An Islamic Perspective of Political Economy:
The Views of Muhammad Baqir al-Sadr
by T. M. Aziz
With the collapse communism in Eastern Europe and
in its heartland, the Soviet Union, the world is yet again dominated
by the practices and laws of capitalism. Today's world economy
is shaped according to Adam Smith. No other alternative routes
for economic development but to let "the laws of the market"
to play its course in the marketplace, and the "invisible
hand" of the market is more visible now than at anytime
in history to be the determining and decisive factor of the life
of men and nations. Consequently, the self-interests acts of
members of the society is to become the driving force of the
economy, and the law of supply and demand is the regulating mechanism
of the profiteers in the society. Even economists in what is
used to be the Marxist bloc are subscribing to such economic
behavior as the only alternative to save the ills of the economy
of their nations.
Not quite true says many Muslim thinkers and political
activists. They believe that Islam provide humanity with solutions
to problems created by imperfect manmade political system and
moral values. Islam, according to them, is divinely ordained
social framework that should guide humanity to peace and tranquility
in all aspect of life, physical and metaphysical ones. One of
those thinkers and political activists was Muhammad Baqir al-Sadr
of Iraq. Sadr was executed when he led a revolt against the Ba'thist
regime in Iraq in 1980. He had conceived an Islamic political
system to replace the existing regimes in the Muslim World, which
he considered corrupts. His program for the future is to create
new socioeconomic order that would replace the capitalist and
socialist orders that are the dominates system in Muslim World.
This paper is to focus on his views and the basic principles
of the Islamic economic system that he believes is more capable
of solving the contradiction of the capitalist system, therefore,
more able to satisfy the human needs; and more importantly, has
the capacity to develop and progress in accordance with human
potentials.
As an Islamic jurist, Sadr derives his basis of
argument from Islamic tenets and divine scriptures. Here we are
not to question those beliefs but rather to present his conceptual
argument and economic engineering of the society and to see how
applicable these views and programs to reality. The merit of
the study here is to highlight his argument and try to understand
the structure of the Islamic economic system. Suffice it to say
that Sadr does not believe that his views should be put to test
since they are not put into practice for a period of time within
a social setting. His views in economics are parts of his general
political theory that is designed for the establishment of complete
Islamic social system. The behavior of the Islamic economic system
should be judge after the creation of an Islamic state where
the whole realm of socioeconomic realm of human behavior is engineered
according to Islam. Sadr major work in economics was written
in 1960-61, and asides from the few pamphlets that he wrote later
in his life, the main argument of his thought contained in one
work, Iqtisaduna (Our Economics).
The economy of the Islamic state, according to
Sadr, is divided between that of the individual as vicar of God
(khalifah), and the ruler as the witness (shahid)
that supervise the applications of the laws of God. The economic
structure of the Islamic state, thus, consists of private property
and public property. However, one should not think that the economic
structure of the Islamic state is some sort of combination of
capitalism and socialism. Sadr strongly rejects this misconception.
He argues that the juxtaposition of private and public rights
of ownership stems from the fundamental beliefs of Islam. This
is similar to the way that private ownership is advocated in
the capitalist system or public ownership is advocated by socialists
as the logical conclusion of their ideological and philosophical
beliefs. To justify private ownership and public ownership in
Islam, one must understand the rights and obligations of the
individual and the state in Islam. Sadr's detailed description
of the economic relationship in the Islamic state and the establishment
of its economic structure represents the best available argument
for the notion of Islamic economics.
Economic Relationships
Man's behavior, according to Sadr, is categorized
into three types of relationships: social, economical and religious;
stems from man basic relationship to other men, to the environment,
and to God. The economic relations, however, is outcome of his
inner instinct of self-love that "always drives him to bring
good things to himself, to secure his interests, and satisfy
his needs." Accordingly, man, in his relationship with the
environment, is predisposed to utilize all possible resources
to satisfy his needs and increase his pleasure. In due time,
he is willing to use animals and plants to help him in his struggle
with the environment. Although his essential needs were simple
in the early period of history, his mental capacity enabled him
to develop new means to help him utilize the resources of the
environment. Thus, his needs were always expanding due to the
complexity of utilizing the resources of the environment.
