Biography of Imam `alĪ Ibn AbĪ-tĀlib

The Economic System

In modern day, the economic system of countries revolves around capitalism and socialism. The capitalist system is an independent economic order in which every one is free to pursue acquisition of wealth keeping aside all norms of religion and morality. Neither there is any moral bonding in hoarding wealth nor does the society prevent them from doing so. In this system, the individual’s interest dominates over the interest of the society! The capitalists’ eyes are always focused on the hoards of wealth. This avarice reaches such heights that the capitalist crushes the common interest of the people and adopts the way of selfishness and considers that his aim is to keep running in the race of accumulating wealth. He neither refrains from harming anyone in this pursuit nor does he feel ashamed of sucking the blood of the poor workers in his factories and establishments. Because of the behavior of these capitalists, the instinct of hate arises in the minds of the suffering workers. The worker thinks that the profit that goes into the coffers of the capitalist is the result of his hard toil. The capitalist on the other hand thinks that the profit comes because of his wisdom, planning and investment. He thinks that the worker is only a cog in the machines of his factory that can be thrown away when it gets rusted and is useless! This economic exploitation and the difference in the status of the owner and the worker create the socialist movements. The aim of socialism is to eliminate the capitalist and distributing the wealth equitably to all the people in the society. In the view of these socialists, without removing the single ownership of businesses, the gap between the rich and the poor cannot be bridged.

The idea of socialism is not new or a product of the past century. In 500 B.C., Plato noticed the ups and downs of the economy and the wrong attitude of the government of Greece when he laid the foundation of the concept of socialism. In 3rd Century A.D. during the reign of Qabad, a person by name of Mazdak termed women and wealth as joint capital and propagated the concept of socialism. His contemporaries, and those who followed him, accepted the concept of socialism. But this concept was followed by very few people and after sometime, it almost disappeared. In the I9th Century A.D. Again,

socialism was heard of. Some people made efforts to adopt it. But their efforts did not bear fruit. In the year 1847 A.D. one German born Jew, Karl Marx enunciated the norms of socialism as a Concept of Economics. He believed that it was the remedy for all the economic and social ills This was the time when in Russia there was excess of wealth and the affluent groups were rolling in wealth and on the other hand, due to unemployment and economic problems there was general discontent among the masses. The majority of people was farmers and because of coming up of industries, a new group of workers too came into existence. The farmers were at the mercy of the landlords and the workers were subservient to the factory owners. Because of the ill treatment by the factory owners and the landlords, the workers were striking work and the farmers started agitations. Ultimately, the people started hating the moneyed classes and the path was thus leveled for the rise of socialism. Therefore, after the death of Marx, Lenin rose and in 1917 A.D., he formally launched the concept of Socialism. He gathered around himself the Russian youth with the slogan of equitable distribution of wealth and crushed the opposing voices with force. He ultimately succeeded in formulating a system based on the concept of Socialism. Some other countries too were impressed with the concept and accepted it with some minor changes. Whether it is the concept of Capitalism or that of Socialism, both revolve around worldly economics and economic growth. They neither have any consideration for religious and moral norms nor other values of material. The difference between the two is that capitalism believes in Economic Freedom and Concept of Individual Ownership of assets, but there is no guarantee of Economic Safety. In Socialism, there is Guarantee of Economic Safety but the individual ownership of assets is not permitted.

The Islamic Economic System that is quite close to nature provides solution for all the economic ills and problems. This system neither depends on experimentation nor is it the result of the thoughts of experts in economics. It is the Concept propounded by Allah and presented by the Prophet of Islam (a.s). The System, instead of depending on the personal or group interests, stresses on collective interests of the society. The reason is that Allah is not the Creator only of any particular person or a group. Everyone owes his, and her, existence to Him! Therefore, in the Economic System propounded by Him the Collective Interest of the entire Ummah is envisaged

From the Islamic point of view, the real owner of everything in the world is Allah. Therefore, He exhorts about the distribution of the wealth thus:

وَآتُوهُمْ مِنْ مَالِ اللَّهِ الَّذِي آتَاكُمْ.

“And give them of the wealth of Allah which He has given you. (24/33)”

In Allah’s wealth, basically all humans have equal right of use. They are all equally entitled to utilize it all the things that come out of the earth, or are produced from the earth, or those that are found in the world, are for the benefit of all men. Therefore, Allah says:

هُوَ الَّذِي خَلَقَ لَكُمْ مَا فِي الْأَرْضِ جَمِيعًا.

“He it is Who created for you all that is in the earth. (2/29)”

However, a person who acquires, through legitimate means, more or less, wealth through either hard labor or toil like trading, farming, doing jobs or gets it as inheritance without any effort, becomes his. But to maintain a balance between men in the society, a share has been fixed out of this wealth of the person for the society in general. One reason for this is that the individual remains connected with the society and the society remains in touch with the person and the relationship of mutual brotherhood and equity remained intact.

