The Accommodation of what is Stable and what is Not

The Doctrine and the System

The economic policy in Islam is divine in its source and positivist in its practice. Thus, it is a stable and developing policy at the same time.

It is a stable policy that cannot be changed in the sense Moslem its economic foundations are found in the Koran and the Sunna. Moslems everywhere submit to it all the time, irrespective of the degree of development of their society. This is what we mean by the expression “the doctrine of Islamic economics”

It is also a developing policy in the sense that its principles can be applied to any situation any time. This explains the different ways these principles are applied in different societies. We shall refer to this characteristic by the expression “the economic system (or systems) in Islam”.

From what has preceded. we can derive the following three basic ideas:
 

1. Islamic Economics is divine in its doctrine and positivist as far as the system and application are concerned.
    
2. The Islamic economic doctrine is valid anytime, anywhere. It is not bound to any specific period.
    
3. The Islamic economic system varies in time and space and, hence, does not present a singular way for its implementation.

1.1. Islamic Economics is Divine in its Doctrine and Positivist in its System

The source of Islamic economics is Allah, the Almighty. This is shown in the basic economic doctrine and principles found in the Koran on the one hand, and in the application of these principles on the other.

1. With respect to the economic doctrine, the Koran states: 

“And eat not up your property among yourselves in vanity” (The Cow 188)

“That it become not a commodity between the rich among you” (The Gathering: 7)

“And bestow upon them of the wealth of Allah which He hath bestowed upon you” (Light 33)
 

“And in their wealth the beggar and the outcast had due shire” (the winnowing winds 19)

“And they ask thee what they ought to spend. Say ‘that which is superfluous” (The Cow 219).
 

The Prophet, Peace be upon Him, has likewise declared:

“How appropriate the right fortune is to the virtuous man” (Imam Ahmed and Attabari). 

“Taken away from the rich and bestowed upon the poor" (Al-Bukhari and Muslim). 

“He who has got more food has to bestow Some on the one who his none who has none "(Muslim). 

“People are associate in three Water. food and fire. And also salt or its value” (Ahmed, Abu Da`oud and Ibn Majah), 

“He who rives a dead land owns it, and no heir has the right to get it back after three years” (Yahya lbn Adam). 

These economic principles and foundations that appear in the Koran and the Sunna are both general and specific. Islam has, therefore, required the use of Ijtihad. i.e. interpretation, in their application at different moments in time and space.

 
2. With respect to the application of Islamic teachings and economic principles. we realize that even if the latter are positivist due to the fact that they are open to interpretation. their source and initiator however is Allah the Almighty. Research in Islamic economics is like any other research in Islam it is applied and not fundamental. The researcher here does not invent or pronounce judgments. but rather discloses and reveals the decision of Allah concerning a given problem in accordance with his belief and thinking. in accordance with Truth which is known only to Allah the Almighty.

 
Here are some examples to make this point clear:

1. The refusal of Khalifa Omar Ibn Al-Khattab to consider conquered lands in Irak and Syria the property of the conqueror alone. but rather public property (Abdel Jawad 1391 A.H.)).
    
2. The opposition of the Prophet's Companion Abu Dur Al-Ghufari to the appropriation by a minority of the wealth of society. and his insistence that a Moslem should not own more than he needs (Sahhar).
    
3. The belief of Imam Malik that one should ransom his captives even if he has to use up all his wealth (Al-Qortobi).
    
4. The belief of Imam Ibn Hazm that land belongs to those who cultivate it. and that it should not be rented in any way, for its produce belongs to those who work on it or those who share it as a spoil. In his own words renting land is not permitted whether it is for cultivating, planting. building or whatever it is for a short or long period, whether it is for money or anything else” (Abu Zahra 1964).
    
5. The verdict of Imam Ibn Hazm and other Ulema that, in case a man dies of hunger in a country, its inhabitants will be considered murderers and will have to pay for their murder (Al-Ghazali 1952:120).
    
6. The verdict of Imam Shatibi that in case the treasury cannot satisfy the needs of the army. the Imam - if just - should levy taxes on the rich till there is enough money. If he does not do that, he loses his power and the homes of the Moslems will then be at the mercy of the infidels. (Shatibi 1332 A.H. : 295).
    
