Recall that the main objective of the Islamic political economy is to satisfy the basic needs of each individual and to enable each individual to satisfy his luxury needs. From the Islamic perspective, the basic needs of any human are the same irrespective of the place or the time era the people live in. These needs are directly related to the survival and the well-being of people. Islam recognizes these needs and makes them a right for each and every individual. Essentially, the basic needs of a human are the food and water, clothing, secure housing, and health; some may argue that health is a by-product of the other basic needs (food, clothing, and housing). Beyond these needs, human strive for more comfortable and luxurious life, which is perfectly all right in Islam.

In a reference to the basic needs of individuals, it is reported that Prophet Mohammad (PBUH) said, “Whoever ends his day, with security at home, splendid health, and enough food, is a person who obtained all that he needs in life.”146 This narration by the Prophet indicates that food, secure shelter, and health constitute the essentials of life which each and every individual must attain. A reference to clothing as a basic need is found in Surah Albaqara (chapter 2, verse 233): “The father of the child shall bear the cost of the mother’s food and clothing on a reasonable basis.” Although the reference is to a family type responsibility, but the context is related to the needs of an individual. Thus Islam makes it a must that each and every individual in the society receives sufficient food, sufficient clothing, secure housing, and health protection. Beyond these basic needs, each individual should have access to the tools and resources which enable him to seek more of the luxurious needs.

The Islamic approach to the complete satisfaction of the basic human needs differs fundamentally from the approach taken by the socialists or capitalists. The socialists focused on the equality of property ownership, rather than the requirement to fulfill the basic needs of the people. The socialists would still consider the objectives of the political economy achieved even when the people in the society fall short of satisfying their basic needs while they enjoy equal ownership of the means of production. In theory, one can expect that this equality of ownership naturally leads to the satisfaction of the basic needs; however, practice proves otherwise. Under the leadership of socialists in the Soviet Union, the public ownership of the means of production did not guarantee the satisfaction of the needs of individuals. The Soviet Union suffered a great deal of poverty and millions of people lacked some of the basics and essentials of life such as food, health care, and shelter. We have to always remember that these needs are needs of specific individuals and it is the right of each to attain these needs. And these needs must be addressed directly; they should not be treated as the by-product of another objective. In the case of socialism, it was assumed that the equality of ownership of the means of production automatically caters for the needs of individuals. The practice of socialism in the Soviet Union and China proved this assumption wrong.

Capitalism made a similar mistake in the sense that it left the satisfaction of the needs of people to depend on another goal. The main goal pursued by the capitalist political economy is the economic growth which calls for increasing the scarce products and services. The growth of the economy measured in terms of the increase in the gross domestic product (GDP) or gross national product (GNP) is the main objective of the capitalist political economy. The economy under capitalism goes in recession or depression when economic growth slows down below a certain value. It goes into recovery when the growth resumes for a given period of time. Whether in recession, depression, or recovery, millions of people may continue to lack the basic needs of food, health protection, shelter, and clothing. The number of people who fall below a poverty line (earning less than $1.25 a day in many countries) continues to grow even when the overall health of the economy is in good shape. In other words, the assumption that the more goods, services, and wealth the society produces, the more likely for people to receive enough food, health care, housing, and clothing is incorrect. This has been proven with abundance of data; the first part of this book provided all types of data and statistics which support this conclusion. Again, capitalism, similar to socialism, has failed to consider the essentials of life for each individual as an objective that stands on its own, which ought to be pursued by the political economy. Instead, capitalism considered the satisfaction of the needs of individuals as a by-product of another goal, which is the economic growth and the increase of production.

Islam, as discussed earlier, treated each individual in the society as a subject which needs to be addressed on its own. Islam recognized that the satisfaction of the needs of the society at large does not necessarily guarantee the satisfaction of the individual units of that society. In a reference to this fact, the Prophet (PBUH) declared that a community that has plenty of food and resources remains in a sinful error if at least one of its members does get enough food (by the same token he does not get shelter, health care, and clothing). In essence, Islam does not tolerate the existences of homelessness, hunger, or sickness in the society.

