Breaking The Chains of Economic Enslavement!

Breaking the Chains of Economic Enslavement
Zubair Arif
BREAKING THE CHAINS OF ECONOMIC ENSLAVEMENT
Zubair Arif
Free Knowledge for All
Reviewed by
Muhammad Mubashir Nazir

(A Jeddah Based Scholar)
Academic and Professional Background
Course/Programme
Certified in Risk Management Assurance from Institute of Internal Auditors, USA Certification in Advances Islamic Jurisprudence Certified Internal Auditor (CIA) Certified Information System Auditor (CISA) Fellow Member of the Association of Chartered Certified Accountants (ACCA) MBA B. Com
Year
2012 2011 2007 2004 2002 1996 1994
Title Introduction Chapter 1: The Rise of Deceitful Economy 1. Road to Gold and Silver 2. Rise of paper money and interest based economyAmerica in focus 3. Spread of interest and paper based economy in world--Hitler in focus 4. Deceitful interest system unveiled Chapter 2: The Foretold Present 1. The foretelling of present economic conditions 2. Following the system of Jews and Christians 3. Spread of secular education and ignorance of Religious knowledge 4. Satellite channels will prevail 5. People will not care weather their wealth is earned ~ From permissible or impermissible source 6. Widespread killings 7. Ruler-ship of foolish people who adhere to evil Systems 8. Globalization
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22 23 24 25 26 27 27 28
Chapter 3: Islamic Economics: An Alternative 1. Introduction 2. Objectives of Islamic Economic Law 3. Basis of Islamic Economic Law 4. Real Money 5. Principles of Islamic Economic Law 6. Types of ownership under Islam Economic Teachings 7. System of wealth distribution under Islamic Economics 8. Condemnation of hoarding of wealth 9. Islamic Banking 10. Conclusion Chapter 4: Steps Forward Further Readings 31 34 36 38 38 40 43 45 47 50
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Introduction
Beyond the serene waves of seas, alluring songs of birds and dazzling display of nature lies the painful reality of humans. Hunger, thirst, insecurity, troubles and all kinds of problems have become a part and parcel of many lives. There are thousands and thousands of people who die each day because of hunger and millions and billions who live in poverty. The financial crises which seem only to worsen are evident and manifest before all. This surely brings us into a picture of reality that we indeed are adhering to some problematic system of economy. The condition of economy is such that there are some people who have oceans of wealth whereas on the other side there are tons and tons of those with not even a penny to spend. This situation indeed proves the coherent limitations of our economic model. And thus, just like how socialism came to an end, capitalism which also has proven to be failed surely needs to come to an end with the rise of best alternative we have. The alternative which is provided to us by Almighty Lord Himself, the system engulfed with divine wisdom which surely can prove the best of all systems. The Islamic Economic teachings which has worked great wonders in the past is indeed the need for the present to end all the pains people are suffering with, and to bring joy to humanity and for indeed economy is one of the most important aspects of life. Islamic teachings not only deals with ethics and values but its teachings revolve around all the necessary dealings of our day to day life. Among them there is an economic system which Allah the Almighty has set up for humans so that they may prosper in their economic requirements which forms the essential part of any individual. Its quite rational for anyone to think that a code of economic system built upon by the dos and donts of the Creator, engulfed with divine knowledge and
understanding must be an economic system which if acted and followed upon will bear fruits of utmost prosperity for all. This book is an attempt to prove to readers that the current economic system we adhered to is nothing but shakes and fusions of enslavement, and is a null and void system to be followed and adhered to. Then the alternative of Islamic Economic law is discussed, on how it has proven itself to be a better alternative in past, and how it rationally can be a better way to be adhered to. Everything discussed is very simple to comprehend and understand. We only need a torch of light which we are deprived of in todays biased world. This book does not give in depth details on Islamic economic Law, but rather an overall idea on major aspects on what Islamic model is like.
CHAPTER 1
The Rise of Deceitful Economy
Road to Gold and Silver
In the midst of darkened nights, the world wails for the deaths of thousands of those who die of hunger, who die of befallen debt-traps on them, stuck in poverty, stuck in pain, whereas there are people who are overwhelmed with excess of money, which they store bundles upon bundles. Inflation, unstable economy and the outcome of which is nothing but depression. The whole world is today stuck in the shackles of unstable money and the whole world is crying out loud for stable money, a better economy.
History bears witness again and again to the fact acknowledged globally that Gold and silver were the foundations of stable civilizations in the past and were used as currency from ages long. From Roman and Persians civilization to all many other civilizations currency of such intrinsic value formed the foundation of the then economic system which resulted in prosperity and stability. The great personalities,
Julius Caesar converted Romes currency into Gold standards; Napoleon introduced gold standards in France and history bears witness for the reforms in their times and their greatness acknowledged. In Quran and bible, the monetary system is referred to be based on gold and silver, real wealth with intrinsic value. Currency which forms the medium of exchange must have some intrinsic value unlike the artificial wealth of this time, which erroneously now is converting to no more than digits on electronic screens. Gold as currency with its intrinsic value was accepted worldwide, no matter w here one travelled in any part of the world. If a person travelled from India to China, there was no need for him to change currency and worst part is that we are today made to pay for that conversion of currency. Gold is gold, weather used in India or in China or in America; it has its own value. The advantage of Gold as currency is that it will be of price stability with rare chances of inflations and hyperinflation as a dream. Inflation is a factor which proves harmful for the overall economy. Inefficiencies in market, reduction of productivity, decrease in investment, increased instability and effect on balance of trade are the outcomes of inflation which can be vividly reduced in gold and silver based currency. And the worst scene can occur in the case of hyperinflation which can result in the abandonment of the effected countrys currency. Gold if sunk under water and taken out five hundred years later will be of same value and will yet form the part of transactions, whereas if it happens to paper it will be of no use. Throughout history, when paper used as currency, it has never remained on its first value, the example of which is dollar whose purchasing power has reduced since 1950 a high time, and reported to be 90% fall in its purchasing power. In history, no paper currency remained intact for a longer period; they soon come to an end.
The present time is witnessing an amazing situation where the labour and hard work of people is compensated by mere pieces of papers which keep on printing and printing all the time. The papers of no value and made more worthless by spoiling them with ink, holding pictures, signs and rendered not even usable for writing purpose. These are the aspects which are not taught in our secular education system and not usually spoken about in the media. There is a clandestine conspiracy, conspiracy of silence led by the elites and authority holders to let not people aware of the problems of their systems and the alternatives to them otherwise there would have been no biasness i n their set curriculum and controlled media to not show the other side and the brighter side which can bring the world out of the shackles of poverty and problems of economic disparities of rich getting richer and poor getting poorer.
World has never witnessed such disasters in history due to any economic code which the present time is witnessing. And the monetary system is an important part of any economic system as said money is important because it is one half of every single transaction. So, there is a need to return to the road of Gold and Silver which worked as currencies for thousands of years in human history. And as Voltaire said Paper money eventually returns to its intrinsic value- ZERO.
Rise of Paper money and interest based economy-America in focus
America, like many other countries in the world used to deal in Gold and Silver as their currency. Trade, business, families and life were moving along. Americans in midst of all this witnessed a new kind of institutions which they were not usually familiar with. These institutions called themselves as banks, and called people to deposit their gold in their safe deposits in return of equivalent amount of receipt, for example for 50 gold coins, a receipt of 50 gold coins and so forth. They called People towards using these receipts in their transactions so that they would not need to carry gold along with them. They assured people to safeguard their gold for a little charge. People could withdraw the gold any time they wanted as they hold the receipts or banknotes as they called them. Everything was going stable and people had started dealing in these receipts until suddenly, the banks ludicrously started to issue more receipts, receipts which had no gold behind them and thus can be rightly termed as fake receipts. It was when the bankers saw that people got too much involved in using these receipts (banknotes) in their transaction and rarely anyone approaches them for gold, so they started to spread in market receipts more than the gold they had with them. Historical Books do mention the act of issuing more receipts at that time by the banks but erroneously does not mention the evil outcome it had, and thus we need to ponder over it by our own reflection and understanding. When receipts which had no gold behind them were spread in market and people were accepting and using them in transactions thinking that these receipts have Gold behind them which they can withdraw
anytime, it was a great fraud which they were going through, as the bank had no gold in equivalence of the far more receipts which were being used in transactions. They were made to deal in fake receipts which soon led to the occurrence of collapsing of various banks, or termed as run of the banks. It happened as and when at a particular point of time a quite large number of people would gather to withdraw their gold and the banks had shortage of them and it would lead to the collapsing of bank with peoples condition left in ruin as they had to return empty handed, with the harsh truth of the theft of their wealth as can be rightly termed.
