Salamunalaikum
Islam has answers to all
economic problems .In
view of the Global economic crisis there are
more people concerned & willing to consider
/ listen to alternative economic models
This monumental work
Iqtisaduna Our Economics '
by
The Author Ayatullah Baqr as-sadr
Born: 1353/1934 Martyred: 1400/ 9th
April, 1980
is available in
Arabic zip
file attached ( from
url
www.annajat.org/4um/showthread.php )
His article
What do you know about Islamic economics is
here
This work
in arabic ( available in print from many
online book stores incl www.al-khoei.org
&
www.almahdicentre.com
www.halalcobooks.com
www.ansariyan.net etc ) can
get distributed to economists/Key opinion
makers in the region for discussions /
policy /law changes
The book was also
translated in
english by WOFIS in
iran ( see below) in 1983 & redone in 1994
& is
available online in
pdf Here . (Index
of vol 2 part 1 is below) It can be
seen that translation
is inadequate & in
order to make it useful we must have a good
translation using present terminology &
make it available to all concerned
Pl see your
role in this effort
This has been translated into urdu
by Allamah Zeeshan Jawadi
(scan
17 mb pdf here ) printed in Reporter
offset press morland road bombay 8 &
published by Jamali publication 5
jail road north ummer khadi
cross lane bombay 9 Published
in 1974 2000 copies
The book has
been machine translated
here
but cannot be used in this form
Its
V
imp to have it in english considering
todays banking collapse scenario
The book is titled
البنك اللاربوي في الاسلام (which
should be translated as Usury-Free
Bank in Islam and not interest-free
because I it imposes a small
interest [8% ] was extracted by the
revered author then simplified from
the original book titled Iqtisaduna اقتصادنا .
This is why its pages are few. It is
intended to be a simple presentation
of a grand idea.
This book is actually
derived and simplified from
the main source Iqtisaduna.
PS Also
Attached is An
Islamic
Perspective of Political Economy: The
Views of (late) Muhammad Baqir al-Sadr by
T.M Aziz
This article
is part of the author's dissertation on "The
Islamic Political Theory of Muhammad Baqir
al-Sadr of Iraq." He is a Visiting Scholar
at the Center of Near Eastern Studies, UCLA.
Published by:
al Tawhid Islamic Journal, vol. X, No. 1
Qum, The Islamic Republic of Iran
Brief details
of the books from wofis site
www.wofis.com/Default.aspx?p=publications&bookID=25
The Original
Language:Arabic: Iqtisaduna
Author:
Sayyid Muhammad Baqir as-Sadr
Translated By:
Board of Writing,Translation and Publication
Of WOFIS
Publisher:
WOFIS
Address: #2
floor, 5 Number, Haghani Alley, Kheradmand
Street,
Karimkhan
Street, Tehran-Iran
Tel-Fax:
+9821-88839354 , +9821-88829112
P.O.Box:
11365-1545 Tehran-IRAN
E-Mail: wofis@wofis.com
Vol
1 part1
What will
happen after the decisive abolition of
personal ownership and how can disagreeing
and contradicting affairs be removed between
people? This question is the twentieth
question put from the second founder of the
communist party, or Engles, stated and
answered in the book (Principles of
communism). In reply he says: At a time when
production increases so high in every field
that every one of the people, have at their
disposal, whatever they want without any
limits so they lives in a high standard,
free from want we will have no prejudism or
difference, in this manner the roots of
disagreement and contradiction will dry
up!!!
This answer
which is more like a dream or delusion is a
true and confirmed promise which (Engles)
gives his communist comrades.
Today, after
seventy years of domination, the origin of
Communism in Russia has caves in and left a
broken, weak country with destitute,
unfortunate people those dreams, and golden
imaginations can still put a great deal of
the teenagers to sleep and in the way of
those dreams, prompt them, to ruin,
devastation and corruption - which are the
main action methods of the communist
auxiliary forces - especially taking notice
that the origin of communism are interesting
words like being scientific, revolutionary
work, allocating the reason of being a slave
or pioneer to oneself, and with different
slandering convict others. Still extensive
areas of today's world have, unfortunately,
under the rule and influence of this
decaying thought. Yes, in this world of men,
a flock are woken under the painful blows of
truth, but at the same time, this background
still remains that under the charm of those
imaginative dreams, another, new flock will
fall asleep and become unlucky. Because of
this analyzing the thoughts of the communism
economical dreams and its scientific
criticism, continuously has a heavy
responsibility.
This volume of
the Iqtisaduna translation, deals with this
responsibility in a very high standard.
Vo1 1 part 2
Without a
doubt, the decline of the Communist system
created a visible vacuum, which must, and is
able to be filled, by the means of a genuine
and strong system. Usually This conception
exists that the arena of Capitalism stays
empty and Capitalism is presented to the
world as a scientific and acceptable system.
We now look
seriou9s at what is the basic and
foundational reasoning of Capitalism? On
what foundation in musts and must notes be
built and the systems worthiness? To what
extent can the word (Scientific) be compared
with this system? Are this system's
foundations really impartial to religion, or
is an anti religious system like Communism?
Finally, to what extent can the word freedom
be related to this system? We will read the
answers, and others, in the first chapter of
the second volume of the Iqtisaduna
Translation.
In another
section of this volume we will be acquainted
with the foundations of the Islamic economy,
an economy whose explanation and exposition
form the main aim of this book. In this part
of the book, debates on principles and it's
foundations will be sufficient.
The principle
of economical difficulties is generally
debated in this book and essential Islamic
solutions are brought forth.
Of this
volumes debates are: A principal discussion
on how the contradicting and opposing blind
knots between social and personal affairs
can be solved in economical fields? In there
no Solution for the existing contradiction
or must this opposition, as always, pull the
economical field into ruin? How and in what
manner does religion, on this subject, enter
the scene? What does it how to say to unite
this blind knot and solve the contradiction?
Vol 2 part 1
After
explaining The complete Islamic economics in
the earlier sections of this book, now, in
the remaining part of the Iqtisaduna, it is
the turn of debates and minor problems in
the field of Islamic economy and in
different economical fields, what are the
specifically determined minor decrease and
Islamic problems, for exampled in the work
effect of ownership etc. Theses debates are
specialized on in the remainder of the book.
