Definition Economics

Poverty is treated as a WMD (weapons of mass destruction) of the modern world. Elimination of the bear is very important. Economic systems like capitalism and communism have made many instruments for alleviating poverty in the world. But these extreme ideologies, not to meet the needs of the population. Private ownership of property, laissez-faire capitalism and class struggle, to dialectical materialism, non-state ownership of the assets of communism do not touch the root cause of poverty. This requires research capabilities of the Islamic economy in reducing poverty. The objective of poverty alleviation can be achieved in an Islamic economic system through the reduction of inequality. It is not to achieve equality, but equality and justice in the distribution of income and wealth. Islam eliminate absolute inequality, which arises from unequal distribution of income, but relative inequality from the fair distribution of income and wealth.

Part of this article gave a brief introduction to both mainstream economics and Islamic economics. Second, it provides a picture of poverty in the world today and the Islamic view of poverty. Islamic and economic instruments, such as poverty, Zakat, Sadaqah, Qard Hasan, Ganim, fifth, Fay, jizya, mudaraba, Musharaka, the prohibition of interest, the abolition of the spectacle, to reduce the prohibition of speculation and hoarding were briefly mentioned. Influence of the Islamic economic instruments on the marginal propensity to consume, multiplying the price of investment and production costs are fixed.

The books and articles I have mentioned in this article, Dr. Azmi Dr.Sabahuddin Islamic economics, the economic function of the SM Hasanuzzaman an Islamic state (early experience), Towards an understanding of the economic system of Islam, Dr. Ibrahim P and introduction into the economic system Moulavi.MVSaleem written.

Presentation

No one can downplay the importance of the economy is a social science, the production, distribution, trade and consumption of goods and services studies. The importance of the economy led to the emergence of different economic systems in the world and all economic systems say they are looking to the economic well being. Who controls and the failure of the economic system, which require economic justice, prosperity, irradiation of inequality and poverty complete an alternative economic order that can succeed in making a free and hungry in the world without poverty.

Definition of Economics

Social scientists have developed different definitions of the economy. Lionel Robinson definition of the rarity of the economy is the most widely accepted among them. Robinson said “economics is a science which studies human behavior as a relationship between ends and scarce means that alternative uses” is based on this definition, two points, the scarce resources and needs all the time. But the reality is an old myth. The investigation by the UN shows that there are sufficient resources to 20 billion people on Earth, we only have six billion people on Earth who live now. The latter “should never with the ending” is also false that the desire and greed of man is boundless, but the need is countable and verifiable.

Definition of Islamic Economics

As a way of life Islam left no area of ??human life, no direction. Whether individual, spiritual, social, economic, or political Islam provides clear guidelines. Given the economic policies of the Islamic sources, Islamic economists have developed a plethora of definitions. Derivation of any definition of Islamic economics is based on the guide to the basic sources of Islamic Shari’a the Koran and the Hadith.

According to Yusuf Ibrahim, a professor of Islamic Economics, University of Qatar “Islamic economics is a science that studies the management of human behavior to use resources to meet the needs.” This definition is based on the following facts.

1st Resources are sufficient to meet the needs.

2nd But resources must be protected against waste and abuse.

3rd Human behavior, the resources should be controlled by divine commandments.

4th Only legal requirements, needs to build the life on earth be fulfilled.

5th Illegal needs (desires), the destruction of life on Earth are not satisfied, they are endless and never satisfied.

Islamic economic system, an economic regulatory regime was built on some fundamental Islamic philosophy. According to the Quranic teachings real and absolute property of the wealth belongs to the same God the Creator, the Almighty. Quran says: “Allah belongs all that is in heaven and on earth” (2:284) The role of man is seen as a trustee is to administer the trust, wealth, under the direction of beneficial owner is; .. Qur’an God clearly states “and spend only where the trustee has you” (57:7) Thus man has given.

Property packaged and limited.

