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Equality in society
Equality in society
Essay in Islamic economics
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2. The justice and brotherhood of man; Islam aims to form a society in a 'solid-form'. Each individual is bounded by the brotherhood and affection as a family. In the Islamic context, justice can be referred to: a. The social justice. Islam regards each mankind is equal in front of Allah. b. the economic justice. The equality of human beings in society as well as the equality before the law which must be balanced with economic justice. Without economic justice, social justice will be pointless.
3. The justice of income distribution: the income inequality and the natural resources which is contrary to the spirit and commitment of Islam on brotherhood man and socio-economic justice. The income gap should be overcome in Islamic way, such as
The individual freedom in social welfare context: the fundamental of Muslim faith is ‘mankind is created by Allah’. It implies that since human was born, he has a freedom. Therefore, nor individual or state do not have rights to revoke human’s independence and making human’s life bonded.
In implementing Islamic economic activity, there are several legal principles that must be followed:
1. Freedom on effort
Almighty Allah SWT has given the guidance in order human beings utilize the gift from Allah which is the earth and everything in it. Allah SWT says:
“He is the one who hath made the earth subservient unto you, so walk in the paths thereof and eat of His providence.” (Q.S. 26 : 15)
Islam does not restrict an individual to try varieties of effort/business based on their abilities, proficiency, and skills such as agriculture, fisheries, plantation, trade, etc. to obtain his own property/wealth. Islam views property which is got from an individual's effort or work as a commendable wealth. This statement was mentioned by Prophet Muhammad SAW when he was being asked about the best job of human being. Then, He answered that what best is the effort from their own hands and all the Mabrur trading (the most lawful and the most memorable) (H.R. Ahmad, Thabrani dan Ibnu Umar); (Sayid Sabiq ; Fiqhi
The prohibition of Riba’ (Usury)
Riba in Arabic word 'Az-Ziadah', literally means increment, addition, or excess while in Islamic Fiqh the term Riba is an unjustified increment of fund in trading or business, (either an excessive addition or lower addition).
The prohibition of Riba in Quran through three stages:
a. The first stage on Riba was revealed in Mecca period. Allah says:
“And whatever you give for interest to increase within the wealth of people will not increase with Allah. But what you give in zakah, desiring the countenance of Allah - those are the multipliers“ (Q.S.30:39)
b. The second stage on Riba was revealed in Madinah. Allah warns Muslims from dealing with Riba clearly by saying:
“O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful.”(Q.S. 3:130)
c. In the last stage, Prohibition of Riba is completely clear and firm. Allah SWT says:
“O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged. And if someone [debtor] is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.” (Q.S.2:
...se to God for all of creation that He has put before us as consumers and caretakers. It is the Lord that created the earth for us all to live in while we are in physical form. It is His commission that as churches we obey Him and His commission to the faithful stewards of the earth and each other. He is expressed in every daylight and sunset; every creature, mountain, ocean, and plant. His divine power is expressed in every storm, earthquake, flood, or tornado. Through His power is a commission for mankind to respect all forms of life, human as well as nature.
...s to raw materials. For example, a person might want to be a farmer. In order to do this in the original state of nature, he would need to acquire land, animals, and materials to build his farm. He would then only be able to produce as much as he could use and as would not infringe upon the ability to produce or acquire necessary property by others. However, with the introduction of money, even if he could not buy the land for his own farm, he could seek other economic endeavors that would be just as personally beneficial. Instead of owning his own small farm, he could work in a grocery store and obtain the same amount of relative personal property via his earned wages, and these could be used to purchase all of his necessities. Higher levels of industry encouraged by the use of money reduce the risk that individuals cannot meet the opportunities they are seeking,
Islam gave the rights to inherent, to enjoy dowry from the bridegroom, to choose husband and it forbade the female infanticide and overall mistreatment of women. Islam paved the way for women to achieve their goals in their lives rather than being suppressed by the male dominance.
Islam is a religion that is based on the submission oneself to the will of God, who is called Allah. Muslims are the people believe in that, regardless of their culture, background or ethnicity. It is believed that God’s prophets brought a message for the people to worship one God without intermediaries and that prophet Muhammad was the end of G...
...the poor feelings of hatred and animosity that they might have for the rich. Thus, to achieve this goal, zakat fund must be fully utilized to develop the economy of the Muslims so that the wealth of zakat could be regarded as productive assets.
God has ultimate rule over the earth and He exercises His authority with loving care. When God delegated some of His authority to the human race, He expected people to take responsibility for the environment and the other creatures that share the planet. People must not be careless and wasteful as we fulfill this charge. God was careful how He made this earth and humans must not be careless about how we take care of it. God saw that all He had created was excellent in every way. People need to realize that they are part of God’s creation, and He is pleased with how He made us. Humans are valuable to God because He made us for a good reason.
