Islamic Economic System

Islam is the ultimate and final blueprint for life, sent down by Allah to
Muhammad (PBUH), the last and final messenger for the whole of
mankind. Thus, the only way of life ordained for humanity by the
Creator of the universe is Islam. It provides the answer to man’s
greatest problem, i.e. what is the source and purpose of life and it
guides him to come to the realization of what he should and should
not believe in. Islam, as well as being the final solution for mankind’s
greatest problem, has given comprehensive guidance for human
beings to live their lives. Unless mankind applies this, he is left to the
beliefs and desires of his own weak and imperfect mind to govern his
affairs.

Allah says

“If anyone desires a deen other than Islam, never will it be accepted
of him, and in the hereafter he will be in the ranks of those who have
lost.” [TMQ 3:85]

THE UNIVERSAL APPLICABILITY OF ISLAM

The Shari‘ah (Islamic law) addresses men and women as human
beings, not as people living in a particular time or place. And whether
a man or a woman is living now or in 100 years time, they would still
have the same basic needs and instincts, such as the need to eat and
drink or the desire to procreate and these would still have to be
satisfied. As well it does not regard humans as just economic or social
beings, rather as an integrated whole, with each person having
various needs, be they social, economic, procreation or otherwise.
Islam has given a hukm (divine rule) for all of these different areas in
life. The Islamic system regulates all our needs and instincts, without
neglecting any of them or being restricted to any particular time or
place, and it gives us guidance in every issue, from personal
cleanliness to the foreign policy of the Islamic State. Thus the
applicability and relevance of Islam is guaranteed until the Day of
Judgment

ISLAM FOR ALL MANKIND

The beauty of Islam is that it has come for the whole of mankind. It is
not restricted to any particular people or place. The example for
humanity is the Prophet Muhammad (saw). No new prophet or
messenger will come again. The suitability of Islam for all peoples
means that it gives rights and duties to non-Muslims as well. Under
an Islamic System non-Muslims can freely practice their individual
beliefs related to foodstuffs, marriage customs and worships. Of
course within the State, when in society and the public domain,
everyone will be treated according to Islamic Law and the Shari‘ah
will be administered over everyone, in their capacity as citizens of
the State. The Systems of Islam are like a tree, with many branches.
Although each system is like a branch, different and unique, they all
constitute one part of a greater whole, which is the complete Islamic
way of life.

THE ECONOMIC SYSTEM IN ISLAM

“Islamic Economic System” is defined as:

“A complete system that prescribed specific pattern of the economics

behavior for all individual and society with in the Islamic way of life”.

The recently development toward Islamization, is to eliminate the

interest based transition particularly from the banking sector in
general from the whole system of the economics. Broadly speaking
“Islamic economics” is defined a complete system that prescribed
specific pattern of the economics behavior for all individual and
society with in the Islamic way of life. Now, here we discuss the main
characteristic of the Islamic economic system.

Alliance With Shariah:

At the core of the Islamic economic system lies on the rule specified
by the shariha namely the codification of injunction given by the
HOLY QURAN and the traditions of the Prophet Mohammad. The blue
prints of economic policy follow the rule, which are compatible with
the shariha.

Based On Equality:

The role of state in the Islamic economics ensure; first, that every
individual has equal access to the natural resources and means of
livelihood; second, the everyone has equal opportunity to use the
resources included education, skill and technology. Third, the market
is based on the rule of justices that is the authority ensures equal
proportion in exchange.

Property Rights:

The property rights are base on three principles. Firstly The Allah is
the owner of the whole land individual has been given the rights of
the possession as a trust. Secondly, property is only a mean of
achieving highest objectives and all members of the society share
the natural resources at man’s disposal.
Possession Of Wealth:
Wealth can be acquired legitimately through work and inheritance. It
should not be used for lavish or luxury consumption and the use for
social purposes is encouraged (and re-warded in the hereafter). Islam
recognizes three kinds of possessions:

(A). Private Possession:

The Prophet (PBUH.) said: "The pos-session of a Muslim is illegal to

his brother except whom he willingly offers to him”.

