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INTRODUCTION When the Poor Are Permanently Poor, And the Rich,

INTRODUCTION When the Poor Are Permanently Poor, And the Rich,

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Published by: salehnaji on Oct 07, 2009
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08/25/2010

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INTRODUCTION
When the poor are permanently poor, and the rich, permanently rich, that is oppression! Allaround the world today that economic oppression exists, and is constantly increasing - the poor grow poorer and the rich, richer. Riba is the cause. It is centered in the West, but also present around the world, is constantly sucking the wealth of mankind and impoverishing themasses through Riba. Their ultimate objective is to utterly enslave all of mankind in a newsophisticated slavery. Political, legislative, judicial and legal systems, the media etc., are allcreated by the oppressor, and all function to preserve the system of economic oppression.The objective of this assignment is to analyze what exactly riba is all about from the perspective of especially Quran, Sunnah and from the perspectives of other great Muslimscholars. One of the main objectives is to identify the negative impacts of Riba on the societyas well as the economy as a whole. Another motive is to differentiate between Islamic andConventional banks because Riba nowadays is mainly related to banking and finance, and weMuslims normally engage in Riba through the banks intentionally or unintentionally. We arealso intending that the reader should clearly understand the difference between Riba andTrade.
THE DIFFERENCE BETWEEN RIBA AND TRADE
 
Riba is different from trade, though, the difference may be very fine. Fine as it may, one is to be distinguished from the other since the Quran itself declared such distinction, attributingone with prosperity and blessings, and the other with wrath and war.The jurists hold that, unlike bay’ (trade), riba implies that money is loaned for self-generatingor self-expanding value which is not a form of sale. For them, this growth increase of moneyis inequitable. In bay’ there is purchase and sale which is a lawful economic activity, a productive movement, something is exchanged for something, such as goods for money or simply goods for goods. In money-lender’s capital, which is loan, there is no such legal or moral relationship mediating any commodity except that here capital is loaned for an increasein itself. It is the capacity of money to increase its own value without the economic activity of sale. This the point where the Quran so clearly states when it refutes the theory of moneylenders that riba is similar to bay’.Riba is of its very nature invalid exchange because one party receives an increase withoutgiving to the other party an equivalent return. This unearned increment is the root of injusticeand exploitation because it enriches the class of money lenders who accumulate wealth byimpoverishing others.
1
Abu al ala Maududi gave four fundamental differences between trade and Riba, that is
1.
In trade the purchaser and vendor exchange on the basis of equality, for the purchaser derive profit from that which he has purchased from the vendor, while the latter gets profit in consideration of labour and time which he spends in procuring thatcommodity for the purchaser. In interest transactions there is no division of profits between the two parties on the basis of equality. The creditor gets for himself adefinite amount of money for his loan, but all the debtor gets is certainly the time touse the money, whilst time does not necessarily procure him profit.2.In trade, however great a profit the vendor might demand from the purchaser, he doesso only once. In interest dealings, the creditor does not cease to demand his interest (aslong as the principal is not returned).
3.
In trade, the moment the commodity is exchanged for its price, the transaction comesto an end. The purchaser does not give anything after that transaction to the vendor. Inhire transactions, whether of house, land, or other material, the original remains intactand is returned to the owner afterwards. It is only for the usufruct of it that the hirer 
1 Abd. Al Mun’im Mahmud al Qusi, “Riba, Islamic law and Interest”, Temple University,1982, p.121
 
has to pay rent to the owner. In the case of interest, the debtor actually spends theamount borrowed from the creditor and has to return the same amount with someaddition to it by way of interest.
4.
In trade, professions and crafts, a person benefits after undergoing labour, hardship, or  by his skill or art. In interest transactions he only lends out his surplus amount and becomes, without any personal labour or hardship, a prominent partner in the earningsof his debtor .
2
It should be clear from the above discussion that Riba is different from bay’. The Quran inunambiguous terms puts bayagainst the concept of Riba. Allowing the former while prohibiting the latter.
PROHIBITION OF RIBA IN THE HOLY QURAN 
In several verses of the Holy Qur’an, Allah(swt) has mentioned the consequences of riba. The Qur’an did not declare the prohibition of riba in the early stage of revelation, rather we find that the complete prohibition of interest came sequentially.In the Qur’an Allah(swt) says:
That which ye lay out for increase through the property of (other) people, will haveno increase with Allah: But that which ye lay out for charity, seeking the countenanceof Allah (will increase): it is these who will get a recompense multiplied 
”. (30:39)
That they took riba (usury), through they were forbidden and that they devoured men’s substance wrongfully – We have prepared for those among men who reject faitha grievous punishment 
.” (4:161)
O ye who believe! Devour not usury doubled and multiplied; but fear Allah, that yemay (really) prosper 
.” (3:140) 
“Those who devour usury will not stand except as stands one whom the evil one byhis touch hath driven to madness. That is because they say: ‘Trade is like usury.’ But  Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to
2 Abu al A’la al Maududi “The meaning of the Quran”, volume 1, p.p 201-205.

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