The economic policy is the objective of the laws which deal with the management of human affairs. The economic policy in Islam is to secure the satisfaction of all basic needs for every individual completely, and to enable Him to satisfy his luxuries as much as He can, as a person living in a particular society, which has a certain way of life. So Islam looks at every individual by himself rather than the total of individuals who live in the country. It looks at Him as a human being first, who needs to satisfy all of his basic needs completely, then it looks to Him in his capacity as a particular individual, to enable Him to satisfy his luxuries as much as possible. Islam looks to Him at the same time, considering Him a person linked with others by certain relationships run in a certain way, according to a particular fashion. The purpose of the economic policy in Islam is not to only raise the standard of living in the country without looking to secure the rights of life for every individual completely. Nor is it just to provide the means of satisfaction in the society, leaving people free to take from such means as much as they can, without securing the right of livelihood for each individual. Rather, it addresses the basic problems of everyone as a human being, who lives according to particular relationships, then enabling Him to raise his standard of living and achieve comfort for himself, according to a particular fashion of life. As such it is different from all other economic policies.
While putting the economic rules for the human being, Islam relates the legislation to the individual to secure the right of livelihood and to secure the luxuries, while it verifies that the society has a special way of life. So, it takes into consideration what the society should be, at the same time it seeks to secure livelihood and to enable satisfying luxuries. It makes its view towards what the society ought to be as a basis for its view towards the livelihood and prosperity. Therefore, one will find that the divine rules (Ahkam Shari’ah) have secured the satisfaction of all of the basic needs (food, clothing and housing) completely, for every citizen of the Islamic State. This is achieved by obliging each capable person to work, so as to achieve the basic needs for himself and his dependants. Islam obliges the children or the heirs to support the parents if they are not able to work, or obliges the State Treasury (Bait ul-Mal) to do so, if there is nobody to support them. As such, Islam requires that the individual secures for himself and his dependants the satisfaction of the basic needs i.e. adequate foodstuffs, clothing and housing. Islam then encourages the individual to secure the luxuries of life as much as He can.
Islam also prevents the government from taking property through the imposition of taxes, except in cases where it is obligatory upon all Muslims to care for e.g. famine or Jihad. Tax then is taken only on the wealth which exceeds that which each individual normally uses to satisfy his basic needs and luxuries. In this way, it achieves the right of livelihood for everyone individually, and facilitates the securing of the luxuries. At the same time, Islam sets certain limits within which the individual can earn in order to satisfy his basic needs and luxuries, and organises his relationships with others according to a particular fashion. So Islam prohibits the production and consumption of wine by Muslims, and it does not consider it an economic material. Islam prohibits the taking of riba (usury, interest, etc.) and its usage in transactions for everyone who holds Islamic citizenship. It does not consider Riba as an economic commodity, whether for Muslims or non-Muslims. So Islam considers what the society ought to be when utilising any property as a fundamental basis for utilising the economic commodity.
Islam did not detach the individual from being human, nor the human being from being a particular individual. Furthermore, Islam does not consider what the society ought to be separate from the issue of securing the satisfaction of the basic needs for every individual, and enabling Him to satisfy his luxuries. Rather, Islam makes the satisfaction of the needs and what the society ought to be, as two inseparable matters from each other, but by making what the society ought to be as a basis for satisfying the needs. For the sake of satisfying all the basic needs completely, and to enable satisfaction of the luxuries, the economic commodity should be available to people, and it will not be available to them unless they strive to earn it. Therefore, Islam urges people to earn, seek the provision and strive. And it made striving to earn the provision compulsory. Allah (swt) said:
“So walk in the paths of the earth and eat of His sustenance which He provides.” [Al-Mulk: 15]
However, this does not mean that Islam interfered in the production of wealth, or that it demonstrated the technical matters related to increasing production, or the amount of production, because it has nothing to do with production. Rather it only encourages on working for the earning of property. Many Ahadith came to encourage the earning of property. In one Hadith, the Prophet (pbuh) Muhammad (pbuh) shook the hand of Sa’ad ibn Muadh (ra) and found his hands to be rough.When the Prophet (pbuh) (pbuh) asked about it, Sa’ad said: “I dig with the shovel to maintain my family.” The Prophet (pbuh) (pbuh) kissed Sa’ad’s hands and said: “(They are) two hands which Allah loves.” The Prophet (pbuh) (pbuh) said: “Nobody would ever eat food that is better than to eat of his own hand’s work.”