(b). Collective Possession:

This field covers the national wealth which belongs to all people of
the Islamic State, irrespective of their financial status. The bulk of the
wealth is expended and utilized in building schools, hospitals, etc.
The sources or incomes of this sector of economy are specific and
noted. Prophet Muhammad (PBUH.) said: "People are to share
three .things, fire, water, and grass." All Muslim thinkers throughout
the Islamic history accepted the generalization of this statement to
include all natural resources to be under collective ownership.

(c). State's Possession:

State's possession differs from other kinds of possession not only in

the sources of income but in utilization and fields of expenditure also.

"They ask you concerning "Anfal" (accessions) say "Anfal" is at the

disposal of God and the Apostle.” (Qur'an, 8:1)

The Prophet is mentioned here as a representative of the Islamic

Government. One of the basic channels is helping poor people to
work, by offering small capital or building a factory for their
employment.

System Of Zakat:

The poor and needy have a claim to be sustained by the society. This
claim is institutionalized in the system of zakat (sometimes
translated as poor due or alms tax), a compulsory levy of 2.5% on
assets and 5% or 10% on agricultural produce and earmarked for a
list of purposes initially outlined by the Prophet Muhammad and
further specified by the early caliphs.

Interest Free Economy:

Islam promulgates on interest free economy. The Quran prohibits
strongly the payment and receipt of interest (riba). Interest (riba)
refers to the addition to the amount of principle of a loan on the basis
of time for which it is loaned or of the time for which the payment is
deferred. It must be noted that riba is prohibited for loan transactions
only, i.e. it is limited to purely financial transactions. Allah says in the
Qur’an:

“Allah has permitted trade and forbidden interest.” [TMQ 2:275]

Taxation System:

Islam has a unique system of taxation where there is no taxation of

the poor. There are only three types of regular taxes levied from
those people who are able to pay:

1. Jizyah - Is a tax on mature male non-Muslim citizens who are able

to pay it. This is much less than any tax on Muslim citizens.

2. Ushr - Is a tax levied on unconquered land under the jurisdiction

of the State, at the rate of one tenth of the produce if the land is
irrigated by rain, or one twentieth if it is artificially irrigated.

3. Kharaj - Is a tax levied on conquered land, whose rate is fixed by

the Khaleefah.

There are no income taxes. There is no Value Added

Tax.

There are no Death Duties. There is no Road Tax.

All these examples are included among the taxes in the West where
it is the poor that suffer the most.

Currency:

Currency in the pure Islamic state can only be based on gold and
silver. Thus it will be have real value itself, providing stability in the
economy. It cannot be reproduced or destroyed, which would cause
devaluation and inflation.

Guidance To Monetary & Fiscal Policy:

In Islamic Economic system prices should be just which means that

they should be formed on competitive markets. Therefore monetary
policy must ensure the stability of the price level. Moreover, the fiscal
policy should balance tax income and public expenditures in such a
way that the overall budget will be balanced (no deficit spending).

Provision Of Infrastructure:

The state shall provide a basic infrastructure (including a legal

system) and specific public goods but must not intervene into
competitive markets.

Ban On Hoarding/Dumping:

In Islamic Economic system Hoarding of wealth or dumping of goods

is prohibited, even if you are willing to pay Zakat on it. This makes it
available for the markets, boosting the economy and preventing the
wealth from merely making a circuit amongst the rich.

Company Structure:

The Islamic system has 5 types of company structure: anan, abdan,

mudharaba, mufawadha and wojooh.

1. Anan (Company of Equals) - Partnership between two people, both

contributing capital and effort.
2. Abdan (Company of Bodies) - Company in which two or more
persons participate by their effort only, without their capital.
3. Mudharaba (Company of Capital and Effort) - A company in which
one part provides the capital while the other provides the effort.
4. Wojooh (Company of Faces) - A company involving two or more
parties who provide the effort with another party who guarantees the
financial support.
5. Mufawadha - This is a company which combines any of the other
4 types of company structures permitted by Islam.

Stocks and share companies (Plc’s) are not allowed in Islam as they
do not fall into any of the permitted categories, having an incorrect
company structure, and so are invalid.

