The word economy (iktissad) is derived from an old Greek term, which means "the planning of home affairs", such that its able members share in producing the goods and performing the services, and all its members share, as well, in enjoying what they possess. Through time, people extended the meaning of 'home' until it meant the group of people which is governed by one state. Thereupon, it is not intended to use the word economy in its linguistic meanings which are saving or property. What is meant is the technical meaning of the word, i.e. the administration of property affairs, either by its increase, and securing of its production which is discussed in the economic science; or by the manner of its distribution, which is discussed in the economic system.
Though both the economic science and the economic system deal with the economy, their respective meanings differ significantly. The economic system is not affected by fluctuations in the amount of wealth. The fluctuations in the amount of wealth do not affect the form of the economic system. Therefore, it is a serious error to look at the economy as one subject, and to discuss it as one matter, as this leads to either an error in understanding the economic problems required to be solved, or misunderstanding the factors that increase the wealth, in the country, since the planning of the community affairs in respect of creation of wealth is one matter, and planning of the peoples affairs in respect of wealth distribution is entirely another matter. So, the subject of planning the production of economic material must be separated from the subject of planning its distribution. The first is connected with the means and the second is connected with the thought. The economic system must be discussed as a thought that is based upon the viewpoint of life (creed of a particular ideology), and economic science must be discussed as a science that has no relationship with the particular viewpoint in life. The important subject of them is the economic system, because the economic problem revolves around mankind's needs, the means of their satisfaction, and benefitting by these means. Since the means are present in the universe, their production does not cause an essential problem in satisfying the needs, but rather the needs drive man to produce these means. However, the real problem present in the relationships of the people, i.e. the society, results from enabling or restricting the people from benefitting from these means. This results from the subject of man's ownership of these means and so is the basis of the economic problem, which must be treated. So the economic problem results from the subject of possessing the benefits not from producing the means which gives the benefit.
The 'benefit' in a thing represents the suitability of that thing to satisfy the need of man. Benefit comprises two elements. One is the extent of desire for the particular thing felt by man. The second is the merits existent in the thing and its suitability to satisfy man's need, not the need of only one particular person. This benefit results from either man's efforts, or of the property, or through both of them. The form of man's effort includes the intellectual and the physical effort which he spends to develop a property or a benefit from a property. The word property includes everything possessed for utilization through buying, leasing or borrowing, whether by consumption, such as the apple or by usage such as a car; or through the benefit of using it like borrowing machinery, or leasing a house.
Property includes money such as gold and silver, commodities such as clothes and foodstuffs, and immovable properties such as houses and factories; all things which are possessed. Since property itself satisfies man's needs, and man's effort is a means to obtain the property or its benefit, then the property is the basis of the benefit.
property is the basis of the benefit - whilst man's effort is of the means that enables man to obtain the property. Hence, man by his nature strives to obtain or possess the property. Thereupon man's effort and the property are the tools which are used to satisfy man's needs, they are the wealth which man strives to possess. Therefore wealth is the property and the effort together.
The individuals possession of the wealth occurs either from other individuals, such as in possession of a gift, or directly such as the possession of the raw materials. Possession of the matter or thing is either:
1. for consumption, like possessing an apple,
2. for utilization, like owning a house,
3. the possession of the benefit of the property, like leasing the house, or
4. for possessing the benefit resultant from man's efforts, like an architect's blueprints.
Possession, in all of its applications, is either with compensation, such as selling and leasing property, and wages of the employee; or it is without compensation such as donations, grants, presents, inheritance or loans. However, the economic problem lies in the possession of wealth not in creating wealth. The economic problem results from the view towards ownership, from the ill disposition of this ownership, and from the ill disposition of the wealth among people. The problem does not stem from any other matter, and therefore addressing this aspect is the basis of the economic system.
The basis upon which the economic system is built constitutes three principles: 1. Ownership, 2. Disposal of the ownership, and 3. The distribution of wealth amongst the people.
