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The economic policy in Islam is divine in its source and positivist in its practice. Thus, it is a stable and developing policy at the same time.

It is a stable policy that cannot be changed in the sense Moslem its economic foundations are found in the Koran and the Sunna. Moslems everywhere submit to it all the time, irrespective of the degree of development of their society. This is what we mean by the expression “the doctrine of Islamic economics”

It is also a developing policy in the sense that its principles can be applied to any situation any time. This explains the different ways these principles are applied in different societies. We shall refer to this characteristic by the expression “the economic system (or systems) in Islam”.

From what has preceded. we can derive the following three basic ideas:
 

1. Islamic Economics is divine in its doctrine and positivist as far as the system and application are concerned.
    
2. The Islamic economic doctrine is valid anytime, anywhere. It is not bound to any specific period.
    
3. The Islamic economic system varies in time and space and, hence, does not present a singular way for its implementation.

The source of Islamic economics is Allah, the Almighty. This is shown in the basic economic doctrine and principles found in the Koran on the one hand, and in the application of these principles on the other.

1. With respect to the economic doctrine, the Koran states: 

“And eat not up your property among yourselves in vanity” (The Cow 188)

“That it become not a commodity between the rich among you” (The Gathering: 7)

“And bestow upon them of the wealth of Allah which He hath bestowed upon you” (Light 33)
 

“And in their wealth the beggar and the outcast had due shire” (the winnowing winds 19)

“And they ask thee what they ought to spend. Say ‘that which is superfluous” (The Cow 219).
 

The Prophet, Peace be upon Him, has likewise declared:

“How appropriate the right fortune is to the virtuous man” (Imam Ahmed and Attabari). 

“Taken away from the rich and bestowed upon the poor" (Al-Bukhari and Muslim). 

“He who has got more food has to bestow Some on the one who his none who has none "(Muslim). 

“People are associate in three Water. food and fire. And also salt or its value” (Ahmed, Abu Da`oud and Ibn Majah), 

“He who rives a dead land owns it, and no heir has the right to get it back after three years” (Yahya lbn Adam). 

These economic principles and foundations that appear in the Koran and the Sunna are both general and specific. Islam has, therefore, required the use of Ijtihad. i.e. interpretation, in their application at different moments in time and space.

 
2. With respect to the application of Islamic teachings and economic principles. we realize that even if the latter are positivist due to the fact that they are open to interpretation. their source and initiator however is Allah the Almighty. Research in Islamic economics is like any other research in Islam it is applied and not fundamental. The researcher here does not invent or pronounce judgments. but rather discloses and reveals the decision of Allah concerning a given problem in accordance with his belief and thinking. in accordance with Truth which is known only to Allah the Almighty.

 
Here are some examples to make this point clear:

1. The refusal of Khalifa Omar Ibn Al-Khattab to consider conquered lands in Irak and Syria the property of the conqueror alone. but rather public property (Abdel Jawad 1391 A.H.)).
    
2. The opposition of the Prophet's Companion Abu Dur Al-Ghufari to the appropriation by a minority of the wealth of society. and his insistence that a Moslem should not own more than he needs (Sahhar).
    
3. The belief of Imam Malik that one should ransom his captives even if he has to use up all his wealth (Al-Qortobi).
    
4. The belief of Imam Ibn Hazm that land belongs to those who cultivate it. and that it should not be rented in any way, for its produce belongs to those who work on it or those who share it as a spoil. In his own words renting land is not permitted whether it is for cultivating, planting. building or whatever it is for a short or long period, whether it is for money or anything else” (Abu Zahra 1964).
    
5. The verdict of Imam Ibn Hazm and other Ulema that, in case a man dies of hunger in a country, its inhabitants will be considered murderers and will have to pay for their murder (Al-Ghazali 1952:120).
    
6. The verdict of Imam Shatibi that in case the treasury cannot satisfy the needs of the army. the Imam - if just - should levy taxes on the rich till there is enough money. If he does not do that, he loses his power and the homes of the Moslems will then be at the mercy of the infidels. (Shatibi 1332 A.H. : 295).
    
7. The verdict of Imam Ali Al Mu’iz ben Abdeslam when Sultan Kutz solicited the Qadis and Ulema of Egypt for their approval to take money from the people to help him in his Jihad against the Tartars. These Qadis and Ulema reiterated the decision of Imam ben Abdeslam that money could be taken from people only when golden and expensive jewelry was taken from the Emirs first, and when soldiers had nothing more than their weapons and their horses left (Al Wahibi 1979).
    
8. The recommendations of the First Congress of the Moslem Ulema held in Cairo in 1974 under the sponsorship of the Congress of Islamic Research at Al-Azhar : 
    
   1. that rulers must levy taxes on personal wealth so as to enable the realization of what is in the’ public interest; 
       
   2. that rulers in every country must limit private ownership to the degree that guarantees the warding off of moral deterioration, and the realization of the preponderant good. Evaluation of what is in the public interest is in the hand of rulers, but Moslems are required to advise them in case they do not see eye to eye with their decisions (Cf. Proceedings of the First Congress on Islamic Research 1964 : 394, 398).
       
9. The recommendations of the Second Congress of the Moslem Ulema held in Cairo in 1975 under the sponsorship of the Congress of Islamic Research at Al-Azhar : 
    
   1. that interest on loans whether for consumption or production - is Riba, and Riba whether great or small - is forbidden. Lending money with interest is not necessary and is, therefore, prohibited. Borrowing money with interest is also prohibited, except in case of extreme necessity. Every one, of course, is left to determine his own needs; 
       
   2. that banking services such as current accounts, payment of cheques, promissory notes and other similar services that take place between businessmen and banks are permitted. Money paid for such services is not Riba. (Cf. Proceedings of the Second Congress on Islamic Research 1975 401 - 402).
       
10. The recommendations of the First International Congress on Islamic Economics held in Mecca in 1976 under the sponsorship of the Faculty of Economics and Administration at King Abdul Aziz University in Jeddah 
     
    1. that commercial insurance as practiced by professional companies nowadays does not provide the legal form for cooperation and solidarity because it does not include the legal conditions to make it lawful, 
        
    2. that a specialized commission be formed of Ulema and Moslem economists to suggest a form of insurance that is void of Riba and that could contribute to the realization of a much needed legal cooperation. (Cf. Al-Fanjari 1979).

It is true that some legal interpretations do not succeed. To invalidate them, in this case, one should not criticize or abuse those who come up with them. but to fight them back with proofs from the Koran and the Sunna. It is necessary to show their invalidity by legal ways of measure, approval and appreciation. What is to be relied upon here is what the national legislature adopts. This is to be encouraged if right and corrected if wrong. [Note: Obedience is, of course, allowed as long as it is not obedience to carry Out what is unlawful. The Hadith says in this, respect "Every Moslem should listen and obey whether he likes it or not, as long as his obedience is not something unlawful - If not, there should be no listening and no obedience”. Hence, it becomes the right of a Moslem society as well as that of every single Moslem to rebel against any orders that are clearly unlawful.]