In this
manner, after explaining the assemble of
laws and juristically problems, a special
efforts has been made by the compiler so
that the collection of jurisprudence laws be
formed in one complete frame, and a general
extended explanation is gained on them. This
is an effort of jurisprudence new and
recently discovered, and considered the main
aim of this books part.
The author,
for this reason, considers this book only an
effort and no more, he relates to Islam
without regarding those general and common
frames and is a point the author stresses on
to interest the readers, so the deviations
caused by ignorant and irresponsible writers
and their general inference to Islam are put
aside.
Without a
doubt, the point is Islam doesn't completely
tie hands in economics and that the
economical depression and other backbreaking
problems approves of partnership and
unlimited and unrestrained Capitalism
freedom is not accepted. As the debate
arrives at the elaborate problems of
economical jurisprudence, on every subject,
The opinion of Islam must be founded with
verses and traditions coinciding with that
subject, and every special decree must be
accompanied with jurisprudential and expert
care, not uncalculated general talk and
subjected to a fatwa. The third volume of
the Iqtisaduna's translation, is an extended
effort of the general inferences made about
special and minor instance in the filed of
land mine ownership and other area.
Vol
2 part 2
In The first
section of this volume, we read about the
characteristics of Islamic law and their
points of disagreement with Capitalism and
Marxism in the areas of: Hunting. Restoring
barren land, arrogating work tools, hiring
laborers, faming and forestry on seized land
or with arrogated seeds, poultry farming
with arrogated eggs, the Islamic verdict on
the laborers who mistakenly thinks he has a
right to land seeds, eggs and also fields,
shepherding, bailment of capital, money
landing for unlawful profit, wages,
partnership, etc..
We must take
note that in all these fields we usually
accompany the eminent author in searching
and exploring some of the common and general
laws which can be conformed into wider
fields, It's this point that turns the
discussion into a one hundred percent expert
discussion and not a practical debate on
jurisprudence for the public our author
deals with and explains extensively about
this point at the beginning of the book.
After
concluding this expert and specific debate,
the esteemed author begins a new discussion
titled: (The Relationship of Religion and
production.). Here we read about the
characteristics and Islamic law differences
in the areas of: Production Increase:
Production aim: The Connection between
production, distribution and delivery: The
relationship of production and distribution
and finally who is production for.
The last
debate in the book, titled (Government
Responsibility Towards Islamic Economics)
explains exclusively the Islamic methods of
guarantying the minimum amount of a person's
livelihood and the method of increasing that
minimum to a social balance and equality.
Finally. He explains the government limits
and power to remedy the economical problems.
At the end of
the book there are also sixteen appendixes
which have extended and sometimes detailed
debates and usually here we read the expert
and jurisprudence discussions on a higher
level from the book. For example: a
discussion on ownership decrees about land
conquered by Islam. A debate on whether the
laws on (Foreign) land also concerns barren
land and the effect of stacking stones
around and marking barren land etc.
The Author Ayatullah Baqr as-sadr
Born: 1353/1934
Martyred: 1400/ 9th April, 1980
A genius who charted new paths for his
academic pursuit; a revivalist who called
the people to return to Islam; a thinker who
equipped the Muslims with ideological
Ammunitions to fight un-islamic'isms'; and a
leader who inflamed the youth's hearts with
love of Islam.
For seven centuries, classifications of the
chapters of Fiqh followed the system
of Muhaqqiq Hilli; no one thought that it
could be improved, until baqir Al-Sadr wrote
his Al-Fatawi al-Wazihah. His
Iqtisaduna opened people's eyes to the
fact that Islam had it's own economic system
totally different from materialistic systems
of capitalism, socialism, and communism.
Hizb 'd-da'wah was established by
martyrs Baqir Al-Sadr and Mahdi Hakeem (with
blessings of Muhsin Al-Hakeem) to combat the
Ba'thists' anti-Islamic onslaught; youths
answered their call and Islam began its
manifest revival. This unnerved the Ba'thist
vicious regime.
They imprisoned Sayyid Baqir Al-Sadr and his
learned sister Bintul-Huda (Amina); and
killed them after subjecting them to utmost
tortures.
Born: 1353/1934
...more
An
Islamic Perspective of Political
Economy: The Views of (late) Muhammad Baqir
al-Sadr
by
T.M Aziz
This
article is part of the author's dissertation
on "The Islamic Political Theory of Muhammad
Baqir al-Sadr of Iraq." He is a Visiting
Scholar at the Center of Near Eastern
Studies, UCLA.
Published by:
al Tawhid Islamic Journal, vol. X, No. 1
Qum, The Islamic Republic of Iran
An Islamic Perspective of Political Economy
With the collapse of communism in Eastern
Europe and in its heartland, the Soviet
Union, the world is yet again dominated by
the practices and laws of capitalism.
Today's world economy is shaped according
to Adam Smith. No other alternative routes
for economic development are envisaged but
to let "the laws of the market" play their
course in the marketplace. The "invisible
hand" of the market is more visible now than
at anytime as the determining and decisive
factor in the lives of nations and men.
Consequently, the self-interest of members
of society is to be the driving force of
economy, and the law of supply and demand
the regulating mechanism of profiteers in
society. Even economists in what used to be
the Marxist bloc are subscribing to such
economic behaviour as the only alternative
to remedy the ills of the economies of their
nations.
Not quite true, say many Muslim thinkers and
political activists. They believe that Islam
provides humanity with solutions to problems
created by imperfect man‑made political
systems and moral values. Islam, according
to them, is a divinely ordained social
framework that should guide humanity to
peace and tranquillity in all aspects of
life, physical and metaphysical. One of
these thinkers and political activists was
Muhammad Baqir al‑Sadr of Iraq. Sadr was
executed because he led a revolutionary
movement against the Ba'thist regime in Iraq
in 1980. He had conceived an Islamic
political system to replace the existing
regimes in the Muslim world, which he
considered corrupt. His programme for the
future is to create a new socioeconomic
order that would replace the capitalist and
socialist orders which are the dominating
systems in the Muslim world. This paper
intends to focus on his views and the basic
principles of the Islamic economic system,
which he believes is more capable of solving
the contradictions of the capitalist system
and, therefore, more able to satisfy human
needs; more importantly, it has the capacity
to develop and progress in accordance with
human potentials.
