THE ISLAMIC ECONOMIC MODEL

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Islam also prevents the government from taking property through the imposition of taxes, except in certain cases where it is obligatory upon all Muslims to care for, e.g. jihad or famine. Tax then is taken only on the person’s wealth, which exceeds what an individual normally uses for the basic needs and luxuries. In this way, it achieves the right of livelihood for everyone individually, and at the same time it facilitates the securing of the luxuries. The system also sets certain limits within which the individual can earn in order to satisfy his/her basic needs and luxuries, and organizes his relationships with others according to a particular fashion. So Islam prohibits the production and consumption of alcohol 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 in the Islamic state. It does not consider interest as an economic commodity, whether for Muslims or non-Muslims as interest will lead to inflation that cripples the economy. Allah (swt) says: “…Allah has permitted trade and has forbidden riba.” [The Holy Qur’an, Al-Omran 275] Allah (swt) also declares war only on those who deal in Riba: “O you who believe, fear Allah and give up what remains of your demand for riba, if you are indeed believers. If you do it not, take notice of war from Allah and His Messenger.”[The Holy Qur’an, Al-Omran 278:279] The Islamic system does not interfere in the production of wealth or the amount of production; rather it only encourages working and earning of property. Many Ahadeeth encourage the earning of property. The Prophet Muhammad (saw) shook the hand of Sa'ad ibn Muadh (ra) and found his hands to be rough. When the Prophet (saw) aske... ... middle of paper ... ... even as Allah has been kind to you, and seek not corruption in the earth." [The Holy Qur’an, Al-Qasas 28 :77] The Islamic Economic system brings all productive resources into use, including man-power, land, water resources and all naturally occurring substances such as minerals and metals. In this model, steps must be taken to root out corruption and all harmful practices even if they are economically lucrative. Islam encourages modesty, charity, mutual help and consideration toward society. It discourages selfishness, extravagance, greed and unnecessary waste. According to the Islamic economic system the Islamic state would be self-sufficient in the attainment of technologies and will not lend or borrow on interest because it aims to liberate people and uplift their material conditions and not to further annihilate them by crippling interest based loans.

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