The conclusion from what has preceded is that economic policy in Islam is divine in its foundations and positivist in its practice. In other words, Islamic economics is divine from the point of view of the doctrine and positivist from the point of view of practice. Since a doctrine can survive only in practice, Islam has urged its followers to use the sense of interpretation (Ijtihad) and has rewarded this activity whether the person making it succeeds in it or not. In the latter case, one is rewarded for his effort. Islam has gone even further and considered interpretation its second source after the Koran and the Sunna.

 There is no doubt that the worst blow that Moslems themselves ever gave Islam, was to close the door of Ijtihad at the end of the fourth century A.H. Since then, there has been no progress in Islamic studies. The application of Islamic law froze at that time and gave birth to the false pretension that Islamic economics is primitive, not suitable for the 20^th Century and an obstacle to progress. This pretence is due to our neglect of Ijtihad and to that of the application of economic principles that appear in the Koran and the Sunna to what is suitable for a specific time and place.

Islam appeared fourteen centuries ago in a primitive period, an era of slavery and underdevelopment as far as economics is concerned. It goes without saying that the doctrine of economics at the time reflected that period. But Islam, as a divine economic legislation. whose principles go far beyond this primitive era, is valid for all times and all places. Islam established, from the very beginning, true equality and guaranteed the limit of wealth to every citizen. It determined an economic balance among members of society and confirmed the principle of dual ownership (i.e. private. free economics. and the interference of the State in the economy. (Al Fanjari 1981: 94 ff).

None of this was established under material or economic pressure in the Arab peninsula or the rest of the world at that time. Besides, production was not in such a development so as to warrant these principles.

To be confined to principles brought up by Islam fourteen years ago does not mean, as some people have suggested. that Islamic economics is valid only for the specific primitive era in which it appeared, and that it cannot be valid for the era of the atom and space discovery. [Note: Cf. Maxime Rodinson (1966:40) who says wrongly : “C`est I’oeuvre d`un homme inspire’ par certains ideaux propres a son epoque”] Nor does it mean, as some others have suggested, that being confined to these principles is confining the mind and limiting its field of action. This is not so for two reasons:

1. These economic principles are quite few and limited. They are general principles and, hence, are valid anytime, anywhere. Islam, being the final religion, has established these principles to guide humanity in its progress towards its goals. These principles are, therefore, no more than a light to help the mind in its thinking. They are no more than stepping stones and broad lines to help the individual and society at large to reach happiness in this world and the Hereafter.
    
2. These economic principles concern only what is essential and necessary to all individuals and societies whatever the degree of their economic development or the nature of, their means of production may be.

The doctrine of Islamic economics is not tied to a specific period in time or a specific means of production. As some authors claim. “this is a major area of controversy between Islamic and Marxist economics” (Sadr 1969 296). Indeed. Marxism claims that there is a necessary relationship between the degree of development of the means of production and the social system and that it is impossible for a social system to live for ever or to be of use to humanity at different stages. Marxism. therefore. sees the idea of equality applicable to the industrial world only. Slavery and bondage, then. would be natural in a society that lives on man’s manual production. This is not acceptable in Islam.

The Islamic reality that Humanity lived in its glorious times defied the historical logic of Marxism and its material calculations. Indeed, “this revolutionary fact that created an Umma, established a civilization and changed the course of history... was not the fruit of a new means of production or a change in its form” (Sadr 1969 3-1). (See also Larbi 1969 278).

The economic system in Islam is bound from the very beginning to economic principles that are valid anytime anywhere. Nevertheless, it does leave the door open for Ijtihad on these principles so that each Moslem nation can choose what goes best with its interests, In this sense, a Moslem nation can choose the system advocating public interest while another can opt for the opposite system. Economy in either case will remain Moslem as long as it abides by the idea of public and private dichotomy, since the difference between the two is a difference in their application depending on the time and the place. [Note: It is in the public interest, for example, to limit possession of agricultural land in a country where there is a shortage of arable land but a great number of inhabitants. It is in the public interest, on the other hand to do so in a country where there is enough arable and not a very large population. In this case, the minimum and maximum area of arable land to be owned will vary from country to country. The same is true for the nationalisation of some economic projects and some means of production (Cf. Abdel Jawad 1971 362).]

In Islam there is not just one single economic system which every Moslem nation should follow. On the contrary, the economic application in Moslem countries should be varied but within the framework of the economic principles and foundations of Islam.

This is at the origin of the error made by many when they advocate a return to the economic system of the period of the Caliphs The reason for the mistake is that this system is viewed as the Moslem economic system while it is merely an example of application. It is perhaps true that the implementation of the economic system during the Caliphs era is exemplary in its application of Islamic principles and economic foundations. It is, however, an exemplary application of these principles in the context of the conditions of that time. Now that economic practices have changed and increased, and that social life has become more complicated. this system may not be applicable today. Moslem economists are then required to always find out the proper way to apply economic principles within a particular society.

Another error is made by some Moslem societies when they claim that the economic system they follow is the only true application of Islam. variety of economic implementation is part of the nature of Islam itself precisely because societies are different from each other. Moreover, to make judgments that an economic implementation is Islamic in precept or not should be based on how far it abides by the economic principles of Islam and on how far it guarantees the interests of the majority in each society. This is the true aim of Islam.

The difference between the various economic models in Islam is a difference in the details and not in the basic principles, for all models find their source in the Koran and the Sunna. It has been said, in this sense, that “ruling differ with time and space”, that “a difference in time and space is not a difference in proof and demonstration”, and that “a difference in kind is not a difference in opposition.” The Hadith, likewise, says : “difference among my people is a virtue [Note: This Hadith is related separately by Assayuti, AI-Maknissi, AI-Baihaqi. and Ibn AI-Hajib Others have made reference to it. It has been rejected, however, by Imam Ibn Hazm in his book AI-Ahkam Fi Usul AI-Ahkam, Vol-5, where the author states “Differences are dispraised in the Koran “Do not be in dispute with one another and become weak and lose your power”. He adds that if differences were mercy, acquiescence would be resentment, a fact that Moslem does not state. The truth of the matter is that the so-called difference is one in the parts and in the details. This has been established by the blessed Prophet and cited by his Companions.] or in another version my friends’ difference from you is a virtue”. This is so because it is a difference in details, due to the different of each society.

Three major conclusions can be drawn from this study so far:

1. The economic policy in Islam is stable and permanent. for its principles do not apply to a specific time or place or to a particular system of production. This is what we mean when we say that the doctrine of Islamic economics is valid anytime. anywhere.
    
   It is also a developing policy in the sense that its principles can be applied in different societies according to their specific needs This is what is meant when we say that the economic systems in Islam vary in accordance with the conditions of time and space. Indeed, economic models and implementations may vary. but they do so within the principles and doctrine of Islamic economics.
    