THE VIEW OF ISLAM TOWARDS ECONOMY
The view of Islam towards wealth differs from its view of utilizing it. Islam considers the means which gives a thing a certain benefit different than the actual possession of the benefit. So the property/asset and man's efforts are the components of the wealth, and they are the means which give the benefit. Their position in the view of Islam regarding life's affairs and in regard of their production differs from the question of using them, and from the method of possessing this benefit. Islam interferes directly in benefiting from some forms of wealth. So it prohibits the use of some properties such as wine and dead foodstuffs. Similarly it prohibits benefiting from some of man's actions, such as dancing and prostitution. It prohibits selling assets which are forbidden for eating, and it prohibits hiring for the actions which are forbidden to be performed. This refers to the benefits of the property/asset, and man's effort. However, regarding the way of acquiring the property/asset and man's effort, Islam has put numerous laws regulating this ownership, such as laws of hunting and land reclamation, and the laws of leasing, manufacturing, inheritance, donations, and wills.
This is regarding the utilization of the wealth and the manner of its initial ownership or acquisition. Regarding generating the production of the wealth, Islam encouraged it through motivating the people to earn. Islam does not interfere in defining the technical manner of increasing production, or the quantity of production, rather it left that to the people to achieve as they like. Turning to the existence of the wealth, property exists in this world naturally. Allah, the Glorified, the Supreme, has created it, and left it for man's disposal (Taskheer). Allah, the Exalted says:
"It is He Who created for you all that exists on Earth"
And said:
"Allah is He Who put at your disposal the sea so that the ships may sail by His command ,and so as you may seek His bounty" [45:12]
And said:
"He put at your disposal that which is in the heavens and that which is in the earth, all from Him" [45 :13]
And said:
"Let man consider his food. How we pour water in showers: Then split the earth in fragments. And cause the grains to grow therein. And grapes and fresh vegetation. And olives and dates, and enclosed gardens, dense with lofty trees. And fruits and grazes. Provision for you and your cattle" [80:24-32]
And said:
"And we taught him the art of making garments (of maille) for your benefit, to guard you from each other's violence" [21 : X0]
And said:
"And we sent down iron, in which is great might, as well as many benefits for mankind". [57:25]
Allah (SWT) illustrated in these verses, and others like them, that He created the property and created man's efforts, and He did not expose to things other than that related with it, which indicates that He did not interfere in the property or in man's efforts, except that He showed that He created them for people to utilize them. He also did not interfere in the production of wealth, there is no Shar’iyah text (Divine legal text) which denotes that Islam interferes in the production of wealth. On the contrary, we find the Shar’iyah texts indicating that the Shar’iyah has left the issue of mining or extracting the mineral resources, and improving man's effort. It was narrated that the Prophet (saw) said in the issue of manual pollination of date trees, "You are more aware of the daily, routine issues of your life". It is also narrated that the Prophet (saw) sent two of the Muslims to Jurash of Yemen to learn weapon manufacturing. These examples indicate that Shar’iyah has left the matter of production of property to the people, so as to produce according to their experience and knowledge.
From all of this, it is apparent that Islam looks at the economic system and not at economic science. It makes the use of the wealth, and the way of initiating the ownership of its benefit as its subject. It does address or interfere in the production of the wealth, or in the technical means of benefit at all.
THE ECONOMIC POLICY IN ISLAM
The economic policy is the goal aimed at by the laws which deal with the management of economic affairs. The economic policy in Islam is to secure the satisfaction of all basic needs for every individual completely, and then enabling him to satisfy his luxurious needs as much as he can. Mankind is referred to as a man living in a particular society which has a special way of life.
