires inside) and TABLIGH (spreading of the teachings of Islam) as much as possible with total attention towards Allah, the Muslim person becomes true Believer with time by the blessing of Allah getting at TAQWA (that means the situation of peace at heart even when living ordinary keeping attention towards Allah only); he must also have the true intention inside that if utmost necessary, he would fight the disbelievers even physically though he would abstain to challenge anyone by his own at these current times, except remaining in the pressure-group for the cause of Islam; Al-Hamdu Lillah; TAQWA guides the attitudes of hope and of fear towards Allah only with total love for Him. The Holy Book Quran says, “Only those believe in Our revelations who, when they are reminded of them, fall down prostrate and hymn the praise of their Lord, and they are not scornful. Who forsake their beds to cry unto their Lord in fear and hope, and spend of that We have bestowed on them (SAJDAH-15 & 16)”. There are five very important questions in respect to ZAKAH that have to be answered for its practice; on what possessions must he pay ZAKAH, on what quantity of those must he pay it, when must he pay it, where must he pay it and how much of ZAKAH is payable on him. The Holy Book Quran has guided to pay ZAKAH and Ahadith address these questions in detail for its practical application. The point of importance is whereas the Holy Book Quran gives Islam in total for all times and all places in theory, Ahadith give it in total for all times and all places in practice; ULAMA have answered these questions well by Ahadith and insha-Allah our study would endeavor to get these answers without addressing any minor difference. For the first question, note that there are four plus one things at possession that ask for ZAKAH; these are gold, silver, the inventory-in-trade and the cattle that graze on its own. Because cash is equivalent to gold as of old days gone-by, it is also included along-with its kinds in these possessions as the fifth item that asks for ZAKAH. Except for these five things, ZAKAH is not on other possessions though FITR and USHR is also sometimes termed as ZAKAH (that is the obligatory payment for the produce of agricultural land). Please note that it is possible that the fourth of these i.e. cattle might fall at the third category if the trade is related to it and as such it would be counted only in the third; gold and silver are always subject to ZAKAH in their own capacity in whatever form they are in possession and as such, cash at hand and its like also have the same ruling as gold; this cash-like items include all those that might be treated as cash-in-possession meaning bonds that can be cashed any time and traveler’s checks or even checks that are at hand plus the cash at the bank and all such investments that are as good as cash by the opportunity of their realization in short time; also included in it are all the personal loans too that are given to acquaintance as those are personal assets but they are liable to ZAKAH after deduction from them of personal loans payable (though guarantees given do not count unless the payment has been made in actual that would have already affected the cash in hand); the share of stocks-in-trade and cash & kind involved at the business has to be assessed as personal asset even though by the Accounting viewpoint, the business concern is a separate entity. Note also that Sole-Proprietorship, and even Partnership, is fine but it is much better to avoid Joint-Stocks Company though detail for this statement would not be possible here except for this indication that in matters of ZAKAH, the person must have the acceptable information at the specific date and the good control over the possessions he is paying the ZAKAH on. For the second question, note that the amount on which the Muslim person becomes liable to pay ZAKAH is called NISAAB and by the amount that is reported at Ahadith, it is 87.5 grams of gold as of today and for silver it is 612.5 grams as of today so if one possesses these in their respective quantities mentioned, he is liable to pay ZAKAH; it is interesting to note here that one of my teachers (among the ULAMA) pointed out that the given value of the gold is nearly the same as it used to be in the ancient times by the consideration of its buying-power and he even gave few examples to this statement. At ZAKAH, note well that if a person does not have gold or silver up-to NISAAB individually but together they come to the value of NISAAB by the market-value of lesser valuable of the two in cash, that is the market-value of 612.5 grams of silver as of today, even then he has to pay ZAKAH as the NISAAB completes even by addition. This rule applies also to other possessions that ask for ZAKAH excluding the cattle that graze on its own and the produce of agricultural land; this means that if value of any two of cash, gold, silver and stocks-in-trade or any three of them or even if all the four sum-up to NISAAB i.e. the value of 612.5 grams of silver in cash by the Market-Value, the man has to pay ZAKAH; the cattle would have to be seen on its own for it has its own NISAAB and even the way of providing ZAKAH in it is unique unless it is in the stocks-in-trade (as then it would have the ruling for stocks-in-trade only). Cash is such standard alone in the living manner as of today that it has the ability to decide the NISAAB taking the market-value of all these four things together that ask for ZAKAH as 2.5 percent of their total amount. As for the questions when to pay ZAKAH and where to pay it, note that it is to be paid yearly by cash or kind and a day would be set by the Muslim person by his intention by the HIJRAH calendar for his ZAKAH; mostly wealthy Muslims set such date to be some specific day of RAMADHAN when there is very high return to every good deed done and it is not feasible to change it then, except for some totally genuine reason. Now once the date is set, if the person has amounts equal to NISAAB at that specific date and also had NISAAB at that specific date the previous year, he has to pay ZAKAH, no matter what has come and has gone in between upon his finances; he must care not to change his finances drastically by taking steps to it before that specific date when he really intends to pay. However, if the Government makes such policies that ask to take ZAKAH, it is upon the good judgment of Muslims how to respond as the people at high offices in the Government in Muslim lands as of now are mostly unworthy to trust for ZAKAH (in-fact, even for any smooth high dealings in finance), judging by the morality Islam asks of them. Note here too how important the intention is and it is said in Hadith, “Surely, deeds depend upon intentions”. The man liable to pay ZAKAH can put his usage amount of cash aside that is needed for some period ahead if he is on job or gets monthly remuneration but has full NISAAB available with him even after it on which he would then apply the 2.5 percent for ZAKAH; here the importance of intention is emphasized even more. As to where it has to be given, briefly it has to be given basically to the poor and the needy; and the eight rightful persons to it are clearly specified in the verse-60 at Surah TAUBAH, the ninth Surah, that says, “SADAQAH are only for the poor and the needy, and the (righteous) officials over them and those whose hearts are made to incline (to the Truth) and for the liberty of captives and those in debts and in the way of Allah and the way-farer; an ordinance from Allah; and Allah is Knowing, Wise (TAUBAH-60)”; any good TAFSIR (commentary of the Holy Book Quran) acceptable generally by good Muslims would clarify the detail of these rightful persons insha-Allah. Now remains the last of the most important questions in the practice of ZAKAH and that is how much has to be given to those that are rightful persons to it so please note here that for cash, gold, silver and stocks at trade, 2.5 per cent of the amount that results by their total, has to be given in ZAKAH but for the cattle that graze on its own, not only the NISAAB but the mode of payment is also unique and the same is true for USHR for which it is better to consult the good explanatory books written on the old FIQH text-books that provide the detail to it; Al-Hamdu Lillah.
POINTS TO NOTE (The Economics-Issue at ADL)
Al-Hamdu Lillah
(53) Economics shall profess by its manifestation at the Islamic environment that all that the man possesses, is actually AMANAT that denotes the Trust of Allah on the man in which he shall apply His commands only.
(54) Economics shall profess the virtue of living within necessities so as to remain safe from any attraction towards the life at the world and so as to provide much time to better use at the direct activities related to fulfill the commands of Allah only.