As an Islamic jurist, Sadr derives his basis
of argument from Islamic tenets and sacred
sources. Here our purpose is to present his
conceptual argument and economic engineering
of society and to see how applicable these
views and programmes are to reality. The aim
of the study here is to highlight his
argument and try to understand the structure
of the Islamic economic system. His views in
economics are part of his general political
theory designed for the establishment of a
complete Islamic social system. The
behaviour of the Islamic economic system
should be judged after the creation of an
Islamic State, where the whole realm of
socioeconomic human behaviour is determined
according to Islam. Sadr's major work in
economics was written in 1960‑61, and aside
from the pamphlet that he wrote later in his
life, the main argument of his thought is
contained in one work, Iqtisaduna(`Our
Economics').
The economy of the Islamic State, according
to Sadr, is divided between that of the
individual as the vicar of God
(khalifah), and the ruler as the witness
(shahid) who presides over the
application of the laws of God. The economic
structure of the Islamic State thus consist
of private property and public property.
However, one should not think that the
economic structure of the Islamic State is
some sort of combination of capitalism and
socialism. Sadr strongly rejects this
misconception. He argues that the
juxtaposition of private and public right of
ownership stems from the fundamental beliefs
of Islam.
[1] This is similar to the way that
private ownership is advocated in the
capitalist system, or public ownership by
socialist: as the logical conclusion of
their ideological and philosophical beliefs.
To justify private ownership and public
ownership in Islam, one must understand the
right and obligations of the individual and
the State in Islam. Sadr's detailed
description of economic relationships in
the Islamic State and it economic structure
represent the best available argument for
the notion of Islamic economics.
Notes:
[1]. Al‑Sadr, "al‑Janib al‑'iqtisadi
min al‑nizam al‑'Islami," (The Economic
Perspective of Islamic System) in
Ikhtarnalak, 112‑113.
Economic Relationships
Man's behaviour, according to Sadr, is
categorized into three types of
relationships: social, economic and
religious. They stem from man's basic
relationship to other men, to the
environment, and to God. The economic
relations, however, are outcome of his inner
instinct of self‑love that "always drives
him to seek good thins for himself, to
secure his interest, and satisfy his
needs.Accordingly, man, in his relationship
with the environment, was predisposed to
utilize all possible resources to satisfy
his needs and increase his pleasure. In due
time, he was willing to use animals and
plant to help him in his struggle against
the environment. Although his essential
needs were simple in the early period of
history, his mental capacities enabled him
to develop new means to help him utilize
the resources of the environment. Thus his
needs are always expanding due to the
complexity of utilizing the resources of the
environment.
Man's relationship with others of his kind
was the natural outcome of his need to
satisfy his desires. The complexity of life,
arising from his relationship with the
environment, made it difficult for him to
cope adequately with his needs. Cooperation
with others made the effort to satisfy his
needs manageable. Cooperation with others
result in a sharing of benefit with all
participant in the community. The inner
instinct of self‑love that drove man to
create the first community are evident.
These instinct gave rise to man's
exploitation of his brother.
Because people were not equal in their
physical and mental capacities, they
obviously differed in their utilization of
the resources of the environment. Such
differentiation of capabilities is part of
the divine plan for bringing about cohesion
through the division of labour to the human
community. People of different capabilities
function in different tasks within the
social orderHowever, man's desire to
maximize his interest drove some men to
exploit the situation for their benefit.
Human needs were growing due to man's mental
and economic development. His experience
broadened his capacities to utilize the
resources of his environment. His passion to
acquire more of the environmental resources
for himself became prevalent. Consequently,
some men were willing to oppress others to
satisfy their greed and egos (both outcome
of self‑love). It was then that the human
community faced oppression in the form of
economic exploitation.
This conflict between social peace and
individual instinct of maximizing interest
was persistent throughout history. This
historical conflict, Sadr argues, is between
two classes: those individuals who control
the environmental resources (economic and
social) and endeavour to protect their
interest, and the rest of the society which
strives to live in peace and cooperation.
Marxist believe the problem originated with
a few people controlling economic resources.
The only way to bring about peace to the
social order is through the revolution of
the oppressed class to destroy the special
interest of the privileged class.
Capitalist, on the other hand, believe such
social conflict to be the result of limited
natural resources of the environment, which
are not sufficient to satisfy the needs of
all people.
[5] Thus, social conflict will always be
prevalent. Only through incremental and
gradual reforms can society hope to manage
social conflict from overtaking human
progress. On this basis, capitalists oppose
any type of social revolution. However,
Islam disagrees with both the views and
considers environmental resources to be
sufficient to satisfy all people's needs.
According to Sadr, the proem rests with the
channelling of human nature: how can the
instinct of self‑love be directed in a
proper manner? Unless a solution emerges to
control human desires and deflect the
potential for exploitation of others, social
order rests on shaky foundations. Therefore,
$adr clearly states that the socioeconomic
problem is the result of the misconduct of
man. He specifies two reasons for the
socioeconomic problems: (1) the oppressive
character of man, arising from his
self‑love; and (2) man's inefficiency in the
utilization of economic resources.
According to Sadr's interpretation, the ills
stemming from man's oppressiveness in the
economic realm of life persist in the form
of inequitable distribution of economic
resources on the one hand and from
inefficient utilization of these resources,
which result in underdevelopment of
economic resources and their waste. A
solution must overcome these two basic ills
of the economic behaviour of man. Sadr
specifies three components of the Islamic
solution: (1) cessation of the various forms
of oppression manifest in the unjust
distribution of economic resources; (2)
disciplining of "human nature to achieve
control of the instinct of self‑love; and
(3) utilization of economic resources to
satisfy the needs of all humanity.