So Islam looks at every individual by him/herself rather than the total of individuals who live in the country. It looks at him as a human being first, who needs to satisfy all of his basic needs completely, then to him in his capacity as a specific individual to enable him to satisfy his luxurious needs as much as possible. Islam looks to him at the same time, considering him a person connected with others by certain relationships that is directed in a specific course, according to a particular law. The economic policy in Islam is not to raise the standard of living in the country without looking to secure the rights of life for every individual completely; nor is it just to provide the means of satisfaction in the society, leaving the people free to take from it any way that they want, without securing the rights of each individual to take; rather it is addressing the basic problems of everyone as a human being, who lives according to particular relationships, and it then enables each individual to raise his standard of living and achieve comfort for himself, according to a particular way of life. As such it is different from the other economic policies.
While putting the economic rules for the human being, Islam relates the legislation to the individual to secure the right of livelihood and to secure the luxurious needs, while it verifies that the society has a special way of life. So, it looks at what the society should be, at the same time that it looks to secure livelihood and luxurious needs. It makes its view towards what the society ought to be as a basis for its view towards the livelihood and the luxurious needs. Therefore, one will find that the divine rules (Ahkam Shar’iyah) have secured the satisfaction of all of the basic needs (food, clothing and housing) completely, for every citizen of the Islamic State. This is achieved by obligating each capable person to work, so as to achieve the basic needs for himself and his dependents. Islam obligates the children or the heirs to support the parents if they are not able to work, or upon the State Treasury (Beit el Mal) if there is nobody to support him. As such, Islam requires that the individual secures for himself and his dependents the satisfaction of the basic needs, i.e. adequate foodstuffs, clothing and housing. Islam then encourages the individual to secure the luxuries of life as much as he can.
Islam also prevents the government from taking property through the imposition of taxes, except in cases where it is obligatory on all Muslims to address, i.e. famine or jihad, and the tax is taken only on wealth which exceed that which each individual uses normally to satisfy his basic and luxurious needs. As such, it achieves the right of livelihood for everyone individually, and facilitates the securing of the luxurious needs. At the same time that Islam sets certain limits within which the individual can earn in order to satisfy his basic and luxurious needs, and organizes the relationships according to a particular way. So Islam prohibits the production and consumption of wine by every Muslim, and it does not consider it as economic material. Islam prohibits the taking of Riba (usury, interest, etc.) and its usage in transactions for everyone who holds Islamic citizenship; it does not consider Riba as an economic good, whether for Muslims or non-Muslims. So Islam considers what the society ought to be when considering any property as an economic material or good, in order for it to be utilized.
The Individual and Society
Islam did not deny individuality while it looked at the human being, nor did it deny the aspect of humanity when viewing the individual. Furthermore, Islam does not separate what the society should be from the aspect of working to secure the satisfaction of the basic needs for every individual, and then enabling him to satisfy his luxurious needs. Rather, Islam makes the satisfaction of the needs and what the society should be, as two matters which are inseparable from each other by considering what the society should be as a basis for satisfying the needs. For the sake of satisfying all the basic needs completely, and to enable the satisfaction of the luxurious needs, the economic goods should be available to the people, and the material should not come to them unless they put some effort to earn it. Therefore, Islam encourages people to earn and to seek the provision and to work in life; and it made working for earning the provision compulsory.
Earning and Enjoying Property
Allah the Supreme said:
"So walk in the paths of the earth and eat of His sustenance which He provides". [67:15]
However, this does not mean that Islam interfered in the production of the wealth, or that it demonstrated the technical matters related to increasing production, or the amount of production, because it has no relationship with that. Rather it only encourages working and the earning of property. Many Hadiths came to encourage the earning of property. In one narration, the Prophet Muhammad (saw) shook the hand of Sa'd bin Mu'adh (ra) and found his hands to be rough. When the Prophet (saw) asked about it, Sa'ad said: 'I dig with the shovel (mishah) to spend on my family'. The Prophet (saw) kissed Sa'd's hands and said: '(They are) two hands who Allah The Supreme loves."
The Prophet also said:
"Some sins are not forgiven by the fasting or the prayer. He was asked: 'What will forgive them O messenger of Allah?' He said: The concern in seeking the provisions".
