Poverty is addressed WMD (weapons of mass destruction), the modern world. Facing the door of great importance. Economic systems like capitalism and communism have made a number of tools to alleviate poverty in the world. But these extreme ideologies do not meet the needs of people. Private property, laissez-faire policies of capitalism and class struggle, dialectical materialism, communism, state ownership of property did not touch the real cause of poverty. This situation requires looking for opportunities to Islamic economy, the reduction of poverty. The objective of poverty reduction can be achieved, the Islamic financial system to reduce inequalities. It is never a means to achieve equality, but equality and justice is the income and wealth distribution. Islam eliminate absolute inequality, which arises from the unequal distribution of income, but relative inequality shows a fair distribution of income and wealth.
Part of this article gave a brief introduction to orthodox economic theory, whether Islamic economics. Second, it provides a picture of poverty in the world and the Islamic perspective of poverty. Islamic financial instruments to reduce poverty, such as zakat, sadaqa, Hasan Qard, Ganim, khums, Fay, jizya, mudaraba, Musharaka, the prohibition of interest, the abolition of the show, the prohibition of speculation and hoarding were mentioned briefly. Influence of Islamic financial instruments in the marginal propensity to consume, by multiplying the price of investment and production have been addressed.
Books and articles I have mentioned in this article are Dr. Azmi Dr.Sabahuddin Islamic economy, the economic role of SM Hasanuzzaman of an Islamic state (first experience), Towards an understanding of the economic system of Islam written by Ibrahim Dr.P and Introduction to Moulavi.MVSaleem economic system.
Presentation
No one can downplay the importance of economics as a social science that studies the production, distribution, trading and consumption of goods and services. This very important in the economy has led to the emergence of different economic systems in the world and all of these economic systems say they will get the economic well-being. The inability of the dominant and leading economists to achieve economic justice, prosperity, irradiation of inequality and poverty necessitate an alternative economic system that can do it successfully in the free world hunger and poverty.
Definition of Economics
Sociologists have developed different definitions of the economy. Lionel Robinson's definition of economics, scarcity is the most widely accepted among them. According to Robinson, "Economics is a science which studies human behavior as severance pay and scarce means which have alternative uses" This definition is based on two points, which are the scarcity of resources and infinite needs. In fact, the first is a myth. A survey conducted by A shows that there are enough resources 20000000000 people on earth, we only 6000000000 people in the world they live in now. This last point, "the infinite needs," is also correct, because the desire and greed of man is limitless, but the need is calculable and manageable.
Definition of Islamic economics
Since the system of life, Islam has left room for human life, without any guidance. It is a spiritual, personal, social, economic, or political Islam to give unambiguous instructions. Looking at the economic guidelines of Islamic sources, Islamic economists have developed a set of definitions. Management in each of the definition of Islamic economics is based on the instructions of the basic sources of Islamic Sharia are the Qur'an and the Hadith.
According to Yusuf Ibrahim, a professor of Islamic economics at the University of Qatar "Islamic economics is a science that studies the management of human behavior with the use of resources to meet needs." This definition is based on the following facts.
The first resources are sufficient to meet needs.
But the second resource should be protected against waste and abuse.
3. The human resources behavior must be controlled by divine commands.
4. Only the legal requirements, needs, build a life on earth, must be satisfied.
5th Needs illegal (means) that are destroying life on earth, should not be satisfied, they are never late and never satisfied.
Islamic economic system, an economic regulatory system was built on some basic philosophy of Islam. According to Quranic teachings real and absolute property of the wealth belongs to the creator of the same Almighty God. The Quran says: "To Allah belongs everything in heaven and on earth" (2:284) The role of man as an administrator who is administering the trust, wealth at the direction of the beneficial owner;. God. The Koran clearly states "and uses, where I made you trustees" (57:7). Thus man was
air conditioning and limited property.
Another Islamic philosophy is of universal brotherhood and equality of man and his creator is one, and parents are the same. Thus, the distinction based on color, caste, creed, race does not suffer at any cost. This concept leads to people cooperation and participation in all activities instead of cheating, fraud and use the other. Another aspect of Islamic philosophy is the belief in the Day of Judgement after death. In life after the death of a man is responsible for his actions on earth. The implication of this belief is that economic decisions we make in the world should be judged by the standards set a. Allah
These are revolutionary elements that characterize the Islamic economy, liberal, capitalist, imperialist, mainstream economic system wear and communism, class struggle, dictatorship of the economic system of the state. Islam, to build a just world in the spirit of eternal divine concepts.
Poverty
Poverty is evil in any economy. The presence of begging hands for the economy and pull the economy back decades. Poverty in the midst of a lot of challenges in today's world. Impact on poverty can not be limited to that part of starvation, but the poor people, in addition to hunger, the suffering of small income, which leads to problems of accessibility, with a good education, remove them from demanding career that requires a long number of years of education. Lack of nutritious food among the moral cause baby more private sections. Because of limited access to information and knowledge can not reach the market and opportunities.