And this is how these types of banks brought in the concept of paper money and it is from banks only the idea of using these papers in transactions spread among people, which at first were receipts against the gold deposited in banks. As some banks started to collapse, it led to the losing faith of people in banks to secure their wealth, and the bankers envisaged a new plan to secure the trust and faith of people, and to continue collecting the gold of people in their deposits in return of the banknotes. They devised a new way in which some banks came together and jointly formed a combined bank, which would carry on the task of providing funds to the local banks to prevent them from collapsing. It would provide them with dual benefit, one of preventing the banks from collapsing and secondly and more importantly it would secure the faith of the people in banks, provide them with notion of security of their wealth in banks. With this enchantment came into being, The Federal Reserve on December 23, 1913, and astoundingly in no time a bill was made to be passed by congress which gave federal reserve the sole right to control and issue the American Currency. It is
such a vicious system that the American government has no right and cannot issue its own currency and if it wants any it has to take loan from a privately owned bank, the Federal Reserve, and pay interest for thus. For every single dollar that America needs, it is depended on a private bank owned by few people. Today, the condition of American government is that it has become bankrupt, stuck in shackles and fusions of huge sums of loan which they pay year after year and more astonishingly they end up paying only the interest, leave alone th e principle amount.
It is not that no American understood this system to be vicious and the game of fake receipts and the deceptive objectives these banks were trying to achieve. When the first central bank of United States was formed in 1791, it was strongly opposed by the third president of America, Thomas Jefferson and he made to its destruction by 1811. Thomas Jefferson said these words in opposition to banks:
If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continents their fathers conquered. I place economy among the first and most important virtues and public debt as the greatest of dangers to be feared. To preserve our independence, we must not let our rulers load us with public debt
In 1816, a second bank of America was formed and remained on charter for 20 years; President Andrew Jackson was opposed to it and did various doings against them. In 1834, there was an attempt made to kill Andrew Jackson which left the President wounded but yet he remained dedicated to the opposition entire his life. President Abraham Lincoln after thirty years also started strongly opposing the banking power but was assassinated. Abraham Lincoln said:
The money powers prey upon the nation in times of peace and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent then autocracy, more selfish then bureaucracy. They denounce as public enemys all who question their methods or throw light upon their crimes. I have two great enemies, the Southern army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe...
James Garfield after he became president was also standing against the banks and entered the list of those assassinated Presidents. Same was the case with President John F. Kennedy who opposed and was assassinated in 1963. Ronald Reagan opposed and an attempt of assassination was made in which he survived. Since then no president has ever opposed the private central bank and Federal Reserve is yet into play.
It was till how the banks brought in the concept of paper money being used in transactions and subsequently how after formation of a central bank they took over the sole right of issuing those paper notes which were being now widely used in transactions. The next step they did in 1933 when they just stole away the people of gold by making a law to be passed, the law which required all Americans to stop dealing in gold and to give all their gold coins, gold bullions to Federal Reserve. Any violator was would be fined $10,000 or an imprisonment for 10 years or both. Americans were provided paper money in return of gold on $20 per ounce. As some time passed the use of Gold was again legalized but the price at which the Federal Reserve sold it now was at $35 per ounce. In other words, the 20 dollar for which people sold the gold, the same 20 dollar is now providing them with less Gold and hence almost half of their Gold was stolen on spot by just decreasing the value of paper notes by Federal Reserve. As the spread of paper money had become wide, most of the people used to deal in paper money and steadily they again made the people of America deposit their gold with them and legalized the use of paper money alone.
America today though seemingly looks glittering for the people of the world but in reality is entrapped in huge sums of debt with no vision of end to it in future. Though they speak of freedom, but every single American is enslaved and born in slavery, slavery to pay to IRS sums of their earned money which the American government uses to pay the loan of Federal Reserve. People work their blood out to earn for their butter and bread and yet a part of it is taken by government to pay the loan they owe to Federal Reserve. This is a big injustice and enslavement of people, a form of slavery people stuck into. The void
paper currency with loads of its flaws are no solution for a better economy, the banking systems based on interest are yet another void idea to think about, the dazzling outward look of America deceives the people but insight look proves their bankruptcy and enslavement to Federal reserve which must prove a food of thought for the world to not take their system as their guiding light, to put an end to interest and paper based economy, and take all measures and ways they can to achieve a better economy which in no way can be based upon the model of American system.
Spread of Interest and paper based economy in world - Hitler in Focus
Not Long ago, in the near reaches of history, a man who secured to be an important figure of every historical book was born. His role beyond any shadow of doubt is of manifest importance, a hitman for our history books. Chanting and muttering, every school boy learns the topic of Adolf Hitler memorizing Austria-Hungary to be the place of his birth and 1889 to be the year of his birth. But what astonishes a school boy is about the killings of millions of Jews, and the World War II events of which Hitler forms an important figure. And this is what the masses know from the falsified books and controlled media.
As we swing along our regular historical books, we find no mentioning of the fact that there exists not a single document which proves the
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order of extermination of Jews given by Hitler or perhaps never existed as put by Leon Poliakov, a famous and great French historian accompanied by similar statements from many other historians. Further, our lessons mention that six million Jews were gassed in gas chambers and put to death in Germany in a span of six years, which would take a span of more than 60 years and the irony which enthrals the sane mind is of not a single body being proven of death due to gas poisoning although deaths did take place but out of starvation due to economic crises and not out of deliberate killing. Fred Leuchter, an expert in execution technology researched extensively on the gas chamber which ended up in no traces of gassings being there which means no killings ever taken place in those chambers out of gas poisoning. In 1991 Polish again researched the same and ended up with same results of no evidences of any such gassings in those gas chambers. Yet after indelible marks put by these researches and thought provoking reasons and questions, the holocaust yet form an important ingredient of our history lessons. Hitler rose up as a figure who hated Jews but at the same time we find in history that companies which were directly or indirectly owned or controlled by Jew elites were financing him for the war efforts. Some overwhelming questions arise out of this fuss, first concerning the killings, were six million Jews really killed provided the strong proofs which negate its happening? And why were Jews financing and helping a Jew hater, a Jew killer? If Hitler really was such a big anti Semitic, anti Jew, Why were the Jews financing him? Just to make Hitler oppress their fellow Jewish people? To seek answers to these questions we need to seep a little into the history to know what actually was happening.
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In the wake of anti Semitism in Europe, Zionists heads had an eye at the land of Palestine for building a Jewish state, a land filled with sacred places for Jews, held sacred by Muslims and Christians as well. It all started with education, education which made the common masses of Jews believe the land of Palestine to be an empty land. As they arose believing it, its sane outcome was the immigration of Jews to the land of Palestine, fleeing away from the land of Europe which was filled with Anti-Jewish people. The immigrations had some boom at the time when British passed the Belfour Declaration which was a letter written to Baron Rothschild which promised a Jewish state in the land of Palestine in support of the views of the Zionist movement. Europeans deciding a future of an Arab land, a non European power, such a ludicrous happening which took place. Yet the population of Jews in Palestine remained low until suddenly, it increased to paramount, it was the time of rise of Adolf Hitler. From 1932 to 1936, in a matter of five years, 174,000 Jews immigrated to Palestine. And until the end of 1945, Jewish population had vividly increased a high time in Palestine. As the story of killings of Jews spread far and wide, the sympathies of the people of world started to favour them and the talks and the workings for making a state for Jews in Palestine increased. Soon United Nations came up with a blunder which divided the land of Palestine into two parts of which only 43% of the land was given to Arabs whereas Jews were given 56% percent of the land although the population of Arab inhabitants was more than 60%. It was after that the Zionists with their military powers started to occupy the other major cities of Palestine and the ruthless killings of Palestinians, the people who once let them stay in their country when they were fleeing away from anti-Jewish European people, and thus the Zionists succeeded in their objective and goal of building a Jewish state in Palestine of which the story of holocaust done by Hitler, and Hitlers
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rise in power played a very important part. It was Hitlers rise in power which made loads and loads of Jew immigration to Palestine, and it was the story of Hitlers holocaust which made the efforts of making of a Jewish state rise high, and which made them gain the sympathies of the people of the world and thus UN ended up in such an erroneous partition.