It was also narrated that Umar b. Al-Khattab (RA) passed by some people, who were known as readers of the Qur’an. He saw them sitting and bending their heads, and asked who they were. He was told: “They are those who depend (Al-Mutawwakiloon) upon Allah (pbuh).” Umar replied: “No, they are the eaters who eat the people’s properties. Do you want me to describe those who really depend upon Allah (Al-Mutawwakiloon)?” He was answered in the affirmative, and then He said: “He is the person who throws the seeds in the earth and then depends on his Lord The Almighty, The Exalted (‘Azza wa jalla).”
Thus we find that the verses and the Ahadith encourage striving to seek provision, and working to earn property, just as they encourage the enjoyment of the property and eating of the good things. Allah (swt) said:
“Say: who has forbidden the beautiful gifts of Allah, which He has provided for His servants, and the things, clean and pure, (that He has provided)?” [Al-A’raf: 32] And:
“And let not those who are niggardly, who withhold the gifts which Allah has given them from His Grace, think that it is good for them. Rather it is worse for them. That which they hoard will be their collar on the Day of Resurrection. To Allah belongs the heritage of the heavens and the earth, and Allah is informed of what you do.” [Al-Imran: 180] And:
“O you who believe! Spend of the good things which you have earned, and of that which We bring forth from the earth for you.” [Al-Baqarah: 267] And:
“O you who believe! Do not prohibit the good things which Allah made halal for you.” [Al-Ma’idah: 87] And:
“And eat of that which Allah provided for you, halal and good.” [Al-Ma’idah: 88]
These verses, and the like, denote clearly that the divine rules (Ahkam Shari’ah) related to the economy, aim at acquiring property and enjoying good things. So Islam obliged individuals to earn, and ordered them to enjoy wealth that they earned, so as to achieve economic growth in the country, to satisfy the basic needs of every person, and to enable the satisfaction of his luxuries.
In order to facilitate the acquisition of property, we find that Islam puts the rules related to the manner of possessing wealth without any complications. So it made the manner of possessing property very easy. Thus Islam defined the legal means of ownership, and it defined the contracts through which property ownership is exchanged, and left man free to develop the styles and means by which He earns, and it did not interfere in the production of the wealth.
Islam defines the legal means of ownership and contracts in general guidelines that include legal principles, and rules, under which numerous issues belong and against which numerous rules are measured by analogy (Qiyas).
Thus it obliged work, put its detailed rules, and left the person to work as a carpenter, manufacturer, technician, trader, etc. The gift is legislated in such a way that donation can be compared to it by analogy in terms of being a means of ownership. Employment was legislated in such a way that representation (Wakala) can be compared to it by analogy in terms of being entitled to compensation. Thus we find that the means of ownership and the contracts are detailed by Shari’ah in general outlines and set in such a way as to include any contemporary incidents; yet they do not allow for any new type of transactions. It is obligatory that people restrict themselves to the transactions that are defined by the Shari’ah, which apply to new incidents however numerous.
As such, the Muslim proceeds steadily in earning property, without being faced with obstacles, which prevent Him from earning through Halal means. Thus, the satisfaction of all basic needs is possible for every person. Islam not only urges the individual to earn, it also requires the State Treasury (Bait ul-Mal) to be responsible for the support of all the citizens. So it made the support of the mentally or physically disabled as the State’s responsibility, and it made the provision of the basic needs of the nation (Ummah) as one of its duties, because the State is obliged to look after the affairs of the Ummah.
Bukhari narrated from Ibn Umar: The Prophet (pbuh) (pbuh) said: “The Imam is in charge (ra’i) and He is responsible for his citizens.”
In order for the State to perform the duty placed on it by the Shari’ah, the Shar’a gave the State the authority to collect certain revenues such as the head tax (Jizya) and the land tax (Kharaj), with Zakat also to be collected by the State Treasury (Bait ul-Mal). The State also has the right to collect funds for those services which are a duty upon the Ummah, such as the repair of roads, building hospitals, feeding hungry people, and the like.
