Principles of Islamic economic system:
a) Sole purpose is to obey and please Allah
b) The wealth and asset in all their forms given under trust by Allah
c) Moral values and guiding factors for all economic activities
d) Maximum equitable utilization of human and material resources given by Allah
e) Human dignity and respect of labor
f) Maximum freedom for economic activity within a just framework
g) Equitable distribution of wealth and income and disciplined private ownership
h) Simplicity economy and austerity in expenditure
i) Adal and Ihsan (justice and kindness)
j) Strict prohibition of Riba, interest and usury in all forms.
Some of the principles of the Islamic economic ...view middle of the document...
Principle of Use: Within the bounds of lawful (Halal) and unlawful (Haram) prescribed by Allah and also keeping in view the rules of moderation and prudence, the man has been allowed to make full enjoyment of God’s gifts bestowed on him. The Qur’an says: “O mankind ! Eat of that which is lawful and wholesome in the earth, and follow not the footsteps of the devil. Lo! he is an open enemy for you.” (2:168). At another place, the revealed book of Islam states: “So eat of the lawful and good food, which Allah hath provided for you, and thank the bounty of your Lord if it is Him ye serve……..” (16:114). However, the principle of use should not be over stretched so as to indulge in extravagance and wastage of economic resources. The Qur’an brings home this point when it addresses mankind: “O children of Adam ! Look to your adornment at every place of worship, and eat and drink, but be not prodigal Lo! He (Allah) loveth not the prodigals.”(7:31)
All things have been created by Allah for man’s use and service. To restrain oneself or forbid others from the enjoyment of lawful items of food and other articles of use tantamount to renouncing the blessings and favours of Allah which has been strongly condemned. The Qur’an prohibits it in very clear words when it says : “O ye who believe ! Forbid not the good things, which Allah hath made lawful for you, and transgress not, Lo! Allah loveth not transgressors.”(5:87). In another verse, the Holy Qur’an questions those who put restrictions on the use of certain things without divine sanction: “Say! Who hath forbidden the adornment of Allah which He hath brought forth for His bondmen, and the good things of His providing?…..”(7:32). Thus the Qur’an has disapproved the ways of monks and ascetics who consider the satisfaction of physical urges an obstacle in spiritual development.
3. Principle of Moderation: Islam unequivocally discourages its followers to cross the limits and follow extremes. The Muslims have been called by the Qur’an a middle nation (2:143). Therefore, the principle of moderation carries paramount importance especially in the economic field. This principle is followed by the true believers in the production of wealth as well as in the consumption and spending of wealth. Although earning of wealth through permitted (Halal) means is allowed, yet the piety demands that a Muslim should not become mad after amassing wealth like a greedy materialist. He should exercise restraint and earn wealth to meet his lawful needs. Extra wealth, if at all is earned by him somehow, may be spent in the path of Allah on charity and relief of the poor. Similarly, in the consumption and spending of wealth, the believer is recommended to strike balance avoiding miserliness and extravagance. Miser is he who does not even provide for the legitimate needs of himself and his family let alone spending on charitable and noble causes. Extravagant or spend thrift is a person who squanders his wealth in luxury, gambling,...