Man's relationship with others of his kind was
the natural outcome of his need to satisfy his desires. The complexity
of life, i.e., his relationship with the environment, made it
difficult for him to sufficiently cope with his needs. Cooperation
with others makes the effort to satisfy his needs manageable.
Cooperation with others results in a sharing of benefits with
all participants of the community. The inner instincts of self-love
that drove man to create the first community are evident. These
instincts gave rise to man's exploitation of his brother.
Because people were not equal in their physical
and mental capacities, they obviously were different in their
utilization of the resources of the environment. Such differentiation
of capabilities is part of the divine plan for bringing cohesion,
through the division of labor, to the human community. People
of different capabilities function in different tasks within
the social order. However, man's desire to maximize his interests
drove some men to exploit the situation for their benefit. Human
needs were growing due to man's mental and economic development.
His experience broadened his capacities to utilize the resources
of his environment. His passion to acquire more of the environmental
resources for himself became prevalent. Consequently, some men
were willing to oppress others to satisfy their greed and egos
(both instincts the outcome of self-love). It is then that the
human community faced oppression in the form of economic exploitation.
This conflict between social peace and individual
instincts of maximizing interests was persistent throughout history.
This historical conflict, Sadr argues, is between two classes:
those individuals who possess the environmental resources (economical
and social) who are endeavor to protect their interests, and
the rest of the society who strive to live in peace and cooperation.
Marxists believe the problem originated with a few people controlling
economic resources. The only way to bring about peace to the
social order is through the revolution of the oppressed class
of the society to destroy the special interests of the privileged
class. Capitalists, on the other hand, believe such social conflict
is the result of the limited natural resources of the environment
which are not sufficient to satisfy the needs of all people.
Thus, social conflict will always be prevalent. Human society
can only hope to manage, through incremental and gradual reforms,
the social conflict from overtaking human progress. Based on
this, capitalists oppose any type of social revolution. However,
Islam disagrees with both views and considers the environmental
resources to be sufficient to satisfy people's needs.
According to Sadr, the problem rests with human
nature: how can the instinct of self-love be directed in a proper
manner? Unless a solution comes to control human desires and
deflect the potential of human energies for exploitation of others,
the social order rests on superficial foundations. Therefore,
Sadr clearly states that the socioeconomic problem is the result
of the misdeeds of man. He specifies two reasons for the socioeconomic
problems: 1) the oppressive nature of man, i.e., his self-love;
and 2) man's inefficiency in the utilization of the economic
resources.
According to Sadr's interpretation, the ills persists
in the economic realm of life stem from man's oppressiveness
comes in the form of inequitable distribution of economic resources
on the one hand and from the inefficient utilization of these
resources which result in underdevelopment of economic resources
and their waste. A solution must overcome the two basic ills
of the economic behavior of man. Sadr specifies three components
to the Islamic solution: 1) the cessation of forms of oppression
which is manifested in the unjust distribution of economic resources;
2) purification of human nature to achieve control of the desires
of self-love; and 3) utilization of economic resources to satisfy
the needs of all humanity.
The Islamic Theory of Distribution
The first step to end the contradiction of the
economic structure of society begins with the distribution of
economic resources between people. A just social system is the
one that allows all people to benefit from the economic wealth.
The Islamic economic system, accordingly, is judged upon this
criterion.
The first form of economic wealth is the natural
resources of the environment. The unjust distribution of the
economic wealth begins with the problem of ownership of these
natural resources. One must know who has the right of ownership
of these resources in Islam. Sadr, thus, must develop the theory
of distribution of the natural resources at two stages: preproduction
and postproduction stages, or what he calls primary wealth and
secondary wealth, respectively. His endeavor is to discover the
doctrinal basis of Islamic teaching concerning economic ownership.