7. The verdict of Imam Ali Al Mu’iz ben Abdeslam when Sultan Kutz solicited the Qadis and Ulema of Egypt for their approval to take money from the people to help him in his Jihad against the Tartars. These Qadis and Ulema reiterated the decision of Imam ben Abdeslam that money could be taken from people only when golden and expensive jewelry was taken from the Emirs first, and when soldiers had nothing more than their weapons and their horses left (Al Wahibi 1979).
    
8. The recommendations of the First Congress of the Moslem Ulema held in Cairo in 1974 under the sponsorship of the Congress of Islamic Research at Al-Azhar : 
    
   1. that rulers must levy taxes on personal wealth so as to enable the realization of what is in the’ public interest; 
       
   2. that rulers in every country must limit private ownership to the degree that guarantees the warding off of moral deterioration, and the realization of the preponderant good. Evaluation of what is in the public interest is in the hand of rulers, but Moslems are required to advise them in case they do not see eye to eye with their decisions (Cf. Proceedings of the First Congress on Islamic Research 1964 : 394, 398).
       
9. The recommendations of the Second Congress of the Moslem Ulema held in Cairo in 1975 under the sponsorship of the Congress of Islamic Research at Al-Azhar : 
    
   1. that interest on loans whether for consumption or production - is Riba, and Riba whether great or small - is forbidden. Lending money with interest is not necessary and is, therefore, prohibited. Borrowing money with interest is also prohibited, except in case of extreme necessity. Every one, of course, is left to determine his own needs; 
       
   2. that banking services such as current accounts, payment of cheques, promissory notes and other similar services that take place between businessmen and banks are permitted. Money paid for such services is not Riba. (Cf. Proceedings of the Second Congress on Islamic Research 1975 401 - 402).
       
10. The recommendations of the First International Congress on Islamic Economics held in Mecca in 1976 under the sponsorship of the Faculty of Economics and Administration at King Abdul Aziz University in Jeddah 
     
    1. that commercial insurance as practiced by professional companies nowadays does not provide the legal form for cooperation and solidarity because it does not include the legal conditions to make it lawful, 
       
    2. that a specialized commission be formed of Ulema and Moslem economists to suggest a form of insurance that is void of Riba and that could contribute to the realization of a much needed legal cooperation. (Cf. Al-Fanjari 1979).

It is true that some legal interpretations do not succeed. To invalidate them, in this case, one should not criticize or abuse those who come up with them. but to fight them back with proofs from the Koran and the Sunna. It is necessary to show their invalidity by legal ways of measure, approval and appreciation. What is to be relied upon here is what the national legislature adopts. This is to be encouraged if right and corrected if wrong. [Note: Obedience is, of course, allowed as long as it is not obedience to carry Out what is unlawful. The Hadith says in this, respect "Every Moslem should listen and obey whether he likes it or not, as long as his obedience is not something unlawful - If not, there should be no listening and no obedience”. Hence, it becomes the right of a Moslem society as well as that of every single Moslem to rebel against any orders that are clearly unlawful.]

The conclusion from what has preceded is that economic policy in Islam is divine in its foundations and positivist in its practice. In other words, Islamic economics is divine from the point of view of the doctrine and positivist from the point of view of practice. Since a doctrine can survive only in practice, Islam has urged its followers to use the sense of interpretation (Ijtihad) and has rewarded this activity whether the person making it succeeds in it or not. In the latter case, one is rewarded for his effort. Islam has gone even further and considered interpretation its second source after the Koran and the Sunna.

 There is no doubt that the worst blow that Moslems themselves ever gave Islam, was to close the door of Ijtihad at the end of the fourth century A.H. Since then, there has been no progress in Islamic studies. The application of Islamic law froze at that time and gave birth to the false pretension that Islamic economics is primitive, not suitable for the 20^th Century and an obstacle to progress. This pretence is due to our neglect of Ijtihad and to that of the application of economic principles that appear in the Koran and the Sunna to what is suitable for a specific time and place.

1.2. The Doctrine of Islamic Economics is not Time-Specific

Islam appeared fourteen centuries ago in a primitive period, an era of slavery and underdevelopment as far as economics is concerned. It goes without saying that the doctrine of economics at the time reflected that period. But Islam, as a divine economic legislation. whose principles go far beyond this primitive era, is valid for all times and all places. Islam established, from the very beginning, true equality and guaranteed the limit of wealth to every citizen. It determined an economic balance among members of society and confirmed the principle of dual ownership (i.e. private. free economics. and the interference of the State in the economy. (Al Fanjari 1981: 94 ff).