Notes:
[2]. Al‑Sadr, "Al‑Nizam al‑'Islami
muqaranan bil‑nizam al‑ra'smali wa al‑Markisi"
(The Islamic System Compared with the
Capitalist and the Marxist Systems) in
Ikhtarnalak, 160.
[3]. Ibid., 161
[4.] Al‑Sadr, Iqtisaduna (Our
Economics) (Beirut: Dir al‑Ta'aruf, 1982),
311313.
[5]. Here Sadr seems to mention the view
of Thomas Robert Malthus. He disregards
other capitalist economic thinkers who
believe that the source of economic problem
is the distribution of economic wealth.
The Islamic Theory of Distribution
The first step to end the contradictions in
the economic structure of society begins
with the distribution of economic resources
among people. A just social system is one
that allows all people to benefit from
economic wealth. The Islamic economic
system, accordingly, is based upon this
criterion.
The first form of economic wealth is the
natural resources of the environment. Unjust
distributtion of economic wealth begins with
the problem of ownership of these natural
resources. One must know who has the right
of ownership of these resources in Islam.
Sadr, thus, must develop the theory of
distribution of natural resources at two
stages: preproduction and postproduction
stages, or what he calls primary wealth and
secondary wealth, respectively. His
endeavour is to discover the doctrinal
basis of Islamic teaching concerning
economic ownership. For him, the study of
economics in its empirical sense at this
stage is irrelevant to the issue of social
justice. In other words, he is building an
ideological theory which addresses this
issue. The empirical study of economics
comes much later to evaluate whether the
application of the ideological theory in the
realm of life has an adequate basis in
reality.
Notes:
[6]. Al‑Sadr, "al‑Nazariyyah
al‑'Islamiyyah li‑tawzi' al‑masadir
al‑tabi'iyyah" (Islamic Theory of
Distribution of Natural Resources) in
Ikhtarnalak (Beirut: Dar al‑Zahra',
1982), 136‑137.
Distribution of Natural Wealth
In constructing the conceptual framework of
his theory, Sadr also disagrees with
political economists on the scope of
economic resources. He disregards capital
and labour as parts of economic resources.
It is only nature that can be taken into
account in the theory of distribution of
natural resources. "For capital is, in fact,
a produced wealth and not a primary source
of production, because it represents,
economically [speaking], any wealth which is
produced and generated through human labour
that can be reinvested in the development of
new wealth.
[7]
On the other hand, nature itself is
classified into four categories: 1) land; 2)
raw material; 3) water; and 4) other natural
resources such as living species in the air,
sea and on land.
[8] Although the laws of Islam seemingly
contain different regulations for each one
of these categories, Sadr used his ingenuity
to discover the common ground between them,
giving his interpretation of what he calls
"The General Economic Theory of Islam."
The sole owner of land and raw materials is
the Islamic State. People may gain special
rights of ownership if they invest their
labour to develop these natural resources,
such as cultivating land and mining
minerals. Individuals may gain precedence
over others for a piece of land or source of
minerals which they work. The special right
of ownership may be gained only through
labour invested in developing that land or
raw material, and such right expires as soon
as that development ends.
[9] People utilizing these resources
must pay property taxes for their use to the
Islamic State.
Water, on the other hand, can be owned if it
is possessed for economic development.
Although the sole proprietor of the natural
resource of water is the State, all people
have access to it for their use. The only
exception is underground water, where the
individual who invests his labour to develop
its utility has an exclusive right to its
use and benefits.
[10]
Other natural resources, such as birds,
animals, plants and marine life, are
publicly owned. These sources of economic
wealth may become private property through
individual effort.
[11] As such, people, not the State,
have the exclusive right to own resources
via their labour. They may not lose this
right indefinitely, or pay property taxes
for their possession.
Based on this view, Sadr concludes that
people themselves or, in more concrete
terms, their representative government, are
the sole and legitimate owner of the natural
resources. Individuals may gain special
privileges to make use of these resources
only through their invested labour to
develop these resources. Other types of
individual labour, such as the use of force
to possess, are not considered legitimate
means to ownership. Specifically, it is only
invested human work that has legal
significance for ownership of natural
resources. Generally speaking, Islam gives
individuals the right to own private
property only through their continuous
effort to develop these resources to benefit
society as a whole. Once private development
of these natural resources is suspended, the
right of private ownership would cease too.
[12] From this Sadr derives the first
principle of his theory:
All natural wealth is part of the public
sector and individuals gain the special
rights to use them only on one ground, that
is, labour characterized by development [of
these resources] by the direct work [of the
individual himself].
[13]
According to the above principle, an
individual may not use other individuals to
develop a natural resource in order to have
the right of ownership of a large estate,
for example; otherwise they will share the
ownership and the benefits of that natural
wealth on the basis of their labour. Islam
totally rejects the capitalitic principle of
individual ownership of vast natural
resources on the ground that they are
developed by the labour of others. For the
same reason, industries for the development
of such natural resources as oil and
minerals can be owned and managed only by
the State. Notwithstanding the emphasis on
public ownership of natural resources, Sadr
introduces the concept of the "priority
right of use" of natural economic resources
by the individual. He states that those who
possess the labour and will to exploit the
resources have the right to gain access to
them if such exploitation serves public
interest.
Notes:
[7]. "Al‑Nazariyyah," 138.
[8]. Iqtisaduna, 433.[9].
Ibid., 483.
[10]. Iqtisaduna, 519‑520.[11].
Ibid., 5 2.
[12]. "Al‑Nazariyyah al‑'Islamiyyah
li tawzi'," 148.
[13]. Al‑Sadr, Khutat tafsiliyyah `an
iqtisad al‑mujtama` al‑'Islami (General
Basis of Economics of Islamic Society), in
al‑Islam yaqud al‑hayat, 88.