Aid from State:

If somebody is unable to provide accommodation or sustenance for

himself or his family, the Islamic State will provide these to him free
of charge, for as long as he remains in that position.

Social Insurance:

This is partly the duty of all Muslims in the Islamic State. As they are
responsible for their brothers and sisters in Islam. The Prophet
(PBUH.) said:
"He who sleeps the night not caring about Muslims welfare is not one
of us".

He also said:

"He is not one of us, who sleeps the night while his neighbor is
hungry."

It is clear then that if the State's possession is not enough to satisfy

the necessary needs of the poor people, it has the right to pass laws
on rich people in order to help the poor.

Conclusion
Summing up, we can say that the state is responsible to design the
economic policy with in the framework of the shariha that is required
in order to guarantee the attainment of these objectives and to meet
the necessary expenditure associate with the performance of its
duties through taxation and utilization of national resources. Also, It is
the responsibility of every Muslim to understand fully about the
details of this unique and perfect way of life. When we have done so,
our minds will see clearly that the Systems of Islam provide the only
practical solutions to the problems of the Ummah, and our hearts will
yearn for their implementation in the world again.

New world order

New world order this term has been around for centuries but fewer
people know about it. Although we heard many famous people using
this term in their address. These addresses were not given in closed
doors but in open in front of the world but still fewer people noticed or
given thought to this term. In this term paper I would give you
complete story behind this term & will try to show how deep rabbit
hold goes.

The rabbit began to dig hole thousand of years back when rulers &
rich people of Egypt call themselves Farawn Were driven out of there
land. So they scattered on earth and began to establish their power
over the earth again. And their dream of there came true with the
establishment of their separate country called U.S.A. Who basically
call themselves as free meason? Once they established their laws
over their separate country fully. They began to dream another
dream to gain control of the world. Which came true with the shifting
of power from Britain to U.S.A. Firstly partly in World war I. Then
completely in World war 2 after which U.S.A remained sole power on
Of the world till today after destroying soviet union and killing every
person who opposed their vision. Some of the most prominent
personalities in history who were assassinated by them after the
establishment of U.S.A. are given below

1- George Washington.
2- Zulfiqar Ali bhutto.
3- Martin Luther king.
4- J F Kennedy

They are not the only but few people assassinated by them but for
the cause of there dream they had destroyed many Territory or
countries like

1- Lebanon
2- North Korea
3- Syria
4- Iran

Rest of the world either joined their hands with them to support their
vision or had signed up a pact to remain silent.

The new world order has been implemented over the world and
silently. Invisible in a way that no one knows about it but meanwhile
trapped in their trap. Some of the main factors which are necessary
and are being implemented on the world so that world may be
controlled each and every way

1- Freedom
2- Economy
3- Politics
4- Religion
5- Education
All these factors are interrelated that is up to some extent they
influence each other because factor inter-dependency is the only
thing which is keeping this new world order motion. Now I would like
to explain all the factors simultaneously.

1- Freedom:

Mean ‘’giving the authority to individual for decision opting a best

choice for him without being controlled by any one. It includes
freedom of speech, Religion etc.’’ The control over freedom is the
most important factor of all as this will restrict one's thinking and
reasoning and making one person blindly believes to what is being
taught or explained. This'll lead to complete control and freedom
over human beings. This control is taken through entertainment
and news transmitted around the world with the help of television
channels and then taking feed back from the people to see the
level of retention of information and aligning of one's views with
that is being taught. The process is going on for decades with the
help of media. Once people began to trust T.V and then N.W.O job
is limited to providing of indoctrinated does after interval. All these
television channels are owned by the promoters of N.W.O and all
the stuff shown are transmitted by there approval to grasp firmly
individual.

