Economic Justice and Shari’a in the Islamic State

This book describes the Madinan model for correct governance established by the Prophet Muhammad, may Allah bless him and grant him peace. Islamic governance is nomocratic (law-based), that is, based on Qur’anic law as understood and practised by the Prophet Muhammad, may Allah bless him and grant him peace, and his Companions. Islamic governance, therefore, cannot be categorised as theocratic, democratic, autocratic, oligarchic, or timocratic. The legitimacy of a government is dependent on its execution of justice. Government has to accomplish justice, fairness, equity, fair-mindedness, rightness and correctness. Since governing, that is the exercise of political power, is primarily associated with the production, distribution and consumption of resources, the circulation of wealth is guaranteed by the shari‘a (Islamic law) and is the rationale for the existence of governance itself. Islamic law promotes the circulation of wealth and inhibits its stagnation. Accumulation of wealth in the hands of a few invariably leads to oligarchy, something that neither capitalism nor communism have been able to avoid.

Of importance to the circulation of wealth is the obligation to pay zakat and of particular significance to the stagnation of wealth is the prohibition of banking and riba (usury). The economic implications of zakat are enormously significant for contemporary society. Firstly, zakat has to be assessed and taken by zakat-collectors. Secondly it has to be paid with commodities such as gold, silver, salt, leather or anything with intrinsic value. It cannot be paid with currencies which are generated out of debt and enforced by government fiat. Thirdly zakat has to be paid on wealth that is earned in a halal (lawful in shari‘a) way. It is the duty of the muhtasib (the official appointed by the leader of the Muslims) to determine which economic activity is acceptable as halal. The civil and municipal duties of the muhtasib with regards to trade and commerce included the maintenance of the markets; free access to public thoroughfares; public safety and hygiene; contamination of foodstuffs; pollution; supervision of trading practices; control of weights and measures; coinage; the monitoring of fraudulent transactions, unlawful sales and collusion; and elimination of riba (usury) in all its guises. The muhtasib has to see to it that illegal and fraudulent sales/transactions were punished.

This book also examines the socio-economic and political institutions that developed from the Madinan model in subsequent Islamic history such as the caliphate, the wazirate (vizierate), the judiciary, the bayt al-mal (the treasury), hisba (administration of the city), the mint, the suq (market), the awqaf (charitable endowments), the asnaf (guilds), the shurta (police), and the army (jaysh). These institutions, regulated by Islamic law, provided the means by which Muslim societies functioned.

Contents

Preface

Foreword

Introduction

Chapter 1 Governance in the Qur’an: Terms and Definitions

Introduction

Qur’anic Terms and Definitions

1. Sovereignty belongs to Allah

2. Allah’s Representative on Earth

3. Aims of the Caliphate

4. Successful governance is dependent on obedience to Allah

5. Justice is the Legitimising Factor for Governance

6. Personal accountability for maintaining justice in governance

7. Consequences of deviation from just governance

8. The Prophet Muhammad as Allah’s last caliph on earth

9. The Khalifa of the Prophet

10. The maintenance of the integrity of the caliphate

Chapter 2 Governance During the Madinan Period

Introduction

Literature Dealing With Pre-Islamic and early Islamic Arabia

Pre-Islamic Arabia

The Makkan State

Consolidation of the Makkan Oligarchy

The Prophet in Makka

The Prophet in Madina

The Distribution of Wealth in Madina

Conclusion

Chapter 3 Institutions of Islamic Governance

Caliphate

Wazirate

Amirate

Kuttab

Hisba

Judiciary

Mint

Market

Bayt al-Mal        

Craft, Artisan and Trade Guilds

Awqaf

Conclusion

Chapter 4 The Islamic State

The Modern State

The Islamic State

Comparison of the Institutions of Islam with those of the Islamic State

Conclusion

Chapter 5 Saudi Arabia – A Case Study

State Formation and Incorporation into the Global Capitalist Economy

Stages in the Development of the State

(i) The formative period 1932–1962

(ii) The centralization of the state 1962–1979

(iii) The restructuring of the state since 1979                                 

Social, Economic and Political Outcomes of State Formation and Capitalism

(a) Dissent as an Indicator of Negative Outcomes

(b) Measuring the Outcomes

(c) Commodites, Military-industrial and Financial Elites

(d) The Future for Saudi Arabia

Conclusion

Appendix 1

References in Detail for Chapter 1

References in Detail for Chapter 2

References in Detail for Chapter 3

References in Detail for Chapter 4

References in Detail for Chapter 5

Bibliography