(55) Economics shall keep the improvement of the man in focus to make things better for economic activities at the land rather than keeping the improvement of things around as the Islamic manner appreciates to improve the INSIDE to achieve the true success, that is of AKHIRAT.
(56) Economics at the Islamic environment shall see that the flow of the wealth is towards the needy and the administration plus the law of the land shall make sure in all righteous ways possible that there is no such person at the Islamic environment who is deprived of physical basic necessities of life in any way.
(57) Economics at the Islamic environment shall accept the right to the personal property within limit by care to Islam and choice of the economic activity within the framework of Islam; the holders of the property shall care by their own that they have the liability towards the needy at the Islamic environment and they also shall abide by the law of the land.
(58) Economics at the Islamic environment shall make sure that the personnel related to the Market are committed to the Islamic values so as to bring the true stability at the Market and so as to provide the less-privileged all convenience in the fulfillment of basic physical necessities.
(59) Economics at the Islamic environment shall see to the safety of the Labor rather than the Capital in all righteous ways possible; it shall take assistance of the law of the land for this cause; it shall see that there is no conflict between the Capital and the Labor and these both rather remain complementary to each other.
(60) Economics at the Islamic environment shall remain free of interest in all manner; also there shall be no intentional competition related to the Market as to take such competition as an economic activity is not appreciable in the Islamic environment.
(61) Economics at the Islamic environment shall see that there is no such person who is deprived of the basic physical necessities and also that there is no such person who has such extreme wealth that he considers himself capable to manage anything without care to the commands of Allah; both of these status shall be most absent at the Islamic environment.
(62) Economics at the Islamic environment shall see that the Banking System there remains free of Interest, Huge-Transactions, Huge-Debts and Unreal-Money; it shall especially see to the omission of the first and the last; the Banking System shall take the deposits as WAKIL (the legal representative for each of the deposit-holders) rather than becoming the custodian of their funds where those funds become AMANAT to them by designation; it is very clear that the Banking System as of now is to undergo huge change certainly if it has to remain operative in Economics at the Islamic environment.
(63) Economics at the Islamic environment shall see at dealings in finances that such persons take charge, whether they are at significant service in private or at Government Institutions or whether they relate to some professional business at the Market, who have the highest of respect for Islamic values.
(64) The practice of ZAKAH, its collection and spread, shall be one of the main features of Economics at the Islamic environment; the administration here shall be liable to collect and provide the ZAKAH at its due placements referred to in Surah Taubah-60, provided it fulfils the minimum criteria of remaining to Islamic values and the practicing Muslims recognize it as an Islamic administration. It shall ask for necessary taxes with minimum of Mathematics to calculate it and for utility bills according to necessity only; the BAITUL-MAAL (State-Treasury) shall run strictly according to the Islamic direction even taking that from the old FIQH text-books where it is relevant; the expenses at administration shall remain strictly at minimum.
(65) The good Islamic administration shall keep the current set-up of the armed forces intact but it shall care highly to put the Islamic awareness in the army personnel and it shall direct them to avoid all wrongs that are averse to good morality; the good Islamic administration shall also care with all its commitment to provide them the most modern weapons of the day to the best of its capability; it shall not initiate JEHAD though if the enemy does initiate war against it then it shall take-up JEHAD and it shall do whatsoever possible, asking Allah to help all Muslims and to end FITNAH that the attack of the enemy might bring at such times of war.
(66) The good Islamic administration shall care that DHIMMI, the non-Muslims living at the Islamic environment, live with such protection of their property, life and respect where they feel at total liberty to practice their faith among their own; they shall not be liable to any key-post at the good administration of the Islamic environment; the good Islamic administration shall also care to provide TABLIGH of Islam at all times to all peoples of the world; it shall bring to negotiation all such peoples that are powerful by military and who intend or might intend for the termination of the Islamic environment by challenging it bitterly; it shall bring them by its wise dealing to make a respectable pact that shall decide that both sides keep away from each other totally, without any disrespect to anyone.
Al-Hamdu Lillah
Continued at Part-3
Muhammad Saleem Dada
visit also:
www.m-saleemdada.com/
PART-2
The Dealings in Finance (The Economics-Issue)
Before proceeding to the Economics-Issue, the manner in which the financial dealings shall manifest at the Islamic environment, it is appropriate to write few lines on the martial side of the Islamic environment; also, I would comment here briefly on the Most Basic Education at the Islamic environment too. To learn about the martial side, it is most appropriate to understand the concept of JEHAD in Islam with its pros & cons; also to understand when & where it is applicable. The set-up of martial force at these current times is quite well if it cares to put the Islamic awareness in the warriors and guides them well to avoid all atrocities keeping to Islamic teachings in view. With this spiritual development, the other thing that relates to the physical development is that the administration must highly care to provide for them the most modern weapons of the day to the best of its ability so that they must have high impression at the enemy for deterrence to wars in the best way possible; in today’s scenario, administration all over the world must rather avoid wars with high tact than to go for them; today, this attitude only favors the mankind. It also is worthy to note that there would not be any force that comprises of women at the army as this does not go well with Islamic values; but it would have such force that do have trained warrior horses as the Holy Book Quran has mentioned them by name at Surah ANFAAL-60 in preparation of the war; Al-Hamdu Lillah. It would be quite fine if there also is an appreciation to employ horses to connect cities, with stables at their ends to care for them as that would be near to the natural environment and as such, to the Islamic environment. With good measures at the spiritual level (by providing them the good Islamic education and the good manner of its application), and at the physical level (by providing them the best of weapons of the day and training them well at their usage), it is most feasible to achieve the necessary avoidance of wars insha-Allah. Here, I, MSD, would present the necessary understanding about JEHAD in brief for the benefit of all relevant persons in this significant issue; Al-Hamdu Lillah.
