Muslims are the most persecuted people today because of their Quranic values, resources, their rightful claim to Palestine and Kashmir and for their desire to Islamic self-determination which is a threat to fascist supremacy. The enemies of Islam target Islam and Muslims due to following reasons: 1. Islamic existence (Quranic values and laws) is a threat to their political, cultural and economic dominance 2. Muslim demography is owning and consuming various resources which they want for themselves and their businesses 3. Hatred created from their ideological fascism against what they perceive as Muslims aliens. 4. Their desire to create a fascist cultural utopia for themselves Terrorism is an excuse to demonize Muslim people through media propaganda while they justify their politically collective terrorism by denial, lies and propaganda and political and legal institutions. Yet Muslim countries have failed to Islamize their political economic and cultural existence and failed to pronounce loudly and mobilize support for the oppressed Muslims and Islamic revival. What do these stupid Muslim countries think? They will be left alone by behaving like slaves?
Islamic economy is part and parcel of this self-determination. It is because Muslims have abandoned the political Islam that they are wandering like a lost sheep begging for sympathy and charity to foreigners and all those so-called peace preachers cosying up to the filthy royal petrodollar, making Muslims even more sheep to the slaughter.
Giving birth to the Islamic economy is key to solve Muslim suffering. Under an Islamic model of economy which is under a total Islamic political and legal system a lawgiver, consumer and businessman are people who do justice, equity and fair dealing whether individually or collectively as part of Islamic system without racist, nationalist or any ideological bias. This means policies and decisions must not be based on someone's race, nationality or other bias. The activities and actions of subjects under Islamic rule must be dictated and shaped by Quran i.e. Islamic laws, and mind you, Islamic law is not just any piece of legislation coming out from the mob parliament rather Islamic law is a result of an intellectually disciplined field based on Arabic language and purified Aristotelian logic.
Today Islamic research and development in fields such as law, economics, finance, education etc. are all designed and implemented not to challenge the system we inherited from colonialism but to conform to it. Imam Khomeini’s revolutionary change is the only model of post-colonial era that sheds a glimpse of what Islamic research needs to be all about.
How does one start an economy? One either inherits it or starts a new. Imagine a group of people ship wrecked on an island have been forgotten by the world. They need to survive, they need to start an economy! The first thing they may do is choose either a barter system or a common medium of exchange. Mostly to expand and flourish they will choose the later and decide on a system of exchange, a system of currency. They will first study their needs and lacking (as discussed later) then they will issue currency by creating it. For thousands of years this currency had been gold standard. With this knowledge the islanders decide to agree on a natural currency mined or extracted from God’s creation. The nature of currency circulation will thus depend on the speed of mining and not on the whims of the island’s bankers! Laws and protocols need to be established for this new economic and financial activities which will demand political authority and accountability. As the process is maturing and evolving currency will be distributed. After issuing the currency to everyone both buyers and sellers (as everyone is starting new due to shipwreck) some form of business activities will start (assuming there is a consumerist mindset among the new population of the island and skillset) and as more businesses start, more currency is extracted and circulated. In the process new talents and skills are created, trained and evolved. However not everyone will be able to buy or sell equally so there must be a social welfare system so the tax collected from certain businesses will be distributed to people who have not been able to enter the economic competition. Initial distributions of currency may be called as subsidies and incentives while once the economy starts maturing such could take the form of interest free loans and financing. This in a nutshell how an economy is created from scratch.
Islamic economy cannot stand alone on itself in a sandbox like some Muslim countries such as Malaysia is trying to do. They claim they have Islamic finance but have no mechanism of Islamic taxation system (footnote 3) which is, part and parcel of political Islam and Islamic finance because finance creates taxation channels. Zakat is a political endeavor according to Quran as it appoints collector of Zakat. The most effective logical instrument is that of the state. Hence Zakat is not a personal charity but a state charity. This is extended to all forms of Islamic taxation except the voluntary ones one gives. This further confirms Islam's political nature. But Muslims are foolishly busy spreading Islam to non-Muslims while they forget to spread it among themselves. There is no Islamic system or existence encompassing Muslim dominant geographies except in the case of Iran. Even in secular system secular laws are passed even after protests and criticism but Muslims are scared even to mention passing Islamic laws. Where is our tawakkkul on Allah? The Muslim existence in Muslim countries must be defined by Islam and its glory and in the process universal equity and peace will be achieved, in the greatest degree possible even those who do not subscribe to this faith. The patient sometimes is reluctant! Islamic economy is part of that glory.
