Principles of Islamic Economics and how it is the solution of contemporary economic challenges of the world.

 Q. No. 3. Write down the main principles of Islamic Economics. How does these principles provide solutions to contemporary challenges?

سوال نمبر 3:  اسلامی معیشت کے راہنما اصولوں کو بیان کریں، کیا عصر حاضر کے معاشی مسائل کا حل انہی اصولوں میں ہے وضاحت کریں۔

 

Principles of Islamic Economics:

Encourages trade, business and exchange.

Prohibits interest and hoarding.

Decrease alienation of people in society.

Equal distribution of sources of income among citizens.

Zakat and Sadaqa to bring marginalized and poor section of society in a good condition.

Eradication of Poverty

Economic integration (which increases mutual dependence).

 

          It is the age of globalization, we’re living in. Today, everyone is aware of the capitalism and communalism and has tried both of them one after one, but none of these are compatible with the changing time and requirements. Both of these systems have benefitted to a specific group of people in their communities. For example, in a capitalist system, investors and businessmen become wealthier on the expense of poor workers working in their factories/mills. On the other hand, in communalist system, there is hegemony of a political party. One who is the member of that political party/communalist party enjoys benefits from both sides, but the working class is exploited to such an extent that they remain hand to mouth and secondly, become forced labor.

          Islamic economics is the only solution to all contemporary challenges regarding economy. In Islamic economics interest and hoarding is prohibited but, in capitalism and communalism these illegal means are the first priority among wealthy class to increase their capital and to make the working and poor class more and more marginalized to such an extent that they become slaves of the bourgeois class.

          Islam has fixed an amount of 2.5% of zakat for the wealthy class to invest on the poor and needy class in the society to bring them in a prosperous condition. It encourages the capital class to trade and business because, their wealth will decrease if they do not business. Paying zakat has been strictly ordered in Quran and Hadith to pay zakat. Zakat is the best solution for the integration of the society and to create harmony by helping the marginalized and alienated section of the society. For example, a person having saving of Rs.10000000 he has to pay zakat of Rs.250000 (2.5% of 10000000). 250000 is a huge amount, which could easily be distributed among five poor and needy persons, 50000/each. They can start their own business from this amount. And, we know that there is a number of rich people in the country having more income than we expect.

          One question raises in the minds of everyone, if, Islamic economics is the solution of contemporary economic challenges then, why the Muslim world is deprived of basic economic rights and a larger section of the society is living below the poverty line. The answer to this question is very simple, that, Muslims living in Muslim countries are not forced to follow the Islamic Law nor the Islamic state has enforced these laws by force. Almost, all of the Muslim countries are following the democratic or democratic like political system. Moreover, interest-based banking is on its peak, even in a country made on the name of Islam. Hoarding is the major business trick among business class in our countries. Import of expensive items has created inflation and un-balance in the society.

                       

Conclusion: Non-Islamic economic systems has benefitted the rich class which has become richer through interest, savings and hoarding on the expense of poor class, which has deprived of their basic needs and rights. On the other hand, Islamic economics encourages trade and business, which provides jobs to the jobless. Zakat is the best tool to integrate in the society and to make the life peaceful.