JEHAD (in the meaning of QITAL) is one of the most important commands of Islam and it has nothing to do with terrorism, as it means in Islamic terminology to fight those people in the way of Allah, who become grave danger to the life style of Islam to punish them then and there so as to end such threat; this is because the Muslims are the force of Allah at the world. There are three things that are directly related to JEHAD; they are MUJAHIDA, that is included in JEHAD, which means the stoppage of FITNAH from the inside by practicing Islam especially at the individual level; and TABLIGH, that also is included in JEHAD, which means to spread the teachings of Islam far & wide so that it reaches all peoples of the world; and QITAL (armed fight against the disbelievers, either by attack of Muslims on them or either in defense against them), that also is included in JEHAD, which means to stop the enemy of Islam to become any threat from outside, to the Islamic way of life; here, I discuss JEHAD in this last meaning; Al-Hamdu Lillah. JEHAD does not represent any personal motives but it actually is the manner to punish those people who after getting the message of Islam, the collection of commands of Allah, reject it; note that the basic stance of Muslims towards all those that are not Muslims is of Neutrality. The Muslims fight JEHAD in defense or initiate it where no option remains available but its initiation asks for few conditions that we all would insha-Allah study soon; it is better that we Muslims do not take the initiative for JEHAD today as that would cause Muslims and also non-Muslims to kill innocent persons that might be unintentional due to the very deadly weapons in use at war today; human error is not out just by setting a target to hit even with the modern sophisticated weapons in use today and even if these weapons take the aid of the man-made satellites that are fully in his control. I, MSD, prefer that we Muslims humbly ask Allah to take His revenge directly from the enemy, with acceptance of our incapability to fight them with caliber due to our own folly of not making preparation for worthy response to any challenge that they might give us; certainly Allah is capable of doing anything He intends though we Muslims certainly are His appointed force. The Holy Book Quran tells us that Allah is AZIZ and HAKEEM; the first means that He brings His will immediately by His authority when He intends and the second means that He sets all events in such manner that they come to manifest His will at the time that He has appointed for it; certainly He only has the true authority; Al-Hamdu Lillah. JEHAD is to save the weak peoples of the world and also to pave way for the existence of an Islamic environment and its defense; it does not mean to kill any innocent person intentionally or unintentionally. Note for conditions of such JEHAD that is initiated by Muslims, that it needs to express the Islamic teachings to the enemy most clearly; it also needs that Muslims do fight that strictly under the command of the wise & courageous Muslim Commander (appointed by the righteous Muslim AMIR committed to Islam) who has great support of significant number of Muslims without any significant challenge to his command at war; these are among the five most important conditions for JEHAD; the other three are that each of the warrior himself shall be such Muslim who avoids major sins with commitment to Islam and that Muslims have gathered necessary physical force to fight the enemy with high caliber and that the enemy has not only rejected Islam but even the offer to formulate a respectable pact with Muslims in clear terms; missing of any of these five conditions renders the initiative to JEHAD unnecessary though it certainly is valid at defense quite well. Although Muslims do understand well that JEHAD (in the meaning of QITAL) is one of the main commands, in addition to the five commands termed as the five pillars of Islam, yet practically the problem in respect to JEHAD as of now is highly great for us Muslims. Mainly, the problem is that Muslims are totally lacking in modern sophisticated weaponry that the challengers to Islam have with them in plenty; even if Muslims do have its possession, initiation of JEHAD would still remain an extreme moot point as it becomes the highest risk to lives of innocent weak persons whom it would save rather than obliterate. In short, initiation of JEHAD (QITAL) is not truly an option for us Muslims in the world today and if JEHAD does exist somewhere, it is purely in self-defense for which no condition is to be seen but we Muslims have to fight it as best as we can in the given situation; indeed, all praise belongs to Allah, the true Lord. Let us now proceed-on here to some comments on the Most Basic Education at the Islamic environment before proceeding to the main topic that is the Economics-Issue.
As a rule, please note that the education is useless if it does not eventually guide near to Allah as that is how Islam takes the righteous education for Muslims; they must attain all the necessary education but certainly ask by it to remain sincere to Islam, the word of Allah, without any external force whatsoever; Al-Hamdu Lillah. In this matter, note here that the education for the old DARSE-NIZAMI might continue-on unchallenged by the Islamic environment as it does guide well to the KITAB and the SUNNAH with better attachment to them; moreover, the ULAMA are now getting the strength to answer the modern challenges by only few necessary adjustments to it and as such, it has shown its worth quite well even at these current times. As for the Most Basic Education, note that those male persons that are unable to go for DARSE-NIZAMI or the high level of education (the explanation of which I, MSD, would insha-Allah take-up ahead in this paper) due to any excuse, they would still have the offer to take this Most Basic Education here at the Islamic environment that would comprise of three years in total only; the administration would manage it for them asking them on and on to at-least get this Most Basic Education without any force to them to getting it necessarily and without any strictness whatsoever at the study-process. The admission to this would remain from the nine years of age up-to twelve years; and there would be no such discipline as to wear some specific uniform for this and there would be no charge to this or any examination whatsoever; the administration would provide the student all text-books to read here and the timing would be three hours that would preferably be 8 to 11 in the morning. The first year at the Most Basic Education would comprise of the study of the Basic Arabic so that the student might read and understand the Holy Book Quran without any translation, to the needed extent; here he would also learn the reading & writing of the National Language whereas the text book to read & write would provide the basic necessary teachings of Islam. At the second year for the Most Basic Education, study of Arabic would go-on but in addition, the student here would also study history related to his native land and he would also study here the basic Mathematics; and he would read the compilation of 40 Ahadith by IMAM-NAWAVI (may Allah provide His REHMAT to him) at this second year. At the third year of the Most Basic Education, the student would hear to any of the most basic authentic TAFSIR of the Quran in his native language with attention by modern means and he would read Ahadith too at this year in Arabic, preferably at “RIADH-US-SALIHIN” that also is beautifully compiled by IMAM-NAWAVI, so that he remains well-attached to Arabic and with that, learns Ahadith too in addition at-least at the basic level; here, there would be no study except for TAFSIR and except for the esteemed compilation of Ahadith by NAWAVI; Al-Hamdu Lillah. This Most Basic Education would insha-Allah make the student realize that the true authority belongs to Allah only and also that the student must keep away from secularism and from the view that the man is but an animal only; Al-Hamdu Lillah. Let us now go-on ahead to the Economics-Issue.
Note that previously just a century ago, there was not much pressure on the common man as an individual to achieve his good sustenance with his good efforts. But now, since a century or so, there are hindrances that he faces to get even his necessities that relate to his economics; this negatively affects his endeavors for working for AKHIRAT, the true life. Economics was not given such concentration few centuries back as to make it some subject for study or to assume theories for it with conditions to almost every such theory yet since couple of centuries or so from the very time when the west took the man as a form of an animal only and thought that secularism is the basic attitude to deal with issues at hand, it formulated theories to it and made it some sort of subject that in its view claimed attention; as the substantial number of common men even at the west did not appreciate to give such high attention to the physical & material necessities at that time, the persons who initiated such thought got some good thrashing that certainly they deserved well; Al-Hamdu Lillah. But going ahead, please note that in the previous century, two compilation of Economics’ theories posed as Economics Systems commonly, that were named as Capitalism and the Socialist-Theory; now only the former stays in practice though not without challenge. We saw the continuous bitter tussle between this Capitalism and Socialism (the Marxist version) in the previous century, both represented by high number of non-Muslims for each that headed them respectively. Muslims got themselves foolishly involved in this bitter tussle though they should have left these people, who cared for the worldly life only, at their unworthy task; each of these sides was trying to prove its own Economics System better whereas the Muslims have their own stance in Economics that asks of them utmost simplicity in taking the needed worldly items only with total care towards AKHIRAT; Al-Hamdu Lillah. But having said this, it is better to acknowledge that there is some small margin for defense to give to Muslims for their foolish involvement in this bitter Economics tussle as many of their countries came to independence from the western imperialism at the time of this tussle without any clear outline for them to work in that given situation at the scenario of the modern recognition of Economics. Taking Economics as an established subject as of now, please note well that the main difference that causes all other differences in Economics between Muslims and non-Muslims is that we Muslims have the unique understanding of Economics by Islam that clarifies it by the true belief. For the practicing Muslims, it needs only simple efforts keeping to Islam to get their necessary sustenance whereas anything that is beyond it, is the blessing of Allah that He has provided to them as bonus in which they would care for the needy as much as possible for them; Al-Hamdu Lillah. For the clarification to this statement, please note that we Muslims have to reserve our total vigor for the sake of AKHIRAT only, keeping to the commands of Allah Who only is the true Lord; He tells us that all that we possess is actually His property and we are custodians (trustees) to it; as such, the point to note here is that Islam, the word of Allah, asks for simplicity in all activities that relate to Economics. Note here that we find the same two negative points at the base of Capitalism and at the base of Socialism (the Marxist version) too that they both take the man as an animal only and ask him on the basis of secularism, for competition to go ahead towards the worldly status only without care to anything other than it as that is their ultimate achievement in all their endeavor. Let us consider the respective salient features of these both Economics Systems briefly so as to actually understand better the set-up of Economics that Islam appreciates in essence; Al-Hamdu Lillah.
