Economic Hardship: Islam is the Answer
Allah (swt) says:
وَٱبۡتَغِ فِيمَآ ءَاتَٮٰكَ ٱللَّهُ ٱلدَّارَ ٱلۡأَخِرَةَۖ وَلَا تَنسَ نَصِيبَكَ مِنَ ٱلدُّنۡيَاۖ وَأَحۡسِن ڪَمَآ أَحۡسَنَ ٱللَّهُ إِلَيۡكَۖ وَلَا تَبۡغِ ٱلۡفَسَادَ فِى ٱلۡأَرۡضِۖ إِنَّ ٱللَّهَ لَا يُحِبُّ ٱلۡمُفۡسِدِينَ«»
“But seek, through that which Allah has given you, the home of the Hereafter; and [yet], do not forget your share of the world. And do good as Allah has done good to you. And desire not corruption in the land. Indeed, Allah does not like corrupters.” [28. Al-Qasas: 77]
In addition, the Prophet warned us on how we possess and spend wealth:
«لاَ تَزُولُ قَدَمَا ابْنِ آدَمَ يَوْمَ الْقِيَامَةِ مِنْ عِنْدِ رَبِّهِ حَتَّى يُسْأَلَ عَنْ خَمْسٍ عَنْ عُمْرِهِ فِيمَا أَفْنَاهُ وَعَنْ شَبَابِهِ فِيمَا أَبْلاَهُ وَمَالِهِ مِنْ أَيْنَ اكْتَسَبَهُ وَفِيمَ أَنْفَقَهُ وَمَاذَا عَمِلَ فِيمَا عَلِمَ»
““The feet of the son of Adam shall not move from before his Lord on the Day of Judgement, until he is asked about five things: about his life and what he did with it, about his youth and what he wore it out in, about his wealth and how he earned it and spent it upon, and what he did with what he knew.” [Tirmidhi]
Humanity inherited earthly wealth from Allah (swt) since He is the Creator of the universe, man and life. Therefore, to be successful in possessing and spending wealth it must be in accordance to the guidance of the Creator. Contrary to that catastrophes and immeasurable corruption will be witnessed as it is now across the world. Today the world is ruled by the secular capitalist ideology. An ideology that emanated from the minds of humankind. The capitalist economic system recognize the economic problem is scarcity of resources. Thus, the capitalist economic system means to address man’s needs and the means of their satisfaction according to the secular capitalist ideology. Based on that the capitalist economic system exists to put in place plans and reinvigorate them in order to solve the problem of scarcity of resources. While the needs are considered based on the unlimited freedom as per the social liberal system!
Capitalist economic system exists to rob people their wealth via taxation that is shrouded in numerous names. Furthermore, via usurious loans that compounds poverty and hardship on peoples’ lives. Countries especially those from third world take interest loans with stringent conditions and which bring severe harm to their citizens. The said conditions are as a result of being forced by financial institutions such as World Bank (WB) and International Monetary Fund (IMF). These institutions liaise with central banks from the respective countries in putting nooses and tightening them on citizens’ necks. This leads to raising taxes on goods and services, taxing goods and services that were initial not being taxed, terminating some or all subsidies, increased payment of interests by depending on dollar ($) currency in making payments etc. Consequently, cost of living upsurges and majority citizens’ purchasing power continue to decline very fast. On the other hand, economic growth is evaluated based on the profits and losses made by companies and not on citizens’ capability to meet their needs!
The Islamic ideology emanates from the Creator of creations, Allah (swt). Its economic system recognizes that the economic problem is distribution of resources. Hence, the Islamic economic system means how to distribute wealth, how to possess it and spend it as per the Islamic ideology. Based on that the Islamic economic system exists to implement the Shari’ah (Qur’an na Sunnah) including putting in place plans and bolstering them in order to address the problem of distribution of resources. Additionally, the Islamic economic system guarantees individuals their satisfaction of basic needs that include food, clothing and shelter and also social needs that comprise provision of education, security and healthcare. By resuming the Islamic way of life via reestablishing the Islamic state of Khilafah (Caliphate) on the method of Prophethood is the only way to implement the Islamic economic system. Revenues and expenditures are clearly defined by the Shari’ah and do not include taxing the citizens nor taking interest loans for purposes of managing peoples’ lives or running the government. Taxation and interest loans are prohibited in Islam.
The economic hardship being witnessed across the world today its solution is for people to reestablish the Khilafah on the method of Prophethood. By doing that we shall achieve genuine economic prosperity and development.
Ali Nassoro Ali
Member of the Central Media Office of Hizb ut Tahrir