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Scott Lincoln "Omar" Davis


Chapter IX


"Islamic Economic System"

Human beings must rise above self-interest and cut their claims on resources (even when they can afford them easily) though this may hurt their own self-interest.   In order to inspire them to live and die for the supremacy of agreed values, infuse them with the spirit of brotherhood, and motivate them to sacrifice and cooperate for the welfare of others.

Islamic Government - One that sees itself as a mere representation of a higher power.  A government whose movements are kept within the precincts of Justice by its necessary commitment to the ethical ideals laid down by God himself.  Again, Islam is a complete system of individual and collective life.  There is no division between the sacred and secular.

4 Key Aspects of an Islamic Economic System

  1. Need Fulfillment.

  2. Respectable source of earning.

  3. Equitable distribution of income and wealth.

  4. Growth and stability.  

Islam - Places a greater emphasis on duties than on rights.

Under Islam, the criteria for determining a man's worth are not his race, family, position or wealth but rather his character (which is a reflection of his faith and practice) and service to humanity.

Lifestyles that reflect arrogance, pomp, grandeur or moral laxity lead to extravagance and waste and result in unnecessary pressure on resources, reducing societies' ability to satisfy the needs of all.  They also promote unscrupulous ways of earning and generate inequalities of income beyond the normal distribution that is warranted by differences in skill, initiative, effort and risk.

Secularism - reduces religion to a matter of individual preference.  It deprives society of a socially agreed upon filter mechanism which is needed to create a harmony between individual self-interest and social interest.

Utilitarianism - reinforced by Materialism, provides the logical rationale for the single-minded pursuit of wealth and bodily pleasures.  It projects 'consumption' as the highest purpose of economic life (and ultimate justification of all human effort and toil) - Everything done by the individual towards this end is justified, contributing in a major way to general moral decline.

The adoption of Islam protects society form going to excess in lusts, luxury and pleasure, Equally, in following restraint and privation.

A 'real' Muslim, is he whose goodness and efforts are directly aimed to benefit the community.

All values conceived on the basis of utilitarianism and self-interest can be disputed, whereas human society needs to be based on values of/on (for) 'good' or 'evil,' and 'right' or 'wrong' which are not disputed even if they benefit the 'have-nots' at the expense of the 'haves.'

Without the feeling of Moral obligation to make sacrifice, what is it that can motivate a rich man to forgo his luxuries and economic resource use for the need satisfaction of all.

Neoclassical, Keynesian & Socialist Economics are all secularist in their approach to the realization of human well-being and analysis of human problems.  They all place too much emphasis on consumption and material possessions as a source of human happiness.

The root cause of the mischief of the present age is that man holds no principle in live save earning immediate and instant profit.

A secularist society is uncommitted to any one vision of social order.  There is no common, shared moral canopy.  By intention there is not.  At its spiritual core is a black vacuum.

Equitable distribution requires a motivation to serve social interest even if this involves sacrifice of self-interest.

Islamic Economic Strategy

Consists of reorganizing the entire economic system with a set of four indisputable and mutually reinforcing elements:

  1. A socially-agreed filter mechanism.

  2. A strong motivating system to induce the individual to render his best in his own interest as well as in the interest of society.

  3. Restructuring the whole economy, with the objective of realizing the "Maqasid" (see below) in spite of scarce resources.

  4. A positive and strong goal-oriented role for the government.

("Maqasid" - a just economic system.)

Which, again, must provide:

  1. Need Fulfillment. - assure everyone a standard of living that is humane and respectable.

  2. Respectable source of earning. - Need fulfillment must be through individuals own effort.

  3. Equitable distribution of income and wealth. - $ do not only circulate among the rich.

  4. Growth and stability.  

"Societies's concerned only with profit will eventually fall to pieces.  Corruption in the literal and figurative sense can (and will) flourish where the making of money becomes the primary aspiration and the dominant criterion of success. "        --Alec Nove

"No social system can work in which everyone is supposed to be guided by nothing except his own short-run utilitarian interest." -- Joseph Schumpeter

"A strong economic base is more vital to a nation in the long run than military superiority; and nations which stretch themselves militarily beyond what their economies can sustain are looking for a fall."  --  Paul Kennedy

Public borrowing (National Deficit Spending) - should be resorted to only for capital outlays, not current expenditure.  "Borrowing" to finance current expenditures is extremely unhealthy, but also highly unjust to posterity who will have to service the debt.

The disdainful and the arrogant are the crew of Satan, who will be gathered together before the Supreme Throne for punishment.

Islamic Principles of Public (Government) Spending

  1. The principle criterion for all expenditure allocations should be the well-being of the people.

  2. The removal of hardship and injury must take precedence over provision of comfort.

  3. The larger interest of the majority should take precedence over the narrow interest of a minority.

  4. A private sacrifice or loss may be inflicted to save a public sacrifice or loss, and a greater sacrifice or loss may be averted by imposing a small sacrifice or loss.

  5. Whoever receives the benefit must bear the cost.

Real prosperity consists, not in greed, but in giving, - the giving of ourselves and our substance in the cause of Allah and Allah's truth and in the service of Allah's creatures.

Sin is a sort of oppression of ourselves by ourselves.