2. The economic policy in Islam groups formal logic [Note: Formal logic, also called Aristotelian logic, is a research and thinking method based on the conviction that everything in the world whether mind or matter - is permanent. Thus a tree is a tree and a seed is a seed. Therefore, what was real yesterday is real today and will be real forever. Accordingly private or public ownership is considered a permanent reality in every society and era. and dialectic logic [Note: Dialectic logic also called Hegelian logic is a research and thinking method based on the conviction that everything in the world - whether mind or matter - is constantly changing. This change is due to the contradictions inherent in either element. Thus the seed contains the tree, and the tree Contains the seed. Accordingly, what was yesterday real or possible under given circumstances is not so today, nor will it be tomorrow. Therefore, everything in the world contains the seed of its death, but also the seed of its survival, for the death of either mind or matter automatically triggers the birth of another fitter element. Everything goes through three stages thesis, antithesis and synthesis. The latter is a new situation that contains what contradicts or rejects it. Thus, there is constant progress from what is low to what is high, until the Absolute world, devoid of contradictions is reached. This is synonymous of divinity in Hegel’s philosophy. Marx adopted Hegel’s dialectic philosophy and adapted it from an idealistic to a materialistic one. Matter, according to Marx, is the source of everything and the reason for everything that exists. Unlike Hegel, Marx believes that thoughts are no more than reflection of matter. Hence the phrase “dialectic materialism” that characterizes Marx's philosophy. Marx believed that Hegel’s theory stood upside down, and that he made it stand straight again. Marxists believe that the laws of dialecticism, especially those concerning the conflict of opposites. the change from quantity to quality, and refuting of negation, govern the movement of matter and henceforth that of the world. Marxists also believe that dialectic materialism is scientific and that marxism is not restricted to dialecticism. All other methods of inquiry are but the application of this dialecticism in various aspects of life.] It gives great importance to social differences since its implementations vary with time and place.
    
   Economics in Islam groups what is stable and what is developing. This is achieved in an argumentation that is specific to it, and that makes it different from all other systems and doctrines. Indeed, when Islam acknowledges development and differences in life, it does not deny or disclaim one at the expense of the other as other doctrines and systems do. On the contrary, it endeavors to accommodate those differences, which are in the eyes of Islam an incitement to cooperation and not one to struggle and fighting.
    
3. An economic solution, as we shall see later, is considered Islamic in nature as long as it accommodates the different interests that other doctrines consider contradictory such as the so called contradictions between the interest of the individual and that of the group. or the so-called contradictions between material interests and spiritual needs. Other doctrines and systems have proposed arbitrary solutions which are at the root of the problems and agitation that the world witnesses today.

Welfare is the aim of Islamic economics, as well as that of Islam itself.
 

1. When the Holy Koran forbids the eating of dead animals, blood, and pork - “He hath forbidden you carrion, and blood, and swine flesh” (The Cow 173) - it does that for the well-being of man. When it allows, in the same text, their eating, it does so for the well-being of man as well. For Allah continues : “But he who is driven by necessity, neither craving nor transgressing, it is no sin for him” (The Cow 173).
    
2. When the Prophet, Peace be upon Him, forbids the sale of what is not available during the transaction in his saying : “do not sell what you do not have”, he does that for the well-being of man. When he allows Salam transactions [Note: In the law of Sharia, this form of transaction implies a contract of sale, causing an immediate payment of prices, and admitting a delay in the delivery of wares. This is what actually takes place in the stock market. A Salam sale is lawful on the basis of the following verse of the holy Koran : “O you who believe, when you Contract a debt for a fixed time, write it down” - (Translator’s note)] he does that in man’s interest as well.
    
3. When the Prophet, Peace be upon Him, recommended land owners to cultivate their land or give it to their brothers to cultivate, it was because wealth in Al-Madina at the time was mainly in the possession of agricultural land which was in the hands of the Prophet’s followers alone. Some of these owned more land than they needed and rented what they could not cultivate. The Prophet, Peace be upon Him, then stipulated that for the sake of common interest, land should not be rented. Those who owned more than they needed, should give their brothers what they could not cultivate without asking for anything in return. This had the advantage of allowing the refugees to find work to live. When things changed and the poor were working again, the Prophet, Peace be upon Him, allowed land owners to rent their land as they were doing before His arrival. (Al1964 :128).
    
4. Common interest is also what pushed Caliph Omar Ibn Al-Khattab to put an end to theft but hold judgment in time of famine (Khallaf 1947: 91).

 
The foundation of Islamic legislation is the well-being of people. Hence, the statement “where there is the well-being of man, there is the law of Sunna”. In this respect, Imam Ibn Al-Kiam Al-Jouzia argues that “the foundations and ground work of sharia are justice and the realization of man’s welfare in his livelihood and destination. Sharia is all justice, all mercy, all welfare, all wisdom. Whatever dissents from justice to injustice, from mercy to unforgiveness from good to bad and from wisdom to play is not Sharia and there is no way to interpret it otherwise” (Al-Jouzia).
Sheikh Abdel Wahab Khallaf, likewise, argues that “all acts of law are bound to be beneficial to man. The reason for their being is to bring what is good and repel what is harmful. This is why the Prophet, Peace be upon Him, used to forbid whatever needed prohibition then allow it if things changed. The reason for the existence of law, then, is to benefit man. The way to achieve this when there is no statement it” the Koran or the Sunna is to use our sense of interpretation or Ijtihad (Khallaf 1350H :

Interests vary with the situations. What is considered beneficial in one situation may not be considered so in another. Imam Shatibi says in this respect “It is the case that most of what we consider good or bad is relative and not absolute. Things are good or harmful in one situation but not in another, to one person but not to someone else. They are so at one given time, but not at another.” (Shatibi).

Perhaps this is why some Ulema believe that interest given on deposit accounts, government bonds and investment certificates is not riba (Cf. Sheltout 1969 303, and Khallaf and Abou Zahra 1951).

Interests as seen by the legislator are arranged in order of priority. Thus, interests that are imperative [Note: Imperative interests are those that serve as the basis to a man’s life. Their absence would create chaos. Such interests are keeping one’s faith, mind, wealth and honour.] come before those that are necessary  [Note: Necessary interests are those the absence of which would result in  making life difficult for people.] which in turn come before those that are cosmetic. [Note: Cosmetic interests are what beautifies a person’s life.] Of course, not all imperative interests are in the same order of priority. The same is true with what is necessary or cosmetic. To give an example, alcohol is permitted if drinking it saves life because the latter is more important than the mind. Likewise, nakedness would be permitted during a medical operation because this is necessary. This may be the reason why Islam does not like a life of extreme comfort, especially when some people cannot afford the basic necessities. This is what Caliph Omar Ibn Al-Khattab always believed when he repeated the words of Allah “and (how many) a deserted well and a lofty tower”. (The pilgrimage 45).

Capitalism aims at fulfilling the interests of the individual first, interests which come before those of the group. Hence, capitalism allows total freedom to the individual in the areas of economy and ownership. The reason behind this is that when the interests of the individual are secured. those of the group are automatically secured as well, for society is but a group of individuals.