For him, the study of economics in its empirical sense at this
stage is irrelevant to the issue of social justice. In other
words, he is building an ideological theory which addresses this
issue. The empirical study of economics comes much later to evaluate
whether the application of the ideological theory in the realm
of life has an adequate basis in reality.
a) Distribution of Natural
Wealth
In constructing the conceptual faramework of his
theory, Sadr also disagrees with political economists on the
scope of economic resources. He disregards capital and
labor to be considered as part of the economic resources.
It is only nature that can be taken into account in the theory
of distribution of natural resources. "For capital
is in fact a produced wealth and not a primary source of production,
because it represents, economically [speaking], any wealth which
is produced and generated through human labor that can be reinvested
in the development of new wealth."
On the other hand, nature itself is classified
into four categories: 1) land; 2) raw material; 3) water; and
4) other natural resources such as living species in air, sea
and on land. Although the canon laws of Islam seemingly contain
different regulations for each one of these categories, Sadr
used his ingenuity to discover the common ground between them,
and reveal his interpretation of what he calls "The General
Economic Theory of Islam.
The sole owner of the land and raw materials is
the Islamic state/government. People may gain special rights
of ownership if they invest their labor to develop these natural
resources, such as cultivating land and mining minerals. Individuals
may gain precedence over others for a piece of land or the minerals
which they worked. The special right of ownership may be gained
only through labor invested in developing that land or raw material,
and such right expires as soon as that development ends. People
utilizing these resources must pay property taxes for their usage
to the Islamic state.
Water, on the other hand, can be owned if it is
possessed for economic development. Although the sole proprietor
of the natural resource of water is the state, all people have
access to it for their use. The only exception is underground
water, where the individual who invests his labor to develop
its utility has an exclusive right to its usage and benefits.
Other natural resources, such as birds, animals,
plants and marine life, are publicly owned. These sources of
economic wealth may become private property through individual
efforts. As such, people, not the state, have the exclusive right
to own resources via their labor. They may not loose this right
indefinitely, or pay property taxes for their possession.
Based on this view, Sadr concludes that people
themselves, or in a more concrete term, their representative
government, are the sole and legitimate owner of the natural
resources. Individuals may gain special privileges to make use
of these resources only through their invested labor to develop
these resources. Other types of individual labor, such as the
use of force to possess, are not considered legitimate means
to ownership. Specifically, it is only invested human work that
has legeal significance for ownership of the natural resources.
Genreally speaking, Islam gives individuals the right to own
private property only through their continuous effort to develop
these resources to benefit society as a whole. Once private development
of these natural resources is suspended, the right of private
ownership would cease too. From this Sadr derives the first principle
of his theory:
According to the above principle, the individual
may not use other individuals to develop the natural resource
to have the right of ownership of large estate, for example,
otherwise they share the ownership and the benefits of that natural
wealth on the basis of their labor. Islam totally rejects the
capitalist principle of individual ownership of vast natural
resources on the ground that they are developed by the labor
of others. For the same token, industries for the development
of the natural resources, e.g., oil and minerals, can be owned
and managed only by the state. Notwithstanding the emphasis of
public ownership of the natural resources, Sadr introduces the
concept of the "priority right of use" of the natural
economic resources by the individual. He states that those who
possess the labor and the will to exploit the resources have
the right to gain access to them such exploitation serve the
public interest.
b) Distribution of Produced
Wealth
Sadr, furthermore, develops an Islamic theory of
distribution of the produced commodities. Produced wealth is
classified into: 1) the primary commodities, such as agricultural
produce and raw materials; and 2) the secondary commodities,
which are the primary commodities manufactured into different
products. In both of these stages of production, capital generated
from previous economic endeavors as well as the means-of-productions
(tools and machineries) take part in the production process of
these advanced economic activities. However, contrary to the
capitalist theory, each of these components has no share of the
product but they gain special rights for their usage and their
wear-and-tear in the production process.
As in the previous principle of theory, Islam gives
the worker the sole right of ownership of the produced goods.
