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Social Welfare System
Islamic Economic System – Basic Human Rights
The religion of Islam and its economic system reassures the basic economic rights of individuals which include the right to private ownership, the right to economic freedom, and the right to a means of living. These basic human rights are guaranteed on the spiritual, legal and moral levels by Islamic teachings.
Moreover, the whole Islamic system and its institutions are structured to advocate these rights that are intrinsic to the nature of humanity. These basic rights are bestowed by God onto all men and women; therefore, they are in a sense Divine and sacred. Thus their protection is considered a religious obligation on all Muslims, individually and collectively to the extent that Muslims are permitted, and even called upon, to fight for the protection of these rights for themselves and for others (4:75). Their essential scope and regulations are given in the divine revelation (i.e. Quran), which makes any change or alteration outside the reach of men and women.
Islamic fiqh gives a through detailed listing of the implications of these rights and whatever conditions, restrictions or circumstances Shari'ah applies to them.
I. The Right To Private Ownership
Like the rights to freedom, safety and security, the right to private ownership is granted by God. Islamic doctrine treats all these basic human rights as God given. They do not stem from nature, society or any human convention or tradition.
Ownership is a relationship between an owner and a thing implying exclusivity in utilization and disposition. The Arabic term for ownership is milk. It is mentioned 20 times in the Qur'an with explicit reference to private property. For example, God says:-
• "...Or on houses the keys of which you own "(24: 61), and
• "See they not that it is We Who have created for them-among the things which Our hands have fashioned-cattle which are under their ownership" (36:71).
In many verses things are related or attributed to humans in terms of private ownership. For example:-
• "Your riches and your children may be but a trial" (64:15), and
• "Out of their wealth take zakah" (9:103).
Moreover, there are hundreds of such explicit mentions in Sunnah. Additionally, the right of private ownership is referred to implicitly in a large number of verses of the Qur'an and sayings of the Prophet (pbuh).
Private ownership in Islam applies to material things such as a horse or an apple includes both the rights of utilization and disposition. It may only regarding utilities, if only applies to those which can be derived from things owned by others such as the utility of a rented car. It may also apply to intangible matters such as authorship and trademarks.
Islamic law describes the right of private ownership as inclusive, exclusive and perpetual. It is inclusive of all authority of utilization, exploitation and disposition. It is exclusive in a sense that it provides these rights to the owner alone, and it is permanent to the owner as long as he/she owns the property.
Principles Related To Private Ownership
The institution of private ownership is surrounded in Shari'ah by certain principles which clarify its position and role in the Islamic economy. These principles are briefly as follows:-
1. The desire for acquisition and accumulation is innate in the human nature. See, for example, verses 3:14, 17:100, 89:20, 100:8, etc. and several sayings of the Prophet (pbuh), such as
• " If the son of Adam had two valleys of wealth, he would seek a third valley" (Reported by al Bukhari and Muslim).
2. The right of private ownership is founded on the general Islamic doctrine that the human being is created by God as His vicegerent on earth. God bestowed on humans certain mental and physical abilities and authorized him to act in fulfilment of the responsibilities they are entrusted with. In this meaning, the ultimate and final owner of all things and creatures is God. The implication of this philosophy is that the Grantor, the ultimate owner has the right to determine the conditions of the trust and the trustee is supposed to behave accordingly. Therefore, the right of private ownership must be purposive. It should be instrumental in the effective discharge one's responsibilities of vicegerency and in achieving well being in this life and in the Hereafter.
3. This nature of the right of ownership, coupled with the doctrine of the oneness and equality of all human beings, necessitates that the bounties of God be accessible to all alike and that they do not become the monopoly of the few. In other words, divine trusteeship is granted to all equally and not to any group, race or people.
4. The right of private ownership is protected by several moral, spiritual and legal means such as the prohibition of theft, coercion, fraud, cheating, etc. and the imposition of legal penalties on violators.