This capitalist policy has several advantages. it encourages individual motivation and enterprise. It induces people to work for profit and to start new economic activities. It also encourages the prosperity of the economy in general. This policy does present, however, several disadvantages. The most important of these is the raison d’etre of the capitalist economy. i.e., to make as much profit as possible irrespective of the necessary needs of society and the spread of unemployment and economic crises. Moreover, individuals in a given society have different levels of wealth, intelligence and capability, a fact which leads to the domination by the strong and the appropriation of the wealth of society by a minority. The result of this is bad distribution of wealth and income and the aggravation of the gap between different classes. This, to my mind, is the seed for all evil since it spreads hatred, encourages division and conflict and destroys the unity of society.

Socialism aims at fulfilling the interests of society first, interests which come before those of the individual. Hence, the State intervenes in every economic activity and forbids private ownership of the means of production. The reason behind this is that when the interests of society are secured, those of the individual are automatically secured as well. The individual, after all, cannot live outside society. His value, his prosperity and his talents can only flourish to the degree of the prosperity of his own society.

This socialist policy has several advantages. The most important of these are the satisfaction of the needs of the group in general, the rationalization of production and the avoidance of unemployment and economic crises. This policy secures the interests of the majority, remedies the bad distribution of wealth, and does away with class differences, It does present, however, some disadvantages such as the weakening of personal stimulus, individual effort, and the motives for economic advancement. Add to this the many kinds of pressure, the bureaucratic complications and red-tape. the dictatorship and lack of freedom. and the feeling of insecurity.

Islam, however has had from the very beginning distinct policy that does not rely solely on the individual-as is the case with individualistic systems, nor systems nor solely on society as is the case with socialism. In fact, it takes care of the two interests and tries to bring them into harmony . The reason behind this is that the individual and society complement each other. By protecting one, we are also protecting the other Islam. hence guarantees the existence the both common -and private ate interests. It secures the protection of their good qualities -and the elimination of the had in either of them .

The strength of economic policy in Islam lies in keeping a good between the interests of the individual and those of society. This is expressed in the following koranic verses:” "wrong not, and ye shall not be wronged" (The Cow 279)." and wrong not mankind in their good” (The Heights 85). It is also expressed in the following hadith:" there should be neither harming nor reciprocating harm” never forbid Moslems their rights. otherwise you will encourage them to go astray (Assayuti). The Prophet, Peace be upon Him, has also shown us a simple but meaningful way to bring individual and common interests into harmony when he said : 

"If people are traveling on a ship and each person takes a seat. when one of the passengers dies into his seat with an axe claiming that it was his and that he could do whatever he wanted with it, everybody will be saved if the passenger is stopped. But everybody will be drowned if they let him die” (Al-Bukhari and Attirmidhi).

Islamic solutions to economic problems therefore differ from capitalist and socialist solutions in the sense that they bring individual and common interests into harmony.

The following three domains will serve as examples to clarify the point made here.

The domain of free enterprise and the State intervention in the economy

In Capitalism, the essence of the economic system lies in the freedom of the individual to practice his commercial activities as he sees fit. The State, however, may intervene whenever it deems it necessary.

Undoubtedly, the evaluation of this necessity to enable the intervention of the State is bound to the conditions of time and place. The economy, however, remains a capitalist economy as long as the exception does not become the rule.

The essence of the economic system in socialism is the sole intervention of the state at all levels of the economy. Exceptionally, the individual is let free to practice some economic activities. The exception may be large or small, depending on the conditions of time and place. But the economy remains socialistic in nature as long as the exception does not become the rule.

Freedom of the individual to practice economic activities and the intervention of the State in some sectors of the economy and its monopoly of other sectors go hand in hand. Islam acknowledges either practice as a general principle and not as exception. Each practice has its own domain and the two complement each other. They are both restricted and not absolute, To clarify

1. Islam does advocate freedom of the individual in economic activities but with various restrictions. It is not lawful, for example, to produce alcohol or to do business with riba or to forestall the market. It is not lawful to stop money from producing, or to use it on what is not needed, or to harm the rights of others or to increase prices.
    
   Islam, however, does not advocate this by faith alone. To this end, it created a system of hisba, a system of accounting and price control which is one of the ways the State can control the soundness of the economic activity.
    
2. Individuals are required to perform all kinds of activities in the economic sector which can be of benefit to society. However, the State has to intervene if individuals cannot perform some of these activities, such as constructing railway lines or starting factories for the heavy industry. It has to intervene if individuals refrain from carrying unprofitable activities such as creating housing projects in the desert, or if they do not practice certain activities properly, such as running schools and private hospitals.
    
3. The intervention of the State is also needed because Islam guarantees a good standard of living and not just the basic minimum to every individual. For this purpose Islam created, fourteen centuries ago, the institution of Zakat which in modern terminology is synonymous to that of social security (Al-Fanjari 1982).
    
4. Islam endeavors to secure the economic balance in society and rejects the appropriation of the national wealth by a minority. Witness the words of Allah “It is for Allah and the Messenger and for the hear of him and the orphans and the needy and the wayfarer) that it become not a commodity between the rich among you" (The Gathering:7). This demands that the State intervene to re-establish the balance in the distribution of wealth when needed. This is what Allah’s Messenger, Peace be upon Him, has achieved when he prohibited, in certain conditions, the rent of agricultural land.

Economy in the capitalist system is based on private ownership but, exceptionally, it allows that of the public. If required, the State can intervene in given economic sectors.

Private ownership in this system is safeguarded for it is considered the catalyst and the essence of life itself.

The rule in the socialist economy is public ownership, the exception being private ownership of some of the means of production which the State recognizes for a given social necessity

Private ownership in socialism is not safeguarded because it is, in the eyes of the system, at the root of all social problems.

Islam recognizes both private and public ownership at the same time, each as a principle and not as an exception. Both practices, however, are restricted by public interest. They are not absolute. To clarify:

Private ownership is protected. It is not absolute, however, but is restricted in its acquisition, its domain, and its use. (Al-Fanjari, 1968). ‘That this is a social service is seen in the fact that the real owner of property in Islam is Allah the Almighty and that people are only inheritors. As such they should deal in what they have been left with according to the law, otherwise the State is allowed to intervene and place the property under an interdict.

Public ownership has also been acknowledged as a principle. As we saw earlier this is the case with protected, land. endowment funds and Mosques It is also the else with the expropriation of property order to enlarge it, or the State ownership of land minerals and of conquered lands. It goes without saying that if public ownership was not developed in the early period of Islam - it is because the economic condition of the time did not require it. (cf. Al Fanjari) 1981 155).

The basis of distribution in the capitalist system is private ownership. This results in the wide gap between individuals in the property they own. their income and their inheritance.

The basis of distribution in the socialist system is work, for property is the fruit of one’s work. In this economic system, incomes vary not because of ownership but because of the difference in people’s capabilities and talents. The resulting difference, in this case, may reach large propositions [Note: In my book "Islam and just Distribution". I make the point that the problem of national economies resides in the bad distribution of wealth among individuals, and in the bad compensation of the sources of production. Likewise, the problem of international economy resides in the gap between developing and industrial countries, and in the lack of compensation in the market due to the very low price of raw materials and the exorbitant prices of manufactured goods. What is needed to change and correct an economic system is a certain economic balance among individuals in a given society at the local level, and among nations at the international level.]

