News:
British-based charity Oxfam issued a rallying cry against inequality on Wednesday with the release of its “Even it Up” report, which found that the number of billionaires had doubled worldwide since the economic crisis.
The report stated “the poorest struggle to get by while their neighbours prosper”. It calculated that the wealth of the world’s 85 richest people grew $668 million each day. “If Bill Gates were to cash in all of his wealth, and spend $1m every single day, it would take him 218 years to spend it all,” it said. “Since the financial crisis, the ranks of the world’s billionaires has more than doubled, swelling to 1,645 people.”
Winnie Byany¬ima, Oxfam International’s executive director stated, “Today wealth is trickling upwards, and will continue to do so until governments act,” she added. “We should not allow narrow-minded economic doctrine and the self-interest of the rich and powerful blind us to these facts.” (Source: AFP)
Comment:
Without uprooting capitalism in totality, there can be no change and to have hope that current governments will address this fails to see that they themselves are upholders and defenders of this system. The report also said that the IMF and World Bank support calls for action to end inequality although it is a blatant fact that these very institutions with the consent of governments, especially in the developing world, are responsible for policies that end up strangling the poorest.
Oxfam’s report further confirms that the outcome of capitalism is that wealth will never be distributed and there isn’t an in built mechanism to ensure circulation of wealth. Circulation of wealth is down to the good will of individuals who may or may not feel morally obliged to assist the less fortunate. By focusing on billionaires the report fails to address the real cause of inequality, namely capitalism. Capitalism leaves wealth distribution unchecked and focuses only on production.
Islam encourages man to acquire wealth, Allah سبحانه وتعالى says:
وَابْتَغِ فِيمَا آتَاكَ اللَّـهُ الدَّارَ الْآخِرَةَ ۖ وَلَا تَنسَ نَصِيبَكَ مِنَ الدُّنْيَا
“Seek the abode of the Next World with what Allah has given you, without forgetting your portion of this world.”
(Al Qasas: 77)
alongside this Islam limits activities that cause inequality such as hoarding or making money through money (riba). Allah سبحانه وتعالى emphasizes that the wealth should not circulate amongst the few:
كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاءِ مِنكُمْ
“That it does not become a commodity between the rich among you.”
(Al-Hashr: 7)
Owners of capital therefore, have to invest either in the form of private business or partnership. This activity produces work and reinvestment and allows more people to benefit from wealth which Allah سبحانه وتعالى has bestowed on a specific individual.
The economic problem from the Islamic perspective is that of distribution of wealth and resources and not production. Without a doubt, it is accepted that the world has the resources available to satisfy all needs of all people but there is still acute inequality. By focusing on the number of billionaires in the world and failing to address how they arise and how the capitalist system is the cause of inequality between and within nations means that real and effective change will not be achieved.
The Islamic economic system which will be implemented through the Khilafah, has the correct viewpoint on wealth, has the mechanisms to distribute this wealth and recognizes the right of individuals to acquire wealth in a way that does not stifle enterprise but also gives a sense of responsibility to the less well off.
Written for the Central Media Office of Hizb ut Tahrir by
Nazia Rehman – Pakistan