The Accommodation of Common and Private Interests or the Harmony of Conflicting Interests

Every social or economic system, including Islam, aims at the realization of welfare by attracting the good and repelling the harmful. But welfare can be public or individual, and these two can be in conflict with each other.

Economic and social systems differ in their view of these conflicting interests. Individualistic systems as those of Western Europe, for example, advocate the interest of the individual first, and put his goals before those of society as a whole. Similarly, socialistic systems, as those of Eastern Europe, advocate the interest of society first and put its goals before those of the individual.

Islam is unique in this sense, since the economic policy it advocates is neither totally geared toward the individual such as in the individualistic system or its offshoots, nor totally toward society as is the case with the socialistic system or its offshoots. On the contrary, economic policy in Islam is characterized by its harmony and concord of the interests of both the individual and society. This is the policy of the golden mean as stated in the Koran :

"Thus we have appointed you a middle nation” (The Cow: 43),

or the Hadith

“Beware of excess. It destroyed your forefathers” (Imam Ahmed).

It is important to point out at this stage that this golden mean, which implies moderation and harmony, is not a mathematical mean but a social, relative one. Moderation, which is a characteristic of Islam in every aspect of life, cannot be put in a mould. It is, rather relative and varies with time and place.

In extraordinary situations such as in periods of war or famine when it becomes difficult to accommodate common and private interests it is agreed that the individual must sacrifice his interests for the well-being of society. This is the right of Allah which is above all rights. In these situations, the implementation of Islamic economics goes well beyond many socialistic systems. Three conclusions can be drawn here:

1. Islamic economics aims at establishing welfare.
   
2. Islamic economics tries to accommodate individual and common interests in case of conflict between the two.
   
3. Islam favors common interests in case it is not possible to accommodate the two.

2.1. Welfare is the aim of Islamic Economics

2.1.1. Economic Legislation in Islam

Welfare is the aim of Islamic economics, as well as that of Islam itself.

1. When the Holy Koran forbids the eating of dead animals, blood, and pork - “He hath forbidden you carrion, and blood, and swine flesh” (The Cow 173) - it does that for the well-being of man. When it allows, in the same text, their eating, it does so for the well-being of man as well. For Allah continues : “But he who is driven by necessity, neither craving nor transgressing, it is no sin for him” (The Cow 173).
   
2. When the Prophet, Peace be upon Him, forbids the sale of what is not available during the transaction in his saying : “do not sell what you do not have”, he does that for the well-being of man. When he allows Salam transactions [Note: In the law of Sharia, this form of transaction implies a contract of sale, causing an immediate payment of prices, and admitting a delay in the delivery of wares. This is what actually takes place in the stock market. A Salam sale is lawful on the basis of the following verse of the holy Koran : “O you who believe, when you Contract a debt for a fixed time, write it down” - (Translator’s note)] he does that in man’s interest as well.
   
3. When the Prophet, Peace be upon Him, recommended land owners to cultivate their land or give it to their brothers to cultivate, it was because wealth in Al-Madina at the time was mainly in the possession of agricultural land which was in the hands of the Prophet’s followers alone. Some of these owned more land than they needed and rented what they could not cultivate. The Prophet, Peace be upon Him, then stipulated that for the sake of common interest, land should not be rented. Those who owned more than they needed, should give their brothers what they could not cultivate without asking for anything in return. This had the advantage of allowing the refugees to find work to live. When things changed and the poor were working again, the Prophet, Peace be upon Him, allowed land owners to rent their land as they were doing before His arrival. (Al1964 :128).
   
4. Common interest is also what pushed Caliph Omar Ibn Al-Khattab to put an end to theft but hold judgment in time of famine (Khallaf 1947: 91).