In communist economics, need is the basis for distribution in the sense of providing people with plenty of whatever satisfies their basic needs such as air and water. The system believes that, in this way, the phenomenon of differences in income would disappear and a classless society will then come into existence, [Note: James Burham (in Touchard et. al. 1982 829) claims that between 11% and 12% of Russians receive 60% of the national income, while 11% receive only 35% in the USA. Laroque (1982 114), likewise, claims that differences in income vary between I and 50 in the USSR but only between I and 10 in the USA. Vedel (1964), on the other hand, claims that there are many millionaires in the USSR. Baroudi (1966 148) argues that “it is not surprising to find millionaires in a new, powerful and advanced country such as the Soviet Union. What is surprising is that these millions are the fruit of man’s capabilities and the reward for work as claimed by the Soviet ideology”.]

Need, in the sense of seeking a minimum but sufficiently good standard of living is the first basis of distribution of wealth in Islam. Then, come work and ownership. Every body must first have this minimum but good standard of living which the Ulema call the limit of sufficiency to differentiate it from the "limit of pittance". Islam recognizes this as a person’s right which society or the State should provide him with irrespective of his nationality or religion. For the Lord says: "Give the kinsman his due. and the needy. and the wayfarer” (The children of Israel 26). "And in whose wealth there is a right acknowledged for the beggar and the destitute "(The Ascending Stairways 24.25). After which, to each according to his work and what he possesses, for Allah says: "Unto men a fortune from that which they have earned, and unto women a fortune from that which they have earned” ( women 32). He also says “And for all there will be ranks from what they do, that he may pay them for their deeds and they will not be wronged” (The wind Curved Sandhills I9).

In this economic system, a hungry or needy person cannot exist. Income may vary due to private property but not to work. This difference should not be great. for Allah the Almighty says “That it become not a commodity between the rich among you” (The Gathering: 7).

A basic feature of economics in Islam is the accommodation of common and individual interests. In case this harmony is not possible as in times of war, famine, or disaster, it is then agreed that individual interest is sacrificed for the benefit of common interest. This is the right of Allah which is above all rights. It is also expressed in statements such as “Harm to the individual can be endured for the sake of warding off harm done to the community” or “Low harm can be endured to ward off a higher one”, or “In the presence of two evils, the less harmful should be chosen.”

In extraordinary situations such as in time of war, famine or disaster, the application of Islamic economics surpasses that of the most extremist socialist doctrines. In a deprived society, it is not possible for a Moslem to own more than what he needs. It is the responsibility of the State, in this case, to intervene to take from the rich and bestow’ on the poor to satisfy everybody's needs. When this is guaranteed, there is no limit to what an individual may earn, for the Hadith says “There is no objection to the rich, provided he is pious” (Al-Hakim). It is in this sense that the Koran says “And they ask thee what they ought to spend. Say that which is superfluous” (The Cow 219). Likewise, the Prophet. Peace be upon Him, while on a voyage, declared : “He who has got more food has to donate some to the one who has none” (Muslim). As for the Caliph Omar Ibn Al-Khattab, he said during a year of famine “If I cannot find what is enough for people, I would take them in homes where they would share the owners’ food till Allah brings forth the rains, People will not die with half empty stomach” (Ibn Al-Jouzi, p.01).

The Prophet’s Companion Abu Dur Al-Chufari expressed the opinion during the rule of Caliph Othman that one cannot own more than he needs. This is a correct Ijjtihad (interpretation) in the extraordinary conditions in which Moslems lived. In fact, there were people who were extremely rich at the time, while many others were poor and deprived.

Islam, as we saw earlier allows riches only if the necessary minimum is guaranteed to every citizen. It allows differences in income only when there is no place for poverty, hunger, and deprivation. There was no harm, then, when Abu Dur Al-Ghufari generalized this view and claimed that this was the decision of Islam in all circumstances while, in fact, this was a ruling in extraordinary cases only. Of course, one could make use of it only as a temporary remedy and when necessary. Omar Ibn Al-Khattab expressed the same idea when he declared “I shall endeavor to satisfy every want as long as we can support each other. If we fail, we shall live frugally till we all share that basic minimum to enable us to live” (Ibn Al-Jouzi).

Three conclusions can be drawn from the preceding discussion

1. The purpose of economic legislation in Islam is to satisfy man’s interests. These, however, vary with time and place, and should be given priority according to their importance. Moslem rulers should not allow the construction of palaces and spending on luxuries while the needs of society are not satisfied and services are idle. This is not allowed in Islam, for Allah says : “How many a township have we destroyed while it was sinful, so that it lieth (to this day) in ruins, and how many a deserted well and lofty tower” (The Pilgrimage 45).
    
2. Economic policy in Islam is based on the principle of accommodating individual and common interests. A solution to any economic problem is Moslem in nature as long as it accommodates these two interests and finds the right balance between them. It would be a great mistake to connect Islamic economics to either the capitalist or socialist systems, or to understand it as if it were a mixture of the two. Islamic economics is unique in its nature, as it is based on principles that differ from those of capitalism and socialism. If there is a certain individualism in Islamic economics. it is certainly different from that of capitalism, for it does not advocate absolute freedom of the individual in economic activities and ownership. Similarly, if there is a certain social policy in Islamic economics, it is certainly different from that of socialism. Indeed, it does not allow the total intervention of the State in economic affairs or the total abolition of private property.
    
   It is true that there may be penetrability between economics in Islam and other economic doctrines. and that certain Islamic solutions or economic implementations may agree with those of capitalism or socialism, These penetrability and agreement. however. are merely accidental. They occur in the details but not in the basics. Economics in Islam, then. is different from other economic systems by its unique solutions to economic problems.
    
3. In the situation where the distribution of wealth is defective and not every one has a decent standard of living, private ownership is not respected but is sacrificed for the sake of common interest. This is the right of Allah which is above all rights.
    
   Economic thought in Islam may go beyond most extremist social systems as when the Prophet’s companion Abu Dur Al-Ghufari claimed that an individual cannot own more than is required for a decent living. This measure does not mean that Islam agrees with these extremist systems since it acknowledges that it is possible in extraordinary situations only, and that it is used as a temporary remedy when the need for it arises.

The sole aim of economic activities in positivist doctrines, whether individualist or socialist, is to guarantee material interests, These may have as objective the guarantee of the maximum profit as in the case of capitalism. or the satisfaction of public needs as in the case of socialism.

Economic activities in these two systems, different as they are, purely materialistic.

In Islam, however, even though economic activities are materialistic in nature, they, nevertheless present a religious or spiritual character. The latter is based on experience of Allah the Almighty, His fear and the desire to be in His presence. This is so because ,in Islam ,people do not only deal with each other, but they basically deal with Allah the Almighty.

