Friday, May 29, 2015

Redivision of Wealth in Islam

The big difference between European economic systems, and that of Islam is, that in Islam, traditionally everyone has had a right to own, enterprise, work, and inherit. Islam doesn't strive to fully equal division of wealth, but, contrary to Western systems, it does strive to equality of opportunity and access to markets to everybody of sufficient mental health and maturity. In the short run, difference between poor and wealthy people emerges. In the long run, however, there are many barriers against centralization of property and opportunity in the hands of few. This is, because everybody has his or her estate redivided over his or her legal heirs. And those heirs may loose or gain property, from then on. Islam tries to meet the needs of everybody to be self-sufficient, yet allows for a social network for the really vulnerable, without unjustly demoralizing talented people by taking too much of their earnings. The advantage of being able to help oneself and deciding for oneself, is not only cost. As we know, in an oligarchy, prices are high. It leads to citizens and governments being perpetually in debt. The other advantage is freedom. Freedom to do independent business, or to design one's own home, whether it's a tent, a trailer, or a luxury villa. And freedom to produce your own food, if you want to. In countries like Egypt, also townspeople keep their own poultry, to mention something. In the Netherlands, that's not even allowed. Thanks to these Qur'anic verses, everybody of sane mind, has the opportunity to participate in economic life:

The parable of those who spend their wealth in the way of Allah is that of a grain of corn: it groweth seven ears, and each ear hath a hundred grains. Allah giveth manifold increase to whom He pleaseth: and Allah careth for all and He knoweth all things. Those who spend of Allah, and follow not up their gifts with reminders of their generosity or with injury, for them their reward is with their Lord: on them shall be no fear, nor shall they grieve. Kind words and covering of faults are better than charity followed by injury. Allah is Free of all wants and He is most Forbearing. Q:2:261-263
O mankind! Be careful of your duty to your Lord Who created you from a single soul and from it created its mate and from them twain hath spread abroad a multitude of men and women. Be careful of your duty toward Allah in Whom ye claim (your rights) of one another, and toward the wombs (that bare you). Lo! Allah hath been a watcher over you. Give unto orphans their wealth. Exchange not the good for the bad (in your management thereof) nor absorb their wealth into your own wealth. Lo! that would be a great sin. And if ye fear that ye will not deal fairly by the orphans, marry of the women, who seem good to you, two or three or four; and if ye fear that ye cannot do justice (to so many) then one (only) or (the captives) that your right hands possess. Thus it is more likely that ye will not do injustice. And give unto the women (whom ye marry) free gift of their marriage portions; but if they of their own accord remit unto you a part thereof, then ye are welcome to absorb it (in your wealth). Give not unto the foolish (what is in) your (keeping of their) wealth, which Allah hath given you to maintain; but feed and clothe them from it, and speak kindly unto them. Prove orphans till they reach the marriageable age; then, if ye find them of sound judgment, deliver over unto them their fortune; and devour it not by squandering and in haste lest they should grow up Whoso (of the guardians) is rich, let him abstain generously (from taking of the property of orphans); and whoso is poor let him take thereof in reason (for his guardianship). And when ye deliver up their fortune unto orphans, have (the transaction) witnessed in their presence. Allah sufficeth as a Reckoner. Q:4:1-6
Lo! Those who devour the wealth of orphans wrongfully, they do but swallow fire into their bellies, and they will be exposed to burning flame. Allah chargeth you concerning (the provision for) your children: to the male the equivalent of the portion of two females, and if there be women more than two, then theirs is two-thirds of the inheritance, and if there be one (only) then the half. And to each of his parents a sixth of the inheritance, if he have a son; and if he have no son and his parents are his heirs, then to his mother appertaineth the third; and if he have brethren, then to his mother appertaineth the sixth, after any legacy he may have bequeathed, or debt (hath been paid). Your parents and your children: Ye know not which of them is nearer unto you in usefulness. It is an injunction from Allah. Lo! Allah is Knower, Wise. And unto you belongeth a half of that which your wives leave, if they have no child; but if they have a child then unto you the fourth of that which they leave, after any legacy they may have bequeathed, or debt (they may have contracted, hath been paid). And unto them belongeth the fourth of that which ye leave if ye have no child, but if ye have a child then the eighth of that which ye leave, after any legacy ye may have bequeathed, or debt (ye may have contracted, hath been paid). And if a man or a woman have a distant heir (having left neither parent nor child), and he (or she) have a brother or a sister (only on the mother's side) then to each of them twain (the brother and the sister) the sixth, and if they be more than two, then they shall be sharers in the third, after any legacy that may have been bequeathed or debt (contracted) not injuring (the heirs by willing away more than a third of the heritage) hath been paid. A commandment from Allah. Allah is Knower, Indulgent. Qur'an 4:10-12

Allah has bestowed His gifts of sustenance more freely on some of you than on others: those more favoured are not going to throw back their gifts to those whom their right hands possess, so as to be equal in that respect. Will they then deny the favours of Allah? Qur'an 16:71

Woe to those that deal in fraud, those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due, do they not think that they will be raised up? On a Mighty Day a Day when mankind will stand before the Lord of the Worlds? Q:83:1-6

Several hadiths show market regulations that also today are modern and in use also outside Muslim countries:

Volume 3, Book 34, Number 266:

Narrated Ibn ‘Abbas:

‘Ukaz, Majanna and Dhul-Majaz were market-places in the Pre-lslamic period of ignorance. When Islam came, Muslims felt that marketing there might be a sin. So, the Divine Inspiration came: “There is no harm for you to seek the bounty of your Lord (in the seasons of Hajj).” (2.198) Ibn ‘Abbas recited the Verse in this way.


