Why Are We Taking Guidance From Quran to Develop An Economic System?

Introduction:       The existing economic systems, whether capitalistic or socialistic have got visible limitations and they cannot guarantee successful realization of following economic goals.

(i) Real economic activity / growth

(ii) Ensuring investment in real projects / infrastructure development programs and not just paper / financial transaction or speculation.

(iii) Controlling unemployment and creating new jobs

(iv) Stability in price

(v) Controlling inflation

(vi) Reducing poverty

(vii) Human resource development

(viii) Quality health and education facilities for all

(ix) Effective system for security of life & property for all

(x) Firm checks & controls over businesses by the government

(xi) Ensuring that wealth does not concentrates in a few hands or fair distribution of wealth

(xii) An effective system of revenue collection for government

(xiii) Defense of country etc.

1. We Must Think Beyond:       The weaknesses & constraints in systems and prevailing economic woes all around the world has compelled us to think alternatively.
2. Al-Quran:  The guidance from an authentic source like Al-Quran is something, which cannot be ignored. Allah SWT in Surah-e-Waqi’ah say; “It is We Who have created you. Why, then, do you not accept the truth?” (Qur'an, 56:57)
3. The Miracles of Al-Quran: Al-Quran has already shown a number of miracles (a few examples are given below), which compels us to believe that answers to economic distresses are also available in Al-Quran for us to discover.
4. Birth of a Human Baby:                   Al-Quran has already astonished gynecologists, when they found-out that following verses were reveled 1,500 years ago whereas, they themselves found about the process quite recently. “[We] then formed the drop into a clot and formed the clot into a lump and formed the lump into bones and clothed the bones in flesh; and then brought him into being as another creature. Blessed be Allah, the Best of Creators!” Surah-e- Al-Mu`min?n (Qur'an, 23:14.)
5. Medicine for Cure of Eyes:   An Egyptian doctor Abdul Basit Muhammad, while reading the following verse was obliged to investigate that; what was there in the shirt, which cured eyesight of Prophet Yaqoob A.S.? “Take my shirt, and cast it over the face of my father; he will be able to see. And bring me your family, all together”. (Surah 12, Yusuf verse 93). Through the help of aforementioned verse, the doctor was able to discover that human sweat has got no side effects and it can cure cataract without surgery.
6. Further to the above, there are many more examples in Al-Quran; (i) which tells us, e.g. how the solar system operates? (ii) Similarly, Supreme Court of U.S. honored Prophet Muhammad S.A.W, as “One The Greatest Lawgivers” of the world in 1935. (iii) Therefore, we can see that the rules, models and systems, which were presented 1,500 years ago, they are being comprehended, deciphered and its effectiveness are being realized today.
7. An Economic System is in 2-275:    In light of the above, we understand that an economic system is also concealed in the verses of Al-Quran for us to discover and to accomplish the economic goals. Surah-e-Baqra 2-275 is a comprehensive verse and the following extract leads us to a clearer path, as far as an economic system is concerned. “That is because they say: “Trading is only like Riba whereas, Allah has permitted trading and forbidden Riba”. Surah-e-Baqra (Extract from 2-275).      
8. Elaboration of the Above:     In this verse, (i) ‘trading’ is referred to economic activity and (ii) Riba, we all know means ‘interest’ or excess & exploitation.
9. The message of Allah SWT is very clear with regards to ‘trading’ and he is not referring to a mere superficial involvement of commodities in a paper based activity / deal to be termed as 'trade'.
10. Allah SWT is guiding us towards an economic system, (i) where ‘trading activity’ is to be undertaken and (ii) where ‘trading in money’ has been declared forbidden.
11. Banks, whether conventional or Islamic are the best example of institutions, which are involved in ‘trading of money’; (i) as they buy money for less from depositors and (ii) sell at a higher price (or at a higher interest rate) to the borrowers. (iii) Thus, trading in money and (iv) not trading in real commodities or carrying-out economic activity on more occasions.
12. Only (i) actual trading can ensure creation of real jobs for; laborers, workers etc. Otherwise, (ii) a paper-based transaction is only a process to misguide ourselves and (iii) taking us far away from the reality.
13. The message / verses on; (i) Riba in Al-Quran is not just a simple message on ‘interest’, which can be avoided by executing a few documents. (ii) It is a process or a mechanism to ensure socioeconomic justice, which is the foundation of an ideal economic system. (iii) Therefore, we need to bring clarity in our thought process, when we try to justify a paper-based deal worth US$ billions e.g. that of; Sukuks (iv) involving interest rate to deploy funds, (v) which results in interest income or (vi) additional supply of money in main stream economy (vii) creating inflation (viii) thus further burdening the lower section of our societies and (ix) putting them under an auxiliary pressure of poverty. (x) What different, are we doing from the conventional way of doing; business, banking or operating an economy? (xi) Therefore, how come the results can be any different?

14. Indeed, Allah SWT knows best.