Yet another objective which was achieved using Hitler as one of the element was of changing the gold currency into paper money throughout the world and spreading of interest based economic system in whole world which had already had achieved in America.
There is no denying the fact that Adolf Hitler proved to be one of the important element for the occurrence of the World War II. And seeping into the History of war provides with the fact that financing of both the opponents in war was from the same source, the same Jewish bankers, thus the same source regulating the war and winning a high time benefit from all around. Europe was burning, mass destruction's, killings and thus the blood of people was flowing all around and yet in midst of all this in two Countries, there were no sign of it. Switzerland in which the banks were collecting the gold of people from all sides, which people out of fear of war were depositing there and America whose banks were financing the war effort. American central bank Federal Reserve, after financing the European war effort, received all of its payment in gold and not in paper currency. As a result of war, as known to all, all of the Europe was destroyed which now needed money for construction and rebuilding itself which they would be provided by
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none other than the Federal Reserve through American government, a bank which already had enslaved America and now would enslave whole of destroyed countries in war under their debt fusions by providing them loans on interest. A quite obvious outcome, most of the gold of affected countries after World War 2 had reached Federal Reserve and many countries had fell prey under the trap of loans of Federal Reserve, the financers of the war, a private bank owned by some materialistic people.
In midst of all the fuss and troubles, all the economics were destroyed, there came into picture the Breton Woods Agreement, which claimed to provide solution to the world economy and the wo rld stuck in economic problems due to wars and occupations agreed to the solutions it provided. The Breton Woods Agreement brought in front the making of United Nation (UN), World Bank and International Monetary fund (IMF). The feature of which was the prohibition of use of gold as currency throughout the world and tying of all the currencies to US dollar and US dollar being tied to Gold. Thus, the use of Gold as currency was terminated throughout the world, and no direct backing of any currency towards gold except dollar. And their total achievement came into picture when in 1971 convertibility of Dollar into gold was terminated. They used these institutions like IMF, World Bank to spread the system of interest based economy to the world, spread of paper mo ney throughout the world and the end of Gold currency letting all the gold coins, gold bullions stay with Federal Reserve owners.
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Thus, Hitler also played the part of helping the evilness of ending the gold based currency and starting of paper currency and to spread the interest based economy throughout the world. The death of Hitler as well, said to have committed suicide but in realty remains a mystery unsolved.
Deceitful Interest system unveiled
Interest involves increase, an increase in original amount. According to Oxford dictionary interest means, money paid for the use of money lent. In the common practices around us, it is the additional money which is received on deposits in banks, additional money paid for the loans taken from banks or additional money paid by countries to the World Bank or IMF or likes of Federal Reserve for the loans taken from them.
As manifest before the world scenario, interest based economic system has proven the evilest and vicious forms of systems ever made. It has resulted in the enslavement of most of the countries in the world. Starting from giving loans to individuals on interest, these banks reached into creating the shackles of giving loans to countries on interest. The so called helpers of countries for development has in reality engulfed the countries into their traps of interest. As and when any country fails to repay their loans out of natural disasters or other
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reasons, these so called helpers invade the countries and steal away the natural resources and real wealth belonging to the country. As individual if fails to repay his loans if he lost his job in between the process or faces some calamities, the banks without any social consideration keeps on increasing the interest amount to paramount, and at last leaves the person even more worse off, by taking away their real wealth. According to UNICEF about 500000 children under the age of five die each year as a result of debt crises, and God alone knows how much deaths including adults and adolescents would have been taking place out of this evil trap of debt. Similarly if the country fails to repay, they are invaded by taking away the real wealth of natural resources belonging to them. The evil system of interest based economy today has left the world countries enslaved under their debts; the situation of countries is such that the external debt of India had increased to $295.8 billion on September end 2010. USA the so called worlds richest country has gross external debt of $14.393 trillion. United Kingdom is overburdened with external debt of $9.088 trillion. Germany has $5.028 trillion external debt; France trapped in $ 5.021 trillion external debt, China enslaved in $347.10 billion external debt and similar figures from many other developed and underdeveloped countries. This is what an interest can do, enslave countries and kill humans.
Interest based financing also leads into slough of low production and unemployment. For example, if a businessman took loan on 10% interest from the bank for business and buys an article for selling which costs 1000 Rs. When selling the article in market he obviously will add to cost price of the article his profit, say 10% and also interest 10%
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which he will have to pay to the bank. Thus he will end up selling the article for RS 1200 which would include 100RS of profit and 100Rs of interest. And thus interest ended up in increasing the price of the article, and now since price goes up, demand for that article will obviously come down, less people will be willing to buy that good because of the high price, as demand will decrease, supply of the article will automatically decrease as less people are buying it, as supply decreases clearly the production goes down, as production decreases, there arises labour problem, less labour is needed and hence unemployment.
Another major problem with interest based system is of increasing the economic disparities of rich getting richer and poor getting poorer. This can be understood easily if we take in consideration the following simplified example of an economy. If suppose there live only three people in some economy, one being rich, second being in mi ddle class and third being poor. Rich person has a saving of RS 3000, the one belonging to middle class having a savings amount of RS1500 and the poor having no savings. If the upper two classes of people put their savings amount in bank deposit on which they get an interest of 10%, what would it lead to? After one year, the money of rich person would increase to RS3300, the money of the person belonging to the middle class will lead to RS1650, and the poor who had no savings would be in the same position as before. As the second year passes by the amount of money that rich had will be increasing to RS3630 after 10% interest, the middle class person will have RS1815 and the poor would be with the same condition of having no savings. Here in this example, it becomes lucid how the gap between the savings of rich and middle
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class is unjust and increasing the gap of making the rich richer. In the span of two years only the money of rich increased by RS630, whereas it only increased by RS315 for the person belonging to middle class, and clearly the poor remained far behind, with no increase in his money. Due to this increase of money out of vicious interest system, economic disparities has increased, the gap between rich and poor keeps on increasing, and governments keep on wailing on this problem, but the solution which lies in abandonment of interest based system is not even thought about.
The Almighty creator of all that exits in the world and in whole of the universe forbids mankind only from what is harmful for them, thus we find the texts of religious scriptures clearly forbidding interest. In Quran, the most authentic of all scriptures, which has remain intact to its originality in all its forms and shapes and memorized in millions of minds, the Almighty forbids interest lucidly and strongly. It is mentioned in the Quran:
O you, who believe, do not consume interest, doubled and multiplied, but fear God, that you may be successful. (Quran 3: 130)
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say; Trade is [just] like interest. But God has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what
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is past, and his affair rests with God. But whoever returns [to dealing in interest or usury], Those are the companions of the Fire; they will abide eternally therein. God destroys interest and gives increase for charities. And God does not like every sinning disbeliever. (Quran 2:275-276)
O you, who have believed, fear God and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from God and His Messenger. But if you repent, you may have your principal? [thus] you do no wrong [to others], nor are you wronged. (Quran 2:278279)
In Bible also interest and usury are forbidden; consider following references from Old and New testaments:
[Leviticus 25:36] Take thou no usury (high interest amount) of him, or increase: but fear thy God; that thy brother may live with thee.
[Leviticus 25:37] Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase.