There are two types in basic points that the Capitalism presents as the system of Economics; one of these two comprising of three points, goes well with the Islamic viewpoint taking it in general keeping them inside the Islamic basic matters of belief & practice while the other comprising of two points, goes against the Islamic viewpoint. Note that Capitalism takes the term LAISSEZ-FAIRE (that means presently the free Economics System relating to the Market with minimum of Government interference), and its three somewhat plus points are (1) the right to keep personal property and to take-up any economic activity albeit within the legal-framework of the land, (2) the personal material gains as the incentive to establish the economic activity and for the stability of the Market (this assumes that the personal incentive would certainly lead to the stability at the collective level and at the Market by rules of demand & supply), (3) the specification by the law for the rights of the employer and the employee. Now, these three do go well with the Islamic viewpoint for Economics (micro in general), with this addition respectively at the individual and the collective sphere that the personal incentive must remain to the Islamic values and the law of the land must also comply to the Islamic values keeping them clear in expression so as to limit the financial dealings when & where necessary. This necessary addition implies that these points are good to apply for such environment where this Islamic concept does apply well at the lives of all Muslims that Allah only has the true authority and Muslims have to obey His commands in actual in all what they do here in this world; Al-Hamdu Lillah. Now, the other type in these basic points that comprises of two points of Capitalism, clearly challenges the Islamic teachings as each of these both points here negate the clear commands of Allah, the true Lord; one of them is based on the concept of getting material gains by the already standing stable financial status, from other persons instead of caring to provide for their necessities while the other concept is based on competing with others for the financial status in the worldly life; these both concepts are represented in Capitalism respectively by the name of (4) Interest and (5) Free Competition at Market (without any care to morality even if it has to care about the law of the land). These two, Interest and Free Competition, respectively are taken to cause the stable set-up for the market due to its ability to control inflation and to cause the good quality of the product by competition in the production of wealth. In contrast, Islam takes these both i.e. interest and the free competition in worldly finances, as the cause of the concentration of the wealth into hands of already wealthy persons and as the cause of wastage of the precious time respectively; as such, even if it refines the quality of the product, it does cause to deteriorate the quality of the life of the man in the true sense as he is born to care for the commands of Allah only and for no other reason. Note also in contrast, even with the acceptance of the individual claim to possessions, Islam clarifies that everything with the man is in truth of Allah only and he is but a trustee to use it by his own good affinity with FITHRAT (the voice inside the man that asks to live at the right path) in accordance with the commands of Allah, the true Lord. Indeed, the commands of Allah ask to refine totally the distribution of wealth too with refinement in attainment of wealth to get betterment at the lives of the fellow-beings. As we all students have to see issues here by Islam, we need to be clear that Islam prohibits interest totally and even competition in the worldly matters except that occurs without intention, but it asks all Muslims to care only for AKHIRAT in the best possible way at the worldly life; Al-Hamdu Lillah. Let us consider the salient features of another Economics’ system that has little impression as of now, yet that arose as formidable challenger to Capitalism in the previous century; however, instead of making things better, that made the Economics issue even more taxing to the man; that was Socialism.
The Socialist-Theory, that I, MSD, would term simply as Socialism ahead, was actually reaction based on hatred against the atrocities of Capitalism that had no care whatsoever for even the basic necessities of the needy; that care is actually in accordance to the asking of the FITHRAT of the man. The point to note here is that even Socialism had its base at the European mind-set that has the same two concepts at work that are secularism and the idiocy of considering the man as an animal only. This retaliation to Capitalism that came through Socialism was, by the Islamic viewpoint, actually a wrong in retaliation to a wrong of another nature as Socialism assumed that those that are allergic to Capitalism being its victims would certainly care for the needy; like the false Capitalist assumption that the personal incentive would lead to the stability at the Market trusting the men related to financial dealings as committed to make the society better in general, this Socialist assumption also proved to be false. As this whole system of Economics was based on retaliation due to hatred, it proved even more costly to the values that were humane and that had always been respected at all times & at all places in the history of the mankind. When put into practice by the name of eliminating the authority of the wealthy capitalists who had but little care to the needs of the poor and the laborer, it created another group of such wealthy officials at different levels that got the authority and used it the same way as the wealthy capitalists, without any care to the needs of the poor and the laborer. As such, it proved to be Capitalism at its worst as practically, the people at the head of the system that got the authority to decide the economics for the masses, were totally given to pleasures of life at the world considering the man nothing more than an animal; as result to that, they remained totally averse to practice of the commands of Allah, the true Lord; they justified this latter attitude by the name of Secularism. Even with the verbal denial of interest and financial competition in theory that Capitalism professed, they could only manage a system of total bondage to the man where his true self was suppressed and where he was again treated as an animal that must remain sensibly trained to commitment to the authority of its master just to get its sustenance at the minimum without ever caring for Allah, the true Lord. Due to the hatred that rests at its base, there is nothing worthy in it that Islam may appreciate and it certainly is blessing of Allah that the world has seen its end; Al-Hamdu Lillah. The salient features of Socialism are (1) Hatred of the Capitalist (the Bourgeoisie) and the assumption that the man is not trustworthy in his possessions (2) Concentration of wealth in hands of the Laborer (the Proletariat) that must plan Economics for the masses so it is the administration of Economists in theory that provide the products and services having utility on the basis of the concept “from each, according to his ability and to each, according to his needs” (3) the assumption that frustration in economics of the man leads him to alienation from all peoples of the society where he becomes unable to work for the good of his own and the society; the planned Economics would end this alienation as it would end the frustration caused by slavery to earnings (4) the assumption that the history of the man is the clash of different aspects of the society with each other and as such, he develops on. These were the main postulates on which Socialism took its grounds; note that these postulates comprise not only of the teachings that Karl Marx provided, but also of theories that Hegel and Darwin had presented and that had their high influence on those too that took-up Capitalism. Note that according to Islam, theories given by these persons were not liable to respect and had no firm grounds to claim their validity then and even now; they challenge the Truth for certain, yet they were publicized highly then by the west as they challenged their religious leaders head-on for whom they had developed extraordinary hatred; this publicity then led to much acceptance of secularism there and also to the acceptance of the idiotic concept about the man. Certainly, the man is free to live according to his will taking care to rights of the fellow-beings without any such pressure from outside that ask him to curb his good economic activities; certainly the Truth always has remain one only while the wrongs have taken many colors to challenge it and all these wrongs always lost their challenges against it and even if it seemed at times that they would leave their evil marks on the mankind yet they never were able to do so; certainly there never was a time that the man was an animal in physique that came to the form as of today by the survival of the fittest but actually the survival of the fittest relates to his spiritual side that only those lived on well here without any troubles who recognized well that Allah has created everything and the man must obey only His commands in principle; this truly is the concept of history of the man; Al-Hamdu Lillah. Let’s view the Islamic guidance about Economics that would insha-Allah bring the fault of both these Economics Systems at fore and clarify the just attitude in financial dealings at these current times; Al-Hamdu Lillah.
