Target of Islam (اسلام كا نصب العين) Good deeds عمل صالح Belief مقصد حيات (Baqra 277) (Noor 55) Economic System (رزق) اقامت زكاة Morality System (شريعة) اقامت صلاة روح كى غزا جسم كى غزا Accumulation of Wealth (منكر) دولت كا ارتكاز X Distribution of wealth (معروف) دولت كى تقسيم
22
Devine Economic Plan Malik 2 ٍ اتَ جَ رَ دٍ ضْ عَ بَ قْ وَ فْ مُ كَ ضْ عَ بَ عَ فَ رَ وِ ضْ رَ الَ فِ َ لَ جْ مُ كَ لَ عَ ج’ يِ ذَ ّ الَ وُ هَ وْ مُ ك اَ ت2 ا اَ م’ يِ فْ مُ كَ وُ لْ بَ 9 يِ ّ لAnd Allah has made you successors in the land and raised some of you above others in different levels, to test you for what is given to you. (Araf 165) ُ هُ ت9 يِ ت وُ ا اَ مَ ّ نِ A اَ الَ ا قَ ّ بِ ّ مً ةَ مْ عِ بُ اهَ بْ لَ ّ وَ خ اَ دِ A اَ ّ مُ L ث اَ اتَ عَ دٌ ّ رُ ضَ R انَ س نِ A ْ الَ ّ سَ م اَ دِ A اَ قٍ مْ لِ ع يَ لَ عٌ هَ تْ تِ Z قَ ’ يِ هْ لَ تَ R ونُ مَ لْ عَ ’ بَ لْ مُ هَ رَ L ثْ كَ اَ ّ R نِ كَ لَ وWhen a man gets in trouble he cries for help of Allah, and when he is granted favors, he says “I have got it due to my knowledge”. In fact wealth is a trial but most of people do not know. (Zumr 49) Not related to efforts Zumr 49 Wealth is a test Anam 165/Nahal 71 ِ قْ رِ ّ رْ ل ا’ يِ فٍ ضْ عَ ب يَ لَ عْ مُ كَ ضْ عَ بَ لَ ّ ضَ فُ ّ اَ وAnd Allah has made some of you excel others in wealth. (Nahal 71)
Transcript
Devine Economic PlanMalik 2
بعض فوق بعضكم ورفع األرض خالئف جعلكم الذي وهوآتاكم درجات ما في ليبلوكم
And Allah has made you successors in the land and raised some of you above others in different levels, to test you for what is given to you. (Araf 165) لناه خو إذا ثم دعانا ضر اإلنسان مس فإذا
علم على أوتيته إنما قال نا م هي نعمة بليعلمون فتنة ال أكثرهم ولكن
When a man gets in trouble he cries for help of Allah, and when he is granted favors, he says “I have got it due to my knowledge”. In fact wealth is a trial but most of people do not know. (Zumr 49)
Not related to effortsZumr 49
Wealth is a testAnam 165/Nahal 71
زق الر في بعض على بعضكم Jل فض واللهAnd Allah has made some of you excel others in wealth. (Nahal 71)
Output/Resource (قوت)
Outcome (مقصد)
Work (كام)
Mission of Islam ( العين نصب كا (اسالم
Human Welfareفالح كى انسانيت
Spiritual Powerجهاد جانى
Economic Powerجهاد لى ما
Pietyجهاد نفسكا
Unityجهاد اجتمائى
Prayerصالة
Charityانفاق و زكاة
Fastingروزه
Hajjحج
Social Systemنظام معاشرتى
Economic Systemنظام معاشى
Political Systemنظام سياسى
Spiritual Systemنظام روحانى
Target of Islam ( العين نصب كا (اسالم
Good deedsصالح عمل
Beliefحيات مقصد
(Baqra 277) (Noor 55)
Economic Systemزكاة (رزق) اقامت
Morality Systemاقامتصالة (شريعة)
غزا كى غزا روح كى جسمAccumulation of Wealth
ارتكاز (منكر) كا XDistribution of wealthدولتتقسيم (معروف) كى دولت
Economic Principles of Islam
Earning Sideآمدنى
State (حكومت)Distribution
تكاثر سدباب
Individual (فرد)Frugality & Sharing
عفو
Usage Sideمصارف
Business بيع
Usuryربا
Islam prohibits and strongly CONDEMNS usury or RIBA.