However, Sadr relizes that human labor is but one of the components
of the production of the primary commodities. The other components
are the natural environment and the tools which help man in the
process of production. The tools, or any means-of-production,
according to Sadr, "contained potential works of previous
stages of productions that will be exhausted and depleted during
their usage in the process of production." In this case,
if the tools are not the property of the worker who benfeted
form their useage during the process of production, then the
legitimate owner of these tools must get paid for the amount
of usage of his tools, i.e., the exhausted potential work
of the tools. According to Sadr, herein lies one of the major
ideological differences between capitalism and Islam. The former
regards the owner of the means-of-production as the sole owner
of the produced commodities; where Islam considers the laborer
to have the only legitimate claim to the produced commodities.
In capitalism, tools get a share of the product because they,
as human labor, expend a certain amount of work in the production
process. In Islam, tools only assist and aid man to facilitate
the process of production, thus, they must be gratified in rent,
not in profit sharing.
Accordingly, the laborer only has the legitimate
claim for the products of his effort. Therefore, it is unthinkable
in Islamic economics, states Sadr, for someone to employ others
and provide them with rent and tools, where he alone owns the
products of their labor. Likewise, industries and production
entriprises that employed many labors, in an Islamic state, can
only function if they are owned publically. There is noway in
Sadr theoratical vision that an industiral capitalist production
to evolve in an Islamic economic system except through state's
direct involvement and control in the economic development. The
state, in the name of the society which the sole owner of the
economic resources, can employ people and pay them only wages
for their labors and not give them share of the produced commodities.
Furthermore, since the utilization of the economic
wealth of the environment is the responsibility of the society
as a whole, the sole proprietor and beneficiary of the natural
resources, society gets a share of the product extracted from
the primary commodities. The state, in this stage of production,
has the right to collect what is known as tisq [property
tax] from producers to finance the social welfare expenditure
and meet the economics needs of the people.
As for the production of the secondary commodities,
Islam gives the owner of the primary commodities the right to
establish his claim to the final products. The legitimacy of
his ownership does not cease because someone aids him in transforming
his commodity into different forms. An individual if s/he owns
the raw materials, then s/he has the right to the manufactured
commodities produced out of that material. To put it plainly,
the worker, in this case, does not only own the product of the
natural resources but also the produced commodities in latter
stages of productions. If the state, for example, extract or
mine certain natural resources through its publically owned entriprices,
then it also has the right of ownership of all the processed
goods extracted from those natural resources. People who participate
in the production should get paid for their labor. Industries
to develop natural resources, such as oil and minerals, theoratically
speaking, in an Islamic economic system cannot be owned privately.
It is because the state is primary owner of the natural resouces
which gives it the right to own the produced product. However,
there is a theoratical loop-hole to make capitalist flurish in
an Islamic economic system which is through the leasing the natural
resources from the state by private entrprises where the latter
can claim legitimate ownership of the produced commodities.
In any case, the ownership is not affected by the
usage of the means of production belonging someone else. The
owners of the tools and machines get paid for the usage of these
tools and machines in the production process. By the same token,
the owner of the primary commodities may also hire someone else
to manufacture his goods. The worker, in this case, gets the
salary for his labor, which should be specified in the job contract.
The worker, consequently, has no claim for the final product
he produces.
Islam specified two means of payment for a hired
worker: the first one is through wages, where he is paid for
the amount of work he does in accomplishing a task; the second
is the sharing in the profit of the final product. In this case,
the worker gets only a percentage of the profit specified in
the agreement between him and the owner of the primary commodities.
The general principle, in Islam, for earning is:
...that earning is only based
on contribution of labor during the process [of production],
so the contributed labor is the only legitimate mean for someone
to get paid from the owner of the process...and without such
contribution, there is no legitimacy for his earning.
Based on this economic principle, the owner of
capital will not receive fixed payment from the owner of the
primary goods, i.e., usury is prohibited. The monetary capital
will not contribute any amount of labor at all. Fixed payment
is allowed in Islam only in one case, when there is a consumption
of work, either directly through a worker, or indirectly (reserved
work) through the means of production. As for the monetary capital,
no such work will be exhausted or depleted. In this matter, the
owner of the capital is allowed to share the profit and the loss
with the owner of the primary commodities. The legitimacy of
earning, in this situation, is based on his help in facilitating
the process of production, and he is deserving of gratitude and
appreciation which is expressed in profit sharing.