The best manner to put Islamic Guidance here seems to present it into few relevant statements that might clarify much of Economics, the Islamic way. Then insha-Allah it would be convenient to extract the points to note from this section with most of them directly related to Economics, the Islamic way. The relevant statements to note are that (1) By the Islamic Guidance, the Muslims believe that all men have to obey Allah, the true Lord, at all issues of life in principle, as the life is an examination for the man who is not only Physique but also Spirit and he achieves power by the true belief and the righteous deeds according to it; indeed, all that is given to him is AMANAT of Allah that all persons must use only according to the commands of Allah; Al-Hamdu Lillah (2) By the Islamic Guidance, the man must live preferably at necessities asking material things for the worldly life at the level of the need only yet he must use all his ability towards getting the best at AKHIRAT; this implies that the competition at the worldly life for material enhancement is not worthy of consideration but it must highly be for the advancement at AKHIRAT; please note that even the economic activity as all other activities when performed according to the Islamic commands, is commitment to the commendable slavery to Allah though to give time totally to it is not appreciable as that leads only to the greed for the high worldly status with time by attainment of wealth (3) By the Islamic Guidance, the man has to remain in focus actually; the simple matter to note is that it is the man who becomes better if Economics or anything of social value relating to him needs betterment rather than the betterment of the material things outside him (4) By the Islamic Guidance, there would be care that the material resources to production of wealth do not waste; the more important side relates highly to its distribution at the collective level that must remain to the teachings of Islam (5) By the Islamic Guidance, the concept of LAISSEZ-FAIRE taken-up by Economics (by the Capitalist System) is well to apply in controlled sense at the Islamic environment as it is valid when the Islamic values manifest well in practice at the individual and also at the collective level; then only the Market would remain at stability being near to perfection and being beneficial for sustenance to even those who live by their necessities only; note that Islam does put the investment at the economic activity at some risk yet does not tolerate any adversity to the labor; this asks to avoid usury totally at Economics; the Administrative policy has to see to this care about the security of the labor rather than the investment that comes in the business as an asset only to the wealthy mostly; that policy however must apply without any unpleasant attitude towards the wealthy and on the contrary, it must rather take even their assistance to it; please remember that Muslims are brothers and that is valid at Economics too (6) By the Islamic Guidance, it is not that the factors of the production of wealth are Land, Labor, Capital and Entrepreneur but it mainly is the REHMAT (the Blessing) of Allah that leads to the satisfaction of the material and the spiritual needs of the man; note that all good material things attained by good efforts even, are actually the FADHL (unique type of bonus) to an individual from Allah according to Islam; He has provided all elements, gold & silver included, in plenty according to His will so strictly speaking, the theory in Economics that there is scarcity of means to the unlimited wants so that is asked satisfaction by preference, is not appreciated by Islam as Islam asks to live simple with certain check to wants by conscious efforts at life at the world; so Islam challenges the basis to current practice of Economics but that strictly by Islam makes the man truly normal at life at the world rather than taking normalcy at deciding material needs by making preferences (7) By the Islamic Guidance, Capital and Labor are the two sources among others to the satisfaction of the material needs; Islam asks to care sincerely for its teachings for them too; Capital is rather personal asset (for Islam values the man) enfolding even the land and with that all other assets. This is contrary to the current concept that the business set-up is a separate entity than the owner, though for Accounts, it is quite well to take this concept yet assets to the business need to be counted as personal where the rulings of Islam are applied; this also implies that I, MSD, write without any reservation that Islam does not appreciate Joint Stocks Companies and in fact, any notable big business; these big businesses, Joint Stocks Companies included, might be tolerable when limited by number at some necessity but dealings of big businesses does have most high reservation by Islam; micro and macro of Economics have to be redefined by Islamic values; however, the dealings related to banks is feasible without interest and unnecessary competition; more about this later-on (8) By the Islamic Guidance, the practice of giving & taking of Interest of any sort is an extreme evil that has to be avoided totally at Economics without care to any material loss whatsoever as certainly, Interest in itself is a loss to the Islamic values (9) By the Islamic Guidance, the unnecessary Competition for the worldly financial benefits taking it up as an economic activity is not appreciable at any time anywhere though it is bearable if it occurs among Muslims in the same business incidentally at the Market, without their intention to provide losses to each other (10) By the Islamic Guidance, heavy debts for the establishment or even the operation of the business is not appreciable; it is especially bad when it is asked for some big business in form and volume and even more so, when such debt works on the paper only, increasing the credit side of the receiver’s account at the bank and as such, causes the savings of the ordinary people to flow towards the already wealthy segment of the society; this enables this wealthy segment to adversely affect the economics of the ordinary person by their selfish decisions if they will so collectively (11) By the Islamic Guidance, the Muslim person must live at necessities or at the financial status that is not much elevated than that; there are three positions regarding wealth that are fine in the Islamic Society where Muslims try to fulfill their duties well; the best is the status of the person who lives at poverty fulfilling his necessities and obligations but does not have much to save (the Prophet PBUH lived at this status by choice); the second to best is the status of the person who does save a good amount even after spending on his necessities and obligations with convenience yet this saving does not put him into the wealthy persons of the society; the third status is of the person who has property, possessions and plenty of wealth and he is taken among the wealthiest persons of the society. However, no one of this last category shall be much far away from the upper margin of the second one in the Islamic environment. By this detail it is clear that in the Islamic environment, there would be no person who would be deprived of his basic necessities (the status of MEHRUMEE) and at the other side, there would be no person who would consider that he is able to do anything he likes due to huge amounts of his wealth that he has in spare. Both of these persons lose their self-respect and as such, they do not care about the self-respect of others around; the presence of these both that is the status of deprivation of necessities being below the status of poverty and at the other side, the status of undue command over people around due to having extreme quantity of wealth at hand respectively, are totally against the Islamic values so the administration would see by its policy in Economics that there shall remain none of these both in the Islamic environment as it asks only for simplicity and not for any complexity; Al-Hamdu Lillah (12) By the Islamic Guidance, money that contains general acceptance for the exchange of different things, tangible or intangible, having utility must remain as the means of exchange only; it must never become a commodity in itself as that leads to interest and affects the distribution of wealth adversely that must remain necessarily in accordance to ADL (literally meaning Justice – that is why care is to be taken for the righteous distribution of wealth rather than to how much the total earnings of the nation has risen; the wealth must flow to the needed appropriate site that is towards the needy); note that collection of ZAKAH and its dispense is related to the administration when it runs according to Islam keeping to it in belief and in practice, at the Islamic environment and I, MSD, would provide some detail to it ahead insha-Allah; if the administration is not Islamic in the true sense, then the Muslims need to provide ZAKAH by themselves to the appropriate site (13) By the Islamic Guidance, the Government must exercise its authority when most necessary towards the Market to keep it to necessary morals that Islam asks for; it must not put unnecessary burden upon the wealthy at the Islamic environment to collect taxes keeping it to the minimum for its requirement but trust them rather than officials at collection of taxes with tolerance; the Government has the right to formulate such law keeping to Islam that it takes taxes on necessary level for its genuine needed expenses and even for the provision of all convenience to the common-man as much as possible; the Islamic environment must come to such setting that all that are wealthy here co-operate themselves with the Government on matter of taxes (and these taxes must strictly be minimum besides utility bills); it would be allowed to the common-man here to deposit any tax that he intends towards the Government though the wealthy here would provide taxes by the ratio that is specified at their Net Profits by the Government and even at this, the trust on them would be the keyword rather than the trust on officials put on the collection of taxes; note well that ZAKAH is