Volume 3, Book 34, Number 267:

Narrated An-Nu’man bin Bashir:

The Prophet said “Both legal and illegal things are obvious, and in between them are (suspicious) doubtful matters. So who-ever forsakes those doubtful things lest he may commit a sin, will definitely avoid what is clearly illegal; and who-ever indulges in these (suspicious) doubtful things bravely, is likely to commit what is clearly illegal. Sins are Allah’s Hima (i.e. private pasture) and whoever pastures (his sheep) near it, is likely to get in it at any moment.”

Volume 3, Book 34, Number 286:
Narrated Al-Miqdam:
The Prophet said, “Nobody has ever eaten a better meal than that which one has earned by working with one’s own hands. The Prophet of Allah, David used to eat from the earnings of his manual labor.”

Volume 3, Book 34, Number 301:
Narrated ‘Abdullah bin Abu Aufa:
A man displayed some goods in the market and swore by Allah that he had been offered so much for that, that which was not offered, and he said so, so as to cheat a Muslim. On that occasion the following Verse was revealed: “Verily! Those who purchase a small gain at the cost of Allah’s covenant and their oaths (They shall have no portion in the Hereafter ..etc.)’ (3.77)

Volume 3, Book 34, Number 360:
Narrated Abu Huraira:
Allah’s Apostle said, “Do not go forward to meet the caravan (to buy from it on the way before it reaches the town). And do not urge buyers to cancel their purchases to sell them (your own goods) yourselves, and do not practice Najsh. A town dweller should not sell the goods for the desert dweller. Do not leave sheep unmilked for a long time, when they are on sale, and whoever buys such an animal has the option of returning it, after milking it, along with a Sa of dates or keeping it. it has been kept unmilked for a long period by the seller (to deceive others).

Volume 3, Book 34, Number 379:
Narrated Ibn ‘Umar:
The Prophet said, “The selling of wheat for wheat is Riba (usury) except if it is handed from hand to hand and equal in amount. Similarly the selling of barley for barley, is Riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount. (See Riba-Fadl in the glossary).

Volume 3, Book 34, Number 430:
Narrated Abu Huraira:
The Prophet said, “Allah says, ‘I will be against three persons on the Day of Resurrection:
1. One who makes a covenant in My Name, but he proves treacherous.
2. One who sells a free person (as a slave) and eats the price,
3. And one who employs a laborer and gets the full work done by him but does not pay him his wages.’ ”

Volume 3, Book 34, Number 414:
Narrated Hisham bin ‘Urwa from his father:
who heard Aisha saying, “The Holy Verse; ‘Whoever amongst the guardians is rich, he should take no wages (from the property of the orphans) but If he is poor, let him have for himself what is just and reasonable (according to his labors)’ (4.6) was revealed concerning the guardian of the orphans who looks after them and manages favorably their financial affairs; If the guardian Is poor, he could have from It what Is just and reasonable, (according to his labors).”

Narrated Ibn ‘Abbas:
The Prophet sent Mu’adh to Yemen and said, “Be afraid, from the curse of the oppressed as there is no screen between his invocation and Allah.”

Volume 3, Book 43, Number 629:
Narrated Abu Huraira:
Allah’s Apostle said, “Whoever has oppressed another person concerning his reputation or anything else, he should beg him to forgive him before the Day of Resurrection when there will be no money (to compensate for wrong deeds), but if he has good deeds, those good deeds will be taken from him according to his oppression which he has done, and if he has no good deeds, the sins of the oppressed person will be loaded on him.”

Volume 3, Book 43, Number 634:
Narrated Salim’s father (i.e. ‘Abdullah):
The Prophet said, “Whoever takes a piece of the land of others unjustly, he will sink down the seven earths on the Day of Resurrection.”


Volume 3, Book 43, Number 639:
Narrated ‘Abdullah bin ‘Amr:
The Prophet said, “Whoever has (the following) four characters will be a hypocrite, and whoever has one of the following four characteristics will have one characteristic of hypocrisy until he gives it up. These are: (1 ) Whenever he talks, he tells a lie; (2) whenever he makes a promise, he breaks it; (3) whenever he makes a covenant he proves treacherous; (4) and whenever he quarrels, he behaves impudently in an evil insulting manner.” (See Hadith No. 33 Vol. 1)

Volume 3, Book 43, Number 640:
Narrated Aisha:
Hind bint ‘Utba (Abu Sufyan’s wife) came and said, “O Allah’s Apostle! Abu Sufyan is a miser. Is there any harm if I spend something from his property for our children?” He said, there is no harm for you if you feed them from it justly and reasonably (with no extravagance).”

Source:
University of Southern California USC-MSA Center for Muslim-Jewish Engagement (Compendium of Muslim Texts) http://www.usc.edu/org/cmje