Islam uniquely considers distribution as the economic problem, and Muslims do not share the obsession of capitalists and communists with production. Because Islam differentiates between the basic needs and luxuries, there exists no concept of relative scarcity of resources in Islam. The resources available on earth are sufficient to secure the basic needs (food, clothing, and shelter) of fifty billion human beings. Such a misunderstanding has concealed the reality that starvation, poverty, and economic backwardness, result from maldistribution exasperated by man-made laws and systems. Under the Islamic system, Nigeria alone could support the whole of Africa, as occurred in the past when, under the system of Islam, Africa sent food to relieve the famine in Medinah during the rule of Omar bin al-Khattab.
By using labels like "Third World" and "First World," this economic conspiracy has worked behind a deceived populace who fail to realize that the "Third World" countries are actually First World in terms of resources. While organizations like Mercy International and UNICEF keep the masses content under the circus act of "humanitarian aid," the capitalist machine works behind the stage to gobble up the resources of the world.
The implementation of Islam would eliminate the stranglehold by which the elites control the polices of the world and milk its resources. Unlike the current systems, Islam will not impose any limits on the amount of wealth that an individual can acquire, thus creating and maintaining an incentive to work. The shortsightedness of limiting production stems from the man-made ideologies that fail to understand the nature of creation. Because the Islamic system reflects the wisdom of the Creator, then the implementation of Islam will provide a society conducive to life that will address the needs of humanity based on the correct understanding of life. Muhammad (saaw) said, "The son of Adam, if he had two valleys of gold, would desire a third and would not be satisfied till he bites the dust."
While generating massive abundance and wealth of resources by eliminating all the restrictions and oppressive systems that prevent production, Islam will safeguard against abuses of exploitation in acquiring wealth by limiting the way in which wealth is acquired. For instance, Islam denies the "free" market of Capitalism which has led to the situation of "survival of the fittest". Such an unrestricted environment has led directly to the current situation where multinational companies have scavenged the resources of the world like parasites unrestricted in their "freedom." Under the Khilafah, natural and vital resources would be categorized as public property and a right of every citizen of the state - Muslim or otherwise - in accordance with the Prophet's (saw) Hadith that states, "The humans have a right to three things - water, green pastures, and fire-based fuels (An-Naar)."
In Islam, public revenue from oil and natural resources would be used to secure the needs of the whole Muslim Ummah, and not to line the pockets of casino owners. The Khilafah would provide public and vital resources without charge to cover the needs of every individual and family, and the monopolies that multinational corporations maintain to dictate the lives of the people would dissipate.
The Shariah also defines certain rules that regulate company structure, effectively preventing abuse and corruption. For instance, Islam forbids monopolies by outlawing the hoarding of wealth (Al-Ihtikar), and eliminating copyright or patency laws that would open the avenue for potential monopolies to develop. Also, Islam protects the ownership of businesses and companies by restricting ownership of companies only to those who contribute both capital and effort to the company or business, thus effectively putting the seal on such concepts as "corporate takeover" from ever becoming a reality.
In the systems of today, the stock market offers no such protection and allows for any outsider to secure a share in any business or corporation and impose his policies on the company agenda, even if that individual puts no effort or work into the business. Today, food manufacturers have cultivated the art of burning surplus food and dumping surplus milk into the ocean to artificially inflate prices by creating "scarcity," an art that would cease to exist with the implementation of Islam.
Unlike today's system, which opens all doors for anyone to access wealth by any means, Islam categorizes wealth in a systematic way that both protects the right of individuals to access wealth and, simultaneously protects the society and secures the needs of the Ummah. Islam mandates vital and natural resources as public property while allowing for unlimited access to luxury items. Also, Islam protects the society in ways that corrupt man-made systems have overlooked by defining certain needs as "prohibited needs." For instance, to protect the honor (ird) of the woman, Islam would outlaw all forms of prostitution, pornography, or any type of sexual bombardment that exploits the charms and physical attractiveness of women. In addition, Islam would prohibit alcohol and gambling, killing every industry and institution derived from such filth that has seeped the Capitalist Nations in a downward spiral of corruption, social turmoil, and moral devastation.
In addition, the form of currency in Islam will break the economic hold of the Kuffar over the Muslim lands. The Khilafah would link the currency to gold, silver or some other precious resource. By backing the currency with resources of real value, Islam creates a stable medium of exchange and eliminates the concepts of linking currencies that allow nations to manipulate currencies and maintain a monopoly over the financial markets of the world.
Just a glance at the economic system in Islam suffices to explain the fear and dread that America and the West have shown towards Islam, and explains the dedication and effort exerted towards curtailing or suppressing the resurgence of Islam as a system. Such a system would not only break the grip that the Capitalist nations have secured over the wealth and resources of the Muslim lands and dethrone their upper hand over the policies of the world, but would provide the long-awaited solutions to life that they have kept a secret from their own people with their extensive media manipulation and education. Because the currency in Islam is linked to gold or other precious resources, the implementation of Islam would cut the economic chains that America employs by linking other currencies to the dollar.
In addition, the effectivity with which the Islamic economic systems correctly defines the economic problem and secures the needs of every individual, and eliminates all forms of economic and social corruption, would provide fuel for the foreign policy of the state that would enable the Khilafah to easily spread Islam ideologically throughout the world.
For such a system to emerge, the Ummah must revitalize within itself the Islamic way of life and cultivate the Islamic culture and the Islamic Aqeedah as the sole basis for providing solutions to its problems. Without the clear conviction in the Islamic Aqeedah and the comprehensive understanding of the Islamic system, the corrupt regimes will continue to tame and manipulate the Muslim masses with empty slogans, while behind the curtains, the feudal landlords of Pakistan will maintain their status and the Gulf sheikhs will continue to squander the public resources of the Ummah.