2- Education

‘’Is inferred from the word educate which means to enlighten

which means to awake or open eyes. In easy words education
means to make person differentiate things.’’ If you want to destroy
or control anything then firstly you must educate yourself with
each and every aspect of the subject. Once your have enlighten
yourselves then it'd be a piece of cake to bring it down. This is
what being done under N.W.O but in a different way. The
education which is been given to us is indoctrinated so that we
must think in a way they want and use our mind as per told by
them. This will make them sure that there mega plan in on its way
in effective and efficient way. And if our thinking become
independent this'll reveal their true faces to the world and their
dream of ruling the world will shatter.

3- Politics:

Mean ‘’the Practice or study of the art and science of forming,

directing and administrating state and other political units. Also it
is the policy formulating aspects of Govt.’’ As distinguished from
the administrative or legal. As you can see from the definition
above that the sold of politics is to run govt with the help of rules
and regulations. Under N.W.O one of their main agenda is to
control the politics of the countries around the world. So that they
may impose the rules and regulations in the way they want and if
anyone refuse to obey them then they have to face consequences
like Iran, Afghanistan, Lebanon and Palestine had faced. In the
contrary situation peace pact be sign under which you have to
remain silent and support their policies to retain their control over
the resources and geo-political interest in their favour. Some of the
countries have peace pact are Saudi-Arabia, Kuwait, Jordan etc.

4- Belief:

‘’It’s called ‘’a religious faith’’ Also trust or confidence as in a

person or person's abilities etc.’’ Belief is the integral part of
human being which used to shape individual thinking, Characters,
social life and dealings of any kind, along with this it also teaches
one about their right, duties and responsibilities and tells
individual how to live righteous life leading to pleasure of their
CREATOR. This the most dangerous thing which also considered by
NWO. So that is why they have been trying for centuries to destroy
all religions stuff or to manipulate them in a way which favours
them. Along with this they had taken control of all the
entertainment industries of the world. So that people may be
distracted from their religion and their point of view must be
accepted by all easily and must be controlled by them. As they
want to become the sole ruler of the world. Previously the dream
of their was partially fulfilled and this dream cannot be fulfilled
without eliminating or indoctrating the belief which is given by
their religion and making them bewilder behind the materialistic
life of his world and making them belief that is their ultimate gain
of this life as par told by their religion.

5- Economy:

It is the careful management of the available resources. In the

contemporary world if we want to grow then we have to nuritish all
the sectors of an economy i.e. manufacturing, service, research
and development etc. all these activities will generate goods and
services. These goods and services will be sold in the market for
meet demand and supply against money. Most of these goods and
services are not basic need of human being but we had make
them our basic need by force just because of the publicity through
television and for making our life more comfortable. All these
goods and services are not available ever where so we have to
import them. Causing country to pay more for imported products.
This in turn cause imbalance in the balance of payment making
country to raise debt from international institution and community.
These debt is given by people of N.W.O. which impose condition of
there choice when country is trapped under huge debt. As county
have no other option but to accept what they say. Conditions
imposed are those which make them more dependent on them
and adopting constitution of their choice which makes the
countrymen morally and spiritually dead and making them do
things which are forbidden by their religion as their belief says that
they have to return to their GOD and have to give account to HIM
for every action done in this world.

Grand Conclusion:
In conclusion I would like to say that Islamic economic system far
better, persistent, effective and sustainable than new world order.
This is only because Islamic injunctions and jurisprudence are for
each and every person and is not limited to time or space. Taking
into account every individual of the society need Islam has laid
down rules and regulations. Islam says every individual is equal
and have equal rights and duties over each other. So everyone
must take care of each other and try not to exploit any individual
and give due right in any way. Islam also says that their must be
any concentration of wealth within few hands rather recourses
must be distributed equally and must live in peace, love, harmony,
benevolence and freedom. The freedom is not restricted to bunch
of people but to whole of society. So that everyone carry the
business of one’s choice and try to use mind in the best possible
way for the development, betterment and comfort of the society
as a whole. But in each and every sense all the limits laid by
Qura’an and Prophet Muhammad P.B.U.H must be compiled in any
case for attaining success in this world and the world hereafter.
While all these things are focused on few people in N.W.O making
world hell. As if society is ignored this would make crime rate to
rise and all possible negative things which a rational person could
think. In the end Islamic economic system is a batter choice than
new world order for implementation in the world.