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[Deuteronomy 23:19] Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury:
[Exodus, 22:25] If thou lend money to any of My people, even to the poor with thee, thou shalt not be to him as a creditor; neither shall ye lay upon him interest.
The world economy is in worst of conditions, millions of people die of hunger and a few elite hold in their hands loads and loads of wealth. It is an outcome of evil interest, whose evils are least spoken about and people are whitewashed into believing the brightness of interest and its abandonment as something impossible to think about. But the reality lies in the fact that world will prosper more in abandoning the interest out from the economy, and abandoning this deceitful system brought in by institutions like World Bank and IMF after World War 2 for their penny gains and enslavement of countries.
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CHAPTER 2
The Foretold Present
In midst of surrounded deserts, rampant ignorance, a time of illiteracy and fusions of evil customs, a man was chosen to enlighten the light of guidance. He was chosen to bring joy in midst of sorrow, to bring hope in midst of despair, to bring security in rampant peril and to bring happiness in surrounded anxiety. He was chosen by Almighty God as a prophet of God and his name was Muhammad, a name which brings joy in millions of hearts. He abolished the custom of burying female children alive and raised their status by promising paradise to those believers who look after their daughters with a good care; he gave rights to slaves who were treated harshly, ended wars which were based on futile reasons and abolished loads of other evil practices and harmful customs which were prominent at that time and made them forbidden to be followed in future to attain the pleasure of Almighty God and a place in the paradise prepared by Almighty Allah. And at the same time he as a sign of his prophecy and words of caution fo r believers foretold many happenings which would happen in future which exactly are taking place in what we are witnessing today, a man 1400 years ago foretold events which exactly are happening today proves the truthfulness of his being a prophet and truthfulness of his message.
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The foretelling of present economic conditions
It was reported from Abu hurayrah that Prophet Muhammad peace be upon Him said: There will certainly come a time for mankind when everyone will take Riba (interest), and if he does not do so, its dust will reach him. (Abu Dawood and Ibn Majah) Interest is strongly condemned in Islam, and Prophet Muhammad peace be upon gave strong assertions against it. It is because Almighty God knows best what is good for mankind and what all is harmful, and thus made his Prophet condemn Interest in all its forms. He Prophet Muhammad peace be upon him cursed the receiver and payer of interest, the one of records it and the two witnesses to the transactions. He said they are all alike in guilt. (Sahih Muslim) What is foretold in the hadeeth mentioned before is exactly what has happened today. The whole economic system today is Interest based and thus even if anyone wants to adhere to teachings of Islam gets indirectly involved in it even though he has no guilt because it is not what he does deliberately. As for most of the people, they on their own will deal in interest, giving and taking loans on interest is most rampant today. The present economic system based on interest is exactly what the Prophet Muhammad foretold, everyone will take interest and if he does not want to do so, yet its dust will reach him.
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Following the system of Jews and Christians
Prophet Muhammad peace be upon him said: You will follow the ways of those who came before you, hand-span by hand-span, cubit by cubit; even if they were to enter the hole of a lizard you will follow them. He was asked by his companions Messenger of Allah (do you mean) the Jews and the Christians? He said, Who else? Even though we have the best of economic system which will be later discussed and way of living, yet we follow the ways of Jews and Christians in these affairs. We have best of economic alternative to follow, system which will end sufferings and problems wherever it be implemented, yet we follow the interest based system brought in by Jews and Christians blindly, we imitate them in whatever evil they do, one of the biggest of evils being the evil of economic and monetary system they introduced. It does not mean we cannot benefit from th eir good inventions or goodly things but our following them in each and everything, imitating them in all our affairs is ludicrous and erroneous, this is what is rampant and widespread among Muslims today, Muslims have the best to provide to mankind, they have the best example to become. Yet we are lost far beyond even recognising our fall, we dont even recognise or know the glory which was brought in by Prophet Muhammad and the early generations of Muslims after him, how they revolutionized the world, brought in peace and prosperity among people, and the best of economic model they adhered to. This prophecy of Prophet Muhammad is exactly in picture on how Muslims imitate the Jews and Christians in everything they do without even giving thought on whether the thing they do carry some good or evil.
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Spread of secular education and ignorance of religious knowledge
Prophet Muhammad peace be upon him said: Allah hates the one.... who is knowledgeable in worldly affairs and ignorant of matters of hereafter. (Ibn Hibaan in his saheeh) Prophet Muhammad peace be upon him said: Ahead of the hour (the day of judgement), there will be days in which knowledge is taken away and ignorance will prevail. (Narrated by Ahmad) The level of literacy in terms of secular education is on a rise, but the knowledge in terms of religious education is declining which has led to our ruins. The books which are taught in our secular schools are usually no more than whitewashing of readers. The books pertaining to economics are a pure whitewashing into believing that there is no other system then the prevailing interest and paper based system. And our ignorance of the knowledge of Quran and Islam is what has led us into believing the same what is induced from those books. It does not mean that we should not study them; rather it is the need of the time, our unfortunate need to study those books which does contain knowledge but mixed with evilness and biasness. And it is our erroneous, null and void practice that we dont study our Islamic knowledge which is an obligation for us. Prophet Muhammad peace be upon him said that it is obligatory on every Muslim to seek religious knowledge. It is our distance from our Islamic knowledge that we are in a state of fall, our righteous early Muslims were equipped with Islamic knowledge which
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had led them into reforms and developments in fields of economy, science, maths and many other fields which unfortunately we are not even aware of. How true was the Prophet in his prophecy that ignorance will prevail in terms of religious knowledge and how true was he in his saying that books which spread evil teachings will spread, books other then book of Almighty Lord, books which contain spread of interest based system and other evilness are widespread. He peace be upon him said: Among (the signs of) the approach of the hour is....that the bad thing will become widespread among the people. He was asked what is the bad thing? He replied whatever is written other the n the book of Allah. (Al-tabaraani) Books which spread what contradicts the teachings of Almighty God are rampant and prominent among us. And it is our referring only to them which had led the world into ruins and troubles.
Satellite channels will prevail
Prophet Muhammad peace be upon him said: Soon evil will pour upon you from the sky until it reaches the wilderness. (Ibn Abi Shaybah recorded it in Al-musannaf with a saheeh isnaad)
There is no place where the evils of television in forms of satellite channels does not fall, even in the tents in wilderness and in deserts
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have in them satellite dish which starts the rain of evilness. There is no denying the fact that these satellite channels contain more of harm, a lot more of harm than good in it. It is also one of the most important tools of evil people to make people into believing the interest based system to be the only way of economic system which the world can have. It promotes pornography, vulgarity, wrong information in forms of news and what not. It rarely contains any channel which spreads unbiased knowledge and information or free from any nudity and absurdity.
People will not care weather their wealth is earned from halaal (permissible) or haram (impermissible) source
Prophet Muhammad peace be upon Him said: There will come a time when a man will not care how he earns his wealth; weather it comes from halaal or haram source. (sahih bukhare) This is what we are vividly witnessing among Muslims. Muslims work in banks despite knowing its impermissibility. They take and give loans on interest even after knowing it to be strongly condemned. Other than that their dealing in taking bribes and working in impermissible businesses of Alcohol or Drugs are also prominent.
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Widespread Killings
Prophet Muhammad peace be upon him said: by the One in Whose hand is my soul, this world will not come to an end until there comes a day when the killer will not know why he killed and the one who was killed will now know why he was killed. (Recorded by Muslim) The wording the killer will not know why he killed and the one who was killed will not why he was killed, implies and demonstrates to how much widespread and rampant killing will become. This is the exact scenario the world has witnessed. The two world wars resulted in 70 million killings of people; 3 million were killed in Vietnam War, and millions of more killings which resulted in many other wars. This is what our beloved prophet Muhammad peace be upon him prophesised 1400 years ago.