Islam does not believe in capitalism to the extent that the wealth gets intensely concentrated in only a few hands and others live at their mercy. Nor is it so much opposed to capitalism that the person is denied right over the wealth generated with his personal toil and effort. Islam preaches contentment and treading the middle path and its economic system is based on this concept. In this system, neither unfettered capitalism is allowed that is free of all neither religious nor moral bindings nor socialism that takes away all the individual rights to ownership of wealth and property. The individual’s efforts are bought by the society for provision of food and clothing in the socialistic system and a special group gets authorized to make use of the wealth thus generated. Islam neither backed capitalism that an unjust and unbalanced social structure came into existence, nor has it preached the unnatural concept of socialistic equality that the state keeps all the resources of production in its control and become responsible for meeting the needs of the individuals.

With this coercive equity, the spirit of competition among the people gets curbed because the individual has been deprived of the right of ownership and finds no incentive in putting in maximum efforts at work. Islam, instead of the forced equity of socialism, has kept equity in the economic resources and has provided equal opportunities for every individual that he generate

livelihood depending on his capability and toil. Therefore, the Holy Qur’an says:

وَأَنْ لَيْسَ لِلْإِنسَانِ إِلَّا مَا سَعَى.

“And that man shall have nothing but what he strives for. (53/39)”

Under this system, there will be difference between the individuals according to their capability and the efforts put at work. Not all the persons are of the same level of intelligence and learning and therefore the results achieved by them in their fields of activity too will be different. Instead of creating artificial equity, Islam has tried to bridge the gap between the rich and the poor. It has not enforced such conditions on the affluent sections that after complying with them neither there will be imbalance in the society nor did any individual remains deprive of his basic needs.

Islam has provided individual ownership of wealth in addition to economic independence. The sense of ownership is such a human sentiment that has been recognized by Islam and has been promoted with certain checks and conditions. The Holy Qur’an has highlighted this:

وَلَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ وَتُدْلُوا بِهَا إِلَى الْحُكَّامِ لِتَأْكُلُوا فَرِيقًا مِنْ أَمْوَالِ النَّاسِ بِالْإِثْمِ وَأَنْتُمْ تَعْلَمُونَ.

“And do not swallow up your property among yourselves by false means; neither seeks to gain access thereby to the judges, so that you may swallow up a part of the property of men wrongfully while you know. (2/188)”

Islam not only gives personal ownership rights to the individual, but it has also stressed on respecting and strengthening it. Therefore, stringent punishment for thefts is prescribed to provide these safeguards only. Islam does not tolerate using others wealth clandestinely or utilizing it without the consent of the owner. Therefore, the Prophet (a.s) has said:

“The use of the assets of another person without his consent is not legitimate.”

Although Islam has given the right of ownership to the individual, it has enforced certain conditions to prevent unrestricted capitalism. Therefore, clear differentiation has been made between legitimate and taboo. One big source of capital growth is usury. Islam has declared usury as taboo to curb capitalism. Allah says in the Holy Qur’an:

وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا.

“And Allah has allowed trading and forbidden usury. (2/275)”

We have presented a brief outline of the economic system in Islam before we discuss the economic policy during the caliphate of Amir al-Mu’minin (a.s) that he had implemented those norms that had been prescribed by Islam. Although the period was not conducive for enforcing Islamic economic reforms because it followed the period of conquests and plunder and the treasury created capitalistic tendencies in the people because of the heavy gifts and allowances that were given to them. There was already a group of capitalists who had abandoned the Islamic norms of plain living and indulged in luxury and pomp. Without giving any importance to this group, `Ali (a.s) started revolutionizing the economic system. Therefore, as soon as he assumed his position he ordered confiscation of the feudatory gifts of land given to some persons by the former regimes. He said, “By Allah! If I had noticed such wealth that had been spent on the dowry of women and buying slave girls, I would have withdrawn it!” Therefore he confiscated swords, armors and camels meant for sadaqah from `Uthman’s place and announced that whosoever had the wealth gifted by `Uthman must deposit it in the bayt al-mal. This announcement created commotion among the Umayyads and other capitalists. Al-Walid ibn `Uqbah came to `Ali (a.s) and said that they would owe allegiance to him if he allowed them to retain the gifts given by `Uthman to them. `Ali (a.s) said:

“Do you want me to leave the wealth that has been illegitimately usurped by you? It is not in my power to relinquish Allah’s Right that is with you and other rich capitalists.”[1]

To run the economic system on proper lines, Amir al-Mu’minin (a.s) thought it necessary to bring the people and the ruling class on the same level. Therefore, he said, “Allah has made it binding on the Imams (a.s) that they keep themselves in penury at the level of the common man, so that the downtrodden do not feel dejected of their economic difficulties.” He spent all his life in that manner. His standard of life, food and other habits were the same as a common poor person. Neither he liked to eat food better than that of the common man nor did he dress lavishly. He says, “Shall I eat to my fill when I find people around me who starve. Or should I be the way a poet

[1] Sharh Nahj al-Balāghah by ibn Abil-Hadīd

describes, ‘Is it a lesser ailment that you sleep after a large meal and around you there are hungry hearts who crave for dried crumbs!”

