Political & Economic Aspects

Introduction

Islam is not merely a set of rituals performed at set times; rather, it comprises belief, law, devotions, transactions and dealings. It is a religion as well as a governmental system. W. Montgomery Watt observed that the word translated as "religion" is Deen, which in Arabic commonly refers to a whole way of life — something which is both private and public, permeating the whole: theological dogma, forms of worship, political theory, and a detailed code of conduct.

This article presents the political and economic dimensions of Islam — how governance is conducted under divine legislation, and how wealth is managed as a trust from Allah to establish social justice and honorable living for all.

The Political Aspect of Islam

Islamic legislation has introduced basic principles and general rules in political matters which act as the basis upon which the Islamic State is built. The ruler of the Muslim State executes and implements the commands of Allah. Allah says:

"Do they then seek the judgment of (the days of) Ignorance? And who is better in judgment than Allah for a people who have firm Faith." (5:50)

The ruler of the Islamic country is in fact a deputy over the Ummah, which obliges him to implement the following:

[1] Implementing Allah's Legislation

To do everything in his ability to implement the legislations and laws of Allah, and to provide honest, honorable ways of living for the nation, to safeguard the Religion, security, lives, and wealth. The Prophet said:

"No slave of Allah is made to look after some affairs of the Muslims and fails to be true and sincere in it, except that he will not smell the scent of Paradise." (al-Bukhari)

The ruler of the Islamic State must have the necessary characteristics. Umar b. al-Khattab, when looking for a man to assign to take care of certain affairs of the Muslims, said: "I want a man who, if he is their leader, he behaves as if he was one of them, and if he is not their leader, he appears as if he were."

[2] Appointing the Worthy

The ruler must not appoint anyone over the Muslims who is not fit for the post or trust. He should not favor a friend or a relative over a worthy candidate for a certain post. The Prophet said:

"No slave is given responsibility over some people and dies in a state in which he is treacherous to them, except that Allah forbids him from Paradise." (Muslim)

Characteristics of Islamic Rule

These rules and principles are characterized by the following:

• They are divine, ordained by Allah. In their light all are equal — the noble and ignoble, the black and white. No one, no matter how high-ranking, is allowed to violate them or pass laws that contradict with them. Allah says: "It is not for a believer, man or woman, when Allah and His Messenger have decreed a matter that they should have any option in their decision. And whoever disobeys Allah and His Messenger, he has indeed strayed in a plain error." (33:36)

• All are required to abide, respect, and implement these rules; both the ruler and the ruled. Allah says: "The only saying of the faithful believers, when they are called to Allah and His Messenger, to judge between them, is that they say: 'We hear and we obey.' And such are the successful ones." (24:51)

In Islam, no man has absolute power; including the ruler, for his powers are restricted by the limits set by the Islamic legislation. If he opposes them, people must disobey him and follow the truth. The Prophet said:

"It is obligatory upon a Muslim to listen and obey (the authority) in those things which he likes or does not, except if he is commanded to do something sinful. If he is commanded to do a sinful act, then do not hear or obey." (al-Bukhari)

Mutual Consultation (Shura)

Allah has legislated mutual consultation in running the affairs of Muslims. Allah says:

"And those who answer the Call of their Lord, and establish the Prayer, and who (conduct) their affairs by mutual consultation, and who spend of what We have bestowed on them." (42:38)

Allah also says:

"And by the Mercy of Allah, you dealt with them gently. And had you been severe and harsh hearted, they would have broken away from about you; so pass over (their faults), and ask (Allah's) Forgiveness for them; and consult them in the affairs." (3:159)

In the first verse, Allah associates mutual consultation with prayers, which indicates its importance in Islam in all matters that concern the Ummah. The people of knowledge should be consulted in these matters.

In the second verse, Allah orders His Messenger, who was the Head of State, to mutually consult his Companions in matters that are of common interest to the Ummah if no apparent ruling was revealed concerning it. There is no mutual consultation in matters which have a ruling in Shari'ah. The Prophet said:

"No people mutually consult, except they would be guided to the best matter." (al-Adab al-Mufrad)

Scholars have stated the obligation for the ruler to consult the people in matters relating to their interests. If he neglects their consultation, the people are required to demand it in order to say their word and give their opinion. This is based on the above mentioned verses, and because the Religion of Islam considers the ruler a deputy who is responsible to perform what was delegated to him. Thus the people are required to monitor him.

