In an age of abundance never experienced in history, with more access to wealth, technology, and energy resources than ever before, the mere existence of poverty itself, let alone its severity and global scope boggles the mind. Ironically, the era that is responsible for the birth of the internet, space travel, and open heart surgery has been unable, or rather unwilling, to decisively and purposefully end the phenomenon of poverty that affects hundreds of millions of people across the world in rich and poor nations alike.
Since the definition of poverty is the inability to provide for one’s basic needs, Islam addresses the issue by providing a system that justly fulfills the basic needs of every human being. The Islamic economic system is unique and wages a war against poverty. In fact, Imam Ali was quoted to say:
“If poverty was a man, I would kill him with my sword”
Below are some of the practical steps that Islam has legislated to wage war on poverty:
1). Distribution of Wealth: The Islamic economic system is geared towards one thing: ensuring that the basic needs of the people are met. These needs include food, clothing, and shelter. This is due to the statement of the Prophet (s):
“The son of Adam has no better right than that he would have a house wherein he may live and a piece of cloth whereby he may hide his nakedness and a piece of bread and some water.” (Tirmidhi)
Islam has detailed laws on the distribution of wealth and this is its ultimate aim with the economy – to ensure wealth circulates around the economy so all can share in the wealth that is generated.
Western economics focuses exclusively on the creation of wealth. This means that they measure how much money the economy produces as a whole using measurements like the Gross Domestic Product (GDP) and Gross National Product (GNP) paying no attention to whether or not the wealth has circulated to all parts of the society. Such numbers are deceptive because while the GDP/GNP may be quite high, it is typically concentrated in the hands of a small segment of the society.
2). Difference Between Needs and Luxuries: The Capitalist economic system is based on the notion that there are “unlimited needs and limited resources”. On the other hand, the Islamic belief states that Allah is the Creator and Provider of the universe and that He has produced enough resources to adequately fulfill the needs of His creation. According to the hadith mentioned above, Islam requires that the basic needs of all people be fulfilled before the luxurious and extravagant things in life are acquired. The Islamic aqeedah informs us that wealth is the property of Allah and He determines how it is used. The human has the right to basic necessities, but must forfeit them to provide for those who do not. Islam also tells us that Allah will reward the Muslim for his generosity and care for his fellow man.
3). No Artificial Money: Gold and silver have been recognized as currency for most of recorded human history. Their inherent scarcity and intrinsic value make them an ideal stable currency. In the past, a country’s currency would be based on the amount of gold it had in its reserves. Whenever countries would trade with each other, they would transfer gold as a method of payment. In this way, the country’s currency would increase or decrease depending on how much gold remained in its reserve. In 1944, the Bretton Woods conference changed the way currencies would be valued. Rather than have each currency matched against their gold reserves, they would be matched against the US dollar. In 1971 under the Nixon administration, America completely severed the link between its dollar and gold. With gold no longer backing the US dollar, currencies no longer had intrinsic value, only a legally imposed one. In other words, it would only be a piece of paper with no worth unless its citizens and other countries agreed to hold value to it.
The Prophet (saw) has determined that gold and silver be used as money, and exclusively made them the monetary measure to evaluate goods and services. He (saw) ensured that all transactions were conducted with them as their basis. All trade transactions were conducted in gold and silver, this has been established in the sahih ahadith. This brings stability to the exchange rates between countries, as gold cannot be manipulated like fiat currency (no intrinsic value).
4). War Against Interest: The role of banks in Islam will be to collect the nation’s deposits and to also act as a central pool whereby money can be collected and invested in the economy, with the returns being distributed amongst investors. The banks would only be able to invest what they have in deposits and cannot create money as this is the role of the central treasury – bait ul mal. As interest (Riba) is haraam the main function of banks will become the pooling of wealth which can then be invested across the economy aiding wealth distribution and economic growth. The Islamic economy is stripped of ‘interest’ as this is something Islam has categorically forbidden in the Qur’an. Holding wealth in a bank account will no longer accrue interest and any unused wealth for a year is liable for taxation. In this way such wealth is only productive if invested or spent, and this can only take place in the real economy.
5). Specifying Types of Property: The price of a barrel of oil is constantly rising and likewise is the cost of production and transportation. This has a direct effect on the price of all commodities, especially the basic necessities such as food items (due to the barbaric Capitalist system, the poor are finding it difficult to buy food). High-energy costs are affected by goverment taxes and the drive for profits by hungry companies and this contributes to inflation. Islam has ordained the state to play a direct role in the economy and does not leave things completely to the market. Islam lays out three types of property; state, public and private. This is derived from the hadith of the Prophet “Muslims are partners in three things: water, pastures and fire.” It designated any utility regarded as indispensable for the community as public property. It would then be publicly owned and the revenue generated would be administered for the benefit of all citizens. Although the hadith mentioned just three things we can utilise qiyas (analogy) and extend the evidence to cover all instances of indispensable community utilities. Thus water sources, forests of firewood, pastures for livestock and the like are all public utilities as well as the mosques, state schools, hospitals, oil fields, electricity plants, motorways, rivers, seas, lakes, public canals, gulfs, straits, dams etc. Islam would allow ownership if it were not indispensable for the community. This solution will have a unique effect, as it will ensure everybody will receive the basic requirements to live and not be at the will of monopolies or high prices.
6). Radical Land Distribution: The Prophet (s) said: “If anyone revives dead land, it belongs to him” The Prophet (saw) informed us that a Muslim who revives a dead land, which was never cultivated, it becomes his. The Prophet (saw)also informed us any Muslim or Dhimmi (non-Muslim citizen of the Islamic state) who revives a dead land on which kharaj was applied in the past would own the produce (the benefit), while the ‘neck’ would remain with the State. The concept being whoever revives a dead land can benefit from it. For example, in Pakistan there is approx 9,709,300 acres of barren land. Can you imagine the benefit to the state and the populace of reviving this land? This presents a great incentive for poor farm workers and others to take advantage of this Islamic rule and revive dead land thus the whole state would benefit. Poverty would be eradicated, employment would increase and so would production. Increased production leads to increased supply and therefore cheaper prices and no inflation.
The reality is that all this requires a system. This system can only be provided by the Islamic Khilafah, which will seek to implement Islam in order to make the Ummah politically independent and economically self-sufficient. Such a systemn cannot come from the current rulers of the Muslim world. These tyrants are too busy in competition with another to impress their colonial masters. These oppressors will never allow the Ummah to rise. They help to keep it weak in order for colonial nations to easily exploit it. The Khilafah will provide the Islamic vision, which is to satisfy all the basic needs of the people, both Muslim and non-Muslim, and provide luxuries as best it can and convey Islam to mankind.
Source: www.aljunnah.com
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