If then other economic systems are based on materialism as the only way that regulates peoples dealings with each other, the source of economics in Islam is Allah the Almighty. In Islam, it is the fear of the Lord, the desire to act according to his command and to win His grace which regulate peoples dealings with each other.

As a corollary to this, Economics in Islam shows various characteristics which make it a unique system. We shall deal here with three of these:
 

1. The element of faith and spiritual conviction in economic activities
    
2. Duality and scope of control
    
3. Exaltation of the aim of economic activities.

Materialism is the basis of all positivist economic systems. These have mistakenly considered men as matter only. The reality of the world is seen as purely materialistic. Income and material sufficiency are the only reason for man's life. There is no wonder, then. if we witness this spiritual emptiness and personal failure in materialistic societies.

There is no doubt that capitalist societies, which seek to realize the maximum profit. suffer most from this spiritual void and this personal failure. This has resulted in much harm as well as in the corruption of so many people who sought material benefits by all means. It also resulted in their enslavement to money. This is reason enough for those who have turned away, and still do, from such systems.

Marxist societies, on the other hand have not succeeded in elevating their socialist policy to the level of religion in spite of their continuous effort to achieve this. Belief in socialism remains materialistic. It does not satisfy the spiritual hunger or the religious needs of its people. These societies have been, thus, led to lighten their attacks on religion and to allow some religious activities. Aware of the need of religious beliefs in economic affairs, some States, such as East Germany. Poland and Hungary, have gone further and allowed funds in their budgets for religious activities.

Even though Islam acknowledges the material element and material profit in economic activities, it does not neglect, however, the spiritual side in man. In his commercial transaction, a man is required to seek the Lord in order to gain His grace. For Allah says “And each one hat a goal toward which he turned” (The Cow 148), “And strive to please thy Lord” (Solace 8), “And be not ye as those who forgot Allah, therefore He caused them to forget their souls” (Exile 19). 

The blessed Prophet has likewise said:

“Work is worship" [Note: Work is worship as long as it is honest. It is worship as long as it is carried out in the way of the Lord, and in the best way possible. for the blessed Prophet says “Allah loves those who do their work well”.] “Allah, the Almighty, accepts only the virtuous deed which is done in the Way of the Lord” (Abu Daoud and Annassai). The way to this is the intention, for the blessed Prophet also says “Actions are but by intention and every man shall have but that which he intended” (Al-Bukhari and Muslim), and “Allah accepts what is said only when supported by a deed and accepts a deed only when supported by an intention” (Assayuti). 

This has given birth to various sayings of the type “Deeds are judged by what they were intended for and “Lord, I worship you with my work” said by Moslem jurists.

Undoubtedly, seeking the Lord in one's commercial activities is not an end in itself, for Allah the Almighty is neither served nor harmed by whether people seek Him or Not. “Allah is altogether independent of His creatures” (The Spider 6). Seeking the Lord in this case finds its value in protecting man against himself, for Allah says “Lo! as for those who believe not in the Hereafter, We have made their works far-seeming unto them so that they are all astray” (The Ant 4). Seeking the Lord will guarantee the soundness of man's commercial activities for this is an effective way to the righteousness of man and society at large. As the Lord says:" That is best for those who seek Allah's countenance. And such are they who are successful” (The Romans 38). "And who so magnifieth the offerings consecrated to Allah, it surely is from devotion of the hearts" (The Pilgrimage 32), “0 mankind! Ye are the poor in your relation to Allah! He is the Absolute, the Owner, the Owner of Praise” (The Angels 15), and “Their flesh and their blood reach not Allah, but the devotion from you reached Him” (The pilgrimage 37).

It is obvious from what has been said so far that a major characteristic of economics in Islam is the direction this economy takes toward Allah Almighty. This reflects upon the economic activities the feature of spiritual faith and the feeling of satisfaction and tranquility.

An important point is raised here by many, namely that Islam does not differentiate between the material and the spiritual. The fact is that every material or worldly activity that is practiced by man is seen in Islam as a spiritual act as long as it remains lawful and geared toward Allah the Almighty. It is simply not true that there is a conflict between religion and worldly life, or that there is one domain for activities in this life and another for those in the Hereafter. Islam recognizes this metaphysical division between the material and the spiritual only on the basis of lawfulness and the seeking of the Lord. It is said that some Prophet's companions then exclaimed

“How if this hurry were in the Way of Allah ! “The Prophet, then, answered “Do not say that. If he is out in search of his child's food. then he is acting in the Way of the Lord. If he is out to seek food for his elderly parents, then he is acting in the Way of the Lord. If he is out to find his own food. then he is acting in the Way of the Lord. But if he is out seeking dissimulation or glory, then he is acting for Satan's sake” (Assayuti). 

Moreover, the true sign of faith in Islam is doing good deeds and producing what is useful to society. Allah the Almighty says in this respect “And say unto them Act. Allah will behold your actions, and so will His messenger and the believers "(Repentance 105). “There is no good in much of their secret conferences save in him who enjoineth alms-giving and kindness and peace-making among the people” (Women 114).

The blessed Prophet, likewise suggests that the most effective way to reach the Lord and gain His Grace is to love and help His people for “man’s place with the Lord is his place with his fellow men”. For the blessed Prophet, “Allah loves more those who are most useful to others” (Muslim). A Prophet's companion once wanted to be on his own to pray and mediate. when the Prophet, peace be upon Him, remarked “Do not do that for the standing of one of you for the sake of Allah, i.e., for the sake of society. is better than his praying at home seventy years "(Assayuti),

Faith in Islam is not absolute, but concrete. It bears relationship to work and production, to justice and right redistribution, to correct dealing and to helping others. Its final objective is to serve society. Hence the insistence of the Prophet, peace be upon Him, that Islamic monarchism is jihad for the sake of Allah, i.e., for the sake of society, a society of production and services. He advises : " Love me in your poor  ". In another Hadith he declares

“Allah the Almighty says during the day of judgment .O son of Adam, I fell ill but you did not visit Me. He will say O Lord, and how could I visit you when you are the Lord of the Worlds ? He will say : Did you not know that My servant So-and-So had fallen ill and you did not visit him ? Did you not know that had you visited him. you would have found Me with him, O son of Adam, I asked you for food, but you did not feed Me. He will say : O Lord, and how could I feed you when you are the Lord of the Worlds ? He will say : Did you not know that my servant So-and-So asked you for food and you did not feed him ? Did you not know that had you fed him you would surely have found your reward with Me ? O son of Adam, I asked you for water and you gave me no drink, He will say :O Lord, how could I give you to drink when you are the Lord of the worlds ? He will say My servant So-and-So asked you to give him to drink and you did not give him to drink. Did you not know that had you given him to drink, you would have found your reward with Me ?” (Muslim).