something other than these taxes of the Government that must run all the administration strictly by Islam (14) By the Islamic Guidance, the last but not the least is that the officials at any post at the administration at the Islamic environment must necessarily be QAVI (capable to perform their tasks well) and AMIN (honest to perform their tasks well); it is true that the failure of Socialism as an Economics System was much due to its false assumptions yet the corruption of officials was also among the main reasons for that; certainly the Islamic environment needs Muslim men committed to Islam in all good tasks to take Economics as Islam defines it ahead with most high caliber. These are the features that do lead to understand Economics well by the Islamic Guidance and to put it into practice; Al-Hamdu Lillah. Note that I, MSD, intended to provide the basics to Economics for practice at the minimum level by the Islamic viewpoint keeping at the balance to provide them comprehensively and yet briefly. We all Muslims have to present Islam clearly to enable all understanding persons who do value the Truth, to understand it well in practice; that would lead to the betterment of the environment in all ways at the individual and at the collective level insha-Allah. The striking thing is that with these statements in application and without the two high wrongs, that is secularism and the erroneous notion about the man, Economics would manifest well with the assistance of the Administrative-Issue (that sees to the application of Islamic rulings at the Market) and the Legal-Issue (that sees to justice in the attainment and especially in the dispense of the wealth to keep the balance according to Islamic rulings at the working of the Market) insha-Allah; it would provide space even to the person who has meager resources, to live with ease at his life at the world; it would enable him to work for AKHIRAT which in actual, is the only true wealth; Al-Hamdu Lillah.
For some detail of the statements for Economics in the Islamic manner, please note that the Holy Book Quran tells about the person who provides his service for some task or is chosen to that, must have two necessary attributes that is he would be QAVI (capable to perform his task well) and AMIN (honest to perform his task well); Surah-NAML-39 and Surah-QASAS-26 use these terms to clarify the best of workers for a given task while Surah-Yousuf-55 provides the same guidance by the terms HAFEEZ (other word for the broad meaning to the term AMIN) and ALEEM (other word for the broad meaning to the term QAVI); Al-Hamdu Lillah. With the Administrative-Issue and the Legal-Issue working well for Islam at the collective level, and QAVI and AMIN persons, working well for Islam at the individual level, it is not difficult to understand the application of Economics with other things by Islam at the Islamic environment comprehensively; Al-Hamdu Lillah. In addition to this, I, MSD, would take-up the subject of Banking too by Islam very briefly at this place as it is highly mentioned at Economics by Islam in the current era and occupies significant status at the subject.
Generally, the bank is such an institution today that keeps the deposits and the assets of account-holders and then performs different tasks by those deposits and assets at its disposal; it is these tasks that need address here as the deposits & assets can be provided to Banks considering them trustworthy institutions as individuals trust each other and taking them as WAKIL where necessary, keeping to the Islamic Guidance; note that some problems that do arise at the Banking System as of now is when the deposits are designated as AMANAT as then the Bank has no rights to use it as it wills even in the good benefits of the account-holders and the complexity that comes with such designation, does cause problems by FIQH. The most important tasks of these banks that are taken as the indispensable part of the current dealings in Economics include (1) to keep the savings of the people secure for them in Savings Accounts, in Current Accounts and in Lockers to provide them on demand providing them interest on their Savings Accounts and charging them on provision of other services; they manage transactions for them therein (2) to provide debts to investors asking interest on rates higher than the rates given to the Savings of the relevant Account-Holders (3) to earn by discounting Notes Receivables provided to them giving the possessor of it that provides it to them lesser amount than its true value at the Market (4) to provide service for transactions with foreign traders taking their service charges for that provision; this also includes transfer of funds from one place to another (5) to issue their documents of financial nature to participate in the current Economics with the permission of the Central Bank; note that these all banks need permission of the relevant Central Bank for their financial role at a given place; also note that these are the main tasks that the banks usually manage at economic activities of a given place. With these points, it is easy to deduct the four keywords that relate to the definition of “Bank” in the current era; these are to promote the financial dealings by “Interest”, “Huge-Transactions”, “Debts”, and “Unreal-Money”. Please note well that according to Economics by the Islamic way, all these have the feature of being “unworthy” for financial transactions as the first one mentioned here is totally HARAAM (strictly prohibited) while Huge-Transactions & taking Debts for business operations are exceedingly MAKRUH (most detestable except where they might become bearable in today’s scenario at the Islamic environment due to manifest necessity and Allah knows better). The fourth of these terms i.e. “unreal-Money” baffles designation; there is concept of “URFI-THAMANIAT” in FIQH (that means to take something as valuable enough for trade though it actually does not possess value and example for this might be the sand that has some rightful chemical use in this current era and is fine to trade by the rightful owners keeping to Islamic teachings though in itself it is not among goods to trade) yet that concept even is invalid to see at this matter as URF-SAHIH (the recognition of something as valid) can never apply at something the ruling of which is already provided by NUSUS (the Holy Book Quran and the Sunnah of the Prophet PBUH) in clear terms; note that Islam does not allow to change the acceptable instrument of exchange into some stocks in trade and it guides for even the actual stocks in trade that they would be tangible that are well to take into possession so as to make business out of it; here at Economics as of now, not only the money is treated as stocks in trade for interest but it also has no actual transfer of value as Islam takes the term “value” because its dealing remains to paper only with its status as totally intangible; it is darkness into darkness. These both misguide the persons involved in the economic activity to take interest and to ask for erroneous ways to gain wealth for them in the name of free competition. It seems that Satan has put all evil efforts at Economics of the current era and with time, it is getting worse by the Islamic viewpoint; the practicing Muslim person must always ask Allah for total safety in this matter; Al-Hamdu Lillah. In a nutshell, if the Banking System as of now can avoid these four things remaining as an authorized WAKIL to its account-holders, especially avoiding the first and the last, it could come to the Islamic manner operating well in the Islamic environment; that clearly needs detachment from the international monetary dealings because just as banks need commitment to the Central Bank, the Central Bank of the place has its commitment to these dealings. But without any clarification to this statement about the international finance, I, MSD, would leave the matter as any detail to it would certainly be putting hands into the hornet’s nest without any high benefits from it. However, there are beautiful writings and some wonderful booklets on the Islamic manner of Economics that are presented by the reputable ULAMA even in English today, that do discuss the placement of the international finance at Economics by Islam; these might assist better for understanding of the Banking System according to Islam, and even Economics in general. The Banking System is certainly tolerable and it is better that banks do play their important role in Economics at the Islamic environment even when it needs them to come also to business in general and even when it needs to tolerate some monopoly for them in some particular commodity (though not of the common need) within specific limit. Please note that it is extremely difficult in this current era to guide to righteousness the persons that have their impression at the field of Economics as of now; the notable point is that Economics, as the established subject in practice as of now, is only recognized generally by the standard of Capitalism without any concern to see to the Islamic manner for it and so even the bright ones among these Economists go for betterment of the material side of life only keeping to the outlook that the west has developed over the couple of centuries gone-by. When there is denial to recognize Allah, the true Lord, by the name of secularism and with that, when there is denial to recognize even the man’s own self by taking it as an animal form, it is impossible for any person to guide such persons though that guidance remains with all goodness of intention; such people take guidance from their minds only keeping to the wrong concepts they have and that easily falls prey to Satan. May Allah save all practicing Muslims from the evil of the current adversities that relate to Economics; Al-Hamdu Lillah. Let us take the matter of ZAKAH now at the end of this account of dealings in finances as it does occupy a very important place at the Islamic teachings and as such, at the Islamic environment; basically the following note on ZAKAH is from my commentary on Tirmidhi by the name of “Notes on Tirmidhi-Ahadith”, that is one of the most esteemed books of Ahadith; Al-Hamdu Lillah.
