Economic Policies of Uthman

Economic resources of the State

In the time of Uthman the economic resources of the State were: Zakat, Ushr, Khara;, Jazya, Fay and Ghanimah. Zakat- was a 21/z per cent levy on capital assets. Uthman levied the Zakat on some of the items which had escaped taxation previously. Ushr was a ten per cent levy on agricultural land as well as merchandise imported from abroad. Kharaj was a levy on land in conquered territories. The rate of Kharaj was higher than the Ushr. Jizya was a poll tax levied on non-Muslims. Fay was the income from State land. Ghanimah was the booty captured on the occasion of war with the enemy. Four-fifth of the booty was distributed among the soldiers taking part in the war while one-fifth was credited to the State fund. During the time of Uthman the income of the State increased considerably. When 'Amr b Al 'Aas was the Governor of Egypt the complaint against him was that the receipts from Egypt were low. He said that the she-camel could not give more milk. When Abdullah bin Sa'ad was appointed as the Governor, the revenues of the province increased. When confronted with this situation 'Amr b Al 'Aas said, "Yes, the she-camel has given more milk, but its young ones have been starved." This shows that under Uthman the revenues of the State increased. The view of 'Amr b Al 'Aas that the young one of the she - camel had been starved was merely an apologetic way of justifying his own administration.

Stipends of the people

Umar had fixed the stipends of the people. On assuming office, Uthman increased these stipends by 25 per cent. That was an economic measure which contributed to the prosperity of the people. Writers like Taha Hussain have taken the view that there was no justification for an increase in the stipends so soon after the death of Umar. It is very strange that the critics of Uthman blame him for regarding the public funds as the property of Allah and not that of the people, and not distributing all the funds among the people, and on the other hand they criticize Uthman for raising the stipends. This view is uncharitable. Taha Hussain has dropped the hint that this was the means of political publicity to secure popularity. This view is obviously biased. An unbiased writer cannot help but admire the beneficent measure of Uthman which Promoted the material prosperity of the people.

Land administration

Under Umar it had been laid down as a policy that the lands in conquered territories were not to be distributed among the combatants, but were to remain the property of the previous owners. The army felt dissatisfied at this decision, but Umar suppressed the opposition with a strong hand. Uthman followed the policy devised by Umar. In the time of Uthman there were more conquests, and the revenues from land increased considerably. In the time of Uthman the army once again raised the demand for the distribution of the lands in conquered territories among the fighting soldiers. Uthman turned down the demand. The army could not agitate openly against Uthman, but in the vilification campaign that was carried against Uthman, the rebels had the indirect support of the army.

Economic restraints

Umar had placed restraints on the economic activities of the people. H-e had placed restrictions on the trading activities of the Quraish. Umar had placed a ban on the sale of lands in conquered territories. He had also placed a ban on the movements of the Companions and did not permit them to leave Madina. Uthman was a shrewd businessman and trader. He knew that trade could not flourish under restraints. He was a democrat by temperament, and he therefore withdrew the restrictions that had been imposed by Umar with regard to the sale of land or the movements of the people. Uthman also permitted the eminent Companions to draw loans from the public treasury. The economic reforms introduced by Uthman had a far reaching effect. The Quraish, shrewd businessmen as they were, took full advantage of the liberal policies of Uthman, and as a consequence their business flourished and they amassed a good deal of fortune. With this wealth they purchased lands in the conquered territories particularly Sawad in Iraq. In the time of Uthman, they did not merely enjoy dominance in political power, they came to enjoy monopoly in economic power as well. When the Companions were allowed the right of free movement and they were allowed the facility of drawing loans from the public treasury, most of the Companions purchased lands in conquered areas. Some of the Companions became the owners of large estates. The policy of Umar was that whatever the Companions had gained during the time of the Holy Prophet was enough for them and that they should live henceforward a retired life, "hereunder neither the world should see them, nor they should see the world. Uthman had a different view about the role of the Companions. He was of the view that the services of the Companions, the founding fathers of Islam, should be recognized, and facilities should be provided to them so that they might live in comfort in their old age. During the time of Uthman because of the economic measures of Uthman most of the Companions grew very rich. Brisk building activity took place in Madina. Many palatial buildings grew up in the city, and the city expanded a good deal. The economic policies of Uthman though conceived in public interest had serious political repercussions. Economic power came to be concentrated in the hands of a small group. That led to a gulf between the haves and the havenots. Most of the troubles that Uthman had to face were directly or indirectly due to the economic measures of Uthman which led to the creation of a class which monopolized economic power. This led to some imbalance in Islamic society committed to an egalitarian order. We cannot blame Uthman for these economic measures. His policies aimed at the economic development of the country, and no person can be blamed for promoting economic prosperity. Difficulties arose because some of the persons grew rich overnight, and no institutions were devised to regulate the proper flow of wealth. That provided an opportunity to some of the Muslims like Abu Dhar Ghaffari who stood for an austere way of life to criticize Uthman and his administration. If all these facts are assessed objectively the conclusion that emerges is that Uthman was in advance of his age, and he devised measures for which instead of being praised and admired he was criticized and even maligned.