It was also narrated that Omar Ibn Al Khattab passed by some people, who were known as readers of the Qur'an. He saw them sitting and bending their heads and asked who they were. He was told: "They are the dependents who depend on Allah (Al-Mutawwakiloon). Umar replied: No, they are the eaters who eat the peoples properties (Al-Muta-aakiloon). Do you want me to describe who the real dependents (Al-Mutawwakiloon) are? He was answered affirmatively, and then he said: He is the person who throws the seeds in the earth and then depends on His Lord The Almighty, The Exalted"
Thus we find that the Ayahs and the Hadiths encourage the striving to seek provision, and working to earn property, just as they encourage the enjoyment of the property and eating of the good things.
The Supreme said:
"Say: who has forbidden the beautiful (gifts) of Allah, which He has provided for his servants, and the things, clean and pure, (that He has provided?" [7:32]
And:
"And let not those who are stingy, who withhold the gifts which Allah has given them from His Grace, think that it is good for them. Rather it is worse for them. That which they hoard will be their collar on the Day of Resurrection. To Allah belongs the heritage of the heavens and the earth, and Allah is informed of what you do."[3: 180]
And:
"O you who believe! Spend of the good things which you have named, and of that which We bring forth from the earth for you." [2:267]
And:
"O you who believe! don't prohibit the good things which Allah made Halal for you." [5:87]
And:
"And eat of that which Allah provided you, Halal and good." [5:88]
These verses, and the like, denote clearly that the divine rules (Ahkam Shar'iyah) related to the economy, aim at securing and acquiring the property and enjoying the good things. So Islam obliged individuals to earn, and ordered them to enjoy the wealth that they earned, to achieve economic growth in the country, to satisfy the basic needs for every person, and to enable the satisfaction of luxurious needs.
In order to facilitate the acquisition of property, we find that Islam puts the rules related to the manner of possessing the wealth without any complications, so it made the way of initiating the
acquisition of property to be very easy. Thus Islam defined the legal means of initiating ownership, and it defined the contracts through which property/assets are exchanged, and left man free to develop the styles and means by which he earns, and it did not interfere in the production of the wealth.
Islam puts the legal means of initiating ownership, and contracts, in general guidelines that include legal standards, and as rules, under which numerous issues belong, and from which solutions to new problems can be derived.
Thus it obligated the work, detailed its rules, and left the person to work as a carpenter, manufacturer, technician, trader, etc. The Gift is legislated in such a way to include donations or grants, as means of initiating ownership. Employment was legislated in such a way to include the power of attorney, being entitled to compensation (by qiyas). Thus we find that the means of ownership, and the contracts, detailed by the Shar'iyah in general outlines and set in such a way to include any contemporary scenario, while being restricted so as not to include any new type of contracts, such as multilevel marketing. Furthermore, it is obligatory that people restrict themselves to the transactions that are defined by the Shar’iyah. The Shar’iyah is applicable to all issues and at all times.
Responsibility of the State
As such, man proceeds quickly in earning property, without being faced with obstacles preventing him from earning, through Halal means. Thus, the satisfaction of all basic needs is possible for every person. Islam does not only encourage and motivate the individual to cam, it also requires the State Treasury (Bayt al-Mal) to be responsible for the support of all the citizens. So it made the support of the mentally or physically impaired as the State's responsibility, and it made the provision of the basic needs of the nation (UMMAH) as one of its duties, because the State is charged with the responsibility of fostering the affairs of the nation.
The Prophet (saw) said:
"The Imam is in charge and he is responsible for his citizens".
In order for the State to comply with what the role placed on it by the Shariah, the Shariah gave the state the authority to collect certain revenues such as the head tax (Jizya) and the land tax (Kharaj), and made the Zakat to also be collected by the State Treasury (Bayt Al-Mal). The State is obliged to collect for that which is a duty upon the Ummah, such as the repair of roads, building hospitals, feeding hungry people, and the like.