5. The right of ownership has a limited extension beyond death in the form of a last will which is limited to a maximum of one third of the welfare state, and in the form of inheritance which is governed by even minute details and remote possibilities in Shari'ah in a binding and unchangeable way.
6. Private property is an individual right which has a social role. Individuals are required to observe the social function of private property. But as the society and the welfare state are not the grantor of this right, they have no right to limit, restrict, confiscate or eliminate private ownership except through due process of Islamic Shari'ah which specifies the cases and circumstances of such restrictions.
7. Shari'ah itself provided regulations and means which assure the fulfilment of the social objectives of private ownership and the prevention of abuse and infringement on other people's rights. However, Islamic principles do not impose limitation on the size of wealth or the amount of accumulation, nor do they call for absolute equality in distribution. Furthermore, these principles do not restrict the right of private ownership to consumption goods, nor do they exclude means of production from being owned privately. This is in spite of the fact that these principles also draw a balanced position which does not allow non-compensated utilization of others' property or labour-power.
II. The Right To Economic Freedom
The right to economic freedom is also one of the basic human rights which Islam guarantees to all individuals. This right is indeed an outcome of the general right of liberty and the right of ownership. The religion of Islam declares that all human beings are equal.
Political and religious freedom are essential ingredients of the Islamic doctrine, whose Divine book welfare states
• "There is (or there must be) no compulsion in religion. Truth stands out clear from error. Whoever rejects evil and believes in God hath grasped the most trustworthy hand-hold that never breaks. And God hearth and knoweth all things" (2:256).
As far as political liberty is concerned, the Qur'an describes the community of believers as those
• "Who conduct their affairs by mutual consultation" (42:38).
Additionally, economic freedom is a direct outflow of the right of private ownership, as the latter implies that owners are fully authorized to dispose of their property. Moreover, freedom of contracting in Islam includes the freedom to choose the means of utilizing one's material as well as intellectual and physical resources.
Moreover, the right of economic freedom is also related to individual responsibility. Islam regards responsibility as individual in most cases. Even for matters of benefit or concern to groups, communities or the whole society, Islam invented the concept of fard al kifayah which refers to personal responsibility of capable individuals for actions of community concern.
III. The Right To Means Of Living
As a part of the total Islamic scheme, the Islamic economic system is founded on a spirit of cooperation, solidarity and brotherhood. As a result, this system looks at the outcome of human performance in a realistic manner. In the process of production and distribution, some negativity is bound to happen for a variety of reasons and factors.
• there are external factors such as natural catastrophes-floods, cyclones, earthquakes, etc., which result in human suffering and urgent need for relief.
• there are human-administered catastrophes, such as wars and riots.
• there are factors related to the economic system and its management, such as involuntary unemployment.
• there are human miseries which result from moral or ethical hazards such as unfair competition and immoral practices in business.
• human miseries may also be caused by the inability of the system of exchange to respond to all human needs and circumstances such size of family and its living conditions.
• there are certain social needs for whose supply the market system fails to provide sufficient incentive or mechanism.
Islam essentially regards the satisfaction of basic material needs of men and women as part of the respect and value of human dignity. Human beings are regarded and honoured such that their basic needs must be fulfilled under all conditions irrespective of race, gender or faith of the individuals.
Hence, the guarantee of a minimum standard of living is an inherent constituent of the Islamic economic system, for which indigenous devices or mechanisms are adopted and a certain authority is allowed to the welfare state to handle exceptional circumstances.
The guaranteed minimum standard of living comprises the essential biological needs as well as a socially and religiously determined level of living. A certain minimum level of clothing, cleanliness, housing, knowledge, education, health, basic sanitation, etc. are considered by Islam as minimum requisites for every Muslim.
Obviously, these religious requirements need economic means; the provision of these means is a right due every person from the welfare state, society and all other persons around him/her.
Additionally, every society has something which it adds above the biological needs of men and women. Traditions, customs, social habits and ways people associate create more economic needs without their fulfilment social life becomes tough and sometimes untenable.