Purification of Human Nature
The first task of the Islamic political system
is to eliminate forms of oppression within the economic relationship
and to lay the ground for the establishment of a just system
of distribution of economic resources. However, the source of
the injustice, according to Sadr, is neither the social settings
nor the means of production, but rather human nature itself,
the inner instincts of self-love that drive man to secure survival
for himself only. Such an instinct is essential for the survival
of human life on earth. Profit, which is the economic manifestation
of self-love and is generated from private investment, is the
great engine of human economic accomplishment. It gives the individual
the personal incentive to work hard and to overcome difficulties
and challenges. However, when left without moral control it will
manifest itself in different forms of oppression. Man will be
concerned only with securing his own interests to the point of
abusing the interests of others. Unless a solution to the problem
of human nature is found, man will find the escape routes to
abuse even in the just system of distribution. In fact, the social
contradiction stems from the individual prejudice of self-love.
In the capitalist system, it manifests itself in the form of
economic exploitation of others. In the communist system, where
private property is eliminated, man's self-love manifests itself
in political oppression, such as the struggle for power and the
securing of special social privileges.
Religion, according to Sadr, gives humanity the
only solution to this basic and deep-rooted problems of human
nature. Religion overcomes the problem of human nature by specifying
many channels of self-control that properly regulate or direct
man's instincts into the appropriate social behavior. In other
words, it will end the contradiction between social and private
interests.
The first of these mechanisms for self-control
is a spiritual one, the psychological power that makes man control
his behavior. Man is the vicar of God, which means he is the
representative of the Almighty on earth. In the economic sense,
he is the trustee of God for the wealth created for mankind.
This sense of vicarage implies that man is responsible for his
economic deeds before God. Vicarage also means controlling personal
behavior, and limiting the usage of the natural resources according
to God's will. Improper behavior and the waste of the wealth
of God will make man accountable for his deeds and bring severe
punishment. In the same manner, abiding by God's will guarantees
a good reward and overwhelming gratitude.
It is He who has appointed you
viceroys in the earth, and has raised some of you in rank above
others, that He may try you in what He has given you. Surely
thy Lord is swift in retribution; and surely He is All-forgiving,
All-compassionate.(4:165)
Accordingly, man is expected to receive guidance
as to how the wealth of God should be distributed and treated.
It is this link between the here and now and the hereafter that
brings accommodation between social and private interests. Anyone
who sacrifices for the sake of others is rewarded. The religious
solution, then, is not materialistic, but spiritual and trains
man in the service of others, and in the sacrifice of private
interests for the sake of social benefits. In doing so, he is
serving and benefiting himself as well. In Islam, it is the fear
of God and the desire of His gratitude that replaces the competitive
greed of human nature. Once religion succeeds in bringing up
this man who has control over his inner instincts and passions,
the social order can be saved from contradictions and individual
abuses and manipulations.
Since this goal is utopian in its outlook, Islam
has derived a social mechanism to secure peace and harmony in
the human society. God has assigned the vicarage role not to
the individual per se, but rather to mankind. It
is the social group that is the trustee of God over economical
wealth. They, as a group, hold the responsibilities of managing
the natural resources and human wealth to benefit the welfare
of the group. The following Quranic verse refer to such social
responsibility.
According to Sadr's interpretation of the above
verse, God considers the financial wealth of the ignorants as
the wealth of the general public. The whole society is then responsible
for not allowing any misappropriation of the ignorants' wealth.
Such social control over economic wealth makes the individual
accountable not only before God, but before his own people.
Islam also disavows any values that a society attaches
to the possession of economic wealth. Affluence and economic
prosperity of the individual are not signs of social prestige.