They have the freedom to voice their opinion and criticize in the manner they deem appropriate, in accordance to the principles set by the Religion. They should not do so in a manner which causes disruption. The Prophet said:

"Indeed the best Jihad is to utter a word of justice before a tyrannical ruler." (Abu Dawood & Ibn Majaah)

Accountability of the Ruler

Abu Bakr, the first Caliph of Islam, addressed the people saying:

"O people! I have been appointed as your ruler though I am not the best among you. So if you find me upon the truth, help me. But if you find me in the wrong, correct me. Obey me so long as I obey Allah in conducting your affairs. However, if I disobey Him I have no claim to your obedience."

Umar ibn ul-Khattab, the second Caliph, stood on the pulpit one day and addressed people saying: "O people! If you find that I have fallen into corruption... then straighten me." A Bedouin rose and said: "By Allah! If we find you crooked, we will straighten it with our swords." Yet Umar did not get angry or harbor malice towards him. He only raised his hands towards the heaven and said: "Praise be to Allah Who has made among our nation a person who is able to correct the crookedness of Umar."

The ruler is even called to account and questioned. Once, Umar addressed people while having a two-piece dress on. When he said: "O people! Listen and obey," a man stood up and said: "We will not listen nor obey!" Umar asked: "And why is that?" The man answered: "Because you have a two-piece dress while we only have a single piece one (he had allocated one dress for each Muslim)." Umar at once called out: "Abdullah ibn Umar (his son)! Tell them!" Abdullah said: "It is my dress which I gave to him." The man then said: "Now we will listen and obey."

Thus Islam preserves the rights and freedoms of both the society and the individual. It safeguards the sources of legislation from the whims and desires of legislators. The Islamic legislation does not discuss other minute details of government, leaving the door open for Muslims to lay down proper rules and regulations that suit their specific conditions and serve their best interest, provided such rules do not contradict the principles and fundamentals of Shari'ah.

The Economic Aspect of Islam

Wealth is the vigor and basis upon which life is maintained. The Islamic Shari'ah aims through it to establish a balanced society, wherein social justice is upheld and one can live an honorable life. Allah says:

"Wealth and children are the adornment of the life of this world." (18:46)

Since Islam considers money one of the indispensable necessities without which individual nor society can exist, it has ordained that Zakaah be taken (2.5%) from the capital of the rich, if the necessary amount from which it is taken is in that person's possession for a full lunar year. This money is to be distributed amongst the poor. It is a due right of the poor, and it is forbidden to withhold it from them.

This does not mean that Islam abolishes individual ownership and private business; rather it sanctions and respects them. There are many explicit texts which prohibit transgression against wealth and property of others. Allah says: "And eat up not one another's property unjustly." (2:188)

[1] Prohibition of Interest (Ribaa)

Islam has forbidden interest, for it does not allow people to exploit others and devour their wealth wrongfully. Islam has made wealth and property inviolable. Due to the fact that interest leads people to forsake acts of kindness and leads to the accumulation of wealth in the hands of a few, Allah says:

"O you who believe! Be afraid of Allah and give up what remains (due to you) from usury (from now onward), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. But if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums) and you shall not be dealt with unjustly (by receiving less than your capital sums)." (2:278-9)

[2] Encouragement of Loans and Leniency

The Religion of Islam encourages people to give loans. It also encourages that one extend the period (of repayment) if one is having difficulty repaying a loan. One should not be harsh to that individual if he intends on repaying his debt. As for those who have the means to pay the debt off, but choose not to, a different course of action should be taken. Allah says:

"And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay." (2:280)

The Prophet said: "Whoever loans money to a person in difficulty, he will receive the reward of charity for each day he gives them. And whoever extends the time period for the debtor who has difficulty returning a loan will receive the reward of charity for each day he does so." (Ibn Maajah)

[3] Pardoning Debts

Islam encourages that the loan be pardoned altogether if it is difficult for the debtor to repay it. Allah says:

"And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know." (2:280)

The Prophet said: "Whoever wishes that Allah save him from the difficulties of the Day of Requital, let him extend the time period to a debtor or free him of his loan." (Muslim)

[4] Prohibition of Hoarding and Monopoly

Hoarding and monopolizing of any type of commodity is forbidden, because the trader takes into his possession products which the people need without selling them until the supply decreases, and then he sells them for whatever price he pleases. This incurs much harm, both to the individual and the society. The Prophet said:

"Whoever hoards [commodities] would sin..." (Muslim)

Abu Yusuf, the student of Imam Abu Haneefah, said: "Anything that is hoarded and proves harmful to the public, it is considered of the prohibited type of monopoly, even if (the thing hoarded is) gold or silver. Whoever hoards (something the public is in need of) would have certainly misused what he owns. The reason monopoly is prohibited is to safeguard people from harm."

A ruler may force one who hoards a commodity to sell it at a reasonable profit which is neither detrimental to the seller or buyer. If the monopolist refuses, the ruler may take possession of the hoarded commodity and sell it at a reasonable price.