Another Islamic philosophy is of universal brotherhood and equality of man, the Creator is one and the parents are the same. Therefore, the distinction of race, no caste, creed, race is not suffering at all costs. This concept leads to the people of the cooperation and involvement in all efforts rather than deception, fraud and exploitation of others. Another aspect of Islamic philosophy is the belief in the Day of Judgement after death. In life after the death of the man responsible for his actions on earth. The implication of this conviction is that the economic decisions we should be judged in the world standards set by Allah a.

These are the points, the revolutionary Islamic economics, liberal, capitalist, imperialist, different dominant economic system sharking and communist class struggle, the economic system of the dictatorship of the state. Islam is building a more just world in which the spirit of the eternal divine concepts.
Poverty

Evil of any economy is poverty. The presence of the begging hands in an economy where the economy is back in several decades. Many in the middle of poverty is the challenge of the modern world. Effects of poverty can not be limited to the famine, only leads to poor out of hunger, suffering limited incomes to lack of access to good education, the disabled, a new professional challenge that requires multiple studies over many years. The lack of nutritious food results in the morals of children among the most disadvantaged. Since only limited access to information and knowledge are prevented from market opportunities.

Each country and international organizations like the World Trade Organization, the World Bank and Asian Development Bank’s work to fight the order to the country and the world of cold self-confidence, or. World Bank mission to reduce global poverty and improving living standards is described. General Council of the United Nations has declared 17 October the International Day for the Eradication of Poverty. It shows how seriously they took poverty as a problem

But, he wondered, that 6.1 billion of the world population find over 1 billion on food in less than 1 dollar per day and nearly 3 billion on less than $ 2 per day. They can be divided caused only 74% of total income in the world of 20% of the world’s elite class. It is reassuring you that there are countries whose national income is less than 800 $ and the morals of children under five years is approximately 26%. There is concern that 110 million children of school age not attending school and 60 percent of them are girls.
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Poverty and Islamic economy

Fixed below the poverty line (BPL) in the system of Islamic economics, on the basis of ownership of Nisab, this limit a right to payment of zakat on wealth or who is responsible for the payment of Zakat on Nisab. This abundance is less Nisab addressed the Zakat and they are treated as poor. Thus, in the Islamic economy, the size of the private sector under BPL are great. Famine and the inaccessibility of food, shelter, clothing and education is not in an Islamic economy, human suffering will Falah, meaning the well-being. It does not support economic instrument, leads to the disenfranchisement. As poverty in developing countries due to various causes in order to destroy these causes is the most important.

Limited income, the unequal distribution of income and wealth, the misallocation of resources, regional disparities, unemployment, social injustice, and a decline in investment … etc. are only some of the obstacles on the path to independence and well-being. Islam regards the satisfaction of basic needs of every member of society is the economic, moral and religious duty of the rule. List of goods expanded food, traditional clothing, and shelter for seasonal clothing, personal care attendants for disabled people, and the expenses for the marriage of poor and expenditure for the whole family of the poor, the intensified by scholars from time to time, the time , to extend time for the welfare of citizens list. Islamic economic system performs a variety of instruments, led by God to end the poverty and
Less poverty in the world.

Islamic economic tools for poverty eradication

It is recommended that Muslim citizens to practice in an Islamic community as part of the belief that certain things in their lives, some of which are compulsory and the rest is optional. The practice of these have far reaching effects on the economic opportunities of God. Non-citizen Muslims also needed to certain fees, the economic, to pay as part of their citizenship in the Islamic country. Mandatory duties of citizens and agreements would have on the Islamic state and the violation of any party does not suffer, the Islamic state. In addition to these functions, there are other things in the Islamic state, no nation has to meet similar to the well-being of citizens. Both positive and negative measures recommended Islam to destroy the reason for poverty.

Positive

There are many Islamic rules and commandments, certain things that have an immense impact on the economies of justice, prosperity and growth. Important among them God’s commandments and their influence on the economy are informed in the following.