1. Allah will deprive usury of all blessing, but will increase benefits of charity" (Baqra 276);
2. If you do not stop taking usury, then be ready for a war with Allâh and His Messenger (Baqra 279)
3. Abdullah ibn Hanjalah related that the Prophet said: A dirham of Riba (interest) knowingly taken by a man is a sin worse than committing Zina (fornication) 36 times (Ahmad, Daraqutni).
4. Narrated Jabir ibn Abdullah: Allah's Messenger cursed the accepter of interest and its payer, and one who records it, and the two witnesses; and he said: They are all equal (Muslim).
5. Hazrat Abu Hurairah r.a. reported that the Prophet said : A time will certainly come when none will remain who will not devour usury. If he does not devour it, its vapors will fall on him [Ahmed,Abu Dawood,Nisai,Ibn Majah]
Primary focus of Islam is on the spiritual System (test of Taqwa/free will)Legal system provides only safety valve for safeguarding basic human rightsKeeping excess wealth and generating income from it is allowed legally but spiritually is it detested.
Dimensions of Islamic Economic System
Legal SystemLimited Capitalism
(surplus wealth for personal use)
Spiritual System Spiritual Socialism
(human rights on surplus wealth)
Treatment system (Repair/Maintenance)
Restricts luxury & wealth accumulation
Immune System (Regulatory)
Channels excess wealth to needy
Inter-dependent & Inter-connected (Synthesis)
Res
tric
ting
evils
/crim
es
Elev
atin
g et
hica
l/sp
iritu
al v
alue
s
Money
Labor+
Capital(Entrepreneurship)
LandMiddlemen
Machine
Partnership (Labor + Capital)
Status of Sources of Income
Ideal
Permitted
Restricted
Prohibited
Voluntary Charity (انفاق)Entire wealth in access of basic needs
Inheritance (وراثت)Strictly in accordance with injunction of Quran
Zakat (زكاة) Payable on wealth of individual
Taxes (تيكس)Taxes imposed by state to
provide basic needs of its citizens
Compulsoryواجبات
Marriage payment and penalties on certain faults
% o
f con
trib
utio
nDistribution Channels (عبادت)
Stock Exchange TransactionsTrade*
Risk capital investment at profit/loss + Work + Public
benefit*Limited liability is an exclusion
Public Benefits Does the activity lead to
employment/resource generation or brings harm to
the public interest
Interest basedLoad taken/given at interest with security against fully insured property (margin
financing)
GamblingProfit/loss without efforts at the
expense of someone else
1. Limited liability concept in anti-Islam2. Primary purpose of the transaction is to make quick money rather than long term
investment3. Mostly investment is made from loan taken from banks or brokers4. It is a gambling business (gain at the loss of someone else5. Short term focus leads to extreme damage of public interest.
Property business (Plots)Trade*
Risk capital investment at profit/loss + Work + Public
benefit*Limited liability is an exclusion
Public Benefits Does the activity lead to
employment/resource generation or brings harm to
the public interest
Interest basedLoan taken/given at interest with security against fully insured property (margin
financing)
GamblingProfit/loss without efforts at the
expense of someone else
As per Islamic law house is right of every Muslim. Anyone trying to grab the property for the purpose of trade/profit making is haram because it is a gamble (profit/loss at the
expense of others) and it is also not a business/trade as it does not lead to any fruitful business activity which entails hardwork. As a consequence of profit making price of the
property rise and takes it out of the reach of legitimate buyer for building his house
1.Banks were created for taking public deposit and lending at interest and investment in treasury bonds, derivatives, securities etc.