None of this was established under material or economic pressure in the Arab peninsula or the rest of the world at that time. Besides, production was not in such a development so as to warrant these principles.

1.2.1 Concepts in Perspective

To be confined to principles brought up by Islam fourteen years ago does not mean, as some people have suggested. that Islamic economics is valid only for the specific primitive era in which it appeared, and that it cannot be valid for the era of the atom and space discovery. [Note: Cf. Maxime Rodinson (1966:40) who says wrongly : “C`est I’oeuvre d`un homme inspire’ par certains ideaux propres a son epoque”] Nor does it mean, as some others have suggested, that being confined to these principles is confining the mind and limiting its field of action. This is not so for two reasons:

1. These economic principles are quite few and limited. They are general principles and, hence, are valid anytime, anywhere. Islam, being the final religion, has established these principles to guide humanity in its progress towards its goals. These principles are, therefore, no more than a light to help the mind in its thinking. They are no more than stepping stones and broad lines to help the individual and society at large to reach happiness in this world and the Hereafter.
    
2. These economic principles concern only what is essential and necessary to all individuals and societies whatever the degree of their economic development or the nature of, their means of production may be.

1.2.2. The Doctrine of Islamic Economics and Marxism

The doctrine of Islamic economics is not tied to a specific period in time or a specific means of production. As some authors claim. “this is a major area of controversy between Islamic and Marxist economics” (Sadr 1969 296). Indeed. Marxism claims that there is a necessary relationship between the degree of development of the means of production and the social system and that it is impossible for a social system to live for ever or to be of use to humanity at different stages. Marxism. therefore. sees the idea of equality applicable to the industrial world only. Slavery and bondage, then. would be natural in a society that lives on man’s manual production. This is not acceptable in Islam.

The Islamic reality that Humanity lived in its glorious times defied the historical logic of Marxism and its material calculations. Indeed, “this revolutionary fact that created an Umma, established a civilization and changed the course of history... was not the fruit of a new means of production or a change in its form” (Sadr 1969 3-1). (See also Larbi 1969 278).

1.3. The Economic System in Islam is not Limited to one Particular way in Application

The economic system in Islam is bound from the very beginning to economic principles that are valid anytime anywhere. Nevertheless, it does leave the door open for Ijtihad on these principles so that each Moslem nation can choose what goes best with its interests, In this sense, a Moslem nation can choose the system advocating public interest while another can opt for the opposite system. Economy in either case will remain Moslem as long as it abides by the idea of public and private dichotomy, since the difference between the two is a difference in their application depending on the time and the place. [Note: It is in the public interest, for example, to limit possession of agricultural land in a country where there is a shortage of arable land but a great number of inhabitants. It is in the public interest, on the other hand to do so in a country where there is enough arable and not a very large population. In this case, the minimum and maximum area of arable land to be owned will vary from country to country. The same is true for the nationalisation of some economic projects and some means of production (Cf. Abdel Jawad 1971 362).]

1.3.1. Variety of Economic Systems in Islam

In Islam there is not just one single economic system which every Moslem nation should follow. On the contrary, the economic application in Moslem countries should be varied but within the framework of the economic principles and foundations of Islam.

This is at the origin of the error made by many when they advocate a return to the economic system of the period of the Caliphs The reason for the mistake is that this system is viewed as the Moslem economic system while it is merely an example of application. It is perhaps true that the implementation of the economic system during the Caliphs era is exemplary in its application of Islamic principles and economic foundations. It is, however, an exemplary application of these principles in the context of the conditions of that time. Now that economic practices have changed and increased, and that social life has become more complicated. this system may not be applicable today. Moslem economists are then required to always find out the proper way to apply economic principles within a particular society.

Another error is made by some Moslem societies when they claim that the economic system they follow is the only true application of Islam. variety of economic implementation is part of the nature of Islam itself precisely because societies are different from each other. Moreover, to make judgments that an economic implementation is Islamic in precept or not should be based on how far it abides by the economic principles of Islam and on how far it guarantees the interests of the majority in each society. This is the true aim of Islam.