Zakat

Zakat is an annual obligation of the rich to the poor Muslims, and this is the part of the have-nots in the property and assets of the rich. Quran praises “the prayer and pay the poor their due (Zakat) and obey the Messenger.” Technically, we can call it spiritual as taxes. There are growing on these forms of wealth, ability, the value will be imposed or to produce any other way other is that custody for the whole year and have a certain minimum value called “Nisab.” Koran said the eight specific header for the distribution of zakat.
Because of the divine spirit in the execution of the Zakat, the chances are less to escape. The imposition of zakat on wealth slows urges owners to productive and profitable use of idle wealth, the wealth of the economy and rising again of Zakat.

Donate

Sadaqah is a voluntary instrument industry. No limit and criteria for contributions to the needy. It can distract, apart from the eight heads for the distribution of zakat known to anyone in need. and it will reinforce the economic impact resulting from the zakat.

Qard hasan

It is intended to cover an array of interest-free loans for the needy or non-productive expenditures such as hospitalization, the cost of housing and education expenses, etc., no profit. It is therefore not in a position to charge on any material benefits, as a share of profits, qurd Hasan. They are made with the part of the goodness of people available. In an Islamic economy individuals and institutions such as Islamic banks offer such loans in expectation of reward from Allah. Availability Qard Hasan reduced financing costs as interest rates, private.

Sharing profits and losses

Islam-shared profits and losses instesd as the tool of interest in commercial contracts. The motivation behind this is that cooperation between nations. In parts are different types of financing such as mudaraba (profit and loss sharing) and Musharaka (participation) … etc.
Mudaraba is the agreement between the owners of capital and the entrepreneur in addition to the profit of the company and in case of loss of equity holders is reduced and losing the time and effort of the entrepreneur. Musharaka is sharing agreement, the profit and loss statement, in which all participants are involved in corporate governance. Both mudaraba Musharaka and help people, not enough capital to enter business, production, and have committed their share of the country’s prosperity and profits for themselves.

Ganim (war booty), Khums (fifth) and Fay

Ganim are the property of the Muslims among the enemy. Four-fifths of Ganim is divided between the army and fight a fifth (Khums) Ganim move all the state, which is reserved for special beneficiaries mentioned in the Koran to be financed. Fay is the property receives from the enemy without a real fight. This source of revenue for the state is generalized for the common good of the entire population and the public welfare.

Kharaj (taxes)

Property tax, a source of revenue for the state imposed the levy on the products in the country. This is the rent for the use of land values. Kharaj rate and collection method can be explained by the state from time to time, as there is no direction from the Koran and the Tradition of the Prophet in this regard.

Jizya (poll)

Jizya (poll tax) to non-Muslim citizens of Islamic countries imposed to safeguard their wealth, their lives and property from harm. It helps them develop their skills, talent to bring health, wealth and property for the prosperity of the country

Waqf (foundation)

Waqf (foundation) is a regular source of income, the reserved and dedicated support to the Islamic finance charitable and welfare
State ownership of uncultivated land:
Any device that economic productivity is hampered harmful to the thriving economy. In Islamic Shariah, if a field remained fallow for three consecutive years leading into the possession of this land to the current owner, others who are willing to grow crops and to move. Prophet (peace be upon him) said: “.. The original property rights in land is God and the prophets and then your later But everyone who buys revives the dead land title to them,” This is a different institution iqta, stimulate the blood circulation and revenue through the transfer of the desert / death, someone in exchange for one or ushr khraj.

Combined participation of natural resources:

Individual ownership of natural resources such as fire, water, pastures and salt to be restricted by the Islamic Sharia. The people have the ownership of natural resources, combine them accessible to everyone. This rule allows each to the benefit derived from natural and ensure that nobody in the vicinity of the natural resources that is easily accessible, without working hard, .. List of natural properties, in addition to the above products can be expanded and more goods in time to time. Prophet (peace be upon him) said: “People are co-owners in the water, grazing and fire.”
There are other sources of revenue as the property of the deceased without legal heirs, lost and found, with no additional candidates and taxes.