In the process of satisfying the basic needs of individuals, Islam deploys several mechanisms. The first mechanism assigns for each individual in the society a responsible party to guarantee that the individual meets his or her basic needs. The second mechanism establishes an obligatory fund, known as Zakah, which augments the first mechanism and seeks to fulfill the needs of individuals. This mechanism is further enhanced by other forms of charity (sadaqat). The third mechanism is provided by the public and state ownerships. The second part of the objectives of the Islamic political economy, which is the satisfaction of more than the basic needs, is achieved through the private ownership as discussed earlier in this book. These mechanisms are further discussed and elaborated in the following sections.

Islam assigns for each individual in the society a hierarchical order to take care of his or her basic needs. The first level of support falls upon the individual himself. Islam made it an obligation upon able men to work and provide for themselves and their dependents. Allah (SWT) in Surah Al-Mulk (chapter 67, verse 30) urges people to take advantage of the plenty of resources in the earth; He says, “He it is Who has made the earth subservient to you (i.e. easy for you to walk, to live and to do agriculture on it); so walk in the path thereof and eat of His provision. And to Him will be the Resurrection.” Prophet Mohammad (PBUH) is reported to have said, “Rather than asking people for support, which may or may not be granted, a man should go out and seek work such as bringing wood on his back from the forests and selling wood.”147 It is established that all able men are required to seek work and provide for their own basic needs and for those who depend on them. This rule applies exclusively to males in the society. Women in Islam are not required to work in order to provide for their basic needs. Islam mandated alimony support for all women, whether they are able to work or not; women support comes under the category of support for daughters, wives, or mothers. In the same manner, Islam mandated alimony support (called Nafaqah in Islamic terms) for all men who are unable to work due to disability or being unable to find work.

The hierarchy of alimony (Nafaqah) responsibility is established in a reverse order of inheritance. That is, the legal inheritor of a person is also legally responsible for taking care of the basic needs of that person. The inheritor responsibility principle is stated in the Quran in Surah Al-Baqara (chapter 2, verse 233): “No person shall have a burden laid on him greater than he can bear. No mother shall be treated unfairly on account of her child, nor father on account of his child. And on the inheritor is incumbent the like of that (which was incumbent on the father).” In essence, the male inheritor who is eligible to inherit a person after he/she dies is also responsible for taking care of that person, if he becomes poor before his/her death.

Of course this is true only if the person is unable to attend for his or her own needs. If a deceased person has no legal inheritors, the state becomes his legal inheritor, and by the same logic, the state is the legal caretaker of such a person. It is narrated that the Prophet (PBUH) had said, “I inherit whoever has no legal inheritors.” It is established in the Shari’ah that when the Prophet refers to himself in a legal manner, it is taken that he is actually referring to the state.

To understand the principle of reverse inheritance caretaking, let’s look at some examples. A married woman, for example, is to be supported by her husband, as indicated in the Quran and the Sunnah. In Surah Al-Talaq (chapter 65, verse 6) it says, “Provide them (wives) with the same housing as you provide for yourselves.” It continues to say in verse 7, “Let the rich man spend (on his wife) according to his means; and the man whose resources are restricted, let him spend according to what Allâh has given him.” Prophet Mohammad also said, “Their right (wives) upon you is to provide them with good housing and clothing,” emphasizing the basic needs of woman as an individual in the society. The basic needs of each woman, whether rich or poor, are guaranteed by either by the husband (if married), the father, the sons, or the brothers. Note that the husband, the sons, the father, and the brothers are legal inheritors of a woman. If none of these parties are able to provide for the basic needs, the support is escalated to the state. The state uses one of several funds, as explained later on, to provide for the basic needs of a woman whose immediate relatives are either absent or unable to provide the necessary support.