Means Of Fulfilling The Guaranteed Minimum Of Living
In addition to resource allocation, employment, and production policies available to the welfare state in the Islamic economic system, there are a few other tools through which the guarantee of sufficient means of living can be fulfilled. Some of these tools are inborn in the system itself, in the sense that they are internal and work automatically and continuously without being invoked by any special welfare state action.
Other tools are resorted to only in the case of need, especially when indigenous tools are insufficient to achieve the targets within a reasonable period of time. The inborn means include the following: zakah, obligatory interpersonal transfers, zakah al fitr, kaffarat, the principle of granting the surplus and the charitable Awqaf. In addition to these tools, the welfare state can use public funds, and, in case needs, arise impose special taxes on the rich in order to secure resources sufficient to guarantee means of living for all members of society.
A) Indigenous Mechanism For Guaranteeing Means Of Living
1. Zakah:
Zakah is a constant part of the Islamic system. Hence, it creates a continuous stream of resources whose levy and collection do not depend on the size of needs or the severity of the problem of poverty. Its main objective is to provide a permanent flow of funds from the rich to the poor. Zakah is supposed to enrich the poor and raise them permanently above the poverty line. Therefore, once the pressing necessities are satisfied, proceeds of zakah may be used for providing the poor with lasting sources of income. Moreover, the eight categories of its distribution include all possible cases of poverty in addition to the general defence of faith and people.
2. Obligatory Interpersonal Transfers:
In addition to the financial responsibility within the nuclear family, the Islamic system provides for wider financial solidarity and mutual support on the basis of the enlarged family and on the basis of the neighbourhood.
The rich members of the family (in the enlarged sense which includes parents, brothers, sisters, uncles, and aunts) are responsible for the well-being of the poor members. This kind of responsibility also has legal backing. Limits and conditions of this kind of support are found in Islamic jurisprudence. However, this kind of assistance is not usually limited to a subsistence level. Rather, it reaches in many cases the level of living of the provider. Similarly, there are mutual financial responsibilities on a neighbourhood basis.
3. Zakah al Fitr:
This is an obligation on all Muslims, including young children, once every year, at the end of the fasting month of Ramadan. It must be given to the poor in the amount sufficient for one day's supply of food. Its exemptions are extremely minimal, which makes it required from almost everybody in any society. Lastly, zakah al fitr aims at providing the poor with a joyful time on the occasion of the feast of Ramadan.
4. Kaffarat:
These are fees of atonement distributed to the poor and needy in cases where certain violations of the religious code of conduct have been made. Islam has many such occasions and such transfers may become substantial on the societal level.
5. Granting The Surplus:
The surplus is what usually exceeds the use of the owner. The Prophet (pbuh), in more than one saying, encouraged giving the surplus [fadl] away. The prophet Muhammad (pbuh) said :-
• "He who has excess mounts, he should render it to whoever has no mount, and he who has excess food, he should render it to whoever has no food."
• "and the Prophet (pbuh) mentioned of kinds of wealth whatever he mentioned until we thought that there is no right of any of us to any excess".
In addition to this general saying, there are several other sayings which deal in a specific way with surplus water and pasture, free lending of utensils, free rides, distributing one day's supply of the cattle's milk on their watering day, and free lending of the oxen or the male camel for
reproduction. By collating all these prophetic examples, along with the known protection of private property, one can conclude with regard to the principle of granting the surplus:
• People are, in principle, free to dispose of their surplus the way they like because disposition is a major implication of ownership.
• Surplus of cost free spring water and wild grown pasture should be given free to whoever wants to use it, although it may be on privately owned land.
• Surplus of other things must be offered to those who are desperate for it freely if they have no means to pay for it, or against a fair compensation if possible.
• There is general encouragement in Islam to give the surplus away for the sake of God.