Negative measures

There are some prohibitions of God, which have an impact on the prosperity of the economies and well-being of all people in the country.
Prohibition of interest
Interests, regardless of form, was despised by Allah and His Messenger. Quran says: “Allah has permitted trade and forbidden riba” has (interest). Islam is not compatible with the interest, but profit and loss sharing. All financial transactions of Islamic economics to be free of interest. But the lack of interest in Islamic economics provides no impediment to grow wealth, but wealth.

Prohibition of speculative instruments

The instruments that have no use for the real economy, such as futures and options are not allowed in Islamic economics. Instruments such as stock market day trading is marginal trade is prohibited, either. The absence of these instruments in the economy reduces the speculation is bad for the economy as a whole.
Follow

The implementation of the guidelines that we discussed above Sharia in an economy with many positive fruits that result in the state is free to make use of all forms of poverty.
Increased redistribution of income and wealth-if people carry on their religious duties such as zakat, Giving waqf, inheritance and Zakat fithr kaffarath etc. .. It leads to the rich flow of wealth and money to poor ones. Thus, the concentration and accumulation of wealth in few hands down. Poor and needy to spend about eighty percent of their income to meet their basic needs. Economically marginal propensity to consume (MPC) of the poor is greater than medium and high class. Much of everything that comes to hand, will go on to the bad economic situation for the consumption of commodities, they lead to greater demand for raw materials and it is apparent from the increased production of goods basis. It is difficult to determine the consumption of luxury and completely limit production by the law and force. But the increase in the rate of redistribution of wealth and income increase the demand for basic goods and to reduce the demand for luxury goods. Automatically reduces the use of resources for the production of luxury. Therefore, the use of natural resources for the production of basic goods and for the benefit of the common good
This redistribution of wealth to the poor increased their income from the availability of a good education and nutritious foods. Improve the knowledge and skills to help the poor get good jobs and win. This is the whole family, poverty and dependence raises from the heights. In return, the increase in income over a certain limit, they will be able to zakat and other donations to benefit the advantage of the have-nots. Increase to decrease with redistribution, the gap between rich and poor and bring economic justice for all citizens.

Increase the MPC as the poor results in the redistribution of income multiplier effect in the economy more than the gain of fuels in total income of the economy that helping the poor quarters of the population, its per capita income and the amount of the levy life.

According to Professor Keynes, investment depends on two variables that are currently rare interest and the marginal efficiency of capital or the expected rate of profit. The investment should be made when the expected profit before interest. Due to lack of interest in an Islamic economy, only the size of the expected rate of profit will be the determinant of the profit on investment.

Motivation and the theory of speculative money in the liquidity of money have no place in an interest-free economy, reducing investment costs. But the presence of profit rates should translate to investments, increase in low expected rate of profit in the amount of principle and to avoid a deterioration of capital through Zakat. The increased investment to increase production, employment, wages, and the entire national income of the economy. It flows from rich to the poor and increasing their economic status.

Fisher quantity theory is that the amount of money affects the price and value for money. This means that an increase in the money supply increased in proportion to the price in economics, but the output is not increased. But in the case of Islamic economics money should not be made without increasing production. To central banks and commercial banks in the Islamic state in the money supply by increasing investment contracts on the basis of sharing profits and losses. Thus, any flow of money into the economy over the results of the output growth without proportional increase in prices. It is useful to the poor for things they need at a reasonable price

Completion

To eliminate out of poverty in the Islamic economics is simple. Belief in the Oneness of God (Tawheed), that the performance of Zakat and the sharing of profits and losses, motivated, and the avoidance of interest and extravagance. Redistribution and increased productivity are the result of these instruments, which can ultimately achieve poverty reduction.