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ROLE OF STATE IN ISLAM
Economics
Ehsan Khan
University Law
College Quetta
1 | P a ge
Contents
The role of state in Islam..............................................................................1
A) Spiritual Values........................................................................................2
B) Basic Needs Approach.............................................................................2
C) Economic Role of the State ...................................................................2
INTRODUCTION:..........................................................................................3
ECONOMIC IMPORTANCE FOR THE INDIVIDUAL:.............................3
ROLE OF STATE:..........................................................................................3
EQUAL FOOTING FOR ALL: ......................................................................3
BUSINESS TRANSACTIONS AND ROLE OF THE STATE:....................3
A PURE ISLAMIC ECONOMIC STATE: ....................................................4
The role of state in Islam
In Islam state is administered in the name of God. The state is merely an instrument for realisation of spiritual and
material goals. The concept of sovereignty is completely absent in Islamic state.Authority belongs to Allah alone. In
Islam authority or power to rule is a trust of the people not the birth right of any individual. It is therefore to be
exercised through democratic process, as Quran says “And consult themin affairs”. “And they conduct their affairs
by mutual consultation.”
2 | P a ge
A) Spiritual Values
The role of state in Islam is welfare oriented. It not only looks after the moral and spiritual health of the people but
also to the material (well-being of the people. For building up the moral and spiritual values in individual and society
it helps in.
1) Creating environments suitable for the brought up of children.
2) In cultivating the spirit of Islam by providing Islamic education and practical training to the young generation who
should lead the people of the world in art and science and trade and industry.
3) Strict enforce must of Islamic laws with strict punishment to those who violate them.
B) Basic Needs Approach
Anotherfeature of Islamic state is that it recognizes the equality in the basic needs of every man. It is prineiy duty of
the state to provide basic needs to individuals which are:
1) Availability of sufficient food to maintain body.
2) Suitable clothing.
3) Adequate shelter.
4) Suitable proper education.
C) Economic Role of the State
The economic role of the state of Islam is different from that of Capitalism and communism. It is to some extent
compromise between two systems. The main functions of the state in Islam are as under.
1) Social and Economic Justice:
Islam recognizes social and economic justice for all the individuals irrespective of creed, colour and caste. It is the
duty of the state to see that no individual is exploited by another individual. Social and individual welfare is
complementary and not competitive in Islam.
2) Utilization of Resources:
Economic resources ofthe country in an Islamic state are placed at the disposalof the state.Since these resources are
a trust from God. It is therefore the responsibility of the state to make full utilization of economic resources for the
economic welfare of the people.
3) Stability in Prices of Commodities:
It is the duty of the state to follow a fiscal policy which creates minimum fluctuations in the value of currency of the
country.Since the changes in the value ofmoney do not affect all persons equally,there for socialjustice and economic
welfare demands that there should be minimum erosion in the value of money, so the prices should not rise.
4) Social Security:
It is the primary duty of the Islamic state to see that there is complete equality among its citizens for the provision of
basic needs.Islam guarantees a minimum standard ofliving for all its people.It gives equal treatment to all individu als
and does not differentiate on the basis ofcolour, race or any otherdistinction.Man’s worth is determined not by wealth
he possesses but by character, ability and his sense to mankind.
5) Wider Circulation of Wealth:
Islam is against the concentration of wealth in a few hands.It believes in fair distribution of income. An Islamic state
therefore enforces distributive justice for every individual.
6) Maintenance
Of Law and Order: it is the primary duty of the state to enforce law and order in the country. If the life and property
of the citizens is secure and safe, they can work with peace. When everyone in the society is satisfied, it leads to
economic progress and stability in the country.
7) Harmonious
Relations with Other Countries: It is the duty of state to develop harmonious relations with Muslim countries of the
world in particular and other countries in general. The role of Islamic state is to work for the welfare of mankind. It
should cooperate with those who are right and pious and shun the aggression and sin.
3 | P a ge
8) Fiscal Measure: There is an active intervention of Islamic state in the social and economic affairs of the country.
For the performance of various functions it needs money. An Islamic state can raise revenue through (1) Zakat and
Usher (2) Taxation and (3) Borrowing.
INTRODUCTION:
The economic life of Islam is based upon solid foundations and Divine instructions. Earning one's living through
decent laboris considered as the greatest ofvirtues.The habit ofdependence ofany able effortless person on somebody
else for a livelihood is considered to be a religious sin and is not appreciated both socially and morally in the society.
ECONOMIC IMPORTANCE FOR THE INDIVIDUAL:
A Muslim is enjoined by God to be self-supporting and to stay away from being a liability on anybody.Islam respects
all kinds of work for earning one’s livelihood so long as there is no indecency or wrong involved. With a clear
conscience and due respect from society the Muslim is desired to undertake any kind of work available to provide for
himself and his dependents.Prophet Muhammad has always said that it is far better for one even to take his rope, cut
wood, pile it up and sell it in order to eat and give charity than to beg others whether they give him or not. According
to Islam, the status of honest working men cannot be lowered on account of the kind of work they are doing for a
living. Yet the laboring workers have no limited scope for improving their lots and raising their standards as high as
possible. They have equal opportunities at their disposal and enjoy freedomof enterprise.