1.3.2. The nature of the Difference between Economic Systems in Islam

The difference between the various economic models in Islam is a difference in the details and not in the basic principles, for all models find their source in the Koran and the Sunna. It has been said, in this sense, that “ruling differ with time and space”, that “a difference in time and space is not a difference in proof and demonstration”, and that “a difference in kind is not a difference in opposition.” The Hadith, likewise, says : “difference among my people is a virtue [Note: This Hadith is related separately by Assayuti, AI-Maknissi, AI-Baihaqi. and Ibn AI-Hajib Others have made reference to it. It has been rejected, however, by Imam Ibn Hazm in his book AI-Ahkam Fi Usul AI-Ahkam, Vol-5, where the author states “Differences are dispraised in the Koran “Do not be in dispute with one another and become weak and lose your power”. He adds that if differences were mercy, acquiescence would be resentment, a fact that Moslem does not state. The truth of the matter is that the so-called difference is one in the parts and in the details. This has been established by the blessed Prophet and cited by his Companions.] or in another version my friends’ difference from you is a virtue”. This is so because it is a difference in details, due to the different of each society.

1.4. Conclusion

Three major conclusions can be drawn from this study so far:

1. The economic policy in Islam is stable and permanent. for its principles do not apply to a specific time or place or to a particular system of production. This is what we mean when we say that the doctrine of Islamic economics is valid anytime. anywhere.
    
   It is also a developing policy in the sense that its principles can be applied in different societies according to their specific needs This is what is meant when we say that the economic systems in Islam vary in accordance with the conditions of time and space. Indeed, economic models and implementations may vary. but they do so within the principles and doctrine of Islamic economics.
    
2. The economic policy in Islam groups formal logic [Note: Formal logic, also called Aristotelian logic, is a research and thinking method based on the conviction that everything in the world whether mind or matter - is permanent. Thus a tree is a tree and a seed is a seed. Therefore, what was real yesterday is real today and will be real forever. Accordingly private or public ownership is considered a permanent reality in every society and era. and dialectic logic [Note: Dialectic logic also called Hegelian logic is a research and thinking method based on the conviction that everything in the world - whether mind or matter - is constantly changing. This change is due to the contradictions inherent in either element. Thus the seed contains the tree, and the tree Contains the seed. Accordingly, what was yesterday real or possible under given circumstances is not so today, nor will it be tomorrow. Therefore, everything in the world contains the seed of its death, but also the seed of its survival, for the death of either mind or matter automatically triggers the birth of another fitter element. Everything goes through three stages thesis, antithesis and synthesis. The latter is a new situation that contains what contradicts or rejects it. Thus, there is constant progress from what is low to what is high, until the Absolute world, devoid of contradictions is reached. This is synonymous of divinity in Hegel’s philosophy. Marx adopted Hegel’s dialectic philosophy and adapted it from an idealistic to a materialistic one. Matter, according to Marx, is the source of everything and the reason for everything that exists. Unlike Hegel, Marx believes that thoughts are no more than reflection of matter. Hence the phrase “dialectic materialism” that characterizes Marx's philosophy. Marx believed that Hegel’s theory stood upside down, and that he made it stand straight again. Marxists believe that the laws of dialecticism, especially those concerning the conflict of opposites. the change from quantity to quality, and refuting of negation, govern the movement of matter and henceforth that of the world. Marxists also believe that dialectic materialism is scientific and that marxism is not restricted to dialecticism. All other methods of inquiry are but the application of this dialecticism in various aspects of life.] It gives great importance to social differences since its implementations vary with time and place.
    
   Economics in Islam groups what is stable and what is developing. This is achieved in an argumentation that is specific to it, and that makes it different from all other systems and doctrines. Indeed, when Islam acknowledges development and differences in life, it does not deny or disclaim one at the expense of the other as other doctrines and systems do. On the contrary, it endeavors to accommodate those differences, which are in the eyes of Islam an incitement to cooperation and not one to struggle and fighting.
    
3. An economic solution, as we shall see later, is considered Islamic in nature as long as it accommodates the different interests that other doctrines consider contradictory such as the so called contradictions between the interest of the individual and that of the group. or the so-called contradictions between material interests and spiritual needs. Other doctrines and systems have proposed arbitrary solutions which are at the root of the problems and agitation that the world witnesses today.