2. Interest is against natural laws. Proper functioning of natural laws and economy implies a zero rate of interest
3. Islam detests borrowing even at zero interest rate.
4.Banking was conceived in iniquity (against natural law) and was born in sin (for the benefit of rich).
5.An interest rate of zero means the end of the money & banking system.
Does Islam allow any Banking System?
1. (http://www.biblebelievers.org.au/usury.htm)
Hallal means of living Distribution of entire excess wealth Hardy any situation of Zakat Simple lifestyle
Moral(Height of spiritualliving)
Hallal means of living Pays Zakat and other compulsory dues Charity (infaq) up to the level of Taqwa Modest lifestyle
Legal(Minimum threshold of living)
No distinction of hallal/harram Does not care to pays Zakat/other dues Charity for image building Extravagant and luxurious lifestyle Stinginess/wealth piling up
Profound change in the underlying dynamics:•Money and credit rather than goods/services had become the real economy•Energy and automation has become real contributor rather than manpower and animals
Organic Resourcesاشياء حياتى
(Manpower, animals, plants)
Inorganic Resourcesاشياء نامياتى
(Natural Resources)
Taxes (محصول)
Money (كرنسى)
Credit (قرض)
Gov. Deficit ( زر (افراط
Operates under physical/biological constraints
Operates under unconstrained compound interest rate growth
Matter (ماده)Natural (Real) Economy
Money (دولت)Financial (Shadow) Economy
Major problem of Humanity:Operating under incompatible Systems
Framework of integrated human ecosystem
SocialProcessDemographyTechnologyEconomy
InstitutionsCulture
Information
EcologicalProcess
Primary production
PopulationsOrganic matter
NutrientsDisturbances انسانى اور فطرى
ربط كا قوانين
Biggest tragedy of our time is that modern priests (economists) do not know that something must be physically possible before it can be economically possible.
القربى ذا هوآت والمسكين حقبيل الس تبذيرا وابن تبذر )26( وال
إخوان كانوا المبذرين إنلربه يطان الش وكان ياطين الش
كفورا*****
And give to the relatives due and to the needy and the wayfarer, and do not squander
wastefully. Surely the squanderers are the fellows of the devils and the satan is ever
ungrateful to his Lord. (Isra 26-27)
Outcome of modern economic system
Explosion of Over-utilization
استمال كثرت
Explosion of Over-production
بيداوار كثرت
Explosion of Over-wastage
ضياع كثرت
Explosion of Over-supply
ترسيل كثرت
Explosion of Debt
جال كا كاروبار سودىExplosion of Competition
بازى مقابله اندهى
War with Allah & RasulInterest Economic
Revenge (Qasas)Killing Political
100 LashesAdultry Social
Disliking/Curse of Allahvarious Moral
ActionCrimeLevel
Penalties on various crimes
1. Limit growth and focus on wellbeing2. Limit Debt & encourage entrepreneurs3. Introduce zero rated debts4. Impose Charge on money holding5. Make speculation a criminal offence 6. Incentivise productive work and investment; 7. Tax Unearned Gains8. Replace labor for energy use 9. Strengthen the social fabric of family and
community10. Lease land for living/business purposes
Steps for healing the money system
Healing the Money System “David C. Korten”: http://www.converge.org.nz/pirm/money.htm
Action at personal level1. Adopt simple lifestyle (Resource conservation &
sharing)2. Get out of interest/speculation based investments 3. Fully utilize goods before replacement4. Eliminate morbid craving for extravagant gadgetry 5. Get rid of fashion (a bio-economic disease of the
human mind )6. Demand durable goods to be made still more
durable by being designed so as to be repairable.7. Get closer to the nature as possible8. Join hands to fight for reform at state level
