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Something that has been receiving front page news
in the past several months is the global economic situation, and
amidst all of this talk, a very interesting phenomenon has become
noticeable: Even though the economy is ''recovering'' (at least,
according to the indicators), the situation of the people seems to
be getting worse. Jobs are being cut, companies are hesitant to
hire, salaries are being slashed, benefits are becoming more
expensive and poorer in quality, the poverty rate is becoming
higher, and the lifestyle of the people is becoming more desperate.
One may ask how such contradictory figures can co-exist. The reality
is that, if one were to view the economy based upon the criterion
adopted by the West, one would conclude that the economy is
recovering and is very strong. The problem lay in the very criterion
by which the West evaluates the economy, and the core of this
problem lay in its inability (or unwillingness) to differentiate
between ''Economic System'' and ''Economic Science.'' While at first
glance, the two may seem very similar, in fact they are very
different. ''Economic science'' deals with increasing production and
output; thus, the areas that are included in economic science
include increasing the efficiency of certain manufacturing
processes, and developing new methods of extracting metals or
purifying oil and gas. The end result is an increase in the gross
amount of wealth that is generated.
On the other hand, ''Economic system,'' deals with how to distribute
this wealth such that the needs of the people are met. Thus, in the
simplest terms possible, ''Economic science'' deals with PRODUCTION OF
WEALTH, and ''Economic system'' deals with DISTRIBUTION OF WEALTH.
Because Economic Science is a science, then it is universal and does
not depend upon one's outlook on life or viewpoint towards the human
being. Increasing the amount of wealth generated will depend upon
factors such as technology and the efficiency of certain processes.
However, since the Economic System deals with addressing the needs
of the human being, then the Economic system is inexorably linked
with one's cultural outlook and viewpoint. How a society addresses
the needs of its people will depend upon how that society defines
the needs of the human being.
Unfortunately, the West has made a habit of mixing between the two,
and as a result, the measure of whether the economy is ''strong'' or
''weak'' is typically tied to the ''Economic Science.'' If the total
output of wealth is high, and companies and businesses are
generating wealth, then this is an indicator of a ''strong'' economy.
However, total output and production of wealth does not say anything
about how that wealth is distributed in the society and how well the
people are faring. This is the job of the ''Economic System,'' but
unfortunately, the ''Economic System'' is either not factored or is
intentionally left out of the picture. Given that this is a
Capitalistic society, and what matters more than anything is wealth
- even more so than the condition and lifestyle of the people - such
a presentation of the economy comes as no surprise. It is only
recently that the media has broken the sad news to the people by
saying in many instances that the ''job market has no relation to the
status of the economy.'' Thus, even though companies are more
productive today than they have ever been, even though the society
is producing a tremendous amount of wealth, and even though the
total output of the society is increasing and the total wealth is
increasing, jobs are still being cut, the lifestyle of people is
still deteriorating, and life in general is becoming harder for more
and more people.
In Islam, the presentation of the economy is altogether different.
Because Islam places the condition and well-being of the people at a
premium, the emphasis is on the distribution of wealth in the
society and addressing the needs of the people. Thus, both the
''Economic System'' and the ''Economic Science'' are important in Islam,
and Islam distinguishes between the two and places more emphasis on
the Economic System. In Islam, the measure of a strong economy is
based on the ''Economic System.'' As a result, the criteria for
evaluating the performance of the economy in Islam is not the total
wealth or the level of production, but rather how the wealth is
distributed, whether that wealth is distributed in such a manner
that the needs of the people are met and there are no gross
inequalities in wealth, and the condition and lifestyle of the
people.
It is important to recognize that any society has the capacity to
produce wealth in the society, but without the correct system, the
wealth will not be distributed in a manner that will be just and
will properly address the needs of human beings. The problem that
exists in the world today is not mal-production but rather
mal-distribution. There is a tremendous amount of wealth being
produced by many societies; hence, according to the Capitalists, the
economy in general is ''strong.'' According to this standard, India
has one of the strongest economies because India generates a
tremendous amount of wealth and products. However, if one were to
travel to the streets of Bombay or Calcutta, then one would get an
altogether different picture. Even though a great deal of wealth is
generated (a ''strong, healthy'' economy based on ''Economic Science''),
the Capitalist Economic System results in a situation where the
wealth in the society is distributed in the wrong way which fails
miserably in addressing the needs of the people in a correct and
just manner. And for this reason (even though the numbers may look
positive) we are witnessing the poverty on the rise, the situation
of the people becoming more desperate, the lifestyle of the people
becoming more gloomier, while at the same time we are witnessing the
wealthy becoming more wealthier and more prosperous.
Therefore, the solution is not just to increase production, because
even though one may increase production and generate more wealth,
without the incorrect system, this wealth will not be distributed
and allocated in the correct manner. What is needed is the correct
economic SYSTEM to ensure that the wealth in the society is
distributed in the correct manner, and this system is the Islamic
Economic System. Because Islam is from Allah the Creator, then the
application of the Islamic Economic System will ensure the correct
distribution of wealth, regardless of how much or how little
production of wealth exists. In fact, Islam does not regard the
production of wealth in the society as an overriding concern because
Allah (swt) created the entire universe for us to utilize. As a
result, this idea gives rise to the basic Islamic concept in
economic thinking that wealth exists in abundance, in contrast to
the Capitalistic notion that wealth is ''scarce.'' Hence, Islam saves
the society from being overly concerned with how much wealth there
exists, and as a result, the focus is shifted towards making sure
that this wealth is properly distributed.
That being said, even if we want to look at it
from a ''real world'' perspective, the Islamic Economic System is far
superior to the Western Capitalistic System. Just to mention a few
points:
The manner in which Islam defines the needs of the human being is
also something worth mentioning. Capitalism made the mistake of
defining all the needs of human beings as the same, and left it up
the human being to satisfy his/her needs from the ''market.'' In
Capitalism, if you can't afford it, you don't get it. However, it is
clear that not all needs are the same; the need for food, clothing,
shelter are not the same as the need for an extra car or a yacht.
This scenario resulted in a situation in Capitalist societies where
you have many people who cannot afford basic necessities such as
food and medicine, and at the same time you have individuals who buy
houses for their pets. The Communists reacted to this setup by
creating an egalitarian society in which all the needs of the people
would be divided equally by the state. However, the Communists also
miscalculated because, while the basic needs of human beings are the
same, luxury needs differ from one individual to the next. Islam
correctly categorized the needs of human beings in such a way that
the Islamic Economic System will ensure that the basic needs (such
as food, clothing, shelter, medicine) of every citizen is met. At
the same time, Islam created the atmosphere whereby the individual
can fulfill his luxury needs to the utmost.
Islam designated a third category of ''prohibited needs'', or goods
and services that the human being may perceive a benefit from but
will actually produce harm to the individual and/or the society,
such as drugs, prostitution, and alcohol. In this manner, Islam
preserves the integrity of the society and maintains the society at
a very high standard of moral excellence. And because this
categorization ultimately depends upon who defines what is good and
bad and who defines what is right and wrong, Islam is unique in this
regard because what is good and bad is defined in Islam by Allah (swt)
the Creator. All other system, by virtue of being man-made, fall
short in this regard.
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