The foundation of Islamic legislation is the well-being of people. Hence, the statement “where there is the well-being of man, there is the law of Sunna”. In this respect, Imam Ibn Al-Kiam Al-Jouzia argues that “the foundations and ground work of sharia are justice and the realization of man’s welfare in his livelihood and destination. Sharia is all justice, all mercy, all welfare, all wisdom. Whatever dissents from justice to injustice, from mercy to unforgiveness from good to bad and from wisdom to play is not Sharia and there is no way to interpret it otherwise” (Al-Jouzia).
Sheikh Abdel Wahab Khallaf, likewise, argues that “all acts of law are bound to be beneficial to man. The reason for their being is to bring what is good and repel what is harmful. This is why the Prophet, Peace be upon Him, used to forbid whatever needed prohibition then allow it if things changed. The reason for the existence of law, then, is to benefit man. The way to achieve this when there is no statement it” the Koran or the Sunna is to use our sense of interpretation or Ijtihad (Khallaf 1350H :

2.1.2. Interests vary with the situations

Interests vary with the situations. What is considered beneficial in one situation may not be considered so in another. Imam Shatibi says in this respect “It is the case that most of what we consider good or bad is relative and not absolute. Things are good or harmful in one situation but not in another, to one person but not to someone else. They are so at one given time, but not at another.” (Shatibi).

Perhaps this is why some Ulema believe that interest given on deposit accounts, government bonds and investment certificates is not riba (Cf. Sheltout 1969 303, and Khallaf and Abou Zahra 1951).

2.1.3. Interests and their Priority

Interests as seen by the legislator are arranged in order of priority. Thus, interests that are imperative [Note: Imperative interests are those that serve as the basis to a man’s life. Their absence would create chaos. Such interests are keeping one’s faith, mind, wealth and honour.] come before those that are necessary [Note: Necessary interests are those the absence of which would result in making life difficult for people.] which in turn come before those that are cosmetic. [Note: Cosmetic interests are what beautifies a person’s life.] Of course, not all imperative interests are in the same order of priority. The same is true with what is necessary or cosmetic. To give an example, alcohol is permitted if drinking it saves life because the latter is more important than the mind. Likewise, nakedness would be permitted during a medical operation because this is necessary. This may be the reason why Islam does not like a life of extreme comfort, especially when some people cannot afford the basic necessities. This is what Caliph Omar Ibn Al-Khattab always believed when he repeated the words of Allah “and (how many) a deserted well and a lofty tower”. (The pilgrimage 45).

2.2. Accommodating Private and Common Interests in case of Conflict between the Two

2.2.1. Economics in the Capitalist System

Capitalism aims at fulfilling the interests of the individual first, interests which come before those of the group. Hence, capitalism allows total freedom to the individual in the areas of economy and ownership. The reason behind this is that when the interests of the individual are secured. those of the group are automatically secured as well, for society is but a group of individuals.

This capitalist policy has several advantages. it encourages individual motivation and enterprise. It induces people to work for profit and to start new economic activities. It also encourages the prosperity of the economy in general. This policy does present, however, several disadvantages. The most important of these is the raison d’etre of the capitalist economy. i.e., to make as much profit as possible irrespective of the necessary needs of society and the spread of unemployment and economic crises. Moreover, individuals in a given society have different levels of wealth, intelligence and capability, a fact which leads to the domination by the strong and the appropriation of the wealth of society by a minority. The result of this is bad distribution of wealth and income and the aggravation of the gap between different classes. This, to my mind, is the seed for all evil since it spreads hatred, encourages division and conflict and destroys the unity of society.

2.2.2. Economics in the Socialist System

Socialism aims at fulfilling the interests of society first, interests which come before those of the individual. Hence, the State intervenes in every economic activity and forbids private ownership of the means of production. The reason behind this is that when the interests of society are secured, those of the individual are automatically secured as well. The individual, after all, cannot live outside society. His value, his prosperity and his talents can only flourish to the degree of the prosperity of his own society.

This socialist policy has several advantages. The most important of these are the satisfaction of the needs of the group in general, the rationalization of production and the avoidance of unemployment and economic crises. This policy secures the interests of the majority, remedies the bad distribution of wealth, and does away with class differences, It does present, however, some disadvantages such as the weakening of personal stimulus, individual effort, and the motives for economic advancement. Add to this the many kinds of pressure, the bureaucratic complications and red-tape. the dictatorship and lack of freedom. and the feeling of insecurity.