ZAKAH is one of the five pillars of Islam and it is the only obligatory SADAQAH in general to be paid at the specified possessions besides FITR (that is sometimes also named as ZAKAH) yet the Muslim person shall not ignore other SADAQAH (all amounts that are given in sympathy to the needy for good returns at AKHIRAT) too if he is capable to make that; first of the pillars is to express the words of belief i.e. KALIMAH that there is no god but Allah and Muhammad (PBUH) is the (last) Messenger of Allah and with that a person comes into the fold of Islam (as he believes in the three fundamental matters of Islamic belief by this statement and he needs to say it time and again to denote his commitment to Islam); second is to observe SALAH daily; third is to pay ZAKAH; fourth is to keep SAUM (Fasts) in the ninth month of HIJRAH-calendar i.e. the holy month of Ramadhan; fifth is HAJJ that means to pay visit to the Holy KAABAH at MAKKAH at least once in the whole life-time in the last month of HIJRAH (DHIL-HAJJAH) and perform the holy rites that the Prophet (PBUH) has taught. When the Muslim person does these five plus MUJAHIDA (keeping to Islamic teachings overcoming the desires inside) and TABLIGH (spreading of the teachings of Islam) as much as possible with total attention towards Allah, the Muslim person becomes true Believer with time by the blessing of Allah getting at TAQWA (that means the situation of peace at heart even when living ordinary keeping attention towards Allah only); he must also have the true intention inside that if utmost necessary, he would fight the disbelievers even physically though he would abstain to challenge anyone by his own at these current times, except remaining in the pressure-group for the cause of Islam; Al-Hamdu Lillah; TAQWA guides the attitudes of hope and of fear towards Allah only with total love for Him. The Holy Book Quran says, “Only those believe in Our revelations who, when they are reminded of them, fall down prostrate and hymn the praise of their Lord, and they are not scornful. Who forsake their beds to cry unto their Lord in fear and hope, and spend of that We have bestowed on them (SAJDAH-15 & 16)”. There are five very important questions in respect to ZAKAH that have to be answered for its practice; on what possessions must he pay ZAKAH, on what quantity of those must he pay it, when must he pay it, where must he pay it and how much of ZAKAH is payable on him. The Holy Book Quran has guided to pay ZAKAH and Ahadith address these questions in detail for its practical application. The point of importance is whereas the Holy Book Quran gives Islam in total for all times and all places in theory, Ahadith give it in total for all times and all places in practice; ULAMA have answered these questions well by Ahadith and insha-Allah our study would endeavor to get these answers without addressing any minor difference. For the first question, note that there are four plus one things at possession that ask for ZAKAH; these are gold, silver, the inventory-in-trade and the cattle that graze on its own. Because cash is equivalent to gold as of old days gone-by, it is also included along-with its kinds in these possessions as the fifth item that asks for ZAKAH. Except for these five things, ZAKAH is not on other possessions though FITR and USHR is also sometimes termed as ZAKAH (that is the obligatory payment for the produce of agricultural land). Please note that it is possible that the fourth of these i.e. cattle might fall at the third category if the trade is related to it and as such it would be counted only in the third; gold and silver are always subject to ZAKAH in their own capacity in whatever form they are in possession and as such, cash at hand and its like also have the same ruling as gold; this cash-like items include all those that might be treated as cash-in-possession meaning bonds that can be cashed any time and traveler’s checks or even checks that are at hand plus the cash at the bank and all such investments that are as good as cash by the opportunity of their realization in short time; also included in it are all the personal loans too that are given to acquaintance as those are personal assets but they are liable to ZAKAH after deduction from them of personal loans payable (though guarantees given do not count unless the payment has been made in actual that would have already affected the cash in hand); the share of stocks-in-trade and cash & kind involved at the business has to be assessed as personal asset even though by the Accounting viewpoint, the business concern is a separate entity. Note also that Sole-Proprietorship, and even Partnership, is fine but it is much better to avoid Joint-Stocks Company though detail for this statement would not be possible here except for this indication that in matters of ZAKAH, the person must have the acceptable information at the specific date and the good control over the possessions he is paying the ZAKAH on. For the second question, note that the amount on which the Muslim person becomes liable to pay ZAKAH is called NISAAB and by the amount that is reported at Ahadith, it is 87.5 grams of gold as of today and for silver it is 612.5 grams as of today so if one possesses these in their respective quantities mentioned, he is liable to pay ZAKAH; it is interesting to note here that one of my teachers (among the ULAMA) pointed out that the given value of the gold is nearly the same as it used to be in the ancient times by the consideration of its buying-power and he even gave few examples to this statement. At ZAKAH, note well that if a person does not have gold or silver up-to NISAAB individually but together they come to the value of NISAAB by the market-value of lesser valuable of the two in cash, that is the market-value of 612.5 grams of silver as of today, even then he has to pay ZAKAH as the NISAAB completes even by addition. This rule applies also to other possessions that ask for ZAKAH excluding the cattle that graze on its own and the produce of agricultural land; this means that if value of any two of cash, gold, silver and stocks-in-trade or any three of them or even if all the four sum-up to NISAAB i.e. the value of 612.5 grams of silver in cash by the Market-Value, the man has to pay ZAKAH; the cattle would have to be seen on its own for it has its own NISAAB and even the way of providing ZAKAH in it is unique unless it is in the stocks-in-trade (as then it would have the ruling for stocks-in-trade only). Cash is such standard alone in the living manner as of today that it has the ability to decide the NISAAB taking the market-value of all these four things together that ask for ZAKAH as 2.5 percent of their total amount. As for the questions when to pay ZAKAH and where to pay it, note that it is to be paid yearly by cash or kind and a day would be set by the Muslim person by his intention by the HIJRAH calendar for his ZAKAH; mostly wealthy Muslims set such date to be some specific day of RAMADHAN when there is very high return to every good deed done and it is not feasible to change it then, except for some totally genuine reason. Now once the date is set, if the person has amounts equal to NISAAB at that specific date and also had NISAAB at that specific date the previous year, he has to pay ZAKAH, no matter what has come and has gone in between upon his finances; he must care not to change his finances drastically by taking steps to it before that specific date when he really intends to pay. However, if the Government makes such policies that ask to take ZAKAH, it is upon the good judgment of Muslims how to respond as the people at high offices in the Government in