Each country and international organizations like the World Trade Organization, the World Bank and the hard work of the Asian Development Bank to build the countries of the world and paraffin and self-sufficiency. Mission of the World Bank describes the reduction of global poverty and improving living conditions. General Council, the United Nations has proclaimed October 17 as International Day for the Eradication of Poverty. It shows how they have taken seriously the problem of poverty
But it is surprising that, 6.1 billion of the world population of over 1 billion to find their living on less than $ 1 a day and nearly 3 billion on less than $ 2 per day. You can be caused only 74% of total income in the world is divided by 20% of the elite class in the world. It is gratifying that there are countries whose national income is less than $ 800 and morality in less than five years of the child is about 26%. It is disturbing that 110 million school-age children do not attend school, and 60 percent of them are girls.
Poverty and the Islamic school of Economics
Below the poverty line (BPL) corrections in the system of Islamic economics is based on the ownership of Nisab that limit is a right to payment of zakat Anyone wealth or above Nisab is responsible for paying Zakat. Wealth is Nisab is zakat recipients and they are treated as poor. Thus, in Islamic economics, the size of the disadvantaged are BPL to become great. Hunger and lack of access to food, shelter, clothing and education could suffer in an Islamic economy, which is designed human Falah, meaning the well-being. It does not support any financial instrument that leads to withdrawal rights. Since poverty in an economy occurs due to various causes, to destroy the main reasons are important.
Low income, unequal distribution of income and wealth, the misallocation of resources, regional disparities, unemployment, social injustice, and a decrease in investment ... etc. are some of the obstacles in the path towards self-sufficiency and well being. Islam considers the satisfaction of basic needs of all members of society is the financial obligation, moral and religious rule. List of products extends food, traditional clothing and shelter for seasonal clothing, personal assistant to people with disabilities, and wedding expenses of the poor and spending the entire family of the poor, which are intensified by scholars from time to time and may extend the time to ready in time for the welfare of citizens. Islamic economic system has a lot of divine guidance tools to end poverty and build
less poverty in the world.
Islamic financial instruments to eliminate poverty
It is recommended that Muslim citizens in a county as part of Islamic belief, the practice of certain things in their lives, some of them are compulsory and the rest is voluntary. The practice of these will have broad implications beyond the economic benefits from God. The non-Muslim citizens must also pay certain fees, which have economic, as part of their citizenship in the Islamic country. Obligatory duties of citizens and agreements are governed by the Islamic country and the violation of any party does not suffer the Islamic state. In addition to these there are other things in the Islamic state has to carry out such any nation for the welfare of citizens. Both positive and negative measures recommended by Islam to destroy the reason for poverty.
Positive action
There are to many Islamic and order to do certain things that have an immense influence on the economies of justice, prosperity and growth. Important among these divine commands and their influence on the economy is reported below.
Zakat
Zakat is the annual obligation of Muslims from rich to poor, and this is the part of those who are not on the property and wealth of the rich. Qur'an commends "the prayer and pay the poor their due (Zakat) and obey the messenger." Technically we can say that is spiritual, such as taxes. Imposed on these forms of wealth that has the ability to grow in value or produce otherwise others, should have custody of all ages and exceed a certain minimum called "nisab." Koran said eight connectors for the distribution of Zakat.
Since the divine spirit for the purpose of zakat, the less scope for tax avoidance. The imposition of zakat is inactive Heritage urges the owners of productive and profitable of the lazy wealth of the economy that increases prosperity and re-share of zakat.
Donations
Sadaqa economy is a voluntary instrument. There is no limit and criteria for making contributions to the needy. It can be entertaining, well above the eight heads to distribute the Zakat to any need. and strengthen the economic implications emerge from the zakat.
Qard Hassan
This is a case of interest-free loans for non-productive for the needy or to cover the costs of hospitalization, the cost of the house and spending on education, etc. that do not profit. It is therefore not able to collect the material benefits that result from qurd Hasan. These services are provided through user-friendly to humans. In an Islamic economy, individuals and institutions such as Islamic banks offer this type of loan, expect the reward of Allah. Availability qard Hasan reduced the financial burden that the interests stolen.
Profit and loss sharing
Islam shared profits and losses as the tool of interest instesd commercial contracts. The motivation behind this is cooperation between peoples. In the exchange of different types of financing, as mudaraba (profit and loss sharing) and Musharaka (participation) ... etc
Mudaraba is a contract between the owner and the capital and the entrepreneur share business and the profits generated is lost, the owner of the share capital is reduced, the entrepreneur and the time and effort to lose. Musharaka is an agreement to split profits and losses, with all its sponsors to participate in the management of business. Both mudaraba and musharaka to help people who have sufficient capital to carry on business, production and promote their well-being accounted for as part of the nation and earn your own.
Ganim (booty), Khums (fifth) and Fay
Ganim are the property of the Muslims to seize the enemy. Ganim is divided into four fifths fighting the army, and a fifth (khums) Ganim move around the state fund, which is reserved for particular beneficiaries mentioned in the Quran. Fay is not the property of the enemy, without a real fight. This source of state revenue has become the common good of the whole population and the public welfare.
