Author: M. Farahi Tojegi
A Concise Overview of the History and Ideologies of Communism (Part 18)
The Economic Features of Islam:
Human life, in its pursuit of dignity, growth, and the development of inherent and acquired talents—as well as the attainment of the highest levels of tranquility and peace—is intertwined with various significant aspects, each of which is important in its own right.
One of the most crucial means for achieving human peace is the matter of the economy and economic development, which plays a vital role in the flourishing and advancement of societies. Conversely, poverty and economic stagnation have highly detrimental consequences for any society, resulting in reduced efficiency of economic plans and the disruption of long- and short-term programs, as well as mass production strategies.
Islam, as a comprehensive and universal religion, places special emphasis on the economy and its sound development so as to avoid falling into a destructive cycle and losing productivity.
The experience of the first four centuries of Islam shows that not only does Islam support progress and civilization, but it also has the capacity to foster and advance it. As Will Durant states: “There is no civilization more astonishing than Islamic civilization; had Islam advocated stability, stagnation, and uniformity, it would have kept society at the level of the early Arab community.”
In the Islamic economic system, in addition to ensuring public welfare and eradicating poverty, achieving economic power and independence requires a flourishing and growing economy.
Some perceive Islam as promoting a focus on the Hereafter and detachment from worldly life and thus blame it for the backwardness of Muslim countries. However, contrary to this widespread and mistaken notion, numerous Qur’anic verses and Hadiths identify worldly life as the path to eternal happiness and, while focusing on the Hereafter, also organize plans for worldly welfare. Allah the Almighty rebukes those who deprive others of His blessings: “قُلْ مَنْ حَرَّمَ زِينَةَ اللَّهِ الَّتِي أَخْرَجَ لِعِبَادِهِ وَالطَّيِّبَاتِ مِنَ الرِّزْقِ” Translation: Say, “Who has forbidden the adornments of Allah which He has brought forth for His servants and the good provisions?” [Al-A’raf: 32]
The Islamic economic system, with its unique and distinctive features, provides deep and inherent potential for economic growth and development.
Characteristics of the Islamic Economy:
The economic approach of Islam is based on three key principles, which distinguish it from both capitalist and socialist systems:
1.Belief in both private and public ownership:
Unlike capitalist and socialist systems, Islam recognizes and accepts various forms of ownership simultaneously private, public, and state. The Islamic economic theory is rooted in the ideological and spiritual foundations of the faith, though a detailed discussion of these foundations is beyond the scope of this paper.
2.Economic freedom within defined limits:
In Islam, economic freedom is respected within the framework of moral and spiritual values. Unlike socialism, it does not deny economic freedom, and unlike capitalism, it does not grant absolute freedom. Rather, it allows people to utilize economic freedom as a tool for progress and growth within divine ideals.
3.Stability of the Islamic economy relies on mutual commitment and solidarity among all Muslims.
4.The Islamic economy is considered an integral part of the Shariah and Islamic system.
5.Economic activity in Islam is considered an act of worship.
6.Islamic economic activity aims to harmonize the Hereafter and worldly life with a noble and comprehensive purpose.
7.In Islam, the control of economic activities and transactions is of paramount importance.
8.The Islamic economy does not recognize absolute scarcity or abundance; rather, it considers everything in balanced measure.
9.The Islamic economy creates a balance between individual and societal interests. [1]
Foundations and Pillars of the Islamic Economy:
First Principle: Wealth and Economic Ownership: The concept of wealth and ownership is one of the most prominent features that distinguish the Islamic economic system from others and serves as the foundation of economic activity in any society. Islam accepts personal ownership in all its forms without restricting it, as such limitations would interfere with ownership rights, economic growth, and the free use of individual wealth. Islam acknowledges humanity’s inclination toward ownership and wealth, as Allah says: “زُيِّنَ لِلنَّاسِ حُبُّ الشَّهَوَاتِ مِنَ النِّسَاءِ وَالْبَنِينَ وَالْقَنَاطِيرِ الْمُقَنْطَرَةِ مِنَ الذَّهَبِ وَالْفِضَّةِ وَالْخَيْلِ الْمُسَوَّمَةِ وَالْأَنْعَامِ وَالْحَرْثِ ۗ ذَٰلِكَ مَتَاعُ الْحَيَاةِ الدُّنْيَا ۖ وَاللَّهُ عِندَهُ حُسْنُ الْمَآبِ” Translation: Beautified for people is the love of that which they desire—of women and children, heaped-up sums of gold and silver, fine branded horses, livestock, and crops. That is the enjoyment of worldly life, but with Allah is the best return. [Aal-E-Imran: 14]
The Prophet Muhammad (peace be upon him) said: “The son of Adam grows old, but two desires in him remain young: the desire for wealth and the desire for a long life.” [Sahih Muslim, Hadith Numbers: 1736 and 1739]
Accordingly, Islamic law, in consideration of human nature and interests, affirms individual ownership within the limits of the Shariah. Hence, the Islamic system differs from capitalism, which centers on private ownership and rejects others, and from socialism, which prioritizes public ownership and allows private ownership only in extreme cases. [2]
Second Principle: Conditional Economic Freedom: This refers to the individual’s freedom in business and benefiting from lawful resources while conducting all economic activities within the bounds of halal and Islamic ethical values. Islam has also defined conditions for economic freedom that yield beneficial outcomes for both individuals and society, including:
1.Economic activities must benefit both the individual and society.
2.The production and consumption of harmful and unhealthy goods and services are prohibited, as the Qur’an states: “وَيُحِلُّ لَهُمُ الطَّيِّبَاتِ وَيُحَرِّمُ عَلَيْهِمُ الْخَبَائِثَ” Translation: He permits for them what is good and pure and forbids them what is foul and impure. [Al-A’raf: 157]
Thus, freedom in production and consumption exists within the framework of permissibility. Prohibited items such as alcohol and narcotics are banned.
3.Prohibition of unlawful business practices such as usury (Riba), deception, breach of trust, bribery, and fraud.
Third Principle: Social Solidarity and Commitment: This principle emphasizes mutual support among individuals and groups in society. Unlike the capitalist system, where individual interests dominate societal interests, or the socialist system, where individual interests are dissolved in the collective, Islam advocates a balance that protects both.
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References:
[1]. Financial and economic system in Islam, p. 58.
[2]. Al-Nazam Mali wal Ekhtistadi Fi Islam, p. 46
