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[Distribution of Wealth in Islam]Back ] Next ]

 

The Objects of the Distribution of Wealth According to Islam

If we consider the injunctions of the Holy Qur’ân, it would appear that the system for the distribution of wealth laid down by Islâm (a sketch of which will be presented later on) envisages three objects:–

 

(a) The establishment of a practical system of economy

The first object of the distribution of wealth is that it would be the means of establishing in the world a system of economy which is natural and practicable, and which, without using any compulsion or force, allows every individual to function in a normal way according to his ability, his aptitude, his own choice and liking, so that his activities may be more fruitful, healthy and useful. And this cannot be secured without a healthy relationship between the employer and the employee, and without the proper utilization[1] of the natural force of supply and demand. That is why Islâm does admit these factors. A comprehensive indication of this principle is to be found in the following verse: –

 

“We have distributed their livelihood among them in worldly life, and have raised some above others in the matter of social degrees, so that some of them may utilize the services of others in their work.”

(43:32)

 

(b) Enabling everyone to get what is rightfully due to him

The second object of the Islâmic system of the distribution of wealth is to enable everyone to get what is rightfully his. But, in Islâm, the conception and the criterion of this right is somewhat different from what it is in other systems of economy. Under materialistic economic systems, there is only one way of acquiring the right to wealth, and that is a direct participation in the process of production. In other words, only those factors that have taken a direct part in producing wealth are supposed to be entitled to a share in wealth, and no one else. On the contrary, the basic principle of Islâm in this respect is that wealth is in principle the property of Allâh Himself and He alone can lay down the rules as to how it is to be used. So, according to the Islâmic point of view, not only those who have directly participated in the production of wealth but those too whom Allâh has made it obligatory upon others to help, are the legitimate sharers in wealth. Hence, the poor, helpless, the needy, the paupers, and the destitute– they too have a right to wealth. For, Allâh has made it obligatory on all those producers of wealth among whom wealth is in the first place distributed that they should pass on to them some part of their wealth. And the Holy Qur’ân makes it quite explicit that in doing so they would not be obliging the poor and the needy in any way, but only discharging their obligation, for the poor and the needy are entitled to a share in wealth as a matter of right. Says the Holy Qur’ân:

 

“In their wealth there is a known right for those who ask for it and those who have need for it.”

(70:24-25)

In certain verses, this right has been defined as the right of Allâh. For example, this verse in connection with harvests:               

 

“and pay what is rightfully due to Him on the day of harvesting.”

(6:142)

The word “right” in these two verses makes it clear that participation in the process of production is not the only source of the right to wealth, and that the needy and the poor have as good a right to wealth as does its primary owners. Thus Islâm proposes to distribute wealth in such a manner that all those who have taken a part in production should receive the reward for their contribution to the production of wealth, and then all those too should receive their share whom Allâh has given a right to wealth (These two groups of sharers will be discussed in greater detail later on).

 

(c) Eradicating the concentration of wealth

The third object of the distribution of wealth, which Islâm considers to be very important, is that wealth, instead of becoming concentrated in a few hands, should be allowed to circulate in the society as widely as possible, so that the distinction between the rich and the poor should be narrowed down as far as is natural and practicable. The attitude of Islâm in this respect is that it has not permitted any individual or group to have a monopoly over the primary sources of wealth, but has given every member of the society an equal right to derive benefit from them. Mines, forests, un-owned barren lands, hunting and fishing, wild grass, rivers, seas, spoils of war, etc., all these are primary sources of wealth. With respect to them, every individual is entitled to make use of them according to his abilities and his labor without anyone being allowed to have any kind of monopoly over them.

 

 “So that this wealth should not become confined only to the rich amongst you.”[2]

(59:7)

 Beyond this, wherever human intervention is needed for the production of wealth and a man produces some kind of wealth by deploying his resources and labor, Islâm gives due consideration to the resources and labor thus deployed, and recognizes that man’s right of property in the wealth produced. Everyone shall get his share according to the labor and resources invested by him. Says the Holy Qur’ân:

 

“We have distributed their livelihood among them in worldly life, and have raised some above others in the matter of social degrees, so that some of them may utilize the services of others in their work.”

(43:32)

But in spite of this difference among social degrees or ranks certain injunctions have been laid down in order to keep this distinction within such limits as are necessary for the establishment of a practicable system of economy, so that wealth should not become concentrated in a few hands.

Of these three objects of the distribution of wealth, the first distinguishes Islâmic economy from Socialism, the third from Capitalism, and the second from both at the same time. (This point will be discussed in detail later on.)

Having indicated these basic principles of Islâmic economy, we would now proceed to a brief exposition of the system of the distribution of wealth which one can derive from the Qur’ân, the Sunnah, and the elucidations of the Muslim jurists (Fuqahâ).

 

The Capitalist View of the Distribution of Wealth

In order to understand the Islâmic point of view fully, it would be better to have a look at the system of the distribution of wealth that is obtained under the Capitalist economy. This theory can be briefly stated like this – wealth should be distributed only over those who have taken a part in producing it, and who are described in the terminology of economics as the factors of production. According to the Capitalistic economics, these factors are four: -

1- Capital– which has been defined as “the produced means of production” (that is to say, a commodity which has already undergone one process of human production, and is again being used as a means of another process of production).

2- Labor– that is to say, any exertion on the part of man.

3- Land– which has been defined as “natural resources” (that is to say, those things which are being used as means of production without having previously undergone any process of human production).

4- Entrepreneur or Organization– the fourth factor which brings together the other three factors, exploits them and bears the risks of profit and loss in production.

Under the Capitalist economy, the wealth produced by the cooperation of these four factors is distributed over these very four factors like this: one share is given to capital in the shape of interest, the second share to labor in the shape of wages, the third share to land in the shape of rent (or revenue), and the fourth share (or the residue) is reserved for the entrepreneur in the shape of profit.

 

The Socialist View of the Distribution of Wealth

Under the Socialist economy, on the other hand, capital and land, instead of being private property, are considered to be national or collective property. So, the question of interest or rent (or revenue) does not arise at all under the philosophy of this system.[3]

Under the Socialist system, the entrepreneur too is not an individual but the state itself. So, profit as well is out of the question here – at least in theory. Now, there remains only one factor– namely, labor. And labor alone is con­sidered to have a right to wealth under the Socialist system, which it gets in the shape of “wages.”

 

The Islâmic View of the Distribution of Wealth

The Islâmic system of the distribution of wealth is different from both. From the Islâmic point of view, there are two kinds of people who have a right to wealth: (1) Those who have a primary right – that is to say, those who have a right to wealth directly in consequence of a participation in the process of production. In other words, it is those very “factors of production” which have taken a part in the process of producing some kind of wealth. (2) Those who have a secondary right – that is to say, those who have not taken a direct part in the process of production, but it has been enjoined upon the producers to make them co-sharers in their wealth. We shall discuss in some detail these two groups of people who have a right to wealth.

Footnotes

[1] The condition of “proper utilization” has been postulated because it is possible to make an improper use of the forces, and it has been the case under Capitalism. Islâm has struck at the very root of such an improper use, and has thus eradicated the unbridled exploitation of private property.

[2] It should be kept in mind that this verse initially concerns the spoils of war which are one of the primary sources of wealth.

[3] Let it be made clear that we are here concerned with the basic philosophy, or theory, of Socialism, and not with its present practice, for the actual practice in Socialist countries is quite different from this theory.

 

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Last modified 08/12/05 09:25 AM - Iqra - ISSN #1062-2756