Kharaj (taxes)
Land-Tax, a source of income for the state, is a tax, which the country produces. This is actually rent the use of agricultural land values. Kharaj amount and collection procedures, the State may be declared from time to time, because there is no sense of the Koran and the tradition of the prophet in this sense.
Jizya (common)
Jizya (poll tax) imposed on non-Muslim citizens of Islamic countries for their wealth, property and life against damage. It helps them to bring their skill, talent, health, wealth and property for the prosperity of the country
Waqf (endowment)
Waqf (foundation) is a regular source of income that are assigned and dedicated fund to support Muslim charitable and social activities
State-owned land has been abandoned:
If the economic process, which prevents the production is harmful to the economies prosperous. According to Islamic Sharia law, if the land has been cultivated for three consecutive years leading to move the ownership of the land in question to other current owner who is willing to cultivate land and produce. The Prophet (peace be upon him) said: "the original ownership of the land belongs to God and the prophets, and then after you. But who raises the dead March acquires stake in it." It is a second edition, iqta, improves blood circulation and transfer of tax revenues of the State of uncultivated / death to someone in exchange for land or ushr khraj.
Combined participation of natural resources:
Individual ownership of natural resources such as fire, water, pastures and salt are limited by Islamic law. People have combined ownership of natural resources that should be accessible to anyone. This rule allows anyone to use the profit comes from the natural and ensure that no one approaches the natural assets that are easily accessible without having to work hard .. List of natural properties, in addition to the products mentioned, can be extended to more goods at any time. Prophet (peace be upon him) said that "people are co-owners in the water, grazing and fire."
There are other sources of income such as property without a legitimate heir of the deceased, the applicants and found no additional taxes.
The negative actions
There are some prohibitions of God, which influence economic prosperity and welfare of all men in the country.
Prohibition of interest
Interests, regardless of its form, was despised by Allah and His Messenger. Quran says: "Allah has permitted trade and forbidden usury" (interest). Islam is not compatible with the interest, but the distribution of profits and losses. Each financial transactions of Islamic economics is to be free of interest. However, the lack of interest in Islamic economics does not create any obstacle to prosperity, but prosperity thrive.
Prohibition of speculative instruments
The instruments that have no real benefit to the economy, such as futures and options are not allowed in Islamic economics. Instruments such as day trading stock market, the margin trading is prohibited, either. The absence of these instruments in the economy reduces the speculation is bad for the economy as a whole.
Impact
The implementation of the Guidelines on Shariah in the economy leads to a series of positive results that make the state free of all forms of poverty.
Increased redistribution of income and wealth lead, when people perform religious obligations, such as zakat, a donation, waqf, inheritance, and kaffarath fithr zakat, etc. .. It leads to wealth and power of money from rich to poor. Thus, the concentration and accumulation of wealth in few hands down. The poor and needy to spend about eighty percent of their income to meet basic needs. Trend economically marginal consumer (MPC) of the poor is greater than the medium and high quality. A large part of what will be useful to the poor economy will flow to the consumption of raw materials, will cause more demand for primary commodities, and then lead to increased production of goods. It 'hard to limit the consumption of luxury and full production by the law and force. But the increase in the amount of wealth and income increases the demand for primary commodities and reduce the demand for luxury goods.
This redistribution of wealth to the poor increased them access to good education and nutritious food. Increased knowledge and skills to help the poor get good jobs and win. This raises the whole family poverty and dependency of the heights. In turn, the increase of income over a certain limit, allowing them to perform zakat and other voluntary donations to the poor. Increased support for redistribution to reduce the gap between rich and poor and bring economic justice for all citizens.
MPC increased the poor as income redistribution results in more leverage on the economy that feeds more income to total income of the economy, help poor people to improve their per capita income and living standards.
According to Professor Keynes, depends on investment in two variables that are currently rare interest and the marginal efficiency of capital or expected rate of profit. The investment would take place if the expected rate of profit-interest. Due to lack of interest in an Islamic economy, only the size of the expected frequency of the profit margin to be crucial for investment.
Speculative money and motivation of the theory of liquidity in the money have no place in an interest-free economy, reducing investment. But the presence of profit rates that translate into investments, even in the low rate of return expected to increase the amount of principle and to avoid deterioration of the capital through zakat. The increase in investment increases output, employment, wages and national product of the economy. The flows of wealth to the poor and increasing their economic situation.
Fisher's theory states that the amount of money affects the price and value. This means that increasing the money supply will increase proportionately the price in the economy, but the output will not increase. But in the case of Islamic economics money should not be delivered without increasing production. Central banks and commercial banks in the Islamic State to increase the supply of money for investment contracts on the basis of sharing profits and losses. Therefore, each flow of money into the economy of the results of growth of output without a proportional increase in prices. It is useful for the poor of the things they need at a reasonable price
Conclusion
Way to eliminate poverty in Islamic economics is simple. Belief in the Oneness of God (tawhid) that motivates the performance of the Zakat and sharing the income statement and avoid interest and extravagance. Redistribution and increased productivity are the result of these instruments, which ultimately contribute to achieving poverty reduction.
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