Spirituality in Islam is doing good deeds to seek the Lord. The Caliph Omar Ibn AlAI-Khattab, may the Mercy of Allah be upon him, had a point when he declared : “By Allah, should non-Arabs come up with work and we did not, they would then deserve Mohammed better than we do in the day of judgment.” May the Mercy of Allah be also upon the Moslem thinker Jamal Ed-Deen Al-Afghani who declared ‘I do not understand what they mean by dying for Allah. Perseverance should be for the creatures of Allah to educate them and raise their consciousness of the means to their happiness and their well-being” (Ar-Rafii).

Economic Systems: This is an outside control in economic activities that is based on law. It is, therefore, limited and ineffective.

Economics in Islam is controlled by the law and the Sharia, but at the same time it is also controlled by a subjective notion of faith in Allah and in the day of judgment. There is no doubt that this presents a strong guarantee for the soundness of social behavior and the lawfulness of economic activities. Indeed. the believer feels that if he can avoid control of the law, he certainly cannot escape that of Allah the Almighty. The Hadith says in this respect “Worship Allah as if you could see Him, for if you cannot see Him, He surely sees you” (Ibn Hanbal). The Prophet, peace be upon Him, has also declared “At the moment of committing crime, an adulterous or a thief is not a believer” (Al-Bukhan and Muslim).

We can conclude from the preceding discussion that economics in Islam presents a special factor which is a religious restraint in economic activities. The restraint is a feeling of the Moslem that he is under the Lords control in every transaction that he carries out, and that he is responsible before Allah. The system of economics in Islam, hence, encourages this religious feeling. for the Moslem abides by the rules of Islamic law spontaneously and out of his deep faith. There is no need in this case for the State to intervene.

Positivist systems, on the other hand, are different since they do not take into consideration - and some of these systems even refute - the religious constraints in shaping economic activities. The effect of this can be seen in the fact that so many people in these systems try to avoid their responsibilities or cheat in their commercial transactions every time the State and its machinery cannot, for one reason or another, keep them under control.

Material interest is an aim in itself in all positivist systems. This is true whether the aim is to guarantee the maximum profit as in capitalism. or that of sufficiency and material prosperity as in socialism.

This has been at the source of the rabid conflict from which capitalist society are suffering and of the economic dominance and control in the socialist states.

Materialist economic systems, both capitalist and socialist, have realized various gains and much prosperity. These, however, are bound to disappear due to this frantic conflict that ravages the essence of these systems as long as material profit remains an objective in itself.

Even though material interest is an aim in Islamic economics, it is not an aim in itself. Rather, it is a means to guarantee the success and happiness of humanity. Islam views this life as a preparatory step to the Hereafter, and man as the replacement of the Lord on this earth, for Allah says “Lo !I am about to place a viceroy in the earth” (The Cow 30).

As a corollary, money in Islam is not an end in itself. And if the Moslem is required to seek it, invest it and make it grow. he does not do so for money's sake but because he considers it an effective means to his voyage to Allah the Almighty. This is why the blessed Prophet has said “Great is money when it helps man worship Allah” (Addilmi).

And the Lord said “See ye not how Allah hath made serviceable unto whatsoever is in the earth and hath loaded you with his favors both without and within ?” (Luqman 20). The Lord also said : “He is who hath placed you as viceroys on the earth and hath exacted some of you in rank above others, that He may try you by the test so that which He hath given you” (Cattle 166), “And who are shepherd of their pledge and their covenant (The Believers 8), and “then on that day, ye will be asked concerning pleasure” (Rivalry in Worldly Increase 8).

We can conclude from what we have just seen that a major characteristic of economics in Islam is the desirability of what is material. The Lord says in this respect “Dispense in the land and seek Allah's bounty” (Congregation 10). and “And We Have given you (mankind) power in the earth and appointed for you therein a livelihood” (The Heights 10).. The Prophet, peace be upon Him, likewise says : “Seeking a legitimate living is an obligation” (Assay’uti), and “Man must use his mind to improve his living” (Addilmi and Assayuti).

In Islamic economics however, seeking what is material is not an end in itself Allah says in this respect ‘Then, as for him who rebelled and chose the life of the world, Lo Hell will be his home” (Those who Drag Forth 37-39). The Prophet. peace be upon Him, likewise says “Wretched is he who is enslaved by money” (Al-Bukhari and Muslim), and “Love of material life is the origin of every sin” (At Baihaqi; Addilmi).

Money in Islam is sought to worship the Lord and appreciate His Generosity “Seek of Allah’s bounty and remember Allah much, that ye may be successful” (Congregation 10), “But seek the abode of the Hereafter in that which Allah had given thee” (The Narration 77). Similarly, the Prophet, peace be upon Him says : “How appropriate the right fortune is to the virtuous man” (Imam Ahmed; Attabarani), and “There is no objection to the rich, provided he is pious” (Al-Hakim)

Another major characteristic of economics in Islam is that the aim of economic activities is to vitalize the world and live comfortably in it. The aim is not economic restraint and dominance, or the appropriation by one group of people or by the State itself of the wealth of society as is the case with positivist economic systems.

There is no wonder, then why world crises have always had their origin in losing track of this aim. This would also explain the old killing and the continuous conflict between tribes, then nations about nature's resources. This conflict is now taking place between the two super powers (the USA and the USSR) as both are trying to dominate other nations and appropriate their resources instead of helping and complementing each other. Hence, this turmoil and disturbance that the world is witnessing today, and this waste and splitting that the present generations are struggling with in bitterness.

In Islam, on the other hand, the aim of economic life is to inhabit and vitalize the world so as everybody would enjoy its resources. Islam considers man a replacement of Allah on earth, and man is required to live up to this situation by populating the world and managing its resources for the benefit of future generations. Allah, the Almighty says in this context “And hath made of service unto you whatsoever is in the heavens and whatsoever is in the earth” (Crouching 13). Similarly, the Prophet, peace be upon Him, says “the world in which Allah has brought you is beautiful. See, therefore, how you can work in it” (Muslim).
The Prophet, peace be upon Him, aware of the importance of productivity in Islam has gone so far as to say : “If it were the end of the world and someone happened to have a palm seedling and succeeded in planting it, he would be rewarded in the Hereafter” (Al-Aini).

The Lord has chosen that the riches of the world be spread in its various parts and divided among its nations, so that what one nation lacks, another possesses. This is done with the purpose of realizing complementarily between nations, and not to encourage conflict and killing. Had the world realized the full meaning of this divine wisdom. and had it been aware of the directions of Islam in the economy and followed them. it would have profited a great deal from its enormous capacities that are squandered everywhere. But this is not the case.

Three major conclusions can be drawn from this analysis so far :

1. Economic policy in Islam is not restricted to material benefits, but accommodates them with the spiritual. This policy is based on the belief in Allah the Almighty, and on one's responsibility before Him. This is what gives Islamic economics its characteristic of belief and spirituality purported by the need to be in the presence of Allah in all commercial transactions.
    
2. The control of the economy in Islam is dual in its nature, in the sense that it is not based on Sharia only, but on the belief in Allah and the last day of judgment.
    