Islam wants the individual to consider wealth as burdensome and
places a responsibility on the shoulders of the wealthy individual
to serve both himself and others. It is a means to achieve the
goal of humanity. Affluence should not be the goal for the individual
to achieve in his life, as in a capitalist society which makes
man use all possible means to increase his possession of wealth,
even if it brings harm and oppresses others' interests. However,
if one thinks of wealth as the means to realize the appreciation
of God, then helping others, not oppressing them, becomes the
social norm of the rich and wealthy. In other words, Islam is
determined to change the social values related to the possession
of wealth and private property. There is no need to abolish ownership
of private property as suggested by Marxism. The social policy
of elimination of private property, according to Sadr, will not
be successful because it goes against human nature. The only
solution is to reform social values in such a way that wealth
is changed from an individual goal to a social means to achieve
a higher moral goal.
Economic Development
The third part of the Islamic solution to the economic
problem, according to Sadr, deals with "fostering the production
and the utilization of the natural resources of the environment
to its fullest extent." God has created an abundance of
resources in nature to satisfy the human needs on earth. Man,
accordingly, is encouraged to use the abundance of God's gift
to his benefit. According to Sadr, "Islam, ideologically
speaking, has set the development of economic wealth and the
utilization of the natural resources to the greatest possible
extent as a goal for the society." Islam is similar to capitalism
in affirming this economic objective; however, they differ in
their approach to achieving it. While capitalism "rejects
any means of development of production or increase of wealth
that hinders the principle of economic freedom, Islam, on the
other hand, rejects those means which are contrary to its theories
of distribution [of the economic resources] and its principle
of justice."
Notwithstanding, Islam, as mentioned before, discourages
individuals from pursuing strictly materialistic objectives,
downgrading gains in this contemporary existence. Sadr regards
economic prosperity as the goal of the virtuous society, not
of the individual. God, after all, has created everything on
earth and the heavens to serve the existence of man. Islam only
rejects materialistic gain as the ultimate ambition of man, which
in such cases leads him to the oppression of others. Islam encourages
zuhd [austerity] as a pedagogy which trains man not to
consider materialistic wealth as his final goal in life. Zuhd
is man's mechanism for self-regulation which he utilizes to fight
his desires and direct his objectives toward God. However, it
is not the goal of social order of the faithful.
Suffice it to mention that affluence and a high
standard of living help mankind in his journey to God. Suffering
can hinder such efforts. In fact, there is direct effect between
man's relationship to God and his relationship to nature. The
more men strive for God, the more bountiful nature will be in
providing for man's needs. Social affluence is the sign of God's
gratification to man. On the other hand, man's thankless attitude
to God, of which his social injustice is the outward expression
or symbol, results in the ruin of the economic resources and
productivity, and the degeneration of man's social existence.
Islam also expedites the social drive toward production
in its religious regulation. Under the Islamic economic system,
earning is exclusively linked to working. All other means of
earning and ownership are abolished. The possession of natural
resources is not considered legitimate without continuous human
efforts to develop it. Any type of earning that does not require
any human labor, in commerce as well as in production, is forbidden.
For this reason, the usage of the financial capital to generate
earning is abolished. The only legitimate way to make use of
the capital is to invest it in the production process and share
the risk of profit and loss. To insure the utilization of capital
in the economic development, Islam strongly forbids the conservation
of money and initiates a yearly tax to downgrade any wealth that
is not enrolled in the production process. Additionally, any
type of useless economic activities, such as gambling, magic
and superstition, jugglery, are forbidden in Islam.
Furthermore, Islam made it a requirement for Muslims
to explore all fields of knowledge and seek any efficient means
of production in order to utilize to maximum benefit the natural
resources of the environment. The economic strength of Muslims
is analogous to their military strength. The power of the Islamic
political state is judged on the merit of their economic progress
and social prosperity. For this reason, Islam places a heavy
emphasis on the role of political leadership to regulate social
economic activities to enhance economic development and eliminate
waste.