2.2.3. Economics in Islam

Islam, however has had from the very beginning distinct policy that does not rely solely on the individual-as is the case with individualistic systems, nor systems nor solely on society as is the case with socialism. In fact, it takes care of the two interests and tries to bring them into harmony . The reason behind this is that the individual and society complement each other. By protecting one, we are also protecting the other Islam. hence guarantees the existence the both common -and private ate interests. It secures the protection of their good qualities -and the elimination of the had in either of them .

The strength of economic policy in Islam lies in keeping a good between the interests of the individual and those of society. This is expressed in the following koranic verses:” "wrong not, and ye shall not be wronged" (The Cow 279)." and wrong not mankind in their good” (The Heights 85). It is also expressed in the following hadith:" there should be neither harming nor reciprocating harm” never forbid Moslems their rights. otherwise you will encourage them to go astray (Assayuti). The Prophet, Peace be upon Him, has also shown us a simple but meaningful way to bring individual and common interests into harmony when he said :

"If people are traveling on a ship and each person takes a seat. when one of the passengers dies into his seat with an axe claiming that it was his and that he could do whatever he wanted with it, everybody will be saved if the passenger is stopped. But everybody will be drowned if they let him die” (Al-Bukhari and Attirmidhi).

Islamic solutions to economic problems therefore differ from capitalist and socialist solutions in the sense that they bring individual and common interests into harmony.

The following three domains will serve as examples to clarify the point made here.

The domain of free enterprise and the State intervention in the economy

1. Capitalism:

In Capitalism, the essence of the economic system lies in the freedom of the individual to practice his commercial activities as he sees fit. The State, however, may intervene whenever it deems it necessary.

Undoubtedly, the evaluation of this necessity to enable the intervention of the State is bound to the conditions of time and place. The economy, however, remains a capitalist economy as long as the exception does not become the rule.

2. Socialism

The essence of the economic system in socialism is the sole intervention of the state at all levels of the economy. Exceptionally, the individual is let free to practice some economic activities. The exception may be large or small, depending on the conditions of time and place. But the economy remains socialistic in nature as long as the exception does not become the rule.

3. Islam

Freedom of the individual to practice economic activities and the intervention of the State in some sectors of the economy and its monopoly of other sectors go hand in hand. Islam acknowledges either practice as a general principle and not as exception. Each practice has its own domain and the two complement each other. They are both restricted and not absolute, To clarify

1. Islam does advocate freedom of the individual in economic activities but with various restrictions. It is not lawful, for example, to produce alcohol or to do business with riba or to forestall the market. It is not lawful to stop money from producing, or to use it on what is not needed, or to harm the rights of others or to increase prices.
   
   Islam, however, does not advocate this by faith alone. To this end, it created a system of hisba, a system of accounting and price control which is one of the ways the State can control the soundness of the economic activity.
   
2. Individuals are required to perform all kinds of activities in the economic sector which can be of benefit to society. However, the State has to intervene if individuals cannot perform some of these activities, such as constructing railway lines or starting factories for the heavy industry. It has to intervene if individuals refrain from carrying unprofitable activities such as creating housing projects in the desert, or if they do not practice certain activities properly, such as running schools and private hospitals.
   
3. The intervention of the State is also needed because Islam guarantees a good standard of living and not just the basic minimum to every individual. For this purpose Islam created, fourteen centuries ago, the institution of Zakat which in modern terminology is synonymous to that of social security (Al-Fanjari 1982).
   
4. Islam endeavors to secure the economic balance in society and rejects the appropriation of the national wealth by a minority. Witness the words of Allah “It is for Allah and the Messenger and for the hear of him and the orphans and the needy and the wayfarer) that it become not a commodity between the rich among you" (The Gathering:7). This demands that the State intervene to re-establish the balance in the distribution of wealth when needed. This is what Allah’s Messenger, Peace be upon Him, has achieved when he prohibited, in certain conditions, the rent of agricultural land.

2.2.3.2. The domain of ownership

1. Capitalism:

Economy in the capitalist system is based on private ownership but, exceptionally, it allows that of the public. If required, the State can intervene in given economic sectors.

Private ownership in this system is safeguarded for it is considered the catalyst and the essence of life itself.

2. Socialism:

The rule in the socialist economy is public ownership, the exception being private ownership of some of the means of production which the State recognizes for a given social necessity

Private ownership in socialism is not safeguarded because it is, in the eyes of the system, at the root of all social problems.