Rulership of foolish people who adhere to evil systems
Prophet Muhammad peace be upon him said to kab that, I seek refuge with Allah for you, kab, from foolish leaders, Kab said, Who are the foolish leaders, Messenger of Allah? He said, Leaders who will come after me, who do not follow my guidance or adhere to my sunnah (way)... (Recorded by Ahmed)
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Today in Islamic states and many Muslim countries as well, rulers are just same like the way prophet Muhammad described. They do not adhere to the guidance of Prophet Muhammad nor follow his way. They adhere to the systems like of interest and economic models of west and leave the best. They do not implement the Islamic law in the countries or work towards establishing Islamic economic system based on Islamic teachings or Islamic law in states and countries.
Globalisation
Prophet Muhammad peace be upon him said: The Hour will not begin until tribulations appear, there is a great deal of lying and markets come close together. (Narrated by Ahmed) Markets come close together, is a phrase similar to what we read in our secular books today that the world is one market. The invention of new means of transportation and communication has made the world market come closer to each other which we know today by the term globalisation in present time. The modern means of transportation is also what was referred in the Quran: And Horses, mules, and donkeys both to ride and for adornment, and he creates other things you do not know. (Quran 16:8) The verse of the Quran was revealed 1400 years ago when only horses, mules, camels and the likes were used as the modes of transportations, but here the verse indicated that there will be more new means of
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transportations which were not known to the people at that time which we are witnessing today. Also Prophet Muhammad peace be upon Him said: Towards the end, there will be men from my ummah who will ride on something like comfortable saddles... Comfortable saddles, was referred to new means of transportations which Prophet mentioned would be used which will be comfortable. The cars, Aeroplanes and the likes which are used as means of transportations today are beyond any shadow of doubt comfortable and have helped in getting the markets close together. Thus the present world scenario which we are witnessing today is already been foretold by our beloved Prophet Muhammad peace be upon him, apart from what was mentioned there are many other things which were foretold and they happened and are happening like the great fire which appeared in Hijaz, the battle which took place between Muslims and Turks, loss of honesty, spread of immorality, people competing in building lofty buildings for showing off, spread of indecency, women wearing immodest dresses, lot of earthquakes, obesity becoming widespread, conquest of Jerusalem and many others. And future events which are yet to happen like the destruction of the Kabah, Jerusalem will flourish and medina will be in ruins, appearance of Mahdi, appearance of Dajjal, Jesus and many others. The books on this subject are numerous which can be referred to for further information and knowledge. Islamic teachings as we saw has foretold the economic system to prevail in which we are stuck today, but the glory of Islam is far beyond what is manifest. Islam has provided us with all kinds of systems to
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adhere to from political, social, moral and economical systems, all of which if implemented will prove to be of utmost prosperity as they have proven in the past and they without doubt are perfect and the best systems to adhere to because it is from the Lord of the Worlds Himself.
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Chapter 3
Islamic Economics: An Alternative
Introduction
In wake of present manifest void economic system, its unprecedented spread in a lucid manner, with its claims raising high has trapped the world into chains of believing in its only availability and superiority. But the reality is that this economic system has led the world into nothing except ruins. Everyday 25000 people die out of hunger according to United Nations and 1% of people hold 40% of Globes wealth as per statistics. This is the reality of the existing null and void economic system which has giv en the world nothing except starvations, deaths, inequitable distribution of wealth, depressions, hyperinflations and what not one can count. On one hand there are people who have wealth in bundles which keep on increasing with interest amounts, whereas on the other side there are thousands of people who die out of hunger each day, who are homeless, who live in streets. This is the reality of the so called just and liberalised model of economy. In contrast to this void economy we have an economic system based upon ethics, morals and reasonable methodologies of divine wisdom which Almighty God has himself set up for humanity to prosper. An economic system which is free from human whims, desires and limitations, an economic system which was brought in by Prophet Muhammad and was implemented and bore fruits of utmost prosperity. It is the system
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which the present time is in need of, it is the system which millions of people dying are in need of, it is the system which millions living on streets in utter difficulties are in need of, it is the system which is the answer for economic problems which people wail of, it is the system which is the only and best alternative, a best legislation for the betterment of humanity as a whole. The examples of the prosperity of Islamic economics system are manifest in history. At the time of Umer when he was the leader (Khalifah) of Muslims whose leadership was based on Islamic principles, Muadh ibn jabal who was sent as a governor of Yemen sent 1/3rd of the Zakaah money which was collected from the rich to be distributed among poor to Umer. It was because the rest of the Zakaah was distributed among poor and nobody was left who was in need of the left Zakaah money in Yemen. So the money was sent to Umer to find ways to make use of the left Zakaah. Umer responded to this act by writing to Muadh ibn jabal that he should have distributed the money in the same province and should not have sent it to him. Muadh wrote in reply that he had searched everywhere; there was no one left who w as in need of that left money. The second year Muadh ibn jabal distributed Zakaah and was left with 2/3rd of it with only 1/3rd getting distributed. He again sent the left money to Umer, and Umer again responded in a same manner as before. Muadh ibn jabal again replied that he distributed what he could and there was no one left who was in need of the left money. The third year, the condition was such that when Zakaah was collected, muadh found no one who was in need of zakaah in Yemen. And he sent the money again to umer and wrote: By Allah, I was not able to find anyone in Yemen who was in need of Zakaah money. (Abu Ubayd in Kitab al Amwal)
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This was the economic condition under Islamic economic model, where condition of every citizen was well off and prosperous. In a span of three years in Yemen, there was no one left in need of zakaah, such was the condition of economy, the equivalent of which in history cannot be found in any other economic system let alone the present capitalism full of flaws. Similar incidents can be traced at the time of Umer bin Abdul azeez, when he was the leader of Muslims. People would not find anyone in need of Zakaah, such was the prosperity under Islamic economic teachings. He Umer bin Abdul Azeez at the time of his leadership appointed Abdul Hamid bin Abdul rahmaan as a governor for Iraq. He Abdul hamid sent a message to Umer bin Abdul Azeez to help him guide out of a problem. The problem was such that he had distributed the money to the poor and needy and yet he had money left in the treasury. He sought the help of the leader to guide him on what to do with the money. The leader replied to him by telling him to find everywhere of the single citizen of Iraq who was under debt and provide him with money. Abdul Hamid replied that he had already done it, he had distributed the money among those also who were under debt and yet he was left with money. Umer ibn Abdul Azeez then told Abdul Hamid to search for Young boy or girl who wanted to get married and establish a family, help them w ith the funds. And again Abdul Hamid replied that he had done that, and so the leader went on telling further things to all of which Abdul Hamid replied that he had done so. (Narrated by Abu Ubayd with authentic chain of narration) This was the economy under Islamic principles, the like of which the world has never seen. This economic system is the need of the present time to solve the problems which humanity today is suffering with.
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Objectives of Islamic Economic Law
Every system is set up for a certain reason or objective to be achieved and Islamic system in its essence have the objective to eradicate poverty, provide secure shelter and health security to each and every individual of the society. Principles and rules set up by humans like capitalism also are in place for certain objectives to be achieved, objectives defined by humans with their limited intelligence and knowledge, but the objective set up for Islamic economic law is from the creator with His unlimited intelligence and all encompassing knowledge. The objectives of the divine Islamic economic law are derived from the following saying of Prophet Muhammad peace be upon him. It was reported in a sound narration that Prophet Muhammad peace be upon him said: When someone is secure in his property, healthy in his body, and has his food for the day, it is as if he owned the entire world. (Tirmidhi and Ibn Majah) The objectives of Islamic systems are beautifully mentioned in the above statement of the Prophet, that if someone is secure in his property which implies to the house that one has which he owns and lives in security in that, it is the necessity which all of us would affirm to. The second objective of being healthy in his body which implies also to have means and availability of sources of getting treated in times of illness and finally having food for the day. It is the crux of everything we spend our life and efforts for, that we have a house to live in, that we have food to eat and in case of illness we be able to go to doctors and have access to health facilities. This is the prime
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objective of Islamic model to provide every single individual with these basic necessities of life and that not a single person sleeps in hunger let alone the millions of deaths which in this time take place out of starvation. It was reported in another narration that the Prophet peace be upon him said: Allah breaks covenant with any group of people living in close vicinity, whereby one of them goes to bed while hungry. This is the primary aim of Islamic economics that no one should be left behind being hungry. This is something that capitalism failed to look after; this is a manifest failure of our current economic system which has been already discussed. Every day 25000 people dying out of hunger is a lucid failure, a failure which is evident since its beginning. Six million children die of hunger every year; 1.4 billion people in developing countries like India, Pakistan and others live on only $1.25 a day or even less. In contrast to it as we earlier discussed Islamic economics which maintain food security to be one of the most important objectives has been successful in attaining it when it was in place as a complete system. We earlier discussed how at the time of Islamic leadership when it was based on complete Islamic system achieved a state where no one was even in need of the money of Zakaah. At the time of Umer bin Abdul Azeez, when every person was provided with sufficient food, he would command that the seeds be thrown in mountains and let to grow so that even the birds would eat as he hated to see even birds hungry in the land of Islam. These are the objectives of Islamic economic law which at the time of its implementation were well achieved and in capitalism the failure of these aspects are evident and manifest before all.