Management of Public Property
It also is responsible for the management of public property, which is controlled by the State. The Shar'iyah prevents the individuals from administering public property on their own, because the overall responsibility is for the Imam, and none of the citizens is entitled to assume this responsibility unless if he was designated by the Imam. The public properties of water, oil, iron, copper and the like, are properties which must be utilized in order to achieve economic progress for the nation (UMMAH), because these properties belong to the UMMAH, and the State merely administers them. When the State fulfills its duty of administering the public property, discharges its duty of caretaking the affairs of the people, and when every capable individual is working, then abundant wealth is available for the satisfaction of the individual basic needs completely, and the luxurious needs.
The Objective of Earning the Property
However, the economic progress through encouraging and motivating every capable individual to cam, assigning the administration of public property to the State, and utilization of the public property; are only as means to satisfy the needs, and are not for the sake of owning the property of itself, nor for boasting, nor to spend it in a sinful (ma'assi) manner, nor for arrogance and oppression. Therefore the messenger of Allah (saw) said:
"Whosoever sought the life (matters) legitimately (Halal) and decently he will meet Allah The Supreme with his face as a full moon; and whosoever sought it boastingly and excessively he will meet Allah while He is angry at him".
The Prophet also said:
"You don't have of your property except that which you ate and consumed, that which you wore and exhausted, and that which you donated and remained".
The Supreme said:
"Don't commit ISRAAF (spending or going beyond the limits imposed by Islam),surely He does not like those who condone ISRAAF." [7:31]
Islam made the aim of owning property as a means toward satisfying the needs and it did not make it for the purpose bragging or boasting. In addition it also made directing the economy as a whole according to Allah's orders, as a necessary matter. It ordered the Muslim to seek the Hereafter through what he earns, and not to forget his share of this life.
The Supreme said:
"But seek the abode of the Hereafter in that which Allah has given you, and do not neglect your portion of this world, and be kind even as Allah has been kind to you, and seek not corruption in the earth" . [28 :77]
Therefore Islam made the philosophy of economy to be: directing all economic actions by Allah as orders based on recognizing the relationship with Allah. So, the idea upon which the management of the Muslims' affairs in society is built, is directing the economic activities according to the divine rules (Ahkam Shar’iya), as a complete way of life (Deen). Similarly, the fostering of the affairs of the citizens of the State put restrictions on their economic activities, according to the divine rules. Therefore it permits what Islam has permitted, and it bans whatever Islam has banned.
The Supreme said:
"And whatsoever the messenger gives you take it, and whatsoever he forbids you abstain from it" [59:7]
And He said:
"O mankind! There has come unto you an exhortation from your Lord, a cure for that which is in the breasts." [10:57]
And He said:
"And let those who conspire to evade orders beware lest grief or painful punishment befall them" [24:63]
And He said:
"And rule them with what which Allah revealed" [5:48]
Islam secured the observance of these rules by motivating the Muslim to fulfill his duties through the fear of Allah (Taqwah), and through legislation which is applied upon the people by the State.
The Supreme said:
"O you who believe, observe your duty to Allah and give up what remains (due to you) from Riba, if you are (in truth) believers" [2:278]
And He said:
"O you who believe! When you contract a debt for a fixed term record it in writing" till He says:
"save in the case when it is actual merchandise which you transfer among yourselves from hand to hand in that case it is no sin for you if you write it not" [2:282]
Thus Islam explained the way in which these rules are implemented and the way which guarantee Muslims' adherence to these rules.
The basis of the economic policy in Islam is built on the basis of satisfying the needs of every individual, as a human being who lives in a particular society, and on the earning of the wealth to achieve and augment that which satisfies the needs. Economy in Islam is established on one idea, which is the direction of all actions by the divine rules and is implemented by every individual, throughout the consciousness (Taqwah) of Allah, and by the State through educating the people and through executing the legislation.
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