Economy, Side Feature, The Khilafah

Capitalism will Always be Exclusive

News:

Pope Francis urged top business and finance leaders meeting in London to address the “scandal of global inequality” and bring economic development and benefit to all people.

In a message to the second Inclusive Capitalism Conference he said he prayed that participants would recognize their efforts as a service to global society, especially to the poor who are most often excluded from the benefits of economic growth and investment.” The message, read out by Westminster Cardinal Vincent Nichols, called for fruitful dialogue with local communities, “by listening and responding to their needs and aspirations”. (Source: The Tablet, 29/6/15)


 

Comment:

Working within the failing capitalist framework, we see many voices calling for consciousness and equality. Seeing the rise of poverty in developed countries as well as the less developed means that no one is unaware of the dire need for action. There are political and religious activists who are growing in their numbers with both criticism and advice.

The stark reality is that one cannot fix the system because it is flawed from its basis, being manmade it is prone to create disparity and inequality. Business and finance leaders are motivated by an ideology that makes man seek the material gains over the moral each time.

Whilst the church is pointing to the ethical aspect that humans should seek in their financial dealings, businesses will only feel obliged to do something if there is a clear criteria on actions. Christianity is limited in its rules to give a clear solution, so the words of the Pope can only give a reminder with no real details or authority. There is just a hope of pricking someone’s conscious. To solve the problem of inequality from its root we are in need of a system that is clear and detailed and not leave man in any way without guidance.

Islam allows trade and economic growth and from its basis, the divine texts, it has given clear guidance on how to prevent economic inequality. These rules are part of a complete system that needs to be implemented via the Khilafah State, which has actual authority to enact the rules, rather than just giving people general guidance to follow if they see fit.

Firstly, the Ahkam Shari’ah have secured the satisfaction of all of the basic needs (food, clothing and housing) completely, for every citizen of the Khilafah. The Prophet ﷺ said,

«لَيْسَ لابْن آدَمَ حَقٌّ في سِوى هَذِهِ الخِصَال: بَيْتٌ يَسْكُنُهُ، وَثَوْبٌ يُوَارِي عَوْرَتَهُ وَجِلْفُ الخُبز، وَالمَاءِ»

The Son of Adam has no better right than that he would have a house wherein he may live, a piece of clothing whereby he may hide his nakedness and a piece of bread and some water” [Tirmidhi].

The State is responsible and accountable for poverty and cannot wash its hands and hope for people to feel bad and act.

Islam obliges man to work, the children or the heirs to support the parents if they are not able to work, or obliges the State Treasury (Bait al-Mal) to do so, if there is nobody to support them.

Secondly, Islam also gave the responsibility of the community to help people in financial difficulty. Allah سبحانه وتعالى said:

وَأَطْعِمُوا الْبَائِسَ الْفَقِيرَ

“And feed the wretched poor (person).”

(Al-Hajj:28)

And thirdly, Islam has made the circulation of wealth between all citizens an obligation, and has forbidden the restriction of such circulation (hoarding) to a certain group of people to the exclusion of others. Allah سبحانه وتعالى says:

كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاءِ مِنْكُمْ

 “Lest it circulates solely among the wealthy from amongst you”

(al Hashr:7)

Using the divine texts, Muslims were able to compete in economic activity, prosper in their material gains and the society as a whole did not suffer but was prosperous too. Capitalism cannot be fixed by an injection of ethics or a call of inclusivity as it is designed to serve the interests of the few and will always remain exclusive.

Written for the Central Media Office of Hizb ut Tahrir by

Nazia Rehman – Pakistan