Islam and Economic

Peace

Bushra Bajwa
Which Economic System?

Socialism – tried, tested, failed

Capitalism – greed,
exploitation, inequality,
individualism

ISLAMIC ECONOMIC SYSTEM

Outline
1) Macroeconomic System
– the economics of states

2) Microeconomic System –

the economics of individual
households
1) Macroeconomic
System
Aim

Right of every person to

have basic necessities

‘It is provided for thee that thou

wilt not hunger therein, nor wilt
thou be naked. And that thou will
not thirst therein, nor wilt thou be
exposed to the sun’. (20: 119-
20)
Aim

Equality

"Whatever there is in the

earth has been created for
all of you." (2:30)
Islamic Economic System

5 characteristics
Islamic Economic System
1) Simple Living
Prohibits luxuries and
indulgences

Rich will contribute surplus

to relief of poor

Poor will not be tempted to

Islamic Economic System
2) Forbids lending of money
on interest
Those who devour interest do not
rise except as rises one whom
Satan has smitten with insanity.
That is because they say, 'Trade
also is like interest;' whereas
Allah has made trade lawful and
has made interest unlawful.
(2:276)
Islamic Economic System
2) Forbids lending of money
on interest

To prevent accumulation of
wealth in few hands

To prevent gradual crippling of

poor
Islamic Economic System
3) Zakat - - Right of poor from
wealth of rich

Surely, those, who believe and do

good deeds, and observe Prayer
and pay the Zakat, shall have
their reward from their Lord, and
no fear shall come on them, nor
shall they grieve (2:278)
Islamic Economic System
3) Zakat

Secures circulation of
wealth

Secures money for the poor

Islamic Economic System
4) Forbids the hoarding
of money

To promote economic activity

To provide employment
Islamic Economic System
5) Encourages voluntary
contributions to charity

Itis not thy responsibility to make them

follow the right path; But Allah guides
whomsoever He pleases. And whatever
of wealth you spend, the benefit of it
will be for yourselves, for, you spend
not but to seek the favor of Allah. And
whatever of wealth you spend, it shall
be paid back to you in full and you shall
not be wronged (2:273)
Islamic Economic System
5) Encourages voluntary
contributions to charity

To provide relief for poor

Care for others

2)
Microeconomic
System
Economic Peace in the
household
Men and Women are equal in
Islam

Created from the same

species:
“He has made for you mates of
your own kind” (42:12)

E.g. spiritual capacity, reward

Economic Peace in the
household
Islam recognizes men and
women have been created
differently:

Financialburden of
household falls on men

Women responsible for future

generation of mankind
Women in Islam
Honors women
Priority – husband and
children
May work
Financial responsibility not
her obligation
May contribute to upkeep of
household
E.g of Khadija.
Conclusion

To promote equality in the

world

To create harmony in the

household
Conclusion
What can we do?

Caring, not selfish,

attitude
Simple lifestyle
Give charity
Support CSR organizations
Further Reading:

New World Order of Islam

Islam’s
Response to
Contemporary Issues

$10 each at www.store.alislam.org