Primary Concept of Islamic Financial Planning
Extended Islamic worldview, explained.
Though Islamic financial planning has been introduced almost two years in Malaysia by the pioneer Hijrah Strategic Advisory Group Sdn Bhd, some people are still confused about the concept. What is financial planning? Is there an Islamic financial planning? What is the difference between Islamic and conventional financial planning? Do we need the Islamic one?… These questions disturb many people's mind.
Financial planning is an effort to render professional service to individuals, their family and their business, to provide impartial assistance in analyzing and organizing financial affairs in order to achieve financial and lifestyle goals. It is basically dealing with a man who engages in some forms of personal budget in term of wealth creation, wealth accumulation, wealth protection, and wealth distribution. The crux of a financial planning practice is the planning itself then the implementation of the plan and the monitoring of it. Terms such as man, wealth, and lifestyle goal that are used in the above definition are actually neutral and do not carry any value. These terms are known as generic concept of financial planning. The generic concepts are those concepts in a discipline, which identify the elements whose functioning and interrelationships form its subject matter. Definitely the generic concepts are free of philosophical underpinnings.
These concepts can not generate a world view as they are generic and lack a philosophical basis that defines the nature of their role, and the nature of their interrelationships in terms of the final outcome of their interaction. A worldview, on the other hands, is arrived at by giving a philosophical orientation to the generic concepts; when this happens the generic concepts are transformed into what the so-called "Primary Concepts". Therefore primary concepts redefine the nature, inter-relationships and the role of generic concepts in the system; predicting a unique universal outcome based on the chosen philosophical foundation. For instances: man, wealth or resources, lifestyle; are some of the generic concepts in financial planning but given the philosophical foundation of Laissezz Faire each of these concepts acquires a new meaning and identity; and their interrelationships deliver the final outcome which is different from that of dialectical materialism and Islam.
In the case of conventional that is either based on laissezz faire (capitalism), dialectical materialism and Islam, this is evident from the figure 1.:
As a result primary concept are actually the generic concepts with philosophical themes. When these primary concepts are stratified, they help develop a particular worldview.
Similarly by using the philosophical foundation of Islam, the generic concepts of financial planning are also refined and are transformed into the primary concepts that can be used to construct a worldview of Islamic financial planning.
Capitalism Islam Socialism
Generic Concepts Primary Concepts Primary Concepts Primary Concepts
Wealth /Resources Scarcity of resources Bounties of God and no scarce Scarcity of resources
Ownership Individual freedom A Trust The source of the exploitation of labor
Lifestyle goals Personal Satisfaction (needs and wants) Falaah (Prosperity) Equal welfare among the proletariat
Figure 1. Primary concepts of Conventional and Islamic financial planning
Thus conventional financial planning is being value added with the specific philosophical underpinning. Consequently in the operational level, these concepts will be translated in the personal budget in every stage of creation, accumulation, protection and distribution of wealth.
Islam, on other hand, provides a worldview that is harnessed to private and public life of Muslims based on the revelation, qur'an and sunnah. Thus Islamic financial planning has been there since prophet Muhammad sent to this world to guide human beings. In Islam, a man has been respected and considered as vicegerent on the earth, as Allah says "Behold, thy Lord said to the angels: "I will create a vicegerent on earth"…(qur'an 2:30). As a vicegerent, a man has been ordered to serve Allah as He says "I have nonly created Jinns and men, that they may serve me" (Qur'an 51:56).
Every single deed and activity of man in Islam is considered as worship and thus should reflect rendering service to Allah. For this purpose Qur'an was revealed and the prophet was sent to be a model for ideal mankind and to guide and educate men to live in this world according to the injunctions of Allah. Both qur'an and sunnah that constitute shari'ah, become a significant parameter for the Islamic way of life. Thus, Islamic financial planning should comply the shari'ah. There is a need for all Muslims to understand their two basic roles and ensure that they carry out their roles well. As a servant of God, all the guidelines as prescribed in the qur'an and sunnah must be followed without any exception. There is no option for an individual Muslim to choose to follow some guidance and not others.
In Islam, wealth is considered as a bounty of God and thus it is not scarce, for Allah says, "God is rich but you are poor" (Qur'an 47:38). What is actually scarce is the ability of mankind to utilize (explore) the bounties of God, at any given point in time. On the other hand, God is rich, meaning that in actuality the bounties of God are limitless. As a result, being a servant of God, Muslims should be professionals in what ever they are in so that they may stretch their hands out over (whole) the world and all that is in it, since God made them His representatives on earth. Being professional, Muslims should follow the guidelines and injunctions of God in their respective profession. Undoubtedly whatever Muslims achieved in creation and accumulation of wealth will not trigger any bad feelings such as envy and jealousy among them. With regard to ownership, Islam considers it as a trust and thus Muslims should keep it in their minds that the trusts will be asked for. Muslims will be responsible for whatever they have done toward the trusts. In this point, Islam prescribes ways to carry out the trust. For example, how should Muslims spend their wealth in their lifestyles- in their clothing, dwelling, transportation, food, education and charity- and how should Muslims distribute their wealth (estate) after they passed away.
Finally, life goal of Muslims is not only to satisfy temporary needs and wants but it is to get falaah or prosperity that leads a good life in this world and the hereafter. Islam prescribes this life as place where Muslims prepare themselves for the next life and thus they should treat this life as test and trial. As a result, Muslims should plan and achieve goodness in this world and the hereafter. Thus Islamic financial planning should more comprehensive than that of the conventional in the sense it includes the creation, accumulation, protection, purification, and distribution of wealth based on shari'ah in order to get a good life in this world and the hereafter
