Islamic Socialism

My first project paper on socialism...

Those who deny Allah and His Messengers, and (those who) wish to separate Allah and His Messengers, saying: "We believe in some but reject others": and (those who) wish to take a course midway. They are in truth (equally) Unbelievers; and We have prepared for unbelievers a humiliating punishment. To those who believe in Allah and His messengers and make no distinction between any of the messengers, We shall soon give their (due) rewards: for Allah is Oft-Forgiving, Most Merciful.

An-Nisa : 150-152

Islamic socialism is a term coined by various Muslim leaders to describe a more spiritual form of socialism. Muslim socialists believe that the teachings of the Qur'an and Muhammad SAW are compatible with principles of equality and the redistribution of wealth drawing inspiration from the early Madinah Al-Munawwarah welfare state established by the Muhammad SAW. However, Muslim Socialists are more conservative than their western contemporaries. Islamic Socialists found their roots in Anti-imperialism. Islamic Socialist leaders believe in Democracy and deriving legitimacy from public mandate as opposed to religious texts or claiming to be successors of the Prophet's companions.

Abū Dzar al-Ghifārī, a Companion of Prophet Muḥammad, is claimed by many as the founder of Islamic socialism. He believed that the public wealth is the sole right of the Muslims. Their leader or representative cannot control it.⁽¹⁾ He protested against the accumulation of wealth by Muawiyyah the Governor of Syam and urged the equitable redistribution of wealth. The Governor’s policy at the time did not involve the wealth being distributed directly to the people. In contrary, Muawiyah’s policy was in line with the situation in Syam where the wealth was spent in the development of the state, and in favour of the Muslims.  In fact, this issue was actually sparked by the enemies of Islam like Abdullah bin Saba’. He purposely influenced Abu Dzar, whom was a zahid⁽²⁾, to question the authority. The caliph Uthman ibn Affan heard about the conflict and kindly requested Abu Dzar’s audience in Madinah Al-Munawwarah. After their discussion, the problem was immediately solved.⁽³⁾

The concepts of welfare and pension were introduced in early Islamic law as forms of Zakat (charity), one of the Five Pillars of Islam, later established during the time of the caliph Umar Al-Khattab in the 7th century. This practiced continued well into the era of the Abbasid Caliphate, as seen under Al-Ma'mun's rule in the 8th century, for example. The taxes collected in the treasury of an Islamic government were used to provide income for the needy, including the poor, elderly, orphans, widows, and the disabled. According to the Islamic jurist Al-Ghazali (1058–1111), the government was also expected to stockpile food supplies in every region in case a disaster or famine occurred. The Caliphate is thus considered the world's first major welfare state.⁽⁴⁾

Though medieval Islamic economics appears to have somewhat resembled a form of capitalism, some arguing that it laid the foundations for the development of modern capitalism⁽⁵⁾, some Orientalists also believe that there exist a number of parallels between Islamic economics and communism, including the Islamic ideas of zakat and riba.⁽⁶⁾

Socialism has its advantages, yet it also has grave defects which make it far from ideal. Socialism is essentially a reaction to the evils of capitalism. It replaces the dictatorship of the economic elite with a dictatorship of the proletariat. Ultimately, the individual is subject to a totalitarian system devoid of a moral or spiritual compass. However, the Islamic economic system is unique in that it strives to achieve a balance between the extreme. It seeks to strike a chord between the need for individual economic freedom and the need to serve the common good. Despite the fact that without religion or a spiritual foundation, self-interest can only lead to an ever-widening gap between the rich and the poor. That is why socialism failed to accomplish what it set out to do – establish economic equality. Yet, Islam resolves the conflict between self-interest and the collective good. It expands and stretches the usually narrow concept of self-interest to include not only the desire for worldly things but also the desire for Paradise (Chaprah, 28). It is in every Muslim’s self-interest to reach Paradise. This interest cannot be served except by fulfilling one’s social obligations and by working for social and economic justice in one’s community. So, in other words, in an Islamic system, one’s desire for material wealth will be kept in check by one’s greater desire for Paradise, resulting in a synthesis of the material and spiritual.

The emphasis here is on the spiritual foundation of Islamic economics. ‘Umar’s economic model provides us with an attractive alternative. But, the question is how to apply it in today’s world? Of course, it would be impossible to copy ‘Umar’s model. The challenges that we face in today’s world are quite different than the challenges that Muslims faced in the 7th century. Today, countries must provide for millions of citizens. But for these measures to ensure equality and distributive justice, then they must be accompanied by a strong religious and spiritual foundation. In the Islamic system, the means are not confused with the ends. Acquiring wealth and making profit is simply a means to the greater end of establishing justice and fulfilling God’s will. The spirituality of man is not neglected. And this is what sets the Islamic economic system apart.

Today, the world is ripe with gross economic inequality and extreme poverty. To plot a better future for our children, perhaps we would be well-served to look at and learn from the past. We need not be restricted to either capitalism or socialism. The Islamic alternative is one that deserves the careful attention of all students of history, Muslim and non-Muslim alike. In a world where darkness and despair reign supreme, perhaps the spirit and the principles of Islamic economics can provide us with a ray of light.

We can conclude that Islamic economics should be considered as neither completely capitalistic nor completely socialistic, but rather a balance between the two, emphasizing both "individual economic freedom and the need to serve the common good."⁽⁴⁾