Unlike in the island example above today people's needs, and desires have diversified, multiplied and gotten complicated by secular evolution of education, research and developments. Too many goods and services are being developed in rivalry which increase, in turn, the need and desires and vice versa. However, people's needs are few just like the island scenario, but their desires are many. This desire driven consumerism is a proof of societal individualism, lack of empathy and predatory financial practices. Without consumerist mind business activities do not flourish however. Will businesses thrive among hermits and monks? Not really. However, all this shouldn't make us inhumane towards each other and the environment, which is the hard truth about desire-driven consumerism. The solution is changing our philosophy of life. The solution is Islam. This is to tackle the predators called corporations. Today's capitalist predatory businesses make money in many ways. One of their ways is to offer products or services by non-disclosure or by suppression of information (gharar) which are necessary for customers to make financial decisions. In one of the Asian countries I saw this example in medical setting. If you ask cost of products or services, they will show you percentile costs i.e. previous cost statistics of patients' payments. You see they can charge whatever they want in order to fulfill a financial quota by putting a certain patient in a certain percentile (quartile) to charge by. Our island example must thus pass laws, protocols and implement a fair system of governance.
We cannot measure in detail the efficiency and effectiveness of Islamic economy and finance efficiently. It is because we don't have enough econometric data on the Islamic economic and financial activities whose absence has been wholly caused by colonialism and neocolonialism. We can however qualitatively and to some extent quantitatively say the preference and superiority of Islamic economic and financial system. In order to achieve this, the most essential and important policy for Islamic revival and Ummah independence must be the prioritization of vital trade among Muslim countries and with non-Muslim countries based on treaty of non-aggression against Muslims. Today's Muslim trade landscape is self-destructive and handicapping because today's Muslim trade is one sided. Today's Muslim trade equals to western trade. We must start the Muslim trade through drastic market creation and delimitation. What did Europe do after complete destruction of its land, trade and economy in ww2?
Unlike The corporate predators who don't want to promote social welfare, give taxes, invest sustainably, pay quality wage or even price with welfare in mind because these predators think being nice with people will make them lazy so these corporate fear-mongers want to maintain a Darwinian society where fear, ruthlessness and strength will drive people against each other to get the essential rightful benefits everyone deserve. They will invest heavily during elections to buy the politician degenerates even. Human activities under this corporate system are driven by unregulated wealth creation and value creation. They by their diverse and often contradictory values, aim to generate wealth, control and power to preserve and empower their values and to enhance materialistic experiences at the expense of others. Islamic model among other things hypothesizes economic and financial activities based on the good side of human nature where human will appreciate the welfare and sympathy towards them. We cannot plan a predatory economic and financial system for our island!
One model of this welfare system is reducing cash flow and increasing credit sales. When social economic inequity increasing, people being unable to fulfil their basic needs to survive and when they are left without a welfare from the state then it is only humane and moral to slow down cash flow of businesses thereby increasing credit sales. Islamic banks can ascertain credit worthiness of consumers and clients. By temporarily slowing down cash flows and promoting credit sales we could have uplifted people who genuinely would have flourished and moved on with their lives whom otherwise are stuck because of cash. Give benefit of the doubt to the people in need and believe that people want to stand up on their feet. Why blood sucking corporatocracy can get all the flexibilities while the common masses suffer and choked? This is humanistic and collaborative cash flow model based n Quran- A qardan hasana which will only truly grow.
The best thing globalization has done is boost productivity because globalization is based on getting the best talents and skill sets from humanity unlike racism and nationalism which have the audacity and arrogance to think that our race and nation have the best talent and skill. Islam is also a religion which values people's knowledge over their backgrounds and hence Islam has put primary emphasis on meritocracy. Quran 39:9 "Say, "Are those who know equal to those who do not know?" Islamic effective taxation system prevents racist and xenophobic thought because you see talent and skills will boost businesses and generate increased revenue and hence increased Islamic tax worthy to be distributed to the jobless or low-income people. You will see even in Islamic golden age non-Muslim and foreign people thrived in business and knowledge. Islam can be called as father of globalization. However modern globalization unlike Islam lacks welfare model. It would be wise to accept the natives of the island as part of our economic activities and population.
We are given to believe the non-sense that capitalism is where equal opportunity thrives for everyone and everyone has a road to success. In capitalist society businesses categorized with increasing revenues are allowed to only people who are a) politically connected b) racially connected c) nationalist d) culturally and socially defined. These reasons are considered before you are given the chance to shine in this so-called capitalist utopia of "hard work is rewarding”. But under Islamic system your opportunities will depend on your merit and good character only. Thus, we also plan, design and implement such a welfare system for our island!
