Islamic Economics

-

English
290 Pages
Read an excerpt
Gain access to the library to view online
Learn more

Description

This is the second book of the series Notes on Islamic Economics. Its subject is the charitable sector. The third sector has a special important role in the Islamic economic system because of the fundamental concern Islam gives to justice and how it is applied in a free-will private-ownership based economy.

Subjects

Informations

Published by
Published 01 January 2014
Reads 0
EAN13 9796500133874
Language English
Document size 4 MB

Legal information: rental price per page 0.0172€. This information is given for information only in accordance with current legislation.

Report a problem
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
ii
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
Copy Rights: All copy rights are reserved to Author MONZER KAHF Address:22 Marblehead, Irvine, CA 92620 USAEmail: monzer@kahf.com Published by: Monzer Kahf Feb. 2014
iii
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
iv
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
THIS SERIES
PREFACE
This is the first in a series of four books on Notes on Islamic Economics. The first book deals with the fundamental theories and institutions of the Islamic economic system. It attempts to present a complete and coherent institutional setting of the Islamic economic system which puts it at a scientific level comparable with other systems and allows us to derive policies and guidelines for gradual transformation of any economy and for adapting existing institutions to the basic requirement of the Islamic economic system.
The second book of this series shall focus on the third sector, the charitable institutions of the Islamic economic system. It shall discuss the fundamental principles on which the Islamic charitable sector is founded. It will discuss the principles of Zakah, Awqaf and Infaq in the Islamic economic system, the institutions they create and their historical application. It will also discuss the necessary requirement for efficient management of Zakah and Awqaf in contemporary economies and means and methodologies for financing the revitalization of dormant Awqaf real estate properties in the Muslim societies.
Book three will take up the issue of Islamic finance and banking. It will present the basic sketch of Islamic finance from theoretical and practical aspects. It will focus on the new concept of Islamic financial intermediation and will distinguish between depository financial intermediary institutions which have an important monetary aspect of their activities and other institutions which concentrate on investment activities.
Book four will discuss the Islamic development theory and policy. It will deal with the objectives of economic policies in the Islamic economic system and the instruments available for their achievement. It will look into the changes implicated by the Islamic economic system in the concept and approaches to development. This book will also cover the Islamic approach to fiscal and monetary policies as well as income policy and developmental policy.
v
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
In these four books I do not intend to repeat other writings. This series is an attempt to present Islamic economics in a non-traditional way with an emphasis on the institutional aspects and structure. I will deal with the fundamental issues of Islamic economics and finance in a realistic yet innovative manner while observing fundamental relations, ties and inspiration from the basic sources of the Islamic religion and its Shari’ah rulings; the Qur’an and the Sunnah.
vi
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
Introduction
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Conclusion
TABLE OF CONTENT NOTES ON ISLAMIC ECONOMICS
THE CHARITABLE SECTOR
OVERVIEW OF SHARI’AH ASPECTS OF ZAKĀH
HISTORICAL REVIEW OF APPLICATION OF ZAKĀH
Page
ix
1
31
SOCIO-ECONOMIC JUSTICE IN THE CONTEMPORARY63
FIQH OFZAKĀHOVERVIEW OF THE ECONOMICS OF ZAKAH
PERFORMANCE OF THE INSTITUTION OFZAKĀH
COMPLEMENTARY INTERACTION OF ZAKAH AND PROHIBITION OF RIBA
SHARI’AH AND HISTORICAL ASPECTS OF AWQĀF
THE ROLE OF WAQF IN WELFARE AND DEVELOPMENT
REFORM OF AWQAF FIQH
FINANCING THE DEVELOPMENT OF AWQAF PROPERTIES
INFAQ FI SABIL ALLAH
vii
97
117
145
163
189
215
231
259
277
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
viii
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
INTRODUCTION
This is the second book of the series Notes on Islamic Economics. Its subject is the charitable sector. The third sector has a special important role in the Islamic economic system because of the fundamental concern Islam gives to justice and how it is applied in a free-will private-ownership based economy.
The pursuit of personal economic welfare and maximization of profit associated with exchange-based market relationships are always based on self-interest which the Fuqaha express as “exchange contract are founded on greed ﺢﺸﻟا ﲆﻋ ﺔﻴﻨﺒﻣ تﺎﺿوﺎﻌﳌا دﻮﻘﻋ.” The Islamic approach to reconcile economic freedom, greed in exchange and private ownership on one side with economic equitable distribution, respect and honor of human beings and social coherence on the other side is two folds, personal moral and societal law-regulated.
The moral emphasis on the inner screen in the Islamic economic system is significant. We’ve seen in book one that the Islamic moral ethical system gives a special weight to the inner screen through channeling selfishness into a canal of altruism so that to maximize one’s own outcome of economic decisions one has to include the quantity of Hasanat one accumulates. Caring about other and gracing them with one’s own wealth becomes a selfish way to gain more reward. Some vague and non-articulated version of this concept exists in other monotheistic religions.
The second tool incorporated by the Islamic economic system for reconciling selfishness with giving others is the legal and social pressure. Through its legal and social system Islam is the only religion which literally assigns part of the wealth of the rich to the poor and creates and backs that by creating a social and community pressure to establish endowments for the purpose of economic equity.
The obligation of Zakah and the encouragement, expansion, protection and regulation of Awqaf are unique to the Islamic economic system. This is why this book is important and this is why the third charitable sector has special significance in the Islamic economic system.
This book discusses the three pillars of charity in Islam: the obligatory Zakah, the voluntary but substantial Awqaf and the voluntary Infaq or general charity. The first six chapters discuss the different aspects of Zakah. Chapter
ix
MONZER KAHF--ISLAMIC ECOMNOMICS: THE CHARITABLE SECTOR
one gives a short exposé of the Shari’ah aspects of Zakah and chapter two gives a brief of its historical aspects. Chapter three calls for a revision of many of the Fiqh rulings in order to update them by accommodating new forms wealth and income take. The fourth chapter takes a round on the economic effects introduced by Zakah at the micro and macro-economic levels while chapter five discussed the past and present performance of this institution. The sixth chapter discussed some of the macro-economic effect which result from the interaction of Zakah application and the prohibition of interest from the economy.
Four chapters, seven to ten, are assigned to discussing the different aspect of Awqaf beginning with its historical and Shari’ah aspects. Chapter eight argues for the important role of Awqaf in Welfare both in the past as well as their potential in the present days. Chapter nine takes up the updating of the Fiqh of Awqaf, it discusses the different facets of reforms which are necessary to allow the Awqaf institution to assume their role in the economies of Muslim countries. Chapter nine discusses ways and means of financing the development of Awqaf real estate properties which are inherited from previous generations.
fi
The last chapter tries to show the place general charity or ‘Infaq Sabili Allah’ assumes in the Islamic economic system.
x