25.8 Policy of Self-Sufficiency

The policy of self-sufficiency means that a country aims towards being self-sufficient and to form a closed economic unit that could survive on its own. This country would not import nor export any commodities. Her aim would, in this instance, go beyond the protectionist theory, differ from the theory of national economy and contradict the free trade theory.

The theory of self-sufficiency which has been implemented between the last two world wars has been highlighted in two forms: Isolationist self-sufficiency and expansionist self-sufficiency. Nazi Germany represented a model of a country which adopted a self-sufficiency policy; it was, for her, a measure triggered by Germany’s home and foreign policies, which no longer fitted with the rules of international trade.

Although the policy of self-sufficiency represented in fact a host of measures which had political aims, the champions of such policy deem that it represents a fundamental economic basis, which is summarised in the fact that a country who possesses raw materials, chemicals, machines and manpower, should be able to survive. The point at hand would be organisation. As for capital, this is secondary. It is the government which chooses for itself a political program, to which they submit the economic and financial management. In order for the policy of self-sufficiency to achieve its aim, which would be to render the local economy able to be self-sufficient, the government should be prepared to manage without many of it’s needs; because the policy of self-sufficiency would make a country unable to fulfil all her needs. What is important for this policy is to be able to fulfil the basic needs of the individual, the nation and the State while relying exclusively on the local economy, in a manner that would set her in an upward trend. Therefore, the State which operates a policy of self-sufficiency in foreign trade would be obliged to annexe the countries she would need in order to acquire raw materials, markets, manpower, and experts etc. This annexation would either take the form of a direct merger, or that of commercial treaties. As for the abolition of economic frontiers, this would mean annexing the country i.e. abolishing the political borders, for it would be impossible to abolish economic borders without the abolishment of the political borders. If the State could not annexe the countries that she needs in order to acquire the materials she lacks, she should in this case persevere without fulfilling some of her needs, while aiming to avoid a shortage of basic necessities, for in such a case she would not be able to persevere, whereas lacking non basic necessities could be afforded.

This is a summary of the isolationist and expansionist self-sufficiency policies. The isolationist is where the basic needs are available; whereas the expansionist policy, within a specific scope, is achieved by annexation or treaties in order to provide all the necessities, be they basic or luxuries. If one were to look closer at the policy of self-sufficiency, one would realise that it does not rise to the level of being a commercial or economic solution. It is merely a temporary preventive measure which the State would undertake against a potential foreign economic or commercial siege. Therefore, it is not a remedy for foreign relations, but a reactive measure that a country may undertake if she were subjected to a foreign economic or commercial embargo. Therefore it would form part of the styles and means and not the rules. It would therefore be wrong to ask what the Shari’ah rule is concerning this policy. It would also be wrong to say that it contradicts or differs from Islam, for it is merely a style that might be adopted. Therefore, this policy could be taken as a style if it were to have a practical reality i.e. if a country were under siege and it were possible to rely solely on the home economy to meet it’s basic needs. This policy would not be adopted if it had no reality and it was impossible to be self-inefficient regarding the basic needs of the State, the Ummah and the individuals.

This policy is part of the management of affairs undertaken by the Khalifah and which Shar’a has allowed Him to opt for, in whichever style He deems appropriate and in the interest of the Muslims.

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Superior Economic Model : Islamic System

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