The Zakah (Obligatory Charity) is one of the main pillars of Islam. It is narrated that Prophet Mohammad (PBUH) had said, “Islam is constructed upon five”;151 one of the five pillars is the Zakah. The Zakah is a particular and well-defined portion of wealth deducted out of the wealth of rich individuals and devoted to the poor ones. It is narrated that Prophet Mohammad (PBUH) had told his companion Muath Bin Jabal when he sent him in a mission to Yemen to inform the new Muslims that one of their duties is to deduct a Zakah from the wealth of the rich ones and give it to the poor ones.152 To guarantee the proper functionality of the Zakah, Islam made this form of charity as one of the main forms of worship carried out by a Muslim; it is frequently cited along with the prayer in the Quran. Furthermore, Islam mandated the state to be in charge of collecting the Zakah funds and distributing the funds according to preestablished rules of distribution. The Quran designated eight categories of people who are entitled to receive the Zakah charity.

In Surah Al-Tawbah (chapter 9, verse 60), the Quran says, “As-Sadaqât (here it means Zakah) are only for the Fuqarâ’ (poor), and Al-Masâkin (the very poor) and those employed to collect (the funds), and to attract the hearts of those who have been inclined (towards Islâm); and to free the captives, and for those in debt, and for Allâh’s Cause (i.e. for Mujâhidûn—those fighting in a holy battle), and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allâh. And Allâh is All-Knower, All-Wise.” Five of the eight categories are devoted to the satisfaction of the basic needs of people who may have a problem taking care of their own needs.

The poor (Fuqara) category covers a segment of the population who do have income but due to extreme conditions, their income is not sufficient to cover the basic expenses of lodging, shelter, health, clothing, and food. This category of people is eligible for Zakah funds. The second category is the very poor (Miskeen), covers a group of people who are deprived of any source of income and lack the basic needs of life. Typically, this group covers orphanage, disabled people, older people with no living or able sons, war victims, victims of natural disasters such as hurricanes, earthquakes, tsunami, and the like. These people are eligible to receive Zakah funds. The category of captives includes any captive individual whose freedom requires the payment of ransom or compensation. In the past, this category included the slaves whose masters demanded money in exchange of their freedom. Allowing the Zakah funds to be used for this category, Islam recognized that freedom is a basic need for humans which must be guaranteed and satisfied. Today, the captive category includes prisoners of war and victims of piracy.

The category of people who are “in debt” covers those who experience certain hardships which force them to carry debts beyond their capacity to satisfy the demands of their creditors. For example, if a person is involved in an accident which results in the death or injury of another person, then a ransom has to be paid to the survivors and legal inheritors of the deceased. If the ransom is beyond the capacity of the person causing the accident, then the Zakah funds may be used to compensate for the deficiency. Financial crisis, natural disasters, economic downturns, accidents, health conditions, education expenses, and other reasons may bring a person huge debts beyond his normal capacity to pay for the debts. Islam recognized this category of “indebted” people and allowed them to receive Zakah funds to pull them out of debt.

No human needs should remain unsatisfied. This is a basic principle which Islam honours. This is clearly stated in the Quran in Surah Al-Israa (chapter 17, verse 70). “And indeed We have honored the Children of Adam, and We have carried them on land and sea, and have provided them with At-Tayyibât (lawful good things), and have preferred them above many of those whom We have created with a marked preferment.” In order to guarantee the satisfaction of the basic needs, Islam added one more level of support in case the first two levels fail to cover the needs of some people. Natural disasters, wars, and hard economic conditions can easily leave many individuals without the proper support of their immediate relatives and can easily dry out the funds of Zakah due to revenue depletion of the rich and wealthy. The third level of support provided by the Islamic economic system is the public and state property, which was discussed in section 4.2.

The revenue of the public property is administered by the state. Public property is equally owned by all citizens, rich and poor alike. Therefore, the proceeds of this type of property are used to finance projects of common interest for all the population. Examples of such project include health, education, roads, bridges, railroads, communication infrastructure, utilities and the like. Hence, the public property revenues contribute towards the satisfaction of health and education basic needs for all citizens of the society, rich and poor alike.

