Welfare Economy/اقتصاد الرفاهية
Modern capitalist economy is based on exploitation of labor, land and capital. Businesses know that much of labor force will work to survive and they have no other choices. This helplessness and need is exploited. Land and capital is exploited both globally and nationally. Wars of aggression, sanctions and international institutions such as WTO and IMF exploit foreign lands and resources. Islam is against this exploitation of people’s helplessness and need. Islam believes in encouragement and persuasion by fair rules. These rules cover morality, economic and financial policies. Ego, pride, drugs, alcohol, sexual objectification, dishonesty and deception is punished in this economic setting as these are detrimental to determination, focus, productivity and growth while honesty, fair wages calculated through individual’s social needs, transparency and accountability are promoted. Economic activities in an Islamic system must confirm to rules and protocols which are designed to protect individual morality, environment and promote social well being. Hence consumerism is restrained. Land, labor and capital are human belongings, and everybody has right to this even though everybody will not own it. This contrasts with communism and corporatism. It is duty of government and businesses thus to contribute to the population. These will affect productivity and growth. The focus is on collectivism rather than individualism. This is achieved through an efficient taxation system.
Modern secular economic and financial activities are based on profit making agenda but a just and fair economic and financial system will be based on human betterment agenda, betterment not only material but also moral, physical and spiritual. So the world is paying the price of this secular spirit : depleting resources, environmental genocides,l and human suffering.
For a start what the corporate governance MUST focus on and make changes in is giving due taxes, protecting the environment, protecting human rights and giving a living wage to the employees... Corporate lords slaving societies and destroying the environment, this financial terrorism cannot be tolerated any longer! This is what Islamic governance want to stop and also that is why the capitalists are afraid of Islamic rule