ROLE OF STATE:
State in Islam plays a significant role in the provision of both economic and social balance among the society.Infact
the role of State is pivtol and very critical in the fullfilment of the fundamental needs of the individuals living in the
community. Not only has this it had to ensure the economic security and well-being of the people. The enterprising
individual is responsible for the prosperity of state and state in return has to cater for the responsibility of him.
The providence of full rights and protection is the duty of the state to be guranteed.Under a true Islamic econ omic
system, the menace of greedy capitalism and destructive communism never arises. The enterprising individual is
responsible for the prosperity of state and state in return has to cater for the responsibility of him.
For the security of the individual, State has to ensure that class conflicts should be replaced with cooperation and
harmony, fear and suspicion should be eliminated and it should give its members a mutual security and confidence
regarding their economic aspects.
EQUAL FOOTING FOR ALL:
The economic systemof Islam is not built on the light of arithmetical calculations and capacities of production alone.
In fact it is a comprehensive systemof morals and principles. The person who is works for another person or for a
firm or an institution is ordained by God to do his work with efficiency and honesty.The Prophet said that if any of
you undertakes to do any work, God loves to see himdo it well and with efficiency. Once the work is done, the worker
is entitled to a fair wage for his services. Failure by the employer to pay the just wage, or attempts to cut it down and
waver on it is a punishable act, according to the Law of God. Islam stresses the importance of man's dignity as it has
been said in the Holy Quran, "Verily we have honored every human being"
As human being and all are men are equal, no man or no state has the right to exploit the basic individual rights. There
is ensured of an equal foorting for all and it is the foremost duty of the state to maintain a balance between the society
and arrange an equal distribution of wealth for all. For this reason Islam has devised a system of zakat, which is an
assurance forthe maintence of balance regarding the monetary aspects ofan individual. State has a critical role to play
in this regard.
BUSINESS TRANSACTIONS AND ROLE OF THE STATE:
Business transactions enjoy a great deal of attention from Islam. Honest trade is permitted and blessed by God. This
may be carried out through individuals, companies, agencies and the like. But all business deals should be concluded
with frankness and honesty. Cheating, biding defects of merchandise from the dealers, exploiting the needs of
customers, monopoly of stocks to force one’s own prices are all sinful acts and punishable by the Islamic Law. If one
is to make a decent living, it has to be made through honest ways and hard endeavor. State’s responsibility is to show
the people the right path and to make sure that all the systems should run according to the way which Islam has devised
4 | P a ge
for running of the economic systemwith complete honesty.According to Prophet (PBUH) the "Unlawful provisions
will be a burning fuel to the Hell Fire on the Day of Judgment."
Thus to combat cheating and exploitation, Islam demands from the state to adopt honesty in business, to warn the
cheaters,to encourage decent work and to forbid usury or the taking of interest just in return for lending money to the
needy. These acts by the State will show men that they rightfully own only what they work for, and that exploitation
of other people’s pressing needs is irreligious, inhuman and immoral. In the Qur’an God says:
"Those who devour usury will not stand except as stands one whomthe Evil One by his touch has driven to madness.
That is because they say: ‘trade is like usury’. But God has permitted trade and forbidden usury. Those who, after
receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge). But those
who repeat (the offense) are Companions of the Fire; they will abide therein (for ever). God will deprive usury of all
blessing, but will give increase for deeds of charity; for He loves not creatures ungrateful and wicked.”
"Woe to those who deal in fraud, those who, when they have to receive by measure from men, exact full meas ure, but
when they have to give by measure or weight to men give less than due. Do they not think that they will be called to
account on a Mighty Day, a Day when (all) mankind will stand before the Lord of the Worlds”
Besides that, there are numerous Traditions of Prophet Muhammad excluding the cheaters, exploiters, monopolizes
and dishonest businesspeople fromthe band of the true Muslims. Any business dealthat involves injustice orcheating
or exploitation is strictly inhibited and cancelable by the Law even after it is concluded. The main purpose of the
Islamic legislation’s on economics and commerce is to secure the rights of the individual and maintain the solidarity
of society,to introduce high morality to the world of business and enforce the Law of God in that sphere of enterprise.
It is logical and consistent that Islamshould be concerned with such aspects as these,because it is not merely a spiritual
formula but a complete systemof life in all its walks.
A PURE ISLAMIC ECONOMIC STATE:
A perfect economic systemcan be built up by the state only though the following of the basic rules and guidance
provide by God. A State must comply fully with the total allegiance to the divine rules of Allah, must also strive for
the complete implementation of Islam and form the government on the fundamental features of Islamic religion.