The Shar’a made the State responsible for the management of public property. The Shar’a prevents individuals from running public property on their own, because the overall responsibility is for the Imam, and none of the citizens is entitled to assume this responsibility unless He was designated by the Imam. The public properties of water, oil, iron, copper and the like, are properties which must be utilised in order to achieve economic progress for the nation (Ummah), because these properties belong to the Ummah, and the State is merely in charge of them for their administration and development. When the State supplies funds, and discharges its duty of looking after the affairs of the people, and when every capable individual earns property, then abundant wealth becomes available for the satisfaction of the individuals basic needs completely, and the luxuries.
However, the economic progress through motivating every capable individual to work, assigning properties to the State and the investing of public property, all that is a means to satisfy the needs, not for the sake of having property for itself, nor for boasting, nor to spend it in sin, nor for arrogance and oppression. That is why the Messenger of Allah (pbuh) said: “Whosoever sought the life (matters) legitimately (halal) and decently He will meet Allah (swt) with his face as a full moon; and whosoever sought it arrogantly and excessively He will meet Allah while He is angry at him.” The Prophet (pbuh) (pbuh) also said:“Do you have, son of Adam, of your property except that which you ate and consumed, that which you wore and exhausted, and that which you donated and kept (for yourself)?” Allah (swt) the Supreme said:
“Don’t commit Israaf (spending or going beyond the limits imposed by Islam); surely He does not like those who condone Israaf.” [Al-A’raf: 31]
Islam made the aim of owning property a means towards satisfying the needs and not for the purpose of boasting. It also made managing the economy as a whole according to Allah (swt)’s orders obligatory. It ordered the Muslim to seek the Hereafter through what He earns and not to forget his share of this worldly life. Allah (swt) said:
“But seek the abode of the Hereafter in that which Allah has given you, and do not neglect your portion of worldly life, and be kind even as Allah has been kind to you, and seek not corruption in the earth.” [Al-Qasas: 77]
The philosophy of Islamic economy dictates that all economic actions are according to the commandments of Allah (swt), based on recognising the relationship with Allah (swt). The idea upon which the management of the Muslims affairs in society is built, is directing the economic activities according to the divine rules (Ahkam Shari’ah), as a complete way of life (Deen). Similarly, the management of the affairs of the other (non- Muslim) citizens of the State restricts their economic activities according to the divine rules. It permits them whatever Islam has permitted, and it forbids them of whatever Islam has prohibited. Allah (swt) said:
“And whatsoever the Messenger gives you take it, and whatsoever He forbids you abstain from it.” [Al-Hashr: 7] And He (swt) said:
“O mankind! There has come unto you an exhortation from your Lord, a cure for that which is in the breasts.” [Yunus: 57] And He (swt) said:
“And let those who withstand his (the Messenger’s) order beware, lest some trial or painful punishment befall them.” [An-Nur: 63] And He (swt) said:
“And rule between them with that which Allah revealed.” [Al-Ma’idah: 49] Islam secured the observance of these rules by motivating the Muslim to adhere to this economic policy through the fear of Allah (swt) (Taqwa), and the abiding of the people, in general, to it through the legislated laws which the State implements upon the people. Allah (swt) said:
“O you who believe! observe your duty to Allah and give up what remains (due to you) from riba, if you are (in truth) believers.” [Al-Baqarah: 278] And He (swt) said:
“O you who believe! When you contract a debt for a fixed term record it in writing...” [Al-Baqarah: 282] until He (swt) says:
“....save in the case when it is actual merchandise which you transfer among yourselves from hand to hand, in that case it is no sin for you if you write it not.” [Al-Baqarah: 282]
Islam thus explained the way in which these rules are implemented and the way in which people’s adherence to these rules is guaranteed.
This demonstrates how the economic policy in Islam is built on satisfying the needs of every individual, as a human being who lives in a particular society, and on earning the wealth to provide that which satisfies the needs. The economic policy in Islam is also established on one idea, which is the implementation of all actions according to divine rules. It is implemented by every individual through motivating of his fear of Allah (swt) and applied by the State through culturing the people and through implementing laws.