ECONOMIC JUSTICE IN ISLAM Monetary Justice and the Way Out of Interest (Riba)

• Main Author: Hifzur Rab (Author)
• Format: Book
• Language: English
• Published: Kuala Lumpur AS Noordeen ©2006; ©2006
• Subjects: Economics > Islam > Religious aspects; Monetary policy > Religious aspects > Islam; Islam > Economic aspects; Interest (Islamic law) > Religious aspects > Islam
• Online Access: Click Here to View Status and Holdings.

 Existing worldview of the economy seem to be inadequate and a humble effort has been made to analyze the problems on a broader and comprehensive perspective. This study has demolished many theories and concepts that were hitherto considered irrefutable and has lead to discovery of new facts and ideas that have potential to solve the problems. Further, findings of the analysis seem to demolish some very important issues pertaining to currency, Riba, and accounting for profit sharing. Islamic system ensures social justice by banning interest and enforcing Zakah and nourishes the motivation that cause people to strive and excel by granting right to own resources and allowing the owners of capital to share profits produced by economic activity funded with their capital. It maximizes investment by charging Zakat on capital withheld including out put held for sale while exempting means of production from charge of Zakah. This produces balanced economic growth. The quantity of wealth represented by currency is being consistently and at an appreciable rate. Currency is the most important yard stick of measurement and its manipulation constitutes the worst fraud against humanity. Non-exploitative business practices become impractical when currency that is used as unit of account is manipulated. Manipulation of currency allows the owners of organized sector to increase the price of their output with respect to the price of the out put of the unorganized sector. That leads to massive transfer of income and wealth from the have-not to the rich. Together with interest it tends to eliminate all that stands for justice and righteousness. It seems those lies/misinformation are being deliberately propagated to deceive and exploit the masses. There is a lot of misunderstanding about Islam and Islamic economy is grossly misunderstood. Islamic system provides alternatives that allow those who want to shun injustice to keep themselves free from injustice and fraud. Gold and silver alone constitute truly Islamic medium of exchange. Islamic law does not bind Muslims to use gold and silver alone as medium of exchange however it does not allow manipulation of yard sticks of measurement and accounting must be corrected for any such manipulation.