Muslim lands as of now are mostly unworthy to trust for ZAKAH (in-fact, even for any smooth high dealings in finance), judging by the morality Islam asks of them. Note here too how important the intention is and it is said in Hadith, “Surely, deeds depend upon intentions”. The man liable to pay ZAKAH can put his usage amount of cash aside that is needed for some period ahead if he is on job or gets monthly remuneration but has full NISAAB available with him even after it on which he would then apply the 2.5 percent for ZAKAH; here the importance of intention is emphasized even more. As to where it has to be given, briefly it has to be given basically to the poor and the needy; and the eight rightful persons to it are clearly specified in the verse-60 at Surah TAUBAH, the ninth Surah, that says, “SADAQAH are only for the poor and the needy, and the (righteous) officials over them and those whose hearts are made to incline (to the Truth) and for the liberty of captives and those in debts and in the way of Allah and the way-farer; an ordinance from Allah; and Allah is Knowing, Wise (TAUBAH-60)”; any good TAFSIR (commentary of the Holy Book Quran) acceptable generally by good Muslims would clarify the detail of these rightful persons insha-Allah. Now remains the last of the most important questions in the practice of ZAKAH and that is how much has to be given to those that are rightful persons to it so please note here that for cash, gold, silver and stocks at trade, 2.5 per cent of the amount that results by their total, has to be given in ZAKAH but for the cattle that graze on its own, not only the NISAAB but the mode of payment is also unique and the same is true for USHR for which it is better to consult the good explanatory books written on the old FIQH text-books that provide the detail to it; Al-Hamdu Lillah.
POINTS TO NOTE (The Economics-Issue at ADL)
Al-Hamdu Lillah
(53) Economics shall profess by its manifestation at the Islamic environment that all that the man possesses, is actually AMANAT that denotes the Trust of Allah on the man in which he shall apply His commands only.
(54) Economics shall profess the virtue of living within necessities so as to remain safe from any attraction towards the life at the world and so as to provide much time to better use at the direct activities related to fulfill the commands of Allah only.
(55) Economics shall keep the improvement of the man in focus to make things better for economic activities at the land rather than keeping the improvement of things around as the Islamic manner appreciates to improve the INSIDE to achieve the true success, that is of AKHIRAT.
(56) Economics at the Islamic environment shall see that the flow of the wealth is towards the needy and the administration plus the law of the land shall make sure in all righteous ways possible that there is no such person at the Islamic environment who is deprived of physical basic necessities of life in any way.
(57) Economics at the Islamic environment shall accept the right to the personal property within limit by care to Islam and choice of the economic activity within the framework of Islam; the holders of the property shall care by their own that they have the liability towards the needy at the Islamic environment and they also shall abide by the law of the land.
(58) Economics at the Islamic environment shall make sure that the personnel related to the Market are committed to the Islamic values so as to bring the true stability at the Market and so as to provide the less-privileged all convenience in the fulfillment of basic physical necessities.
(59) Economics at the Islamic environment shall see to the safety of the Labor rather than the Capital in all righteous ways possible; it shall take assistance of the law of the land for this cause; it shall see that there is no conflict between the Capital and the Labor and these both rather remain complementary to each other.
(60) Economics at the Islamic environment shall remain free of interest in all manner; also there shall be no intentional competition related to the Market as to take such competition as an economic activity is not appreciable in the Islamic environment.
(61) Economics at the Islamic environment shall see that there is no such person who is deprived of the basic physical necessities and also that there is no such person who has such extreme wealth that he considers himself capable to manage anything without care to the commands of Allah; both of these status shall be most absent at the Islamic environment.
(62) Economics at the Islamic environment shall see that the Banking System there remains free of Interest, Huge-Transactions, Huge-Debts and Unreal-Money; it shall especially see to the omission of the first and the last; the Banking System shall take the deposits as WAKIL (the legal representative for each of the deposit-holders) rather than becoming the custodian of their funds where those funds become AMANAT to them by designation; it is very clear that the Banking System as of now is to undergo huge change certainly if it has to remain operative in Economics at the Islamic environment.
(63) Economics at the Islamic environment shall see at dealings in finances that such persons take charge, whether they are at significant service in private or at Government Institutions or whether they relate to some professional business at the Market, who have the highest of respect for Islamic values.
(64) The practice of ZAKAH, its collection and spread, shall be one of the main features of Economics at the Islamic environment; the administration here shall be liable to collect and provide the ZAKAH at its due placements referred to in Surah Taubah-60, provided it fulfils the minimum criteria of remaining to Islamic values and the practicing Muslims recognize it as an Islamic administration. It shall ask for necessary taxes with minimum of Mathematics to calculate it and for utility bills according to necessity only; the BAITUL-MAAL (State-Treasury) shall run strictly according to the Islamic direction even taking that from the old FIQH text-books where it is relevant; the expenses at administration shall remain strictly at minimum.
(65) The good Islamic administration shall keep the current set-up of the armed forces intact but it shall care highly to put the Islamic awareness in the army personnel and it shall direct them to avoid all wrongs that are averse to good morality; the good Islamic administration shall also care with all its commitment to provide them the most modern weapons of the day to the best of its capability; it shall not initiate JEHAD though if the enemy does initiate war against it then it shall take-up JEHAD and it shall do whatsoever possible, asking Allah to help all Muslims and to end FITNAH that the attack of the enemy might bring at such times of war.
(66) The good Islamic administration shall care that DHIMMI, the non-Muslims living at the Islamic environment, live with such protection of their property, life and respect where they feel at total liberty to practice their faith among their own; they shall not be liable to any key-post at the good administration of the Islamic environment; the good Islamic administration shall also care to provide TABLIGH of Islam at all times to all peoples of the world; it shall bring to negotiation all such peoples that are powerful by military and who intend or might intend for the termination of the Islamic environment by challenging it bitterly; it shall bring them by its wise dealing to make a respectable pact that shall decide that both sides keep away from each other totally, without any disrespect to anyone.
Al-Hamdu Lillah
Continued at Part-3