Explore the key characteristics of the Islamic economic system, including the prohibition of interest, emphasis on social welfare, and ethical business practices.
Characteristics of the Islamic Economic System
Labour Capital Relationship
Islam safeguards the interests of both labour and capital within its frame work of self contained distinct organism. In fact Islam brings about a union between labour and capital within its frame work of self contained distinct organism. In fact, Islam brings about a union between labour and capital by giving the whole problem a moral bent.
The growth of workers and employer’s organization during the last few decades has therefore, been accompained by a distinct increase in the number and extent of strickcs and lockouts. Many attempts have been made to bring a lasting compromise between labour and capital, but unfortunately, the capitalistic system has failed to achieve any substantial results in this regard.
Islam recognizes the existence of labour and capital in society. The two basic principals laid down in this connection both in the Quran and the Hcdith, are that the servant shall do his work faithfully and to the best of his ability and that the master shall pay for the service rendered. In fact Islam bring about a happy marriage between labour and capital by giving the whole problems a moral bent; it would be clear if we analyse the main causes of industrial conflict and Islamic injunctions. The industrial unrest arises mainly from economic and psychological factors.
Economic Factor:
The worker’s share in production remains the cardinal cause of discontent. The workers it is said, create the product of the industry, but they secure only a part of the production, the rest being held back by their employers. Again the system of overtime, specially when there is unemployment in the trade, has been responsible for much unrest. This system is apposed, firstly because it is retrogressive, secondly because it might be used to cut down the standard, day rates; thirdly because it worsens the employment conditions and finally because it adversely effect their health.
- Holy Prophet said: “Man has no right in his share in which God has no right. God s share is his command to give every one his due and not to encroach on what belongs to another.” The with holding of remuneration for service rendered is the gravest of sins.
- Holy Prophet said. “The wages of a labourer must be paid to him before the sweat dries upon his body.”
- Prophet said. “It is the duty of the employers to take only such work from their employees which they can easily do. They should not be made to labour so that their health is told upon.
These hadiths rule out all possibilities of capitalistic arrandizement.
Psychological Cause:
In the present day capitalist system, the labourers believe that the court, police and other administrative authorities are always prejudiced against them and are in fax our of the employers. When ever a dispute arises and a strike is called they side with the capitalist employer; property rights seem lo be move secred than human rights. This also remains as a causal factor or industrial disputes.
In Islam the sovereignty of the state also belongs to Allah. The head of the state is his C aliph. As a matter of fact, equality of the whole mankind in the ey es of Allah establishes a kind of rule of laws which distinguishes the Islamic state from secular states. In such a scheme of society the court cannot interpret laws in the way it likes, the legislature may not pass any laws simply by majority. In fact the whole code of conduct of the slate must be consistent with the injunctions of the Holy Quran and the Sunnah. In such a state of affairs there is no scope for exploitation and injustice. The interest of the laboures, of the whole mankind are. therefore safeguarded in the best possible ways.
Employers Interest:
Islam is quite alive to interests of the employers as weil who can also make a positive contribution towards the welfare of the society. Employers interests, may the interest of the society as a whole, may be best safe guarded, if the employees act faithfully and honestly and if the employees work with a high sense of dignity of baour. Happy relationship between master and servant is considered an essential precondition. This is why Islam has tried to impress upon the working class as a whole to work faithfully, honestly and with a deep sense of dignity of labour. A number of authentic hediths may be quoted in support of this contention.
Thus it is related that Holy prophet said:
“The best earning is that of the labourer provided be does his job with care and regard for his employer. In fact, servants who carry out the orders of their masters faithfully are ranked with those who give charity. The Prophet said that the muslims shall be bound by the conditions which they make.” >
Islam also condemns an employee’s misappropriating or dishonestly taking any part of the master’s propoerty.From the above analysis it can be said that Islam has tried to bring about a lasting compromise between labour and capital by giving the whole question of relationship a moral bent and by making moral obligations on each other as part of the faith.