The Role of the State
As indicated in the theory of distribution, the
Islamic state possesses the sole right of ownership of natural
resources. Consequently, it has absolute control of all aspects
of economic activities. The owner of the natural resources, or
the primary commodities, according to Sadr, is the sole owner
of the secondary commodities. Basically, the government of the
Islamic state can determine the flow of wealth in the society
and define the economic process. The major objective of the Islamic
state is to set up policies to develop the natural resources
to the fullest extent to benefit the entire bulk of the society.
To achieve such an economical objective, the state
has the right to distribute the social economic resources to
attain the maximum amount of production that brings prosperity
to all people. The state has the responsibility to provide the
minimum of the essential needs of the society and ensure the
economy of the people. It is unlike the capitalist state, which
leaves that function to the fluctuation of the market. Nor it
is like the Marxist-Leninist theory that advocates the state
control all aspects of the economic activities. The Islamic state
sets the direction of the economic activities, while giving individuals
the right of private ownership to achieve the social goal. The
government has the role to oversee and regulate economic activities.
Accordingly, Islam has left the government with a high degree
of flexibility in developing new regulations to meet rising economic
circumstances. Sadr called the absence of restrictions in the
Shari'ah as manatiq al-furagh (the discretionary sphere
of the law), where the jurist has the authority to make judgments
and rulings according to the principles of jurisprudence. He
considers this area of legislation on the part of the law-giver
as a realistic approach to ensure the development of economic
activities and the means of production. The leadership of the
Islamic state then could initiate any new legislation and regulations
that they see as appropriate to the new rising circumstance in
order to meet the economic needs of the people and secure the
maximum utilization of the economic resources. In other words,
the Islamic government is free to adopt a wide range of economic
policies from full control of the economy to free-enterprise
in order to achieve its social goal. In this case, the government
must depend on the economists and experts to watch for the best
possible alternative policies to set the direction of the state
economy (provided that it will not overrule the theory of distribution.)
Such an unlimited role of government in the economy
of the Islamic state is justified because of its substantial
social involvement. The state is responsible for the social welfare
of the all people. The economic resources in the Islamic state
are distributed not only according to work and ability to produce,
but also according to needs. Not all people in the society are
able to work, or if some do, they are not able to satisfy their
needs. Sadr identifies three economic classes in the society:
1) those who have the mental and/or the physical power to produce
more than their needs; 2) those who are able to work, but only
to the extent of meeting their essential needs; and 3) those
who do not have the mental or the physical power to work productivity.
The government's responsibility is to provide for the needs of
the latter two classes, which are not limited to the essential
human needs. The people in the Islamic state must live in dignity,
i.e., their economic status must be raised to the acceptable
general level. Therefore, the state must have the economic resources
to be able to finance the social welfare program.
Whatsoever spoils of war God
has given to His Messenger from the people of the cities belongs
to God, and His Messenger, and the near kinsman, orphans, the
needy and the traveller, so that it be not a thing taken in turns
among the rich of you.(59:7)
The verse, according to Sadr, indicates two things:
first, the allocation of economic resources between the government
and the needy people; and second, the distribution of wealth
in such a way as to prevent the rich from controlling the state
of the economy. Based on the above interpretation, Sadr argues
that the main principles of Islamic economics are: 1) public
(i.e., state) ownership of the means of production and distribution;
and 2) centralized economic planning. It is only through the
control of all the resources in the community by the society
that the common need of the society to be protected is guaranteed,
and the essential economic rights of the individual are insured.
Accordingly, the legitimate Islamic government has the responsibility
to make a long-term plan for serving the common good and overcoming
instability in the market.
Islam recognizes differences in income between
people, but strives to create equitable standard of living.
To realize such a socioeconomic condition, Islam, although it
specifies fixed taxes to be collected from the prosperous people,
establishes a social and moral mechanism. A lavish and extravagant
style of living is totally discouraged in Islam. Islam also forbids
waste in production and consumption in order to direct the resources
of the economy to produce the commodities that satisfy the needs
of all people and bring about social equity. The state also has
the authority to regulate wages and prices so as to overcome
the selfishness and greed of those who possess economic wealth
and insure an equitable standard of living for all people. In
sum, the major goal of the Islamic state is for the prosperity
of all citizens. |