3. Islam:

Islam recognizes both private and public ownership at the same time, each as a principle and not as an exception. Both practices, however, are restricted by public interest. They are not absolute. To clarify:

Private ownership is protected. It is not absolute, however, but is restricted in its acquisition, its domain, and its use. (Al-Fanjari, 1968). ‘That this is a social service is seen in the fact that the real owner of property in Islam is Allah the Almighty and that people are only inheritors. As such they should deal in what they have been left with according to the law, otherwise the State is allowed to intervene and place the property under an interdict.

Public ownership has also been acknowledged as a principle. As we saw earlier this is the case with protected, land. endowment funds and Mosques It is also the else with the expropriation of property order to enlarge it, or the State ownership of land minerals and of conquered lands. It goes without saying that if public ownership was not developed in the early period of Islam - it is because the economic condition of the time did not require it. (cf. Al Fanjari) 1981 155).

2.2.3.3. The domain of distribution

1. Capitalism

The basis of distribution in the capitalist system is private ownership. This results in the wide gap between individuals in the property they own. their income and their inheritance.

2. Socialism

The basis of distribution in the socialist system is work, for property is the fruit of one’s work. In this economic system, incomes vary not because of ownership but because of the difference in people’s capabilities and talents. The resulting difference, in this case, may reach large propositions [Note: In my book "Islam and just Distribution". I make the point that the problem of national economies resides in the bad distribution of wealth among individuals, and in the bad compensation of the sources of production. Likewise, the problem of international economy resides in the gap between developing and industrial countries, and in the lack of compensation in the market due to the very low price of raw materials and the exorbitant prices of manufactured goods. What is needed to change and correct an economic system is a certain economic balance among individuals in a given society at the local level, and among nations at the international level.]

In communist economics, need is the basis for distribution in the sense of providing people with plenty of whatever satisfies their basic needs such as air and water. The system believes that, in this way, the phenomenon of differences in income would disappear and a classless society will then come into existence, [Note: James Burham (in Touchard et. al. 1982 829) claims that between 11% and 12% of Russians receive 60% of the national income, while 11% receive only 35% in the USA. Laroque (1982 114), likewise, claims that differences in income vary between I and 50 in the USSR but only between I and 10 in the USA. Vedel (1964), on the other hand, claims that there are many millionaires in the USSR. Baroudi (1966 148) argues that “it is not surprising to find millionaires in a new, powerful and advanced country such as the Soviet Union. What is surprising is that these millions are the fruit of man’s capabilities and the reward for work as claimed by the Soviet ideology”.]

3. Islam

Need, in the sense of seeking a minimum but sufficiently good standard of living is the first basis of distribution of wealth in Islam. Then, come work and ownership. Every body must first have this minimum but good standard of living which the Ulema call the limit of sufficiency to differentiate it from the "limit of pittance". Islam recognizes this as a person’s right which society or the State should provide him with irrespective of his nationality or religion. For the Lord says: "Give the kinsman his due. and the needy. and the wayfarer” (The children of Israel 26). "And in whose wealth there is a right acknowledged for the beggar and the destitute "(The Ascending Stairways 24.25). After which, to each according to his work and what he possesses, for Allah says: "Unto men a fortune from that which they have earned, and unto women a fortune from that which they have earned” ( women 32). He also says “And for all there will be ranks from what they do, that he may pay them for their deeds and they will not be wronged” (The wind Curved Sandhills I9).

In this economic system, a hungry or needy person cannot exist. Income may vary due to private property but not to work. This difference should not be great. for Allah the Almighty says “That it become not a commodity between the rich among you” (The Gathering: 7).

2.3 Priority of Common over Individual Interest in case it is impossible to accommodate the two

A basic feature of economics in Islam is the accommodation of common and individual interests. In case this harmony is not possible as in times of war, famine, or disaster, it is then agreed that individual interest is sacrificed for the benefit of common interest. This is the right of Allah which is above all rights. It is also expressed in statements such as “Harm to the individual can be endured for the sake of warding off harm done to the community” or “Low harm can be endured to ward off a higher one”, or “In the presence of two evils, the less harmful should be chosen.”