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Basis of Islamic Economic Law
Brotherhood and spirituality: Islam lays a strong stress on brotherhood to prevail in societies, where every individual as much he is concerned for himself is concerned about his people leaving around him as well. Collective benefit takes precedence over individual benefit; there is a sense of belonging and closeness to each other in terms of faith, in terms of being brothers and sisters in humanity, in a sense of unification of belonging to One God and loving each other for the sake of Almighty Lord. Prophet Muhammad peace be upon him said the following: None of you will have faith till he wishes for his brother what he likes for himself. (Sahih Bukhare) Those who sit nearer to me are the ones among you with best manners, the humble who befriend and are befriended. (Narrated by Tabarani) The believer is friendly and easy to befriend. And there is no good in the person who does not befriend and are befriended. (Musnad Ahmad) Allah the Almighty will say on the day of judgement, where are those who loved one another for the sake of My Majesty? Today on the day when there is no shade but My shade, I will shade them Sayings similar to this are numerous in which brotherhood is instigated which forms the essential part of the Islamic economic teachings as
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well. Because a person will not just be concerned of his own profit motives and greed like in the present economic system but also about those living around him. When collective benefit will take precedence in the life of people over their personal benefit is the beginning point from where the fragrance of prosperity for all arises. A sense of belonging not just to a home but to a society when arises is from where the roots of economic prosperity begin. People live like brothers and brotherhood takes the place of greed and earning bundles of money, storing them in banks to earn interest out of doing nothing, a kind of free money earning benefit for people who possess some wealth whereas poor have nothing to spend for food at times when abandoned is from where the economic sense of prosperity arises. Brotherhood thus form the part of basis of Islamic economic teachings, that people start off by getting a change in their life style, not just worry about themselves but of others around them as well, instigate in them the sense of belonging to a society and accountability to God if they turn away from carrying out that change. A spiritual community, who fear God and thus does not wrong anybody, do not deal unjustly, help one another, do not cheat or do any of those evils for they know they have to answer their acts on the day of judgment and they recognize that the world is nothing but a few years to live in after which they will return to their Lord, for none can escape death and never has. This spiritual sense is the only way which keeps men away from wronging anyone, for if it not be for it, there is nothing which can stop them from doing evil and wronging people for personal greedy motives except the fear of their Lord whom they have to meet, the door of which is death which none can escape no matter what.
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Real Money
It is also important to note here that to achieve complete economic stability, money of real wealth, with intrinsic value of its own is also important and we already discussed in brief the problems related to paper money. Money like Gold and Silver served to be medium of exchange for thousands of years and it was in its use only that Islamic economics achieved complete success in past. The myths pertaining to gold and silver being unviable and problematic are nothing but deceptions because they were used as money for thousands of years and in their use only economies achieved prosperity. It has not even been a century till the use of paper money has been started, and in a short span of its introduction it has resulted in evilest of calamities which are evident before us. Introduction of real money cannot be introduced in one go, it will take some efforts, but the return to such will prove to be of prosperity and economic stability. It is something which can be introduced by authorities of the world and countries but it only can take place when there is awareness and knowledge among people about it being viable and a better option and that the people of countries and world force authorities to change our current monetary system. So it all starts from awareness and efforts of people combined for if it was possible to change a monetary system which worked for thousands of years then what is the impossibility that the current monetary system cannot be changed back to the good?
Principles of Islamic Economic Law

Resources are abundant: The principle of resources being abundant is in direct contrast with the current capitalism which in its basic
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principle says that resources are scarce in relation to ever growing human wants. It looks at human wants being increasing which in fact is a mistake. Because human basic needs never increase, the basic need of food, health, shelter, clothing and education never increase. The human desires for more and more wealth and luxuries may increase and is in fact what is increasing today. The capitalism view of satisfying these wants results in letting some individuals well of whereas others deprived of basic needs of food as well. And as a result of this we see statistics which say that 1% of people hold 40% of Globes wealth as per statistics. Whereas Islamic principle looks at resources being abundant to cater to basic needs of all. And when basic needs of all indi viduals are satisfied then a step towards satisfying wants of luxuries can be taken which in fact is reasonable and logical. It is mentioned in the Quran pertaining to food being abundant: Let man consider his food. How we pour water in showers. Then spli t the earth in fragments. And cause grains to grow therein. And grapes and fresh vegetation, and olives and dates, and enclosed gardens, dense with lofty trees, and fruit and grazes, provision for you and your cattle. (Quran 24:32) It is He (Allah) who created for you all that exists on the earth (Quran2:29) 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. (Quran 45: 12) Interest free economy: Evils of interest are already discussed in the first chapter, and Islam does not allow anything which is harmful to prevail and work among people and societies. One of the primary reasons for inequitable distribution of wealth is Interest and an
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important element for the current financial crises. And because of its harmful consequences Islam has clearly and strongly forbidden Interest in all its forms and there is no distinguishing between high or low rate of interest. All of it is forbidden and impermissible to be carried out in an Islamic economic law.
Unlawful to trade in things harmful for people: There is no doubt in harmfulness of liquor, diseases that can result of eating pork and similar evil things like drugs and the likes. And thus trading in them is forbidden and no loans are prov ided for dealing in such businesses or even permitted to be carried out in an Islamic based system. Gambling also is forbidden to be carried out for it is of no benefit for the productivity in an economy and only creates imbalance in an economy. Some get rich out of nothing while others are left to get poor out of nothing which is ludicrous to happen and thus is forbidden to be carried out.