6. Awqaf:
Awqaf is yet another institution for guaranteeing the living provisions of the poor and needy. It means putting aside (i.e., from private ownership) certain durable property, usually real state, for generating income to be used for certain legitimate objective.
Objectives of Awqaf may cover a wide range, including spending on the poor and needy, on mosques and other places of worship, on public services, on educational institutions and students, on the descendants of the grantor, etc.
Obviously, Awqaf for charity and for descendants bear on the issue of providing means of living for these two categories, especially if we not that Awqaf is an age-old institution in Muslim societies whose objectives cannot be altered with the passage of years. Nor can Awqaf property normally, revert to private or public ownership.
7. General encouragement of charity:
Lastly, the whole spirit of the Islamic religion is interwoven with the encouragement of charity. In the Qur'an and Sunnah, there are literally several hundred texts which elaborate on this issue and on the
multiplicity of reward for charitable giving.
B) Means of welfare state guarantee of livelihood provision
The welfare state is included as an indigenous part of the economy in the Islamic economic system. The role of the welfare state from the point of view of the provision for the minimum level of living which the Islamic economic system sees as guaranteed to all people. In this regard, two important points deserve detailed discussion, namely: -
1. Right of people in public property:
The Islamic economic system provides for a dual concept of ownership: private and public. Public ownership cover a considerable area of natural resources and public utility.
Public property may take one of two forms: firstly, property owned by the welfare state on an exclusive basis; and secondly, property shared by all people together under the supervision of the welfare state. The latter includes public roads, forests, river water, surface minerals such as salt, the welfare state's treasury, etc., while the former includes underground minerals, waterfalls and other natural resources.
The Islamic welfare state is required to guarantee all people the right of access and utilization of the shared public property.
As far as the property owned by the welfare state on as exclusive basis is concerned, all people have an equal right in this kind of property and the Islamic welfare state guarantees equal access to this property. This right to the public on the welfare state's property is unequivocal in the Islamic system; to the extends to considering each person in society as a sort of an owner, on a collective basis, of the welfare state's property.
The Islamic government is responsible for distributing the benefits of welfare state properties to all people in a fair manner. Resources permitting it is the obligation of the Islamic government to guarantee an adequate level of living to every person, in addition to carrying the responsibility of debt payment for deceased individuals who do not leave sufficient welfare states to pay their debt.
2. The intermediary role of the welfare state in guaranteeing minimum level of living:
This role consists of supervising the application of zakah and obligatory transfers in addition to generating sufficient resources to meet its responsibilities toward individuals.
The Islamic welfare state is obliged to see that individuals discharge their responsibility with regard to zakah, zakah al fitr, and the obligatory transfers of income. In case persons fail to fulfil this responsibility, the welfare state can use its power to force them.
In the case of zakah, Shari'ah stipulates that the Islamic welfare state is required to take direct charge of the collection and distribution of this duty if individuals fail to perform it properly.
On the other hand, if the indigenous means of financing transfers which are necessary to meet the minimum level of living guaranteed for all persons are insufficient, the Islamic welfare state must impose taxes on the rich. This is a last resort, but a necessary one.
In this regard, one must distinguish between two levels of living: a minimum level of subsistence , determined by the welfare state after taking into account economic, social and religious considerations, and an adequacy level higher than the subsistence level and more equitable since it provides for a fair standard of living.
Taxes on the rich and wealthy can, and sometimes must, be imposed to provide the minimum level of subsistence if the non tax resources of the welfare state along with zakah and other indigenous means are insufficient.
However shortage of zakah and indigenous resources may sometimes be caused by improper administration and management i.e. poor governance. Such inappropriate approaches to procuring zakah and other welfare state resources does not justify levying taxes, it rather calls for reform and improvement in management.
There are a whole host of new, creative mechanisms for wealth creation being developed by economists to meet the needs of the global muslim society, for which modern high-tech means of wealth distribution will need to be implemented to ensure socio-economic equality, fairness and justice are continuously maintained.
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