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The economic life of Islam

THE SPIRIT OF ISLAM

The economic life of Islam is also based upon solid foundations and Divine instructions. Earning one’s living through decent labor is not only a duty but a great virtue as well. Dependence of any able effortless person on somebody else for a livelihood is a religious sin, a social stigma and disgraceful humility. A Muslim is enjoined by God to be self-supporting and to stay away from being a liability on anybody. Islam respects all kinds of work for earning one’s livelihood so long as there is no indecency or wrong involved. With a clear conscience and due respect from society the Muslim can roll up his sleeves and undertake any kind of work available to provide for himself and his dependents. The Holy Prophet (PBUH) is reported as having said that it is far better for one even to take his rope, cut wood, pile it up and sell it in order to eat and give charity than to beg others whether they give him or not. According to Islam, the status of honest working men cannot be lowered on account of the kind of work they are doing for a living. Yet the laboring workers have no limited scope for improving their lots and raising their standards as high as possible. They have equal opportunities at their disposal and enjoy freedom of enterprise.

The economic system of Islam is not drawn in the light of arithmetical calculations and capacities of production alone. Rather, it is drawn and conceived in the light of a comprehensive system of morals and principles. The person who is working for another person or for a firm or an institution is ordained by God to do his work with efficiency and honesty. The Holy Prophet (PBUH) said that if any of you undertakes to do any work, God loves to see him do it well and with efficiency. Once the work is done, the worker is entitled to a fair wage for his services. Failure by the employer to pay the just wage, or attempts to cut it down and waver on it is a punishable act, according to the Law of God. Business transactions enjoy a great deal of attention from Islam. Honest trade is permitted and blessed by God. This may be carried out through individuals, companies, agencies and the like. But all business deals should be concluded with frankness and honesty. Cheating, biding defects of merchandise from the dealers, exploiting the needs of customers, monopoly of stocks to force one’s own prices are all sinful acts and punishable by the Islamic Law. If one is to make a decent living, it has to be made through honest ways and hard endeavor. Otherwise, easy come, easy go, and it is not only that, but anybody that is bred with unlawful provisions will be, according to the Holy Prophet (PBUH), a burning fuel to the Hell Fire on the Day of Judgment. To combat cheating and exploitation, Islam demands honesty in business, warns the cheaters, encourages decent work and forbids usury or the taking of interest just in return for lending money to the needy.

This is to show man that he rightfully owns only what he works for, and that exploitation of other people’s pressing needs is irreligious, inhuman and immoral. In the Qur’an God says: Those who devour usury will not stand except as stands one whom the Evil One by his touch has driven to madness. That is because they say: ‘trade is like usury’. But God has permitted trade and forbidden usury. Those who, after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge). But those who repeat (the offense) are Companions of the Fire; they will abide therein (for ever). God will deprive usury of all blessing, but will give increase for deeds of charity; for He loves not creatures ungrateful and wicked (2:274-276). And the Firmament has He raised high, and He has set up the Balance (of Justice) in order that you may not transgress (due) balance. So establish weight with justice and fall not short in the balance (55:7-9). This is to guide man to resort to justice and straightforwardness in all his dealings and transactions. The future of cheaters is grim and their doom is awful. Here is how the Qur’an looks into the matter: Woe to those who deal in fraud, those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men give less than due. Do they not think that they will be called to account on a Mighty Day, a Day when (all) mankind will stand before the Lord of the Worlds (83:1-6)?

Besides that, there are numerous Traditions of the Holy Prophet (PBUH) excluding the cheaters, exploiters, monopolizers and dishonest business people from the band of the true Muslims. Any business deal that involves injustice or cheating or exploitation is strictly inhibited and cancelable by the Law even after it is concluded. The main purpose of the Islamic legislation’s on economics and commerce is to secure the rights of the individual and maintain the solidarity of society, to introduce high morality to the world of business and enforce the Law of God in that sphere of enterprise. It is logical and consistent that Islam should be concerned with such aspects as these, because it is not merely a spiritual formula but a complete system of life in all its walks. Proprietors are constantly reminded of the fact that they are in reality mere agents appointed by God to administer their holdings. There is nothing in Islam to stop the Muslim from attaining wealth and endeavoring for material improvements through lawful means and decent channels. Yet the fact remains that man comes to this world empty-handed and departs from it likewise. The actual and real owner of things is God alone of Whom any proprietor is simply an appointed agent, a mere trustee. This is not only a fact of life but also has a significant bearing on human behavior. It makes the proprietor always ready to spend in the way of God and to contribute to worthy causes. It makes him responsive to the needs of his society and gives him an important role to play, a sacred mission to fulfill. It saves him from the pit of selfishness, greed and injustice. This is the true conception of property in Islam, and that is the actual status of proprietors. The Qur’an considers possession of wealth a trying test, and not a token of virtuous excellence or privileged nobility or a means of exploitation. God says:

