FOREWORD

In the Name of Allah, the Beneficent, the Merciful. “…… O My Lord! Relieve my mind. And ease my task for me; and loose a knot from my tongue. That they may understand what I say” –(Al-Qur’an 20:25 -28).

The most dominant economic systems of the world in the present century are capitalism and socialism. Capitalism is based on the private ownership of the means of production, distribution and exchange. In capitalistic economy, the profit motive constitutes the prime stimulus to productive exertion and the price mechanism determines what things shall be made and in what quantities and what conditions. Thus chief features of capitalism, in brief, include: existence of unrestricted economic freedom, unrestricted private ownership, profit motive, free market, competition and institution of interest. Socialism, on the contrary, believes in the public or state ownership of means of production, distribution and exchange. It suppresses economic freedom, abolishes private property and claims to achieve economic equality. Chief features of socialism, in brief, include state ownership of means of production, non-existence of private property, centrally planned economy, and establishment of totalitarian state under dictatorship of proletariat. Both capitalism and socialism are secular systems and their aim is the same i.e. the achievement of material well -being of their followers although the methods adopted by them for achieving this end are diametrically opposed. Interestingly both capitalism and socialism have failed in resolving principal economic problems of humankind. Thus the economic crisis of our age remains as deep and disturbing as ever. In this situation of despair and despondency, humanity is anxiously looking forward to a system which could deliver it from the present economic mess created by the dominant economic philosophies of the modern age. Islam perhaps offers that system.

In this book a sketch of the Islamic Economic System is being presented which has been prepared in the light of the Islamic teachings. Teachings of Islam on economic matters are widely scattered in the Holy Qur’an, books of Ahadith, and writings of classical Muslim jurists. Through in-depth study and intensive research, verses of the Qur’an, Ahadith of Prophet Muhammad (PBUH), conventions of prophet’s companions and right-guided caliphs, and views of classical jurists on economic matters have been collected, analysed and classified under various subjects. The arrangement of these subjects follows the conventional style of a textbook on economics with a view to make it communicable to the readers of modern economics. All the aspects of the economic system of Islam have been discussed in detail in the light of the Verses of the Qur’an and Traditions of Prophet Muhammad (PBUH). Translation of the Verses of the Qur’an has been taken from Marmaduke Pickthall’s renowned translation “The Meaning of the Glorious Qur’an.” Ahadith have been taken from standard translations of various Ahadith compilations particularly from Al-Hadith of Maulana Fazlul Karim.

Before concluding I must pray to Allah “O, my Lord! Increase me in knowledge” so that I may be able to do some more valuable services to Islam.

Muhammad Sharif Chaudhry

MA, LLB, PhD

January 15, 1999 A.D. (Ramadan 26, 1419 A.H.)

169-A/I Township, Lahore, Pakistan.