[5] Prohibition of Unjust Taxes

It has prohibited taxes that are taken from a trader to allow them to sell their goods or to import them into the country. The Prophet said:

"One who collects the tax imposed on traders, will not enter Paradise." (Ahmad & Abu Dawood)

This tax is considered taking money unlawfully and giving it to those who are not entitled to it. All those who contribute to this tax, including tax collectors, clerks, witnesses and receivers, come under the Prophet's warning.

[6] Public Resources

Islam has also prohibited preventing people from benefiting from public resources. The Messenger of Allah said:

"There are three persons whom Allah will not speak to on the Day of Requital nor look at... a person (seller) who falsely swears that he bought a product for a higher price than which [the buyer] bought it, a person who swears to a false oath after [the sacred time of] 'Asr so as to usurp the money of a Muslim, and a man who refuses to give excess water. On that day, Allah will say to him: 'Today I withhold from you my Grace as you withheld what was in excess of your needs, though you are not its creator.'" (al-Bukhari)

The Prophet said: "All Muslims have equal shares in three things: pasture, water, and fire." (Ahmad)

[7] Just Inheritance

The Religion of Islam brought about a just system of inheritance through which wealth is distributed amongst a man's rightful heirs; whether they are young, old, male or female. No one has the right to distribute the inheritance in any other way. One of the benefits of this system is that it divides the estates no matter how large they may be into small shares, thus making it impossible for the money to settle with a certain group. The Prophet said:

"Indeed Allah has given each person his due right. So let not one of you bequeath something to someone who is already allotted a portion of the inheritance." (Abu Dawood & at-Tirmidhi)

[8] Endowments (Waqf)

Islam has legislated endowments, which are of two types:

a) Private endowments limited to the family and children of the endower, in order to safeguard them from poverty and begging. The condition of its validity is that the endowment should serve charitable causes after the endower's progeny cease to exist.

b) Public charitable endowments which are used to maintain charitable causes; such as building hospitals, schools, streets, public libraries, Mosques, social welfare homes for orphans, foundlings, and the elderly, and all that serve public interest.

[9] Bequeathal

Every Muslim has the right to bequeath a portion of his money to be used after his death for righteous purposes. The Religion has limited this portion to a third so that his heirs would not be harmed. Aamir bin Sa'd said:

"The Prophet visited me while I was sick in Makkah. I said to him, 'I have some wealth, may I bequeath all of it [in charity]?' He replied, 'No.' I said, 'Then half of it?' He replied, 'No.' Then I said, 'A third?' He replied, 'A third, and a third is much. If you leave your heirs rich, it would be better than to leave them relying upon others begging them. Whatever you spend, it will act as a charity for you, even a morsel of food which your hand feeds your wife.'" (al-Bukhari)

[10] Prohibition of Unlawful Wealth

Islam has forbidden all that falls under the words of Allah: "O you who believe! Eat not up your property among yourselves unjustly." (4:29) This includes:

a) Usurpation: Taking anything without right, for it involves wronging others and spreading corruption. The Prophet said: "Whoever usurps a Muslim's right through a false oath, Allah makes the Hellfire obligatory upon him and Paradise forbidden... Even if it were a twig of an 'Arak Tree." (Muslim)

b) Theft: The Prophet said: "The fornicator who fornicates is not a true believer so long as he commits it, no thief who steals is a true believer as long as he commits theft, and no drunkard who drinks wine is a true believer as long as he drinks it." (Muslim) Allah says: "Sever the hand of the thief, male or female, as a recompense for that which they committed, a punishment by way of example from Allah." (5:38)

c) Deceit and Cheating: The Messenger said: "Whoever fights us is not from us, and whoever deceives us is not from us." (Muslim)

d) Bribery: Allah says: "And eat up not one another's property unjustly, nor give bribery to the rulers that you may knowingly eat up a part of the property of others sinfully." (2:188) The Prophet said: "May Allah curse the one who gives a bribe and the one who takes it in matters of judicial rulings." (at-Tirmidhi)

Conclusion

The political and economic systems of Islam are not afterthoughts or secondary concerns; they are integral to the divine message. Governance is an act of trusteeship before Allah, requiring justice, consultation, and accountability. Wealth is a means of sustaining life and building society, not an end in itself. By prohibiting exploitation through interest, mandating charity through Zakaah, ensuring just inheritance, and safeguarding public resources, Islam creates an economy where dignity is preserved, greed is curbed, and the weak are protected. In both politics and economics, the guiding principle remains the same: submission to the legislation of Allah, for He alone is the Best of Judges.