The public property revenue is also used to support the basic needs of poor individuals in the society. This is derived from the fact that the Muslim society at large is responsible for each and every poor individual. Prophet Mohammad (PBUH) declared that a community which leaves one of its members hungry is in direct violation of rules of Islam and warrants a severe punishment from Allah. The scope of the community can be extended to include the entire society. Thus it is an obligation upon the whole society to make sure that the basic needs of each individual are satisfied. It is also narrated that Prophet Mohammad (PBUH) had said, “If a deceased person leave wealth, then that wealth goes to his survivors. If he leaves survivors without leaving them wealth, then I will be responsible for them.”. This establishes the rule that the state will be in charge of those who do not have any family support. The state will first use the funds of Zakah in its capacity as administrator of the Zakah. If the Zakah fund is not sufficient to take care of the needs of all those who need the support, the state will use the funds of the public and state property.

Whether the public property revenues are first spent on the needs of the society or on the needs of poor individuals is a debatable issue among scholars. The guiding principle, however, is the urgency of the need. The state as an administrator of the public property revenue is responsible for spending the revenues and prioritizing the projects. In all cases, the basic needs of hunger, shelter, and clothing come first. If the Zakah funds and the wealth of wealthy individuals are not sufficient to provide for these needs, the revenues of the public property are used immediately to compensate for the deficit. It is only when the security of the entire society is at risk when the caliph of the state may give precedence to national security over individual basic needs. It is narrated that Caliph Omar Bin Al-Khattab (the second caliph in Islam) used the revenue of the state-owned and publicly owned land to provide food for all during famine which hit part of the Islamic state in the seventeenth AH year.

On top of the basic needs, humans naturally strive for the achievement of more and beyond the basic needs. Islam recognized the fact that people may develop this love and eagerness for more wealth and luxurious life. In Surah Al-Imran (chapter 3, verse 14), the Quran says, “Beautified for men is the love of things they covet; women, children, much of gold and silver (wealth), branded beautiful horses, cattle and well-tilled land. This is the pleasure of the present world’s life; but Allah has the excellent return (Paradise with flowing rivers) with Him.” It is narrated that Prophet Mohammad (PBUH) had said, “Allah likes to see the favors he bestowed upon his servants.” Islam did not restrict the individuals from seeking the expansion of their wealth in order to attain a better life. For this purpose, Islam legalized and permitted the private property ownerships. It also permitted different means of growing private wealth, while restricting some other means such as usury investment, the sale of drugs and alcohol, prostitution, and sex trade.

Islam did not establish any upper limit on the amount of wealth, which can be earned by any individual. In some narrations, the Prophet said if some person had the equivalent of a mountain of gold, in reference to extra large amount of wealth. The only limits imposed by Islam are related to the means of acquiring or growing wealth. The Quran explicitly permitted trade as a means of growing wealth. Other rules in Islam defined the rules of trade and the boundaries of what constitutes a legal or illegal trade. But within the boundaries of legal trade, an individual can grow his wealth as much as he could. It is reported that Othman Bin Affan, the companion of the Prophet and the third khalifah, managed a caravan trade which amounted to thousands of camels’ worth of goods.

Although Islam allowed individuals to grow their wealth and enjoy the outcome of that wealth, it continued to emphasize that the joys attained in this life are negligible in comparison to the endless joys of the life after death. This comparison between the luxuries of this life and the ones to be attained in paradise is repeated time and again in the Quran. The idea is to protect the personality of individuals from the negative and destructive traits such as greed, haughtiness, selfishness, and repression. The reference to the haughty rich Qarun in the Quran is a good example, where the request is made to Qarun saying, “Use the wealth given to you by Allah to seek the pleasure of the hereafter, while not forgetting to enjoy your current life.”157 Prophet Mohammad (PBUH) is reported to have said, “Allah likes the humble rich man.” Throughout the history of the Islamic state and civilization, the signs of wealth and luxury are visible through the marvels of architecture, cities, libraries, schools, medicine, road infrastructure, navy fleets, and much more. The cities of Baghdad, Damascus, Samarqand, Alhambra, Andalusia, and Istanbul provide a living evidence of the luxuries attained by Muslims under the Islamic civilization. In the meantime, the absence of poverty and hunger was remarkably recorded by historians of both Islamic and non-Islamic orientation. Throughout the vast Islamic lands, Muslims established rest areas where travelers can lodge and eat for free during their journeys.