Economic System of Islam - Explaining The Economics Of Islam
Economic system of Islam - Islamic teachings attach great importance to the economic aspects of daily life. Islam strives to establish a true welfare society, where the economic well being of its members and an equitable distribution system of wealth are ensured. In an Islamic society, the economic system is based within the framework of the moral and spiritual norms of Islam.
The Quran summarizes this concept as: "When the prayer is ended then disperse in the land and seek God's bounty, but remember God much so that you may be successful." (62:10)
At another place Quran says: "O mankind! Eat of what is lawful and good on earth and follow not the footsteps of the devil" (2:168)
This means that earning by unfair means is an evil practice and is bound to create iniquity and troubles in a society.
Zakat was introduced as a compulsory poor-due and a means to purify one's wealth. It is an important pillar of Islam and held equal in importance to Salah (prayer). The Quran stresses: "And establish Salah and pay Zakat…."
Islam puts a ban on earning by means of Riba, bribery, cheating, sale of alcohol and such immoral practices as running a brothel. Riba (usury) is based on a system of exploiting the poor and the needy and therefore, it creates an imbalance in the society. "God will deprive usury of all blessing but will give increase for deeds of charity for He loves not the ungrateful and the wicked." (2:276)
The verse condemns the act of Riba and provides an alternative, that is charity. Another effective means of helping Muslims is by providing Qard-i-Husanah (interest free loans).
The economic teachings of Islam are aimed at improving and establishing justice and balance. Therefore, Islam does not allow any means of earnings that may disturb the balance of the Islamic society. Islam condemns corruption and earning by dishonest ways. The Prophet (p.b.u.h) said about people who indulge in bribery, "Both will receive similar punishments (the giver and the taker of bribe) because both are committing the same sin."
Similarly, cheating includes all sorts of frauds and deceit such as the acts of giving short measures and adulteration of food and medicinal items. The Prophet (p.b.u.h) declared a cheater as a non-believer, "The one who cheats is not amongst us."
The Quran urges the believers to give full measure by saying: "So establish weigh with justice and fall not short in balance" (55:9). Thus , it is an open rejection to those who earn by hoax "Woe to those who deal in fraud." (83:1)
Moreover, deceitful acquisition of an orphan's property has been disliked: "And come not near the orphan's property." (6:152)
The hoarding of food and other items is prohibited in the Islamic economic system when their sale is temporarily withdrawn with the intention of earning undue profits: "Soon shall the things which covetously withheld be tied to their neck like a twisted collar on the Day of Judgment." (3:110)
Hence, it is evident from the instructions in the Quran that real prosperity and well-being lies in following the right path prescribed by Allah and His Messenger. The economic values in Islam stand for promoting social harmony and economic justice.
Last Updated: 21/7/2015