2.3.1.The Recognition of Extremist Socialist Doctrines by Islam

In extraordinary situations such as in time of war, famine or disaster, the application of Islamic economics surpasses that of the most extremist socialist doctrines. In a deprived society, it is not possible for a Moslem to own more than what he needs. It is the responsibility of the State, in this case, to intervene to take from the rich and bestow’ on the poor to satisfy everybody's needs. When this is guaranteed, there is no limit to what an individual may earn, for the Hadith says “There is no objection to the rich, provided he is pious” (Al-Hakim). It is in this sense that the Koran says “And they ask thee what they ought to spend. Say that which is superfluous” (The Cow 219). Likewise, the Prophet. Peace be upon Him, while on a voyage, declared : “He who has got more food has to donate some to the one who has none” (Muslim). As for the Caliph Omar Ibn Al-Khattab, he said during a year of famine “If I cannot find what is enough for people, I would take them in homes where they would share the owners’ food till Allah brings forth the rains, People will not die with half empty stomach” (Ibn Al-Jouzi, p.01).

2.3.2. A Critique of the Opinion of the Prophet’s Companion Abu Dur Al-Ghufari

The Prophet’s Companion Abu Dur Al-Chufari expressed the opinion during the rule of Caliph Othman that one cannot own more than he needs. This is a correct Ijjtihad (interpretation) in the extraordinary conditions in which Moslems lived. In fact, there were people who were extremely rich at the time, while many others were poor and deprived.

Islam, as we saw earlier allows riches only if the necessary minimum is guaranteed to every citizen. It allows differences in income only when there is no place for poverty, hunger, and deprivation. There was no harm, then, when Abu Dur Al-Ghufari generalized this view and claimed that this was the decision of Islam in all circumstances while, in fact, this was a ruling in extraordinary cases only. Of course, one could make use of it only as a temporary remedy and when necessary. Omar Ibn Al-Khattab expressed the same idea when he declared “I shall endeavor to satisfy every want as long as we can support each other. If we fail, we shall live frugally till we all share that basic minimum to enable us to live” (Ibn Al-Jouzi).

2.4. Conclusion

Three conclusions can be drawn from the preceding discussion

1. The purpose of economic legislation in Islam is to satisfy man’s interests. These, however, vary with time and place, and should be given priority according to their importance. Moslem rulers should not allow the construction of palaces and spending on luxuries while the needs of society are not satisfied and services are idle. This is not allowed in Islam, for Allah says : “How many a township have we destroyed while it was sinful, so that it lieth (to this day) in ruins, and how many a deserted well and lofty tower” (The Pilgrimage 45).
   
2. Economic policy in Islam is based on the principle of accommodating individual and common interests. A solution to any economic problem is Moslem in nature as long as it accommodates these two interests and finds the right balance between them. It would be a great mistake to connect Islamic economics to either the capitalist or socialist systems, or to understand it as if it were a mixture of the two. Islamic economics is unique in its nature, as it is based on principles that differ from those of capitalism and socialism. If there is a certain individualism in Islamic economics. it is certainly different from that of capitalism, for it does not advocate absolute freedom of the individual in economic activities and ownership. Similarly, if there is a certain social policy in Islamic economics, it is certainly different from that of socialism. Indeed, it does not allow the total intervention of the State in economic affairs or the total abolition of private property.
   
   It is true that there may be penetrability between economics in Islam and other economic doctrines. and that certain Islamic solutions or economic implementations may agree with those of capitalism or socialism, These penetrability and agreement. however. are merely accidental. They occur in the details but not in the basics. Economics in Islam, then. is different from other economic systems by its unique solutions to economic problems.
   
3. In the situation where the distribution of wealth is defective and not every one has a decent standard of living, private ownership is not respected but is sacrificed for the sake of common interest. This is the right of Allah which is above all rights.
   
   Economic thought in Islam may go beyond most extremist social systems as when the Prophet’s companion Abu Dur Al-Ghufari claimed that an individual cannot own more than is required for a decent living. This measure does not mean that Islam agrees with these extremist systems since it acknowledges that it is possible in extraordinary situations only, and that it is used as a temporary remedy when the need for it arises.