"O ye who believe!  Devour not Usury, doubled and multiplied; But fear Allah; that ye may (really) prosper."  -           Sura 3:130

"Zulm"  -  A comprehensive Islamic term refering to all forms of inequitity, injustice, exploitation, oppression and wrongdoing, whereby a person deprives others of their rights, or does not fulfil his obligations towards them.

Establishment of Justice and eradication of all forms of injustice have been stressed by the Qur'an as the primary mission of all God's messengers.  Sura 57:25

"God upholds the just State, even if it is unbelieving, but does not uphold the unjust State, even if it is believing."

The world can survive with Justice and unbelief, but not with injustice and Islam.

"He is not an honest man who eats his fill when his neighbor is hungry."  -- Prophtet Muhammed (pbuh)

"Deserve before you desire"-- Prophtet Muhammed (pbuh)

We should not be dazzled by the "glamour" of modern culture, but with an unbiased mind, we should dig into its roots and expose the viciousness of human nature and the dark forces of greed and exploitation which are operating under the glazed surface of this civilization.

A civilization which generates maximum human contentment is successful.  Otherwise it is a sham.

The United States (and the rest of the following West) is dominated by the "Gospel of Acquisition."  Money buys possessions, and by the number and grandeur of his possessions a man's merit is chiefly estimated.

In modern democracies, we are told that it is the fate of minorities to suffer.  Strength of numbers here becomes the passport to power and privilege.

In Islam, spiritual strength or weakness does not necessarily go with physical or numerical strength.

American society/culture has become a perplexing nightmare of fatherless children, gangs, crime, sexual deviancy, drugs and despair.

"I am Ozymandias, King of Kings!  Look on my works, ye mighty and despair..." - Boundless and bare the lonely and level sands stretch far away...  Shelly

Any material civilization prides itself on show and parade (US/West).  Its votaries scatter monuments for all sorts of things in conspicuous places.  Monuments which commemorate deeds and events which are forgotten in a few generations...(i.e. Ozymandias).

"Do ye build a landmark on every hight place to amuse yourselves?"

"And do ye get for yourselves fine buildings in the hope of living therein forever?"

"And when ye strike, you strike like Tyrants?"  (S26L 128-130)

In the kingdom of Allah, Righteousness is the badge of citizenship. And although there are great and noble grades, the base of that citizenship is the universal brotherhood of righteousness.  The grein that Kingdom are glad and proud to pray for that essential badge.


Materialism - a logical consequence of the denial of God, holds that matter is the primordial or fundamental constitute of the universe, which is not governed by intelligence, purpose or final causes.

Happiness is a reflection of peace of mind, which is possible to attain only if an individual's life is in harmony with his inner nature.  This happens when both the spiritual and material urges of his or her personality are adequately satisfied.  Since the spiritual and the material urges of his or her personality are not separate identities, the desired satisfaction takes place only when a spiritual dimension is injected into all material pursuits to give them meaning and purpose.

Every individual in society needs to be made aware of the social priorities in resource use and to be motivated to behave in conformity with these priorities.  They need to be made subject to a discipline that will make him/her concerned about the well-being of others while striving for their won well being.

In the absence of a moral dimension, material possessions and want satisfaction become an end to themselves.  Satisfaction does not mean 'need' fulfillment, but getting ahead of others.  Ostentation and getting ahead of friends and neighbors become the ideal pattern of behavior.  But conspicuous consumption creates only temporary satisfaction.  Symptoms of Anomie and alienation are reflected in all aspects of life.

In this Materialistic age, most of humanity have become slaves to wealth, fashions, and mansions.

In the realm of Materialism, wealth, bodily satisfaction and sensuous pleasures are either the only, or the greatest values one can attain or seek.  It has provided the foundation for the commercial culture which has gone from strength to strength over the years and has multiplied "wants" far beyond the ability of resources to satisfy.

Any Material civilization prides itself on show and parade.  Its votaries scatter monuments for all sorts of things in conspicuous places.  Monuments which commemorate deeds and events which are forgotten in a few generations.

"Do you build a landmark on every high place to amuse yourselves?"

"And do you get for yourselves fine buildings in the hope of living therein forever?"

"And when you strike you strike like Tyrants?"

Sura 26:128-130

The house and strength of a man who relies on Material resources, are as flimsy as a spider's web (realatively) no matter how fine or beautiful.  Before eternal reality...they are nothing.

Economic Growth

For economic growth to benifit heman development in a just and Islamic economic environment, it must contain,

Full Employment

Security of Income

Participation for all in the Democratic process

An equitable distribution of wealth

Social Cohesion

Cultural Enrichment

Sustainable development for future generations

Interest (Riba) is prohibited!  The principle is that any profit which we should seek should be through our own exertions and at our own expense, not through exploiting other people or at their expense.

Universal Principle of Order:  Any element of society which deliberatly refuses to obey law and agressivly tries to subvert all order of society, secretly and openly, must be effectively suppressed, for the preservation of the life and health of the general community.

Islamic Dinar/Dirham



The question of money
is primarily a question about freedom.

When people were free to choose
they universally chose gold and silver

Now we are forced to accept
the system of artificial money, whose
legal value is determined by the State.

"Money is any merchandise commonly accepted
as a medium of exchange."
said Imam Malik

We propose to return to gold and silver
They are part of the Revelation and the Sunna
They offer stability and order.
They are the end of political money
They are the end of money manipulation



The Sunnah Islamic Page

"...To be Continued..."  -- SLD 

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