Democracy Vs Khilafah in Economics & Providing for the CitizensThe West: A shining example for economic success for Pakistan or not ?========================================================How does the West provide for society ?The capitalist economists came to the conclusion that in order to ensure that the needs of the people are met there must be production – meaning the supply of goods and services to satisfy the needs of the people. Thethinking being that if production exists then the needs of the people can be fulfilled. They believed that production can be regulated by price. If a need exists within society then someone would enter the market to supply it, if he could make a profit. Therefore a need of the people would be fulfilled. For example people need shoes and they can afford to pay acertain price for shoes – the production would commence as long as the producer could produce at a profit. In this way the capitalists believe that needs of society would be met as long as production regulated by price profit motive exists.In news reports about the economy is doing well or poorly, the observer sees the constant reference to the economic growth,recession and measures like GDP. The growth in the economy indicates that there is greater production now than period before, recession indicates a decline in production. The GDP (gross domestic product) is a measure of national productivity – if it is high then a nation is deemed as having a high standard of living.In summary it can be said the approach of the capitalists towards fulfilling the needs of the people is to try to ensure that the economy keeps growing and GDP keeps increasing and then in their view they have a successful economy. They therefore conclude that as long is growth in production occurs, they have discharged their economic duty and the economic needs of people in their society are being well looked after. The needs of individuals are not considered but the production is measured collectively.Is this our role model to follow ?Due to the years of decline and intellectual andpolitical confusion that exists in the Muslim world, many Muslims see that the people in the Western world live a life that they can only dream of. This is projected by the media and is perceived to be the norm in the West. They fail to realise however that economy of the West moves from crisis to crisis and has to be put on life support via government intervention. In actual fact many people can only afford luxurygoods by going into debt. In the US for examplethe average credit card debt is $15,257, average mortgage debt: $149,782 and the average student loan debt $34,703 [3]. People are not prospering as the West likes to arrogantly project to the rest of the world. Rather those that work tend to go into debt and then have to work like slaves in order pay the debt as it grows with riba (Interest) over time. Those who cant are left at the mercy of welfare schemes or resorting to criminality.Economists & politicians who are besotted with West, have tried to emulate and apply Western economic principles – and have failed in achieving any success for at least the last century. In Pakistan for example Imran Khan is also praising the Wests achievements, you oftenhear the buzz word GDP from his mouth and yet in reality he does not understand. his education in the west has only taught him of this false economic success>>>>Doeshaving growth in production secure the needs of every individual in society or does it restrict the profits to the people with wealth already? Doeshaving a high GDP ensure that needs of the most vulnerable in society are met? The disabled, the elderly the mentally ill are they all expected to seek the capitalist dream? GDP is other words is meaningless, because beneath the shiny glitter is a cancer eating away the society.Is there an alternative to Democracy & Western Economics ?Unlike capitalism Islam does not wash its hands of securing the needs of the people as individuals. The Khilafah is responsible for every citizen individually. It is not assumed that all people will be in a position to work and thus earn to secure a livelihood. Islam addressed this issue by firstly obliging the family of such people to look after them and ensure that their needs were being met. If this was not possible then the bait al mal (state treasury) would provide for them. The capitalist economists view is that if an individual is not involved in the production of goods or services then he deserves nothing. Islam obliges the state to ensure that its citizens have their basic needs and necessities met as well allowing the luxuries as much as possible. This would be done firstly by letting those capable of working to do so.It is narrated that the Prophet Muhammad ( saw) shook the hand of Saad ibnMuadh (ra) and found his hands to be rough. When the Prophet صلى الله عليه وسلم asked about it, Saad said: I dig with the shovel to maintain my family. The Prophet صلى الله عليه وسلم kissed Saads hands and said: (They are) two hands which Allah loves. The Prophet صلى الله عليه وسلم said: Nobody would ever eat food that is better than to eat of his own hands work.In Islam there are no income taxes or hidden taxes like VAT/GST. Zakat is the tax if it Farz and if you are rich the state may request funds from you at sensible rate if the money isneeded. Dont forget the state will have money via international trade as well and because yourincome is not taxed you will be better off.In conclusion, the long absence of Islam in economic life and the fall of communism in the 1990s has led many to believe that capitalism is the only system that works. Albeit, with its contradictions,flaws and sticky plaster solutions. They are sadly mistaken, as has been witnessed over the past few years capitalism is in crisis. It is a decrepit system that is frail and teetering on the brink of collapse.Instead of being deceived by the west about their economic system, Muslims need to study and discuss the economic system of Islam with a view to implementation as an alternative under framework of the Khilafah ruling system- capitalism presents no viable solutions to be applied in Muslim countries. Only the economic system of Islam will ensure that needs of all are met and the vast resources that Allah سبحانه وتعالى gifted the Muslims with are used productively and not given away to capitalist corporations
Posted on: Thu, 11 Dec 2014 11:00:18 +0000