Businesses' exposure to the world must be based on clarity, unambiguity, decisiveness, punctuality, addressing all client related possibilities, and social and client welfare. This combined will have a synergistic effect on the quality, trust level and service level of the business. In order to achieve these, we need to change the mindset of the people and society. Islam gives a perfect framework for creating effective and efficient human capital but unfortunately Muslims today only focus on Islamic spirituality. For our island this can be created from scratch and before any intensive economic and financial activities start, as every policy in this regard need to be reflected with the moralization of business activities. Today business is about identifying the most effective and efficient cash flow model increasing the revenue and decreasing the expenses. But this model does not consider social welfare and sustainability so these two must be embedded in the current cash flow models of ALL businesses.
The first step towards financial and economic activities is initiative. This initiative is contextualized by the politics, laws and cultural inclinations of the geography where it’s supposed to thrive. Globalization and global corporatocracy have only tipped the balance to one side. You will see competing world orders are in motion in the form regional cooperation, political alliances and political economics to influence for this or against this. What Muslim people should have had and should have immediately is a “Ummah single economy” and financial block, but we don't because we lack initiatives. Our island’s people give us the context and our helplessness of the islanders make us take initiatives. The Muslim Ummah is helpless!
Don't give the excuse of Dubai and Singapore of capitalist successes. These are tiny countries two cogs in the wheels of western corporatocracy. Given our limited resources of earth only few handfuls of countries will be able to live an unsustainable wasteful life like Dubai and Singapore. And in fact, only few countries are living a high standard of living exemplified also by the few rich men and upper middle class of those countries, while global population sinks in cesspool of poverty and suffering. Again, I will say Islamic Taxation and Islamic Economic systems are the best solutions we got. Will we make our islanders exploit the natives of the islands for our helplessness and glory even though some of those natives will thrive while others if not most of them will suffer, along with the ecosystem of the island?? NO!
The Muslim world is too much involved in unstructured financial landscape making the Muslims and their interests at the behest of Islam's persecutors. For example, why does Pakistan import Chinese aid and engineering without thought? Why not Arab invests money in Pakistan while Iran Turkey invests engineers and technologists? Same goes for Malaysia. Remember China started by listening to insults "MADE IN CHINA" but they continued and continue to perfect. We Muslims have no determination even though we Muslims can create countless opportunities among ourselves. A detrimental form of unstructured financial landscape is to rely on hostile and suspicious powers in fulfilling our necessities. When relations are built and deepened with foreign nations without future planning and consideration of Ummah’s political consequences, we will find it difficult to pull out in case of hostilities. A structured financial landscape will thus study, among other things, dependency level on foreign trade, defense impact on the Islamic nation, geopolitical empowerment landscape made possible by such a foreign trade model and increment in self-reliance due to such foreign trade model. Various econometric and statistical studies could be suggested to make decisions on these goals. We need to fully build our human capital.
We begin Islamic economy by study of Islamic demography much like the island scenario. Islamic demography consists of population under Islamic jurisdiction. What should be studied? Anything which matters for the people's daruriyat (necessity of life), hajayiyat (needs of life) and tahseeniyat (luxury and convenience). Study the immediately needed ones and the research future needs. Revolutionary investments in study should result to kick start critical businesses concurrently which are necessary for the very survival of Ummah when facing sanctions and blockades. Study must focus on collecting and analyzing of economic needs and social needs with respect to various levels of financing. Economic and Social needs consist of all things connected to human factor. The human factor is the beneficial effects of goods and services.
Study by census (online or manual), study by past behavior of population consumers, study by hypothetical assumptions into population vis-a-vis human factor and study by globally considered human needs can be undertaken. Such studies can be taken in interval depending on global technological trends and geopolitics vis-à-vis demography of the ummah. Study of products and services must analyze the following:
Eligibility: Does such a product or service need to exist? Will it help and improve economic and financial situation of the Ummah? If so which economic class will benefit? Is it compliant with Shariah? Should it be subsidized?
Durability: How much is this product or service resistant to various economic and financial uncertainties?
Longevity: Is it something which can fulfill the need of the ummah long term? Will it be worth investing in such a product or service considering moral, environmental and social consequences? Can the ummah put their long-term trust and faith in this product or service?
Validity: What is the fraud level of this product or service? How much fraud resistant is this product or service? Can this product or service be manipulated to harm human or environment? What is the maximum quality level that may be initially attained by this product or service?