Distribution of Produced Wealth
Sadr, furthermore, develops an Islamic
theory of distribution of produced
commodities. Produced wealth is classified
into: (1) primary commodities, such as
agricultural produce and raw materials; and
(2) secondary commodities, which are the
primary commodities manufactured into
different products. In both of these stages
of production, capital generated from
previous economic endeavour as well as the
means of production (tools and machineries)
take part in the production process in these
advanced economic activities. However,
contrary to the capitalist theory, each of
these components has no share of the product
but they gain special rights for their use
and their wear‑and‑tear in the production
process.
As mentioned under the previous principle,
Islam gives the worker the sole right of
ownership of produced goods. However, Sadr
realizes that human labour is but one of the
components in the production of primary
commodities. The other components are the
natural environment and the tools which
help man in the process of production. The
tools, or means of production, according to
Sadr, "contain stored up work of previous
stages of production that will be exhausted
and depleted during their use in the process
of production."
[14] In this case, if the tools are not
property of the worker who benefits from
their use during the process of production,
then the legitimate owner of these tools
must get paid for the use of his tools,
i.e., the depleted stored up work in the
tools.
[15] According to Sadr, herein lies one
of the major 'ideological differences
between capitalism and Islam. The former
regards the owner of the means of production
as the sole owner of the produced
commodities, whereas Islam considers only
the labourer to have the legitimate claim to
the commodities produced. In capitalism,
tools get a share of the product because
their use, like human labour, represents
expenditure of a certain amount of work in
the production process. In Islam, tools only
assist and aid man to facilitate the process
of production; thus, they must be
compensated for in rent, not in profit
sharing.
[16]
Accordingly, only the labourer has the
legitimate claim to the products of his
effort. Therefore, it is unthinkable in
Islamic economics, states Sadr, for someone
to employ others and provide them with rent
and tools so that he alone owns the products
of their labour.
[17] Likewise, industries and production
units that employ many workers can function
in an Islamic State only if they are owned
publically. In Sadr's theoretical vision
industrial capitalist production can no way
evolve in an Islamic economic system except
through State's direct involvement and
control in economic development. The State,
on behalf of society, which is the sole
owner of economic resources, can employ
people and pay them only wages for their
work and not give them share of the produced
commodities.
Furthermore, since the utilization of the
economic wealth of the environment is the
responsibility of society as a whole‑the
sole proprietor and beneficiary of natural
resources‑it gets a share of the produce of
primary commodities. The State, in this
stage of production, has the right to
collect what is known as tasq (income tax)
from producers to finance social welfare
expenditures and meet the economic needs of
the people.
[18]
As for the production of secondary
commodities, Islam gives the owner of
primary commodities the right to establish
his claim to final products. The legitimacy
of his ownership does not cease because
someone aids him in transforming his
commodity into different forms. An
individual, if he/she owns the raw
materials, has the right to manufactured
commodities produced out of that material.
To put it plainly, the worker, in this case,
does not only own the product of the natural
resources but also the produced commodities
in latter stages of production. If the
State, for example, extracts or mines
certain natural resources through its
publically owned enterprises, then it also
has the right of ownership of all the
finished goods extracted from those natural
resources. People who participate in the
production would get paid for their labour.
Industries that develop natural resources,
such as oil and minerals, theoretically
speaking, cannot be owned privately in an
Islamic economic system. It is because the
State is the primary owner of natural
resources, which gives it the right to own
the produced product. However, there is a
theoretical loophole to make capitalists
flourish in an Islamic economic system,
which is through the obtaining of natural
resources from the State on lease by private
enterprises, where the latter can claim
legitimate ownership of the produced
commodities.
In any case, ownership is not affected by
the use of the means of production belonging
to someone else. The owners of tools and
machines get paid for the use of these in
the production process. By the same token,
the owner of primary commodities may also
hire someone else to manufacture his goods.
The worker, this case, gets the salary for
his labour, which should be specified in the
job contract. The worker, consequently, has
no claim on the final product he produces.
[19]
Islam specifies two means of payment for a
hired worker: the first one is through
wages, where he is paid for the amount of
work he performs in accomplishing a task;
the second is by sharing in the profit of
the final product. In this case, the worker
gets only a percentage of the profit
specified in the agreement between him and
the owner of the primary commodities. The
general principle, in Islam, for earning is:
...that earning is only based on
contribution of labour during the process
(of production), so the contributed labour
is the only legitimate means for some one
to get paid by the owner of the
process...and without such contribution,
there is no legitimacy for his earning.
[20]
Based on this economic principle, the owner
of capital will not receive fixed payment
from the owner of primary goods, i.e., it is
usury, which is prohibited. Monetary capital
will not be considered as contributing any
amount of labour at all.
[21] Fixed payment is allowed in Islam
only in one case, where there is a
consumption of labour, either directly
through a worker, or indirectly (accumulated
work) through the means of production. As
for monetary capital, no such
work is exhausted or depleted. In this
matter, the owner of the capital is allowed
to share the profit and the loss with the
owner of primary commodities. The legitimacy
of earning in this situation is based on his
help in facilitating the process of
production, for which he deserves to be
rewarded in the form of profit sharing.
Notes:
[14]. Iqtisaduna, 619.
[15]. Iqtisaduna, 584.
[16]. Al‑Khutat al‑tafsiliyyah, 97.
[17]. Ibid., 99.
[18]. Al‑Khutat, 561.
[19]. Iqtisaduna, 605.
[20]. Iqtisaduna, 618.
[21]. Ibid., 625‑627.
Channelling Human Nature
The first task of the Islamic political
system is to eliminate all forms of
oppression within economic relationships and
to lay the ground for the establishment of a
just system of distribution of economic
resources. However, the source of the
injustice, according to Sadr, is neither
social settings nor the means of production,
but rather human nature itself, the inner
instincts of self‑love that drive man to
secure survival for himself only. Such an
instinct is essential for the survival of
human life on earth. Profit, which is the
economic manifestation of self‑love and is
generated from private investment, is the
great engine of human economic
accomplishment. It gives the individual the
personal incentive to work hard and to
overcome difficulties and challenges.
However, when left without moral control it
will manifest itself in different forms of
oppression. Man will be concerned only with
securing his own interests to the point of
abusing the interests of others. Unless a
solution to the problem of human nature is
found, man will find escape routes to abuse
even in a just system of distribution. In
fact, the social contradiction stems from
the individual instinct of self‑love. In the
capitalist system, it manifests itself in
the form of economic exploitation of others.
