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 Year Certified in Risk Management Assurance from Institute of Internal Auditors, USA 2012

Certification in Advances Islamic Jurisprudence

2011

Certified Internal Auditor (CIA)

2007

Certified Information System Auditor (CISA)

2004

Fellow Member of the Association of Chartered Certified Accountants (ACCA)

2002

MBA 1996

B. Com 1994

Title Page No.

Introduction

Chapter 1: The Rise of Deceitful Economy

1. Road to Gold and Silver

2. Rise of paper money and interest based economy—America in focus

3. Spread of interest and paper based economy in world--Hitler in focus

4. Deceitful interest system unveiled

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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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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

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Chapter 4: Steps Forward

Further Readings

Click on the titles for easy scrolling

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. It‟s quite rational for

anyone to think that a code of economic system built upon by the do‟s

and don‟ts 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 today‟s 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.

Breaking the Chains of Economic Enslavement

2

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,


3

Julius Caesar converted Rome‟s 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 where 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 country‟s 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.


4

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”.


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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


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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


7

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 the

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…”


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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 enemy‟s 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.


9

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


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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 Hitler‟s


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rise in power played a very important part. It was Hitler‟s rise in power

which made loads and loads of Jew immigration to Palestine, and it

was the story of Hitler‟s 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 world 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 money 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

world‟s 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%


17

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 middle 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 2:278-

279)

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 for

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.


22

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.


23

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 their

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 don‟t

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.


24

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 don‟t 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


25

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 then

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


26

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.


27

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 ka‟b that, “I seek

refuge with Allah for you, ka‟b, from foolish leaders, “Ka‟b 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)


28

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


29

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


30

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.


31

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 given 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


32

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)


33

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 with 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.


34

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


35

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.


36

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


37

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.


38

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


39

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 individuals

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 split

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


40

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)


41

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 economic 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


42

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


43

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


44

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 only 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


45

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,


46

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 God‟s Provision think that it is

good for them, it is bad for them. For on the day of resurrection

they will carry their hoardings around 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.


48

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 which 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.


49

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 let‟s 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 pleasure 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


52

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 transform

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


53

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 our

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


54

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,


55

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 Writer Al-Amwal (finances) Abu Obeid

Economic System in Islam Nabhani

Al-Kharaj Abu Yousuf

Perfect Political Economy Maliki

Fall of Capitalism and Rise of Islam Dr Mohammad Malkawi

breaking the chains of economic enslavement!

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