Quality: What skills and training do manufacturers, labors, buyers, sellers and all those involved in this product/service creation, distribution and maintenance need?
Scalability: Ability of owners to keep up to date and informed on their businesses. Such updates must be to know, learn and implement emerging technology, law and any other relevant information. Transitioning is essential when a business's goods and services become obsolete or outdated.
Also, apart from studying the demography to start ground up economic and financial activities Muslims must also publicize their existing businesses for raising investments or raising talents for generating new ideas or solution to a problem through perks and incentives. They can offer to the community their summarized problem then filters the proper talents and choose from them possible solutions. Depending on the security issues of the business proper protocols for public offering of problem need to be implemented.
Islamic education should deal with the knowledge and skill creation necessary for the Islamic economy. If needed, training schemes can be provided for startups or those who are transitioning. Development of strong mind and skills need an environment of morality to suppress unnecessary aggressive temptations derailing and destroying determination, focus, purpose and motivation. Here in comes nationwide Islamic moral law such as prohibiting free sex, nudity, promoting hijab, polygamy among other Islamic laws.
The finalized study will come up with products and services needed for the Islamic economy and population. This study should be made public for kickstarting investments. Such a type of study can be done in interval to keep up with population growth and changing demands. Study will propose creation of new markets or fair exploitation of existing markets. It is not necessary to create unrestricted unchecked number of businesses, but few powerful businesses could generate enough zakatable amounts to establish a strong and rich social welfare.
Three accepted sources of value creation are through mining, agriculture and artificial. The whole process of value creation from mining to delivery to businesses must be based on human concern, safety and environmental concerns. Foreign and national policies, laws and protocols of Muslim confederation must be based on achieving a sustainable and efficient, effective process towards above goal of “mining to finished product/service delivery”.
“Mining to delivery” model must be designed and implemented throughout the Muslim confederation with least dependency on foreign trade as much as possible. For this the confederation of Muslim countries need to share data on resources, available technologies and skills/talents and what is lacking thereof.
Valuation of goods and services must take into consideration the cost factor of human factor. The cost factor is cost of assessment and implementation of the human factor. The human factor is the beneficial effects of goods and services. Human factor must not be exploited. In Islam there are three aspects of human factor: daruriyyat (necessity), hajaiyyat (need) and tahsiniyya i.e convenience/flexibility/luxury.
The government should make a database with an integrated data platform system which will be a base of statistical research in the economy and job market. Such databases will hold information about firms and job market. Information such as firm specialty and subspecialty, total employed, total investment and total revenue, employment ability marker and so on will be recorded. Firms need to submit the required information every interval as determined by the relevant government institution. It can be through a portal where firms enter the required information which is recorded in the backend database/s as dictated by design of the system. This can help measure market saturation for a job industry, product or service.
Localized accounting delegation from Islamic treasury to audit businesses based on geographical location should be organized. Businesses need to keep and use government issued financial statements for economic and financial measurements. Banks must deduct Islamic taxable amounts from businesses at year end (hawl) and transfer the money to Islamic treasury. This is for monetary value and not for other types of taxable items such as livestock, crops, minerals etc. as detailed by Shariah law. These should be collected by Zakat ministry.
Geographic, social and statistical studies should be performed based on the financial statements as recorded by government to identify Islamic tax recipients (sadaqah). Apart from businesses people who are working, their records should be taken following a model such as this. How to affect consumer behavior with in Islamic limits? Will a village in Pakistan for example be interested in an online food delivery app or a gym machine selling shop? How to motivate consumer mind? What contexts need to be created for consumers? Education, culture, upbringing are essential elements of creating consumer minds. People often don't know what they want and even if they see something through marketing, they really don't understand it completely while some just follow the hype, so these three domains need Islamisation approach to safeguard Islamic markets.
Unfortunately, we Muslims have been forced to be habituated to depend on western products through colonialism and now neocolonialism. It’s the economic version of forced religious conversion. Their businesses had almost no competition or government regulation while exploiting people’s need making them subservient to them vis-a-vis client population. Examples include the first PC manufacturers or the first social media. People failed to see the long-term effects of absolute dependence on these. Also, the first investors of corporate America where investment was the domain of the elites unlike today where everyone can invest as part of global corporatocracy. Muslims thus need a strong stock exchange for the confederation.