Amir al-Mu’minin wanted to put the economy on a pedestal that the gap between the rich and the poor was narrowed. He did not like the society to be divided into two distinct groups of ‘very rich’ and ‘very poor’. He did not want that on the one side there are palatial mansions and on the other dilapidated shacks. On one side grand raiment and on the other tattered and patched clothes. On one, hand even the dogs of the rich appeared well fed and on the other starving, emaciated men! On the one hand people wasting the nation’s wealth and on the other men, to name one, the Prophet’s favorite Companions, perishing without food and medicine in the wilderness of al-Rabadhah! These are the consequences of undue accumulation of wealth by the privileged few and denial of the rights of the poor. `Ali (a.s) has therefore said:

“Allah has kept the sustenance of the poor in the wealth of the rich. If a beggar starves, it is because a rich person has hoarded wealth and Allah is going to seek account of it from them.”[1]

Instead of this uneven economic situation, `Ali (a.s) wanted to establish a system where the needs of every individual were fulfilled and that none, wherever he was, suffered from want of basic necessities of life. He wanted that in the resources of production, everyone got his legitimate share and everyone got equal opportunity to toil and generate fair livelihood. This is the Islamic concept of equity which is very practicable. The spirit of equality amongst people is evidenced from the concepts of khums, zakat and the institution of Hajj when all the Muslims, irrespective of their status come to perform the pilgrimage. Therefore, `Ali (a.s) said:

“The betterment of men lies in their being different from each other. They will perish if they are all equal.”[2]

It is evident that when all men are on the same economic level then one will not need the other. As a result of this, the contacts between them will be weak and the economic relations will be disturbed.

If we view the economic system during the time of Amir al-Mu’minin (a.s), it becomes evident that besides freedom to trade, the resources were owned by the people. Everyone was free to adopt any profession, viz: agriculture,

[1] Nahj al-Balāghah
[2] al-Amālī by Shaykh al-Sadūq

trading, handicraft etc. This is the yardstick of any good economic system that the people are free to pick the profession or avocation of their own choice. On the other side, they must have total economic protection so that every individual will have assurance that the desired results will emanate from his toils. `Ali (a.s) did not like people sitting at home doing nothing and becoming a burden on the society. Such drones depend on others’ income instead of earning their own livelihood. However, if a person was incapacitated to work due to some physical disability, he was supported by the bayt al-mal.

`Ali (a.s) considered agriculture and trading as the mainstay of the economy. Therefore, he said:

“One who has land and water for irrigation, and even then he is poor, then Allah should keep him away!”

About trading, he said:

“Do trading! Trading is that investment which will keep you contented from money and wealth!”

For the encouragement of agriculture and trading `Ali (a.s) did farming himself. He also was a trader. Therefore, he used to reclaim fallow lands and digging wells, he used to create oases. Similarly, for creating interest in trading, he promoted sales of loincloths in these words:

“I have bought this loincloth for five dirhams. If someone gives me a dirham extra, I shall sell it to him!”

Whenever he had free time, he used to sit at his friend, `Ammar ibn Yasir’s shop. When `Ammar used to be away on some work, `Ali (a.s) would sell the dates. He never felt belittled doing this task.

`Ali (a.s) used to keep a watch on the trading community to ensure that they did not inflate the prices. Therefore, he used to go round the bazaar and inquire the prices of different commodities. He also used to look at the weights and measures with the traders. Abul-Sahba’ says:

“I have seen `Ali (a.s) going round al-Basrah inquiring the selling rates of different materials.”

Hoarding materials to create artificial scarcity is a big economic crime. To stop this malpractice, `Ali (a.s) announced that if any trader, for inflating prices, hoards more than necessary inventories of materials, he will be liable for punishment. Therefore, he wrote to Malik al-Ashtar, “Warn traders against hoarding because the Prophet (a.s) was against it. Whenever anyone is found

hoarding materials, give him suitable punishment!”

The balance in the economic system is possible when extravagance and unnecessary purchasing is avoided. `Ali (a.s) considered both these habits as the cause of the economic structure of any society. Therefore, about the habit of incurring unnecessary expenses he says:

“Cultivate moderation and avoid extravagance. Do not forget today that there is a tomorrow!”

About accumulating unnecessary things `Ali (a.s) said:

“The thing that you do not need, leave it! Acquire only the things that you need.”

When man shuns moderation and becomes extravagant, the result is that he becomes poor and dependent on others. Therefore, extravagance at the time of marriages and other occasions people mortgage or sell their houses and other property to meet the unnecessary and in fructuous expenses. Many times, they become indebted to meet the expenses of such occasions. They spend with both hands and are praised by friends and neighbor for the excellent arrangements for the function. But, in fact, the person traps himself in heavy debts and falls into the clutches of the usurers. Similarly, unnecessary purchasing too affects the economy. When a thing is bought without its need by a person, he sells it at a heavily reduced price when he needs money for some other important requirement. If this habit of buying without need spreads in the society, it will affect the economy very badly.