Although man is encouraged to work, is free to enterprise, is entitled to earn and possess, the fact that he is a mere trustee provides the necessary measure to insure proper handling of his possessions, his trusts. He has authority to earn, to invest and to spend. Yet in so doing he is guided by high principles to save him from going astray. An example may be sufficient to illustrate the point. Proprietors are not unreservedly free to spend their money or handle their properties the way they please. There are certain rules of expenditure to be followed. In the words of the Qur’an, God enjoins upon the proprietor to fulfill his financial obligations towards his fellow men, and to be moderate in his private spending. He is always reminded of the fact that God is the Real Provider and Actual Possessor. Here is the declaration of the Qur’an:

And render to the kindred their due rights, as (also) to those in want, and to the wayfarer. But squander not (your wealth) in the manner of a spendthrift. Verily, spendthrifts are brothers of the Evil Ones, and the Evil One is to his Lord (Himself) ungrateful. Make not your hand tied (like a niggard’s) to your neck, nor stretch it north to its utmost reach (like a foolish spendthrift); lest you become rebuked and destitute. Verily your Lord does provide sustenance in abundance for whom He pleases, and He provides in a just measure. For He does know and regard all His servants (1 7:26-27, 29-30).

Atif Noor Khan

Islam and democracy can co-exist: Indonesia

Indonesia’s Foreign Affairs Minister Raden Muliana Natalegawa has said that Indonesia has moved from being an authoritarian state to one of the world’s largest democracies, proving that Islam and democracy can co-exist.

At the 10th meeting of the Community of Democracies, held in southern Poland, Natalegawa said his country represents the embodiment that democracy, Islam and modernity can go hand in hand. More than 10-year after the fall of the Suharto dictatorship, Indonesia has transformed into the world’s third largest democracy and is today proof that democracy and Islam can go hand in hand,” he said.

US Secretary of State Hillary Clinton also attended the global meeting on democracy. Although Indonesia launched the Bali Democracy Forum about two years ago, to promote cooperation in the field of democracy and political development among Asian countries, the vast archipelago was attending the global Community of Democracies meeting for the first time.

The island nation has had four presidents since Suharto resigned as leader in May 1998 amid mass street protests and the Asian financial crisis, but only current leader Susilo Bambang Yudhoyono was directly elected. The economy is among the largest in Southeast Asia, and with China and India, Indonesia was one of just three G20 members to post economic growth at the height of the global economic crisis in 2009.

But critics say human rights abuses and corruption remain rampant in the post-Suharto era. Suharto died two years ago without facing justice over billions of dollars he allegedly stole from government coffers, while victims of the many human rights abuses under his rule are still seeking recognition. Some 80 percent of the population of some 243 million Indonesians are Muslim and around one in five Indonesians lived below the poverty line in 2006.

Iran and Pakistan sign gas export agreement

Iran and Pakistan formally signed yesterday an export deal which commits the Islamic republic to supplying its eastern neighbour with natural gas from 2014.

The contract is the latest step in completing a multi-billion dollar gas pipeline between Iran and Pakistan within the next four years.

“This is a happy day,” Iran’s Deputy Oil Minister Javad Ouji told reporters at the contract signing ceremony in Tehran. “After decades of negotiations, we are witnessing today the execution of the agreement… to export more than 21 million cubic metres of natural gas daily from 2014 to Pakistan,” he added.

He said that from today, Iran will start building the next 300-kilometre leg of the pipeline from the southeastern city of Iranshahr to the Pakistani border, through the Iranian port of Chabahar.

Iran has already constructed 907km of the pipeline between Asalooyeh, in southern Iran, and Iranshahr, which will carry natural gas from Iran’s giant South Pars field. Pakistan’s Deputy Energy Minister Kamran Lashari, who was present at the signing ceremony, said Islamabad will conduct a one-year feasibility study for building its section of the pipeline.

It will then “take three years for constructing the 700km pipeline” from the Iranian border to the Pakistani city of Nawabshah, he added. The pipeline was originally planned between Iran, Pakistan and India, but the latter pulled out of the project last year. Pakistan plans to use the gas for its power sector.