Security of financial landscape is important. It arises from the hypothesis that humans are by nature ideologically bias. Hence the financial institutions and businesses of Muslim countries must not violate the ideological foundation of the states which in case of Malaysia is Islam as clearly mentioned in constitution, or for china atheism. If the nation's human capital contradicts this ideological foundation in any form such as through sabotage or mismanagement, then this is a form of hostility against the national development and an effort to paint a new Ideology and landscape of the said nation. Hence the security apparatus and the ideological purity and loyalty of this security apparatus of the said nation is of utmost importance. This does not mean bashing minority but protecting aggression from any entity even Misguided Muslims.
Econometrics realities can be engineered through political, geopolitical and cultural engineering. Not all associations in the real world are natural. Some associations can be designed to happen and have been designed through imperial geopolitics. Islamic econometrics must be based on welfare and humane policies of Quran and Sunnah. Part of those policies is the trade and business ethics of Islam that can be divided in to rules and practices. These rules have been based on the Shia jurisprudence from the book Qawaid Al-Ahkam by Allamah Hilli.
Some of the rules are:
That which can be made pure from Najas (filth) is halal (lawful)
That which is essentially najas (filth) haram (unlawful)
That which is purposed for haram is haram (unlawful)
That which becomes halal (lawful) under exceptions which are: loss of life, limb or great amount of physical suffering
That there is a benefit, and such must be greater than harm
That which is prohibited by text
That which are essentials of life are not taxed or charged but should be publicly given
That which is financially solvent is supposed to provide to that which is financially insolvent
Flexible and fair valuation, buying and selling in economic and financial activities
Market based on equal opportunities for both seller and buyer
Ownership of good or service from seller to buyer through agreed upon price must be based on precise terms and clarified language. No place of vagueness in the wordings of exchange.
The buyer, if acquired ownership of a good or service without shariah compliant contract then such ownership is invalid, and the buyer insured.
Buying and selling must take place between adults who are sane, complete free to choose and intending.
The good or service must be deliverable, quantified, qualified and in possession of seller through transparency of the trade and exchange processes.
Monetary values of different types or kinds can be exchanged. If same kind or
Type then unequal exchange forbidden.
Some of the prohibited practices are:
Tadlees: A defect that is hidden and can only be accessed/exposed/ascertained by the description of the investor/financier/seller. In such circumstances benefit of the doubt is given to the buyer/recipient/client in case of financing or product or service quality lacking.
Gharar: A trade or transaction where the product or service being sold/financed/debted/bought is unknown and/or deceptive in quantity or quality.
Ghish: The seller hides something in the product or service if the buyer knows about it wouldn't have purchased/financed/loan in the first place.
Tatfeef: Shortcoming in quantity or quality
Najash: A form of prohibited sale in which a person or group of persons connive with a seller to bid up the price of a commodity offered for sale through an auction (mazad), not meaning to purchase but only to entice an unsuspecting bidder to offer higher prices, and eventually have him stuck with the object of sale.
Ihtikar: monopoly is forbidden where one exploits peoples need of a certain product or service.
Types of forbidden trade (ba’i): Couple of forbidden trades have been mentioned in the jurisprudence books.
Types of recognized trade (ba’i): Couple of trade models have been mentioned in jurisprudence books.
Creating the Islamic economy for the Muslim Ummah as well as all the non-Muslims under Islamic jurisdiction needs a revival of Islamic conscience and solidarity at first. This is the necessary aspect of our mindset that needs to be activated to create the initiatives. These initiatives have been discussed in this paper. Creation of political Islam in Muslim countries is a major initiative. Without political Islam the confederation of Muslim countries (confederated cooperation) cannot be achieved because we are divided today by race, culture, nationalism and aristocracy. The activities and actions of subjects under Islamic rule must be dictated and shaped by Quran. Imam Khomeini’s revolutionary change is the only model of post-colonial era that sheds a glimpse of what Islamic research and revival needs to be all about. We can follow the island model as discussed early in the paper to start an economy. We need to study demography, economic and social needs and pre-requisites of products and services, agree on currency, develop a moral human capital, implement Islamized education system, create a sustainable and humane consumer mindset, subsidize and finance through interest free debt, create a measurement system for market saturation, create auditing organization and model for businesses, implement rules and practices of Islamic business and trade, create a structured landscape of financing for Ummah, enhanced R & D for sources of value creation, confederated cooperation (transnational) and implement a Islamic social welfare model. These initiatives will take time, commitment and determination and the fruits by God’s mercy will be tremendous: Freedom from colonial legacy and neocolonial oppression, and revival of the Islamic Ummah.