3. The exaltation of the aim of Islamic economics can be seen in the fact that the material is not sought for its own sake, but for the prosperity of mankind. The aim of the redistribution of natural resources is the realization of complementarily between different peoples and nations, and not the encouragement of conflict and killing.

There is no doubt that Islamic economics contributes effectively to putting an end to exploitation and corruption. It contributes to doing away with dominance and conflict and to solving the problems of war and killings. with the hope that in the end the world would live in peace, love and cooperation.

Economic studies, in general, are quite important. This importance has increased at present to the extent that we can safely say that a truly educated person - no matter what his job is - cannot be described as such unless he possesses a knowledge or an awareness of economics which would enable him both to keep abreast of local or international events, and to evaluate them soundly. The study of Islamic economics is perhaps among the most important economic studies at the moment. This is not simply due to our relation to Islam, but to our sincere belief that Islamic economics can play an important role both locally with respect to our prevailing underdevelopment and internationally with respect to the state of conflict which is threatening the world.

Islamic economics failed to play its role partly because of our lack of awareness of its importance. It also failed because our Ulema did not convey the foundations and policy of Islamic economics in the language of today, nor did they relate these foundations and policy to what is taking place in our economic life today.

These ideas will be dealt with in the following chapters:

1. The importance of economic studies is due to the fact that man's essential and predominant activity is economic.
    
2. Although we believe that the material factor is crucial in life and that economics is essential in the orientation of the action of history. we are. however, strongly opposed to the idea which claims that material interests alone determine people’s behavior, and that economics is the key to history. There exist other interests and factors. e.g. moral. religious. Psychological, etc. Man does not live on bread alone. (Al-Fanjari I982: 37 ff.).
    
3. The importance of economic studies has increased following the evolution and development of production strategies, and the expansion of economic activity. The conflict between East and West is purely economic. The present world problems are caused by the emergence of Europe. Japan and China as world economic powers. The major problem of the Third World, represented by Asia, Africa and Latin America, is underdevelopment. The world’s main concern today remains economic development. (Cf. Namiq 1968; Nasr (1965) [Note: Dr Nasr(1965 309) argues that national progress means good longevity average for the people (about 70 years in the West). a high standard of living, provision of various health. educational and leisure services. National progress means the use of machines to replace man in doing oppressive work. It means respecting Man giving women their rights and not allowing children to work at an early age. Last, but not least, it means development and enrichment at fast speed. Underdevelopment in a given country means short longevity (between 30 and 40 years in poor countries). lack or insufficiency of proper food. Clothing and housing. It means the spread of disease. Ignorance and witchcraft as well as that of unemployment and the exploiting of workers. It is employing women and children in exhausting jobs. It is also dictatorship of parliament, when there is one. and the slow rate of development if it ever takes place. In many cases, underdevelopment also means backwardness due to the increase of the population and the decrease of production”.]

1. The prevailing type of economic activities is another aspect which shows the importance of economic studies because it determines the various levels of organization in any society - be they political, social or economic.
    
   Thus, the slavery and aristocracy systems which prevailed in the past were no more than an expression of the dominant economic conditions in those days. Also, the emergence of socialist systems and their triumph in the modern world is not simply the result of coincidence or of preference of one ruler over another but it was the natural consequence of a particular stage in the economic development of the world. We agree, in this respect, with those who say that, instead of sheer insults and invective, the best critique of feudalism or capitalism should be launched on the grounds of their inability, at a certain period in the economic development of the world, to cope with the needs of the community and their failure to meet the requirements of growth and progress (See Zakaria, 1965 pp.4 and 337)
    
2. However, although we take for granted the effect of economic circumstances and development in determining legislative systems, we do not accept it as the unique or predominant influencing factor, since, undoubtedly, each people’s readiness and religious commitments, its ideals and aspirations as well as its conception of Justice contribute effectively with other elements to differentiate between legislative systems regardless of economic circumstances and situations. Perhaps, the best illustration of this is the Moslem society in the early days of Islam; for it is not surprising to see science and civilization flourish in an environment where both the means of knowledge and the elements of growth abound; but that they should prosper in an arid land not suitable for crops is indeed a phenomenon that calls for serious thought.
    
3. Moreover, the relationship between law and economics has increased nowadays according to economic activity and its expansion so that if economy is the essence, law is the form which is worked out to organize and maintain that essence. Thus, with the expansion of the field of economic activity and its increasing threat, a new discipline, ‘Economic Law”, has seen the day. (Cf. De Loubadir 1971, Atia .1972).

1. Another clue to the importance of economic studies is the fact that the character of people and their way of thinking are the outcome of economic development and circumstances. Hence the remarkable difference between agricultural and industrial societies. Thus, while we find the farmer rather contented and resigned, sowing and awaiting such fatal judgments as aspects of the weather and agricultural catastrophes. his counterpart in industry is more ambitious and combative as he is in control of the machine and of production (see Hilmi I961). It is a fact that the basic difference between advanced and underdeveloped societies stems from their differential decrees of economic growth and development.
    
2. However, although we take for granted the effect of economic growth and development in shaping the lives of people and their ways of thinking. we do not accept them as the unique or the predominant factor.
    
   There is no doubt that the prevailing creeds in society whether divine or secular, play a vital role in molding the character of people and their way of thinking. Perhaps, the best evidence for this Islam, which, in a very’ short span of time. has turned lost and backward peasants into masters of and guides to, mankind who changed history and enriched and gave a profound meaning to life.
    
3. Marxism on the other hand attributes all change and development to the means of production and to the material conditions of society and claims that it is these elements only that guide mankind and shape society affirming that it is not people’s perceptions of the world which define or determine their living but their material status.

Islam refutes this altogether by highlighting man's role and his faith as the effective and crucial elements in change. Thus, from the viewpoint Islam, rather than matter, it is man who changes and development and only he can chance and modify the modes and relations of production. Hence the words of the supreme Being :"Lo! Allah changeth not the condition of a folk until they (first) change that which is in their hearts” (The Thunder II). and also His words “That is because Allah never changeth the grace He hath bestowed on nay people until they first chance that which is in their hearts. and (that is) because Allah is Hearer, Knower."(Spoils of War 53). Undoubtedly material conditions have their part to play since man cannot detach himself from his environment: and it would be a sterile and unfair attempt to judge an individual or a nation irrespective of their material possibilities or economic circumstances.

Nevertheless. man's will and his lucid faith hold pride of place in bringing about change and realizing progress. Hence, the primary concern of Islam with the preparation of the spirit and its education according to right ethics in the first place.

That is the point of departure since it is a truism that individuals and nations can only exist with good morals and human relationships and not with wealth, social status, or material progress. The exact conception of Islam stems from its concern, on the one hand, with the education of man and, on the other, with the betterment of his living since these affect, and complement, each other to the extent that humanity cannot further its progress if it neglects either of these aspects the will of man and the conditions of the environment.

1. Lastly, the importance of economic studies emerges from another angle which is the synthesis of the previous ones, namely that man's material and spiritual betterment is conditioned by the amelioration of his economic conditions. Thus, material underdevelopment cannot lead