They must not invest in anything that goes against Islam, must not waste their money unnecessarily, and must not gamble their earnings away. As the Quran states: Satan’s plan is (but) to excite enmity and hatred between you, with intoxicants and gambling, and hinder you from the remembrance of Allah, and from prayer: will ye not then abstain? To conclude, Muslims must be grateful for the wealth they receive as they realise that everything they have is all from Allah. Everyone is born equal in the eyes of Allah and born ‘naked’ and will leave in this state. They must not be greedy for wealth or miserly as their wealth belongs to Allah.
Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance is to be assets based as oppose to the currency based whereby investment structured on exchange or ownership of assets, and money is simply mechanism for transaction process. It would based on two sources which are Al-Quran and As-Sunnah.
Muslims acquire their moral principles from the lessons of the Quran and the Sunnah. The goals of Islam are not simply a money-oriented, but instead the socio-economic justice, which demands a just fulfilment of both the tangible and inner needs of all human beings (Chapra, cited in Rice, 1999).
It is unanimously agreed that riba means increase or growth (chapter 2). This kind of increase is divided into two types: the first is an increase in money from the money itself. This occurs when the owner of the money raises the rate of the debtor’s debt due to a delay in payment (REFRENC). This type is called riba al-naseia or riba alQuran. This type has many verses which confirm its prohibition, not only in Islam but also in Judaism (chapter 2, p. 36).
With 1.5 billion followers worldwide, the religion of Islam is the second most popular religion over the entire globe, and follows a strict set of rules derived from the teachings of the Prophet Muhammad, a messenger of God, or Allah. Founded in 622 C.E. (also known as A.D.) in Mecca, Saudi Arabia, Islam is a strictly monotheistic religion that drew inspiration from earlier religions like Christianity and Judaism. It is divided into three different sections- the Sunni, Shi’a and Sufi sects. The Qur’an is the holy book of Islam, and is considered the unaltered word of Allah. All followers of Islam adhere to many high standards of living and daily practices meant to better their lives like The Twelve Imams, among others. Islam brings together many different aspects of peaceful and devoted living that bring together the billions of followers to one family.
First of all, let us outline how Islamic banks actually work and what their main differences are in comparison with conventional banks. In this banking system, banks are operated by Islamic laws (known as Sharia), so Islamic economic principles are considered as primary guidance. Two basic doctrines behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest . Hence unlike conventional commercial banks, Islamic banks do not pay or charge interest on lending or borrowing of money. This is because the Sharia’s strictly prohibits, among other things, the receipt and payment of riba (interest) /. The interpretations to clarify the meaning behind this restriction suggests that earning or charging extra amount of money from debtor has to be seen something as immoral behavior, because making pressure on your borrower is actually unfair from the view point of Islam. To make it clear, the religion of Islam basically promote the principle of justic...
In the literally meaning Riba is excessive or addition, but in the meaning of Shariah under Islamic Economy is the excessive that is prohibited. Also the word "Riba", in Arabic language, means an "increment' or addition".
In terms of money, I believe that it is important to deliberately plan out the uses for money and to have a large amount go towards savings. I believe that it is right to set aside 10% of one’s income to be an offering to God, pay for necessities, and to save the rest while allowing room for a few purchases for personal entertainment. In Personal Finance, a textbook written by E. Thomas Garman and Raymond Forgue one paragraph reads,
Prohibition of Riba, a term literally meaning “an excess “and interpreted as “any unjustifiable increase of capital whether in loans or sales” is the central tenet of the system. More precisely, any positive, fixed, predetermined rate tied to the maturity and the amount of principal (i.e., guaranteed regardless of the performance of the investment) is considered Riba and is prohibited. The general consensus among Islamic scholars is that Riba covers not only Usury but also the charging of “interest” as widely practiced. This prohibition is based on arguments of social justice, equality, and property rights. Islam encourages the earning of profits but forbids the charging of interest because profits, determined ex post, symbolize successful entrepreneurship and creation of additional wealth whereas interest, determined ex ante, is a cost that is accrued irrespective of the outcome of business operations and may not create wealth if there are business losses. Social justice demands that borrowers and lenders share rewards as well as losses in an equitable fashion and that the process of wealth accumulation and distribution in the economy be fair and representative of true productivity. Under the Sharia, it is not permissible to charge, pay or receive interest. The Sharia does not recognize the time value of money and it is therefore not permissible to make money by lending it. Money must be used to create real economic value and it is only permissible to earn a return from investing money in permissible commercial activities which involve the financier or investor taking some commercial risk. This prohibition is the main driving force behind the development of the modern Islamic finance