Text Box: Text Box: M.A.L.I.Muslim American Logic Institute
Text Box: ENGINEERING OUR ECONOMY (Part 3) By Mubaashir Uqdah We left off last week asking the question, “What is our economy?” It stands to reason that as a Muslim community we would ultimately like to develop an Islamic economic system. Muslim scholars and economists the world over are grappling with what an Islamic economy is and how to architect one that is able to compete effectively in the modern world. Islamic scholars differ in their views on the Islamic economic system and its application. Additional complexities are added when evaluating the differences in economic practice in an Islamic state versus a Muslim community living in a non-Islamic state. Furthermore, the economy of the 21st century is much different than the economies in existence during the life of Prophet Muhammad. Therefore, applying the principles of economics found in the Qur'an and the example of the Prophet present new challenges for the thinkers of Al-Islam. Since the scholars and economists of Islam are not in agreement about the form, structure, and implementation of an Islamic economic system, we supporters of Imam W. Deen Mohammed can certainly feel free to draw our own conclusions about economic behavior using the same sources that others use. There is no single economic system of Islam. There are Islamic philosophical and practical approaches to economics that serve as guides to help Muslims formulate their economic systems and policies. But, there is no single way to do it, just as there is no single way to implement Islamic government. There is so much disagreement and lack of cooperation in these two areas of our societal life (business & government), because we spend so much time arguing about who is correctly interpreting Islam and not enough time agreeing on a system that can serve as a tool to get us to our goals. In fact, through Shura (consensus), we are to agree on the system we want to use. We are to design or engineer an economic (or political) system that we think will serve our needs and that is fashioned according to the ideas in the Qur'an and the life of the prophet. For followers of Imam Mohammed, we should also use the guidance found in the Mother Book, Allah’s creation. Through Shura, we agree on a strategy and then implement it. There may be other Islamic people that differ with our methodology, but that is okay. There is room in Al-Islam for variation as long as we are all standing on the strong foundations of Al-Islam. There are several broad themes that are prevalent in any discussion of Islamic economics. There is the idea of Tawheed; that Allah owns everything and therefore our resources and wealth are loans to us from Allah. There are the commands to get your share of the material world, spend of your substance, practice regular Zakat (charity), avoid Riba (unjust profits; most often equated with usury or interest), and to utilize contracts. There are other ideas, but let us briefly address these concepts and show how Imam Mohammed’s business initiative implements these Islamic principles. Islamic economics begins with the concept that everything in the universe belongs to Allah. We believe that what Allah permits us to acquire and possess is a loan from Him and our responsibility is to repay that loan by making the best use of it. The more we are blessed to acquire, the greater the repayment note. This is the basis of the saying, “to whom much is given, much is required.” This is the concept of Tawheed; the oneness of Allah. Allah owns it all, He owns us, and therefore, we are to use what He has bestowed upon us in the ways that He instructs us. We know that Allah has sent down rain and sunlight and produced sustenance for the benefit of all humanity. We know that Allah has told us we are to be custodians of the creation. We know that we are one brotherhood evolved for the benefit of humanity. Therefore, as a community acting in the role of a custodian seeking to benefit humanity, we must work together to ensure that humanity has the sustenance that Allah intends. This is Tawheed in action. In a Tawheed-based, Islamic dominated world the surplus wealth and power of successful economies would be coordinated and focused towards eliminating poverty around the world and helping all nations be able to produce for themselves. For example, the equipment, skills, and technology needed by some countries in Africa would be given to them at cost to help them ensure that people have the basic sustenance that Allah intends for them. In a capitalistic world, profit, competition, and free choice are the dominating ideas. Therefore, if it is not profitable to help Africa’s people then Africa’s people are just out of luck. If the capitalist must go into a risky and unprofitable situation in Africa to help them, Africa will have to pay a high price for the capitalist world’s help. Thus, their independence and resources must be traded in exchange for the help to survive. To engineer a Tawheed-based economy in the context of the followers of Imam W. Deen Mohammed, we must work together to ensure that each member of our society has the basic necessities of life that Allah intends; food, clothing, health and shelter. Do we think it is an accident that Imam Mohammed’s business efforts have related to food, clothing, health and now real estate? Imam Mohammed knows that if we do not have the necessities in life, we will not have stable family life. Without stable family life, we will not be disciplined enough to have strong economic life. Without any of these, we are off the pattern of Deen Al-Fitra and our nature will punish us with disfiguration and fiery torments. You may be thinking that we already have the basic necessities. We can go to the corner store and buy them. However, Allah says that this Ummah is evolved to be of benefit to humanity, not just recipients of the production of others. We are not to just be consumers; we accept the responsibility