In the communist system, where private
property is eliminated, man's self‑love
manifests itself in political oppression,
such as the struggle for power and the
securing of special social privileges.
[22]
Religion, according to Sadr, gives humanity
the only solution to this basic and
deep‑rooted problem of human nature.
Religion overcomes the problem of human
nature by specifying many channels of
self‑control that properly regulate or
direct‑ man's instincts into appropriate
social behaviour. In other words, it will
end the contradiction between social and
private interests.
The first of these mechanisms for
self‑control is a spiritual one, the
psychological power that makes man control
his behaviour. Man is the vicar of God,
which means that he is the representative of
the Almighty on earth. In an economic sense,
he is the trustee of God for the wealth
created for mankind. This sense of vicarage
implies that man is responsible for his
economic deeds before God. Vicarage also
means controlling personal behaviour and
directing the use of natural resources
according to God's will.
[23] Improper behaviour and the waste of
God‑given wealth will make man accountable
for his deeds and bring severe punishment.
In the same manner, abiding by God's will
guarantees a good reward and Divine approval
It is He Who has appointed you viceroys
in the earth, and has raised some of you in
rank above others, that He may try you in
what He has given you. Surely thy Lord is
swift in retribution; and surely He is
All‑forgiving, Allcompassionate. (6:165)
Accordingly, man is expected to receive
guidance as to how Godgiven wealth should
be distributed and treated. It is this link
between the here and now and the hereafter
that brings accommodation between social
and private interests. Anyone who sacrifices
for the sake of others is rewarded. The
religious solution, then, is not
materialistic, but spiritual and trains man
to serve others and to sacrifice private
interest for the sake of social benefit. In
doing so, he serves and benefits himself as
well. In Islam, it is the fear of God and
the desire to seek His good pleasure that
replaces the competitive, greed of human
nature. Once religion succeeds in bringing
up men who have control over their inner
instincts and passions, the social order can
be saved from contradictions and individual
abuses and manipulations.
Since this goal is utopian in its outlook,
Islam has derived a social mechanism to
secure peace and harmony in human society.
God has assigned the vicarage role not to
the individual per se, but rather to mankind
It is the community that is the trustee of
God over economical wealth. It, as a group,
holds the responsibilities of managing
natural resources and human wealth to the
benefit and welfare of the group. The
following Qur'anic verse refers to such
social responsibility.
But do not give to fools their property
that God has assigned to you to manage.
(4:5)
According to Sadr's interpretation of the
above verse, God considers the financial
wealth of the mentally incapable as the
wealth of the community. The whole society
is then responsible for not allowing any
misappropriation of the fool's wealth. Such
social control over economic wealth makes
the individual accountable not only before
God, but before his own people.
Islam also disavows any values that a
society attaches to the possession of
economic wealth. Affluence and economic
prosperity of the individual are not signs
of social prestige. Islam wants the
individual to consider wear as burdensome
and places a responsibility on the shoulders
of the wealthy individual to serve both
himself and others. It is a means to achieve
the goals of humanity.
[24] Affluence should not be the goal
for the individual to achieve in his life,
as in a capitalist society which makes man
use all possible means to increase his
possession of wealth even if it brings harm
avid oppresses others' interests. However,
if one thinks of wealth as the means to
realize the good pleasure of God, then
helping others, not oppressing them, becomes
the social norm of the rich and wealthy. In
other words, Islam is determined to change
the social values related to the possession
of wealth and private property. There is no
need to abolish ownership of private
property as suggested by Marxism. The social
policy of elimination of private property,
according to Sadr, will not be successful
because it goes against human nature. The
only solution is to reform the social ethos
in such a way that wealth is changed from an
individual goal to a social means to achieve
a higher moral goal.
Notes:
[22]. "Al‑Nizam al‑Islami muqaranan,"
170.
[23]. Iqtisaduna, 536‑537.
[24]. Iqtisaduna, 568.
Economic Development
The third part of the
Islamic solution to the economic problem,
according to Sadr, deals with "fostering
production and utilization of natural
resources of the environment to their
fullest extent."
[25] God has created an abundance of
resources in nature to satisfy human needs
on earth. Man, accordingly, is encouraged to
use the abundance of God's bounties to his
benefit. According to Sadr, "Islam,
ideologically speaking, has set the
development of economic wealth and the
utilization of natural resources to the
greatest possible extent as a goal for
society."
[26] Islam is similar to capitalism in
affirming this economic objective; however,
they differ in their approach to achieving
it. While capitalism "rejects any means of
development of production or increase of
wealth that hinders the principle of
economic freedom, Islam, on the other hand,
rejects those means which are contrary to
its theories of distribution (of the
economic resources) and its principle of
justice."
[27]
Notwithstanding, Islam, as mentioned before,
discourages individuals from pursuing
strictly materialistic objectives,
downgrading the passing gains of this
transitory existence. Sadr regards economic
prosperity as the goal of a virtuous
society, not of the individual. God, after
all, has created everything on earth and the
heavens to serve the existence of man.
[28] Islam only rejects materialistic
gain as the ultimate ambition of man, which
leads him to the oppression of others. Islam
encourages zuhd (austerity) as a
value which trains man not to consider
materialistic wealth as his final goal in
life.
[29] Zuhd is man's mechanism for
self‑regulation which he utilizes to fight
his desires and direct his objectives toward
God. However, it is not the goal of the
social order of the faithful.
Suffice it to mention that affluence and a
high standard of living help mankind in its
journey to God. Suffering can hinder such
movement. In fact, there is a direct
relation between man's relationship to God
and his relationship to nature. The more men
strive for God, the more bountiful nature
will be in providing for man's needs. Social
affluence is the sign of God's satisfaction
with man. On the other hand, man's thankless
attitude to God, of which social injustice
is the out‑ward expression or symptom,
results in the ruin of economic resources
and productivity as well as degeneration of
man's social existence.