Types of ownership under Islamic economic model
In Islam ownership of everything that exists belongs to Allah The Almighty. All the property belongs to Him. However He gives human beings a right of owning some of it. It is mentioned in the Quran: And spend from what he put you in charge of. (Quran 57:7) And he has provided you with properties and offspring. (Quran 71:12)
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From what has been provided by Allah to Humans are manifested in three forms of ownership. 1) Private property 2) Public property 3) State property Private property: In contradiction to socialism which deemed nothing to be of private ownership, Islam provides rights to individuals to possess properties of its own. But also in contradiction to present prevailing capitalism which deems that everything can be privately owned, Islam lays down limits to what can be held as private properties. O you who believe! Spend of that with which we have provided for you... (Quran2:254) It is a natural human behaviour to have a desire to possess property of its own, the property of which he feels comfortable and satisfied of after possessing. So as per the view of socialism, it was an erroneous mistake to deprive man of this instinctual behaviour. However what this caters to is limited to what his needs are, what he requires for himself, so it is rational that he owns private ownership of things like a house in which he lives, the food he eats, the cloths he wears and the likes. It is also not correct that he be given the right to own everything stretching even to the oil resources, minerals, and water resources etc, which are required to all, the point where the current econo mic system under capitalism is ludicrously mistaken. Public Property: There are some resources which exist in nature that are of use to all, like water is something which everybody requires. It is natural to think that seas, the rivers, the roads, the minerals which
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exist on earth belong to all and not just to certain individuals. So to put ownership of such things to certain individuals is contrary to nature. Islam thus makes certain resources being as public property which belongs to all. Prophet Muhammad peace be upon him said: Muslims are partners (associates) in three things: in water, forest preserves and fire (Oil, gas etc). [Reported by Abu Dawood] And its price is forbidden [Anas reported from Ibn Abaas] It becomes clear from the above narration that in Islamic Economic Law, minerals form a part of public property. These what are mentioned in the above narration are not in particular but all those minerals and resources which are of use to all are considered as Public Property and cannot be put in hands of certain people. Although what individual cannot possess are the minerals of uncountable quantity, which are of use to all, required for utilization to all. Whereas limited quantity of minerals can be owned by individuals. Once a man came to Prophet Muhammad peace be upon him and asked him for some land so that he would cultivate of it. The Prophet granted him a land, after the man had departed; a companion told the Prophet that he gave that man a land which contains numerous minerals beneath it. Prophet Muhammad peace be upon then took the land away from the person. It was because the land contained minerals which belonged to all, and thus the land belonged to all and could not be given to a certain individual to own it. Thus under Islamic Economic Law resources which are of need to all are deemed as Public properties which exist in nature for all, which are distributed by state among all the people so that everyone is benefited from it. It is unlike the current economic system in which many millions of people find it difficult to even afford these
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necessities of life, but under Islam it would be distributed equally among all. State Property: It is a kind of property which the state owns, which the leader has the right to decide what to utilize it for. It includes spoils of war, land tax and the likes. The state can distribute it among people or use it for any other purpose they deem important. It is mentioned in the Quran: And what Allah gave as booty to His messenger from them.... (Quran 59:6) The booties which were with the messenger, who was the head of the state at his time, were not for his own consumption or use. But rather he used to distribute it. So he was just made to own the booties in order to utilize it for the betterment of the state and the people. So under Islamic economic law certain things are put under ownership of state and they have to utilize it for the benefit of people in whatever way the leader finds it to be best.
System of wealth distribution under Islamic Economics

1) Zakaah: It is one of the five pillars of Islam and forms an important part in distribution of wealth among people. It is a savings tax charged on savings of a person, if a person has savings amount which exceeds 85 gram of gold, it is incumbent on that person to give 2.5% of it in charity every lunar year. It is unlike Income Tax which is prohibited under Islamic system, which the government snatches away from people. People work for their butter and bread, and when they earn something to cater to their needs, government comes in and snatches sums of
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money as income tax which is unfair on part of people. But under Islam, only the people holding excess money are taken only 2.5% of it and it is distributed in poor. Those who do not have any savings more than 85 gram of gold are exempted from it. It is a system which rationally will help in equitable distribution of wealth. If all the wealthy people, holding savings more than 85 gram of gold start paying zakaah, it is enough to eradicate poverty from the world. If o nly people like Bill Gates start paying 2.5% of their savings which are in billions every year, one can imagine to what extend it can make difference.
2) Rules of Inheritance: The set rules of inheritance in Islam are such that they get distributed in such a manner so that the wealth gets distributed and not remains in hands of few. So it is not that when father dies, only the son inherits all of the wealth. But it is such that it gets distributed among sons, daughters, husband or wife, grand parents, brothers and sisters and others and it is distributed in amounts set by the Islamic texts. If there are no inheritors then the amount goes to the state treasury. In this manner, the wealth gets distributed and it thus also helps in reducing inequitable distribution of wealth in societies. 3) The law of will: It is an inspiration to rich Muslims to bequeath some part of their wealth to charitable causes for the reward in the next life. It is a spiritual inspiration for well off people before their death to leave off some part of their wealth for poor or needy, or for causes like building a hospital, school
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where common masses can benefit, and hence the distribution of wealth is regulated. 4) Various kinds of charity: When a Muslim commits any mistake or a sin, he is required to expiate for it by making charity to poor, it is compulsory on part of the Muslim. Besides this, encouragement for optional charity can also be found excessively in Islamic texts. Like for example Prophet Muhammad has been reported to have said: Verily charity appeases wrath of the Lord and removes pangs of death. [tirmidhi] Surely the shade of the believer on the Resurrection Day will be his charity [Ahmad] Sayings like this are numerous which inspire Muslims to spend in the way of Allah in charity so that wealth gets distributed among poor and needy. It will only be in a society with spirituality and where brotherhood prevails that such types of alms and charity will be common and widespread.
Condemnation of hoarding of wealth
One of the reasons for the wealth remaining in hands of few is a result of hoarding money which is common nowadays. Hoarding which means to amass or accumulate wealth. But Islam strongly condemns the act of hoarding and maintains that wealth keeps on circulating in the market,
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if anyone does not have skills, he can get into mudaraba which will be discussed further on. It is that the skill of one person and the capital of other are used to start a partnership. If wealth keeps on circulating in the market without getting hoarded it will result into equitable distribution of wealth and it will not stockpile among rich leaving behind poor who are in need of it. Under Islamic Economic law, people will not be allowed to hoard money and will be forced to make use of it and get into partnership or carry out any kind business with it. This is to ensure the circulation and thus the prosperity for all among the people. The condemnation of hoarding bund les of wealth can be found in many Quranic verses. Consider some of them as follows: Let not those who withhold and hoard Gods Provision think that it is good for them, it is bad for them. For on the day of resurrection they will carry their hoardings aro und their necks. Allah is the ultimate inheritor of the heavens and the earth. He is fully aware of what you do (Quran 3:180) But nay, for indeed, it is the fire of hell, Eager to roast, it called him who turned and fled from truth, and hoarded (wealth) and withheld it. (Quran 70:15-18) Woe unto every slandering traducer. Who hath gathered wealth (of this world) and arranged it. He thinks that his wealth will render him immortal. Nay, but verily he will be flung to the consuming one. (Quran 104:1-4)
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Islamic Banking
Islamic Economic Law to be implemented in its completeness requires a complete fall of capitalism, that Islamic law of economics be completely implemented. Yet in midst of all the fuss of capitalism, a part of Islamic Economics has started to arise under name of Islamic banks. Islamic Banks are institutions which are providing alternative of conventional banking, thus eliminating the element of interest to that extend. Efforts for installing a complete Islamic Economic Model will be quite difficult, but efforts for instalments of Islamic banks will not be that much difficult to put, as it has already started in many parts of world including European countries. So until we achieve a complete Islamic code of economics in our societies, efforts for more and more of Islamic banks eliminating the conventional banks should be widespread especially among Muslims. Islamic banking has its roots seeped from the time of Prophet Peace be upon him himself as elements of current Islamic banks free from interest were in practice in trade at that time. But the system in modern form, under the name of Islamic banks came into picture in 1963 in Egypt. It was Ahmad al Najjar who brought the first Islamic bank into picture whose main element was profit sharing, eliminating the element of interest. Soon institutions working on similar principle started to grow in the country until in 1974 Islamic Development Bank (IDP) was established; this is known to be the first bank explicitly based on Shariah. As this bank arose, several Islamic banks like Dubai Islamic Bank, Faisal Islamic bank of Sudan, Bahrain Islamic bank and others in different parts of world began to come into play. Since then the Islamic banks are spreading all across the world with great pace and supported by Muslims and Non-Muslims alike seeing its viability and prosperity.
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Islamic banks are proving great success in midst of current crises under conventional systems. Many countries including European countries are adopting and installing Islamic banks w hich are proving viable and successful for them. Efforts from Muslim scholars to fully put these banks under Islamic principles are also important. These Islamic Banks provide an alternative of putting money deposits as well as lending loans to people, all of what a conventional bank does except that the interest system which is a main earning fund in conventional bank is eliminated. Some of the methods used by Islamic Banks are discussed briefly as follows: 1) Mudaraba: It is a profit sharing system in which an individual holding capital invests the money in the bank, the bank carries out some business with the money and the profit is thus shared in the pre determined profit sharing ratio. It can also be other way round that a business man approaches the Islamic bank for capital, the bank first analysis the business that a business man is going to carry out. After they find the business to be viable, they lend the money to the business man and the profit which the business man makes with that capital is shared between the bank and business man in a pre determined profit sharing ratio. In case of loses, it is born only by the owner of the capital, whether it be bank or the investor but the one who carries out the business is also not rewarded for his efforts and thus practically is also goes in loss. It is a system which combines skill and capital; one possesses the skill, whereas other possesses the money. They both are combined and the resulted profits are shared leaving both the parties well off.
