Economic System of Islam ay SYED ABUL A‘ALA MAUDUDI 1 Hdtred by Prof, KHUESHID AHMAD, M.A. English Rendering RIAZ HUSAIN, M. A. {slamic Publications Ltd. 13.5, SHAMALAM MARKET LAHGRE . PAKISTANCONTENTS Tetredus lion : on FART 1—PRINCIPLES AND OBJECTIVES The Ecouomics Problets of Man ane Real Economic Yroblem on Causes of Evils in Economic Sysiem aaa Solution Suggesied by Cottmunism ss Fascht Sclation on Telamie Solution . va Economic Precepts of the Quran ane Basie Facts . Gaedifth of the Spoils of War Determination of Right and Wrong is the Prevage of Allah Adfraation of Individual Gwnecchip a Uo-pataral Doctrine of Economic Equality ars Moderation and Observation of Limits instead of Asceticiem : om Distinction between Lawiol aod Unlawfol Meace of earning Wealth ve Uniawful Means of-securing Wealth ave Prohibition of Avarice and Hoarding of Wealth Condemnation of Materialism and Greed oo Condemnation of Extravagance a Lawful Ways of spending Wealth wee Monetary Atonements ~~ Pre-Roquisitea for the Divine Acctptance of Infaq ... Real Significance of Iofaqg o Obligatory Zukat acd its Rate we Charges on the Zakat Fond . Division of Iahetitance ve Git) 38 39 az 45 46 - 3 $1 32 S4 54 56 38 2Gr) Rule of making a Wilt w= «63 Safeguarding the Interest of persons of unsound . nied a 64 Common Lntercst in State Property = = 45 Basie Principles of Taxation in Jslam ~ 65 Characteristics of tha Economic System of Islam .., 66 Baste Principles of Economic Life oe 70 Fondamental values of Igtamic Society we 70 The Course of Moral and Economic Evolution in lan ow» 73 Provision and its Use a 74 The Principle of Use ae 76 The Principic of Moderation a Honesty and Justice in Economie Life ws 80 Principles aud Objectives af Economic Organization in Islam ' -- 82 Form of the Economic System of Tstam = 82 Objectives of Economie Organization oe G3 A.” “Individual Freedom ws 83 B. Harmony in Moral aud Materia! Development a4 C. Cooperstion, Accord and Establishment of Justice : ov BS Basic Principles : ws (86 Equitable Diswibution wT Social Rights ° - = Zakat ww 9 Law of Inheritance : we «93° The Role of Latour, Capital and Management ow 4 Zakat‘and Social Welfare ae 96 interest-free Economy wa 6H Cortciation amosg Economic, Potitical and Social Orders ‘9B Tala and Social dastice . . r 100 Faltehood under ihe cloak of Righteousness a. 100 First delusion—Capitalim and Secular Deupocraey ... 100(¥} Second delusion—Soclal Juctica and Commenion -... tot Extreme Intellectual Slavery ow §=101 The Real Nature of Social Justies + 162 Social Justice ix found in Islam only -. «102 Justice in the only Objective of Idam —- = 103 What is Social Justicg - id Development of Hunan Personality -~ id Individual Responsibility oe 105 Individual Liberty . ae 105 Social Institutions and theiz Authority ~~ HS Defects of Capitalism and Communica -. 107 Communism is the Worst form of Social Tyranny... 107 Islamic Justice -- 109 The Bounds of Individual Liberty - 1 » Conditions for the Exchange of Capital -- TL Restriction on the Spending of Wealih os HZ Social Servica - 112 Liquidation of Expicitatiog . - Limite of Nationalisatton ia the Public Interest os. Hii Ruies governing the expense from the State Treasury 114 Ag Eaquiry , ~ iid The Difference betweem Caplteliow and. islam ws Li Distinction between Lawiel and Unlawful means of carding Wealth o» 11S Ban oo the Hoarding of wealth we 16 Tojunction to spend we 17 Law of Inberitance = 133 Diteibution of the Spoils of Wat and Conquered Property - Ui Injucetion jo Eeonomise we 125 PART II-ECONOMIC SYSTEM OP iSLAM (Some Aspects) ~~ 129 Owsersh ip af Land / ae U1 1, The Holy Quran aod [ndividual Ownership aw 4132 2. Precedents established by che Holy prophet (SAW) | and the Righl Guided Caliph (R_A,} oe (194First Category Secoud Category Third Category Fourth Category Ownership Rights arising out of coleaization Land Grants by the State Shariah Regulation for Land Grant Correct Shariah position with regard to Fiefs Respect for the Right of Owaenhip 3, Islamic System and Individual Ownership 4. Ceiling on Land Holding 5. Form of Crop-Sharing and Idamic = Principles Funtics . 6. Limitations oo the use of Property Tntereat 1. Islamic Orders about Interest The Meaning of Ribs Riba io the Period of Tgoorance Banic Difference between Trade and Riba The Cause of Prohibition Severity of Prohibition on Usury 2. The need for Intorest—A Rational Analysis {a) Compeaaation for Risk ana Sacrifice | Ts Interest a penalty 7 : Ts Interest a rent? (b} Compensation for the Opportuaity aud grant of time (o) Share in Profitability td) Compensation for time Reasonablences of the Ratt of Enterest Factors which Determine the rate of Interest Economic Benefit of [nterest and its meed Is Interest Really Necessary and Bouelicial 7 3. Evils of Interest 4, Economie Reconstruction without Interest Some Misconceptions 135 137 138 141 M2 M5 iW isl 153 155 15? 138 160 160 162 16a 165 iss 167 168 169 169 72 173 175 177 18 133 18s 139 igs(vii} Finn step towards Reform w 1 Consequetices of the Abolition of Interest a = (199 Forms of Credit in ao Interest free Financia] System = 202 Credit for Private Need 202 Credit for Business ° v.25 Credit for the Non-Productive State Expense w. 206 International Loans . w+ 206 Provision of Capital for Productive Ventures ue BOE Islamic Form of Banking aH §, Beanomice and Industrial Leace from Non-Mushi 24 Couniries vr Tat Mature of Zakat and ite Roles 216 The Mezoing of Zakat 216 ” Precedent of Prophets ne 216 Significance of Zakat in Collective Life aw $219 The Order of Zukat we 226 Expenditure of Zakot - 229 Basic Rules of Zakat A Questionoaice - 239 Questionnaire Answered . Bdd Can the Limit of Liabitity and the Rate of Zaket be Changed wn 264 Problem of Zakat gz Company Shares 266 Zakat in' Ube cose of Partnership aod Mudurba 271 Limit of Liability for Zekat on Metals .. 279 Distiaction between Zakat and Tax te 276 Ls it justified to levy Tacome-Tax in addition Ic Zakat . we OT Probleme of Labour aod their Sejution OTB * ‘The Real Need ' 279 Solution of Problems on 6280 Printipics of Reform we 282 [osmrance and Schemes for its Reform ve 2BB Prics Coatzot ow $292 Reoodification of Ietaule Laws in Modern Times — vs 295 Need for deliberation before Modernization i BS Need for Re-codification io Islami¢ Law a. NT(viii) Some exsential conditions for Re-codification First Condition Second Condition Third Conditién Fourth Condition General Principles of Commutation Some forms of Relazations 298 299 Ww? 303 305 307Introduction This is a» talk on the ecoonmis system of Islam whieh the leaned anrhoe broadcast from Radio Pakisius Lahore on March 21948 Tt 0 being reproduced here In the bope thet it will asrve an 9 Seed introduction to the subjeol