[30]
Islam also expedites the social drive toward
production in its religious regulations.
Under die Islamic economic system, earning
is exclusively linked to working. All other
means of earning and ownership are
abolished. The possession of natural
resources is not considered legitimate
without continuous human efforts to develop
it. Any type of earning that does not
require any human labour, in commerce as
well as in production, is forbidden. For
this reason, the use of financial capital to
generate earning is abolished‑The only
legitimate way to make use of capital is to
invest it in production and share the risk
of profit and loss. To insure the
utilization of capital in economic
development, Islam strongly forbids the
hoarding of money and initiates a yearly tax
to downgrade any wealth that is not enrolled
in the production process. Additionally,
any type of useless economic activities,
such as gaming, magic and jugglery, are
forbidden in Islam.
[31]
Furthermore, Islam makes it a requirement
for Muslims to explore all fields of
knowledge and seek any efficient means of
production in order to utilize to maximum
benefit the natural resources of the
environment.
[32] The economic strength of Muslims is
analogous to their military strength. The
power of the Islamic State is judged on the
merit of its economic progress and social
prosperity. For this reason, Islam places a
heavy emphasis on the role of political
leadership to regulate social economic
activities to enhance economic development
and eliminate waste.
Notes:
[25]. Iqtisaduna, 649.
[26]. Iqtisaduna, 650.
[27]. Ibid., 649.
[28]. Sadr, in support of his argument,
cites a letter of Imam `All (A) to the
governor of Egypt that exemplifies the
social order of the believers as one that
encompassed the affluence of the world and
the hereafter. See Iqtisaduna, 651.
[29]. Here Sadr gives his interpretation
of two sets of apparently contradictory
prophetic traditions of which some exhort
austerity and reject materialistic gains,
and others invite man to make use of wealth
for his benefit. He sees no contradiction
between the two when the former is looked at
as discouraging man from making economic
wealth as the final objective of his life.
See Iqtisaduna 669‑672.
30. Al‑Sadr, Muqaddimah fl al‑
tafsir(Kuwait:al‑Dir al‑'Islimiyyah, 1982),
104‑107.
[31]. Iqtisaduna, 670.
[32]. Ibid, 671.
The Role of the State
As indicated in the theory of distribution,
the Islamic State possesses the sole right
of ownership of natural resources.
Consequently, it has absolute control over
all aspects of economic activities. The
owner of natural resources or, primary
commodities, according to Sadr, is the sole
owner of the secondary commodities.
Basically, the government of the Islamic
State can determine the flow of wealth in
society and define the economic process. The
major objective of the Islamic State is to
set up policies to develop the natural
resources to the fullest extent to benefit
the entire society.
To achieve such an economic objective, the
State has the right to distribute social
economic resources to attain the maximum
amount of production that brings prosperity
to all people. The State has the
responsibility to provide for the minimum
essential needs of society and ensure the
economic welfare of the people. It is unlike
the capitalist State, which leaves that
function to the fluctuations of the market.
Nor it is like the Marxist‑Leninist theory
that advocates State control of all aspects
of economic activities. The Islamic State
sets the direction of economic activities,
while giving individuals the right of
private ownership to achieve the social
goal. The government's role is to oversee
and regulate economic activities.
Accordingly, Islam has left the government
with a high degree of flexibility in
developing new regulations to meet any
emergent economic circumstances. Sadr called
the absence of restrictions in the Shari'ah
as manatiq al-faragh (the
discretionary sphere of the law), where the
jurist; has the authority to make judgements
and rulings according to the principles of
jurisprudence.
[33] He considers this area of
legislation on the part of the lawgiver as a
realistic approach to ensure the development
of economic activities and the means of
production. The leadership of the Islamic
State then could initiate any new
legislation and regulations that it sees as
appropriate to the new emergent
circumstances in order to meet the economic
needs of the people and secure maximum
utilization of economic resources. In other
words, the Islamic government is free to
adopt a wide range of economic policies from
full control of the economy to
free‑enterprise in order to achieve its
social goals. In this case, the government
must depend on the economists and experts to
watch for tile best possible alternative
policies to set the direction of the State
economy (provided that it will not overrule
tile theory of distribution.)
Such an unlimited role of government in the
economy of the Islamic State is justified
because of its substantial social
involvement. The State is responsible for
the social welfare of all people.
[34] The economic resources in the
Islamic State are distributed not only
according to work and ability to produce,
but also according to needs. Not all people
in society are able to work, and some of
those who do are not able to satisfy their
needs. Sadr identifies three economic
classes in society: (1) those who have the
mental and/or the physical power to produce
more titan their needs; (2) those who are
able to work, but only to the extent of
meeting their essential needs; and (3) those
who do not have the mental or physical power
to work productively. The government's
responsibility is to provide for the needs
of the latter two classes, which are not
limited to essential human needs. The people
in the Islamic State must live in dignity,
i.e., their economic status must be raised
to an acceptable general level. Therefore,
the State must have the economic resources
to be able to finance the social welfare
programme.
Whatsoever spoils of war God has given to
His Messenger from the people of the cities
belong to God, and His Messenger, and the
near kinsman, orphans the needy and the
traveller, so that it be not a thing taken
in turns among the rich of you. (59:7)
The verse, according to Sadr,
indicates two things: first, the allocation
of economic resources between the government
and the needy people; second, die
distribution of wealth in such a way as to
prevent the rich from controlling the
economy. Based on the above interpretation,
Sadr argues that the main principles of
Islamic economics are: (1) public (i.e.,
State) ownership of the means of production
and distribution, and (2) centralized
economic planning. It is only through the
control of all the community's resources by
society that the common need of social
security is guaranteed and the essential
economic rights of the individual are
insured. Accordingly, the legitimate Islamic
government has the responsibility to make
longterm plans for serving the common good
and overcoming instabilities of the market.
Islam
recognizes differences of income between
people, but strives to create an equitable
standard of living. To realize such a
socio‑economic condition, Islam, although it
specifies fixed taxes to be collected from
prosperous people, establishes a social and
moral mechanism. A lavish and extravagant
style of living is totally discouraged in
Islam. Islam also forbids waste in
production and consumption in order to
direct the resources of the economy to
produce commodities that satisfy the needs
of all people and bring about social equity.