to be producers. We do not accept to only receive charity; we want to be able to give charity. Allah commands all Muslims to seek their share of the material world. Can we not see that our Imam’s efforts at CPC/ComTrust and its predecessor, AMMCOP, are strategies to activate the principle of working together as a single brotherhood in the effort to get our share of the material world? Consider one possible pathway to progress of CPC’s business initiative; as CPC grows larger, more organized, and more profitable as a collective purchasing entity, we get the products we need at ever-increasing reductions in cost. We all can afford more things, have more money to invest in future projects, and therefore we continually get stronger financially as individuals, as businesses, and as a community. Next, CPC begins manufacturing the products we are purchasing. Jobs are created, products are cheaper, and we are now both producer and consumer. We now have the beginnings of a mutually enhancing and productive economic system. Next, CPC establishes trade agreements with the working poor in other countries. Our collective purchasing power enables CPC to set up factories in other countries to produce products for us to consume here in the USA. Our market enables those people to get paid more wealth and the trade they make with us enables us to get better, less expensive products. As a result of our interfaith work, we are able to bring our non-Muslim brethren into our effort and our purchasing power multiplies. We benefit them and they benefit us. We are also now amassing capital for larger investments and enterprises. Furthermore, we will have become an organized market that is attractive to outside investors and potential trading partners who will seek to make good deals with CPC in order to sell to our market. This stimulates our economy and hence our society’s material strength. This increases our ability to use financial strength to accomplish our social goals. Can we not see CPC’s evolutionary path towards a powerful economic system structured upon the idea of Tawheed? We each take some of the money Allah has loaned to us and pool it together to build collective purchasing power, which strengthens our business effort while allowing us to save. Both the businesses and the members have more to spend on our society’s goals. Imam Mohammed states in his book, Islam’s Climate for Business Success, that we need to marry the desire and aspiration for business development to the desire and aspiration to grow social institutions. We have heard many times Allah’s command to spend of our substance (Holy Qur'an, Yusuf Ali Translation 2:177) in His cause. The word in this ayat is Atay in Arabic. It is associated with the following terms; to produce, to advance, bring forward, achieve, accomplish, and perform. The word for substance, Maali, means money, finance, fortune, estate, assets. In essence, this phrase means use your assets to produce achievements and advancements for the sake of Allah and to benefit the society. It also means use your achievements and advancements to increase your money and wealth for the benefit of society. Every Muslim must work to continuously develop his assets, resources, power, etc; so that he/she can continue increasing the benefit he/she can offer to society. The above Qur’anic verse also tells us that righteousness is spending in His cause is for the freedom of slaves. Is not CPC a strategy that embodies this principle? CPC members work hard to increase their personal financial strength and then they invest in the vision and business of CPC to help contribute to our economic strength so that we can free ourselves from economic slavery. Is this not an obvious by-product of the success of CPC’s mission? Imam Mohammed states on page 105 of his book, “Allah does not only point to the importance of business life, He also gives guidance for it: Conduct the business interest in a way to prevent wealth from being monopolized. See that it circulates.” The principle and institution of Zakat (charity) plays a very important role in this matter. We generally perceive Zakat as an act of personal kindness or as the act of paying a portion of our total assets (most quote 2.5%) to the Islamic state for feeding the poor and/or giving money to assist them. In my opinion, Zakat is an even broader concept. Zakat (from Zaka) means to increase, thrive, and prosper. Its meaning is also connected to purity, honesty, and good. Zakat is to be used to increase the strength of the poor, to help them thrive and prosper through honest, pure and good methods. As the quality of life for the poor is elevated, the life and behavior of those helping and those helped will be more honest, good, and pure. When you do good for others, you feel good about yourself. When you are the recipient of good, you are humbled and grateful, and this inspires you to good. In principle, Zakat is the redirection and redistribution of a portion of the society’s wealth to increase the well-being and productive potential of the less fortunate in society. It is my belief that in addition to caring for the immediate and emergency needs of the poor, Zakat could be used to supplement the cost of education for the poor, to construct housing for the orphan, to supplement the creation of jobs to employ those in need. The concept of Zakat requires that all members of the society pool resources to help and advance the needy amongst us, thereby making the entire society stronger, more balanced, and more productive. They say that a chain is as strong as its weakest link. Prophet Muhammad said, “The believers are to each other like the bricks in a wall, each one supporting the other.” The more bricks left out of the wall, the weaker the entire structure. Next we will discuss Trade vs. Riba, the principle of contracts, and other aspects of our Islamic Economy. Continue Part 4

M.A.L.I. Magazine:

Applying Teachings of Imam W.D. Mohammed

By Mubaashir Uqdah