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2) Musharaka: It is the partnership system in which the capital and efforts of both the parties are combined and profits as well as losses are shared on a pre determined ratio. 3) Murabaha: It is sale agreement which entails that if a person who lacks money wants to buy some property, here lets say a car. The bank buys the car and gains full ownership on it and then sells it to the client on a profit in instalments, profit is negotiable and can differ if bargained by the client. And also contract should be written after bank is in possession of the machinery and not before they possess it themselves. After the bank buys the machinery, the client is contacted and he has the choice to write the contract or change his mind. 4) Ijara: It is a leasing system in which a person wants to take benefits of a property on rental basis. An Islamic bank buys the property and owns it completely and then rents it out to the client for the agreed period of time. 5) Kard Hasan: It means good loan which entails that a person or a bank gives loan to some needy without interest so that they can carry out some business , the poor is required to return the loaned amount without interest and he is not required to share profits he would make. And various Islamic Banks keep some part of their profits aside for this purpose. It is a kind of charity and gift which Muslims are encouraged to do in the Quran. Who will loan to Allah a Kard hasan (interest free loan to a needy person), which Allah will double and multiply in his account. (Quran 2:245)
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Conclusion
The present financial crises are a witness to the fact that it direly is in need of a viable economic system, a system which brings light back into the darkened lives of people. Islam definitely has that system which has worked successfully for about 800 years under Islamic Empire. History bears witness to the greatness of this system when it was implemented and adhered to, whereas capitalism which is in working from some years has proven wonders of calamities. What was provided here is just a glimpse to get an idea of what an Islamic model is like, and there is lot more into this system. Efforts from both Muslims and Non Muslims alike are required to put in place this system of prosperity and divine wisdom because benefit of this system will reach out to all, and it surely, historically, reasonably, logically is a viable alternative for the current void economic system.
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Chapter 5
Steps Forward
The first step towards any change is to be equipped with awareness of what we are up to and to spread that awareness. People need to spread the awareness of flaws of current system, and viability of Islamic way of economic system to as many people as they can. They need to get people out of the notion that capitalism is the only system we have and that it is providing people with goodness and development. They need to recognize and make people understand that the current world financial crises we stuck into are the result of nothing but the current spread null economic system. And in midst of this desideratum we need to get ready for getting changes starting from our own very self. We have to be ready to sacrifice for changes in our own lifestyles for the p leasure of Allah and for the betterment of humanity. Because changes arise from individuals, and individuals need to recognize their worth and impact they can make into the society. It is only individuals combined who form nations and countries. They also need to play the rule of being honest and truthful people. We need Muslims to be trustworthy people, we want Muslims who have inside of them the pain for their fellow beings who are suffering and dying. We need them to get out of the gambles of being stuck in fusions of love of wealth to such extend that they get blind in seeing and helping others around them. They need to inculcate inside of them that they are just travellers in this world who are headed to their real destination of hereafter. So first and foremost these are individuals who need to take
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steps at their individual level. An individual can be a root which can bring forth fruits for many, an individual if stands up for truth, an individual if determined for a change can be a root cause to tran sform the workings of the nations and bring revolutions. People need to recognize that their individual steps can also make a lot of difference in the overall working of the society. Realizing and recognizing the flaws of current rampant system is not enough, affirming to the validity of Islamic Economic Law is also not enough. But after recognizing and affirming the truth, we need some practical steps starting from our individual levels for implementation and working a way towards a better society, for attaining practically a better outcome for the betterment of all. Knowledge is an essential tool and power against any form of evilness spread around because knowledge has the power to change the thinking and transform wholly the behaviour of a person. So to work for a better humanity, knowledge is one of the essential p rerequisite which we need to work on. Islam itself has made it an obligation on every individual to seek knowledge. It is knowledge only which can lead us from darkness to light; from the ignorance of evilness we follow to light of what is better. And after seeking the knowledge it is essential that we enlighten others with the light we hold. We need to work to our best to spread the attained knowledge and make people understand how unviable the current systems are. And make them acquainted with the knowledge of alternative of Islamic Economics which can prove better and helpful for everyone. And in this age of internet gaining and spreading knowledge has become a lot more easier, so it is one of the important practical aspects towards the better future that we start gaining the knowledge of how the current
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system is flawed, what Islamic System is about and how it is better and to make others understand the same to whatever extend we can. Another very important practical step towards the better society is ou r fulfilling the duty of paying the Zakaah from our wealth. Islam has laid strong stress on this obligation and made it to be the one of the five pillars of Islam. If the savings of a person exceeds 85 grams of Gold, it is obligatory that 2.5% of it be given in charity every lunar year. And be steadfast in prayer: Give Zakaah, and bow your heads with those who bow down. (In worship) [Quran 2:43] An important change contained within the system of Zakaah is that we regulate the spread of real wealth in our societies. It is like if somebody has to give Zakkah, he gives it in real wealth of Gold, silver, rice and things like that. If required in some cases it can be given in paper notes as well. What this will cater to is that it will help in circulation of real wealth in societies. Just like when the banks wanted to bring into picture paper notes of no worth, they ensured its wide and far circulation in the market and societies. Similarly, to ensure the spread of real wealth, this can prove to be one the revolutionary steps if people start to adhere to it. Many Muslims are blessed with a lot of wealth, if what they have to pay in Zakaah, they do it in forms of gold coins, or silver coins will regulate the spread of these in markets and societies. It will be beneficial for poor as well, because if they save money in paper forms it soon due to inflation and devaluation decrease but if they save it in the form of gold coins it will not be reduced in value and will reap him the same fruits no matter when he requires spending them. It will be beneficial for those who have cash reserves as well to save them in form of Gold rather then earn cursed interest or let them alone for getting depreciated and devalued. Moreover
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business persons will get more of Gold coins if people start to buy them, savings will start to get more in forms of gold and silver. And it can soon lead into situations where market persons accept these gold coins as means of payment due to its wide circulation as its worth cannot be denied. Change starts from an individual and if this step is adhered to in our societies it will slowly lead to a bigger change. As said Small steps taken lead us to a larger beginning, and for it we need to recognize our steps. The first of which is that we gain and spread knowledge and adhere to the commandment of Allah and pay our Zakaah, for whatever Allah commands us to do is for our own good. For the purification of our heart and for the betterment of society in return for the rewards of hereafter which are eternal. And also we do it in forms of real wealth as much as we can so that the shackles of void spread of paper money get reduced. We also need to pay heed towards what Islam has emphasized regarding feeding the poor and helping the needy. This has been neglected in Muslims overall, they spend extravagantly on themselves but when it comes for feeding someone they are negligent and not ready to spend a penny. We need to recognize that if Allah has blessed us with wealth we need to utilize it for others as well. They can form into a system as well where every colony or mahala has an institution based in Masjid where every well off person donates some eatables or money which then can be utilized for feeding the poor living in their communities at first and can register some poor who are fed with the help of donations in form of eatables and money from the people living in a community. Islam has stressed a lot on brotherhood and helping each other, and if we need a change in overall working of the economy, we need to realize that we should be the first to change our lifestyle, if we are not ready to sacrifice a bit and change our way,
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then we should not hope for nations to change their way, for indeed nations comprise of people and if people change nations will transform.
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Further Readings
For those who are interested in further studying and in going in details of all aspects of Islamic Economics, following books are recommended
Book Al-Amwal (finances) Economic System in Islam Al-Kharaj Perfect Political Economy Fall of Capitalism and Rise of Islam
Writer Abu Obeid Nabhani Abu Yousuf Maliki Dr Mohammad Malkawi
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