The State also has the authority to regulate
wages and prices so as to overcome the
selfishness and greed of those who possess
economic wealth and insure an equitable
standard of living for all people. In sum,
the major goal of the Islamic State is the
prosperity of all citizens.
Notes:
[33]. The jurist, according to Sadr,
shall not change any of the primary
principles of Islam, i.e., the sphere of
halal and haram, that which is
obligatory and prohibited, respectively; but
he may act within the realm of secondary
matters, i.e the mandub and makruh,
that which is desirable and
reprehensible, respectively. The jurst may
forbid any mandub action, or
encourage any makruh ones.
[34]. Iqtisaduna, 607
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Page |
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Transliteration
. |
xiii |
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Publishers Foreword |
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In Arabic
... |
xv |
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English translation
|
xvii |
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Introduction to the second volume
. |
xix |
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Chapter one |
Operational discovery of economic
doctrine
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Economic Doctrine and Islam
.. |
5 |
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Rational Between the
(Economic) Doctrine and the Civil
Law:
.. |
13 |
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Summary
... |
18 |
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The Process of
Discovery and the Process of
Creation
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19 |
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The Financial System as
the Civil Law
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23 |
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Summing up and
Deductions
|
26 |
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The Process of
Synthesis Between the Law
(Ordinances)
... |
27 |
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The Conceptions of
Share in the Process
. |
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The Belt of Lacuna in
the Economic Legislation
. |
33 |
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The Process (Operation)
of Ijtihad and the
Subjectivity
.. |
36 |
|
A |
Justification of the
Existing Reality
.. |
39 |
|
B |
Incorporation of the
Text in a Definite Framework
. |
41 |
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C
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Separation of the Legal
(shariah) Evidence (Ground)
Condition and Circumstances
... |
45 |
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D |
Adoption of a Definite
Point of View Before Hand Towards
the Texts
.. |
51 |
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An occasional Need of
the Subjectivity
. |
53 |
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Delusion of the Applied
Existing Reality
..
|
63 |
Chapter Two
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The Theory of Distribution
before production
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1 |
The legal precepts (Ahkam) |
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Distribution of
(Public) Wealth in Two Stages
|
75 |
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The Original Source of
Production
..
|
79 |
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Difference of Doctrinal
Stand-points concerning Distribution
of Natural Sources of Wealth
|
80 |
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Natural Sources of
Production
.. |
83 |
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Land
|
85 |
|
1 |
The land which became Islamic by
conquest
|
86 |
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A. |
land cultivated by human hand at the
time of the conquest
.. |
86 |
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Proofs and
Demonstrations of the Public
Ownership
|
87 |
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A Disputation of the
Proofs of Private Ownership
|
93 |
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B. |
dead land at the time of conquest
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103 |
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The Proof of State
Ownership of the Dead Land
.. |
103 |
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Forms of Ownership
. |
106 |
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The Role of Reclamation
Concerning Dead Lands
.. |
107 |
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C. |
naturally cultivated land at the
time of conquest
|
114 |
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2. |
The mulsim land by call (Ad-DAWaH)
|
116 |
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3. |
The Land of Sulh (Treaty Land)
. |
117 |
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The limit of the private authority
on land
|
119 |
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The General outlook of islam towards
the land
... |
126 |
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With the Opponents of
the Ownership of the Land
.. |
131 |
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The Political Component
of the Ownership of the Land
.. |
135 |
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Raw materials from the bowels of the
earth
... |
140 |
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The Open Minerals
.. |
142 |
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hidden minerals
. |
144 |
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Hidden Minerals
Existing Close to the Surface of the
Earth
|
145 |
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The Latest Hidden
Minerals
. |
146 |
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does ownership of mines follow the
ownership of the land?
... |
152 |
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iqta
(feudal institution) in islam
|
154 |
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Iqta
of
the Taxed Land
. |
161 |
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hima
(preserved or protected land) in
islam
|
163 |
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Natural waters
... |
165 |
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Another natural wealth
... |
169 |
CHAPTER THREE
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THE THEORY OF DISTRIBUTION BEFORE
PRODUCTION
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2 |
THE THEORY
. |
173 |
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1 |
the negative side of the theory
|
174 |
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Its Upper Structures
|
174 |
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Deductions
.. |
175 |
|
|
2 |
the positive side (aspect) of the
theory |
177 |
|
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Its Upper Structures
|
177 |
|
|
|
Deductions
.. |
178 |
|
|
3 |
valuation (estimation) of labour
(work) in theory
|
180 |
|
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Conclusion
|
184 |
|
|
The Economic Work
(Activity) is the Basis of the
Rights in the Theory
|
185 |
|
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The Double Nature Of
Possession
|
185 |
|
|
The Theory
Differentiates Between the Works of
Economic Character
.. |
188 |
|
|
How the Special Rights
are established on the Basis of
Work?
.. |
189 |
|
|
The Basis for the Right
of Possession Concerning Moveable
Properties
. |
196 |
|
|
The Role of Productive
Works in Theory
. |
200 |
|
|
The Role of Possession
in Respect of Moveable Wealth
..
... |
202 |
|
|
The Generalization of
the Theoretical Principle of
Possession
|
205 |
|
|
Summary of the
Theoretical Deductions
.. |
206 |
|
Observations: |
|
|
|
1. |
A comparative study of the Islamic
theory
..
|
208 |
|
|
2. |
sthe phenomenon of the tax (tasq)
and its theoretical explanation
|
214 |
|
|
3. |
ethical interpretation of ownership
in islam
|
216 |
|
|
|
the time limitation of the special
rights
. |
226 |
| |
|
|
|
|
|
ALSO SEE ..
ECONOMIC SYSTEM IN ISLAM PDF
By
Abdul Husain Muhammad
2nd Edition
1975
Published By
World Organization for Islamic Services,
P. O. Box No.11365-1545,
Tehran. (IRAN)
Compared with
Capitalism and Socialis
