The Role of the State
The government plays an important role in the Economic System of Islam.
Islam makes it the responsibility of the State to provide food, clothing, shelter, education, health and security to every individual. It is also the responsibility of the State to enable citizens with the means to get luxurious needs in addition to these basic needs by themselves. The State achieves this through the management of public property, through the use of income from other sources and through provision of a good economic environment so that people satisfy their needs due to their involvement in economic activity.
The Economic Policy of the State
The fixed economic policy of a country, like the Islamic world, emanates from the general concept about the universe, man and life, i.e. the Islamic ‘aqeedah and whatever is derived from the ‘aqeedah in terms of rules and concepts. Since the Islamic rules are fixed and since they provide a solution for the case of welfare for mankind, it would be ineffective for the Muslim world to design and plan a non-fixed economic policy, nor a policy alien to Islam. Its economic policy must be based on the Islamic ‘aqeedah, i.e. the economic policy of the Islamic State should be based upon nothing but Shari‘ah laws derived from the Holy Qur’an and the Sunnah, and whatever these two sources have guided to in Ijma‘ of the Sahabah (consensus of the Companions) and Divine Qiyas (analogy).
The Islamic economic policy aims at dealing with the essential needs of the individual, enabling him to improve his lifestyle and achieve prosperity as an individual. The economic policy provides the individual with the means to work towards achieving prosperity, by maintaining always the high values (laid down by the Shari‘ah) as the dominant factor in the relationships between individuals.
Therefore, the economic policy that should be adopted by the Islamic State is not with the aim of just increasing the GNP (Gross National Product), nor creating what is called ‘Social Justice’, or state Socialism. The policy should be to ensure the correct distribution of resources, amongst all members of the Ummah, guaranteeing thereby the basic needs for all people, and allowing every individual to satisfy his luxurious needs as much as possible, within the boundaries of the Shari‘ah.
However, the distribution of resources and wealth necessitates having the means to generate them and improve their methods of growth. The land, for instance, needs to be cultivated with the aim of increasing the output. On this basis, the Islamic State must incorporate a programme of economic development.