As Islam endeavors to build a classless systemof society free from all distinctions it is the duty of the State to provide
the assurity that to build a systemwhich serves the proper economic and social interests of the individuals.
By Ehsan Khan Shahabzai.
University Law College Quetta

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Role of state in islam

  • 1. ROLE OF STATE IN ISLAM Economics Ehsan Khan University Law College Quetta
  • 2. 1 | P a ge Contents The role of state in Islam..............................................................................1 A) Spiritual Values........................................................................................2 B) Basic Needs Approach.............................................................................2 C) Economic Role of the State ...................................................................2 INTRODUCTION:..........................................................................................3 ECONOMIC IMPORTANCE FOR THE INDIVIDUAL:.............................3 ROLE OF STATE:..........................................................................................3 EQUAL FOOTING FOR ALL: ......................................................................3 BUSINESS TRANSACTIONS AND ROLE OF THE STATE:....................3 A PURE ISLAMIC ECONOMIC STATE: ....................................................4 The role of state in Islam In Islam state is administered in the name of God. The state is merely an instrument for realisation of spiritual and material goals. The concept of sovereignty is completely absent in Islamic state.Authority belongs to Allah alone. In Islam authority or power to rule is a trust of the people not the birth right of any individual. It is therefore to be exercised through democratic process, as Quran says “And consult themin affairs”. “And they conduct their affairs by mutual consultation.”
  • 3. 2 | P a ge A) Spiritual Values The role of state in Islam is welfare oriented. It not only looks after the moral and spiritual health of the people but also to the material (well-being of the people. For building up the moral and spiritual values in individual and society it helps in. 1) Creating environments suitable for the brought up of children. 2) In cultivating the spirit of Islam by providing Islamic education and practical training to the young generation who should lead the people of the world in art and science and trade and industry. 3) Strict enforce must of Islamic laws with strict punishment to those who violate them. B) Basic Needs Approach Anotherfeature of Islamic state is that it recognizes the equality in the basic needs of every man. It is prineiy duty of the state to provide basic needs to individuals which are: 1) Availability of sufficient food to maintain body. 2) Suitable clothing. 3) Adequate shelter. 4) Suitable proper education. C) Economic Role of the State The economic role of the state of Islam is different from that of Capitalism and communism. It is to some extent compromise between two systems. The main functions of the state in Islam are as under. 1) Social and Economic Justice: Islam recognizes social and economic justice for all the individuals irrespective of creed, colour and caste. It is the duty of the state to see that no individual is exploited by another individual. Social and individual welfare is complementary and not competitive in Islam. 2) Utilization of Resources: Economic resources ofthe country in an Islamic state are placed at the disposalof the state.Since these resources are a trust from God. It is therefore the responsibility of the state to make full utilization of economic resources for the economic welfare of the people. 3) Stability in Prices of Commodities: It is the duty of the state to follow a fiscal policy which creates minimum fluctuations in the value of currency of the country.Since the changes in the value ofmoney do not affect all persons equally,there for socialjustice and economic welfare demands that there should be minimum erosion in the value of money, so the prices should not rise. 4) Social Security: It is the primary duty of the Islamic state to see that there is complete equality among its citizens for the provision of basic needs.Islam guarantees a minimum standard ofliving for all its people.It gives equal treatment to all individu als and does not differentiate on the basis ofcolour, race or any otherdistinction.Man’s worth is determined not by wealth he possesses but by character, ability and his sense to mankind. 5) Wider Circulation of Wealth: Islam is against the concentration of wealth in a few hands.It believes in fair distribution of income. An Islamic state therefore enforces distributive justice for every individual. 6) Maintenance Of Law and Order: it is the primary duty of the state to enforce law and order in the country. If the life and property of the citizens is secure and safe, they can work with peace. When everyone in the society is satisfied, it leads to economic progress and stability in the country. 7) Harmonious Relations with Other Countries: It is the duty of state to develop harmonious relations with Muslim countries of the world in particular and other countries in general. The role of Islamic state is to work for the welfare of mankind. It should cooperate with those who are right and pious and shun the aggression and sin.
  • 4. 3 | P a ge 8) Fiscal Measure: There is an active intervention of Islamic state in the social and economic affairs of the country. For the performance of various functions it needs money. An Islamic state can raise revenue through (1) Zakat and Usher (2) Taxation and (3) Borrowing. INTRODUCTION: The economic life of Islam is based upon solid foundations and Divine instructions. Earning one's living through decent laboris considered as the greatest ofvirtues.The habit ofdependence ofany able effortless person on somebody else for a livelihood is considered to be a religious sin and is not appreciated both socially and morally in the society. ECONOMIC IMPORTANCE FOR THE INDIVIDUAL: A Muslim is enjoined by God to be self-supporting and to stay away from being a liability on anybody.Islam respects all kinds of work for earning one’s livelihood so long as there is no indecency or wrong involved. With a clear conscience and due respect from society the Muslim is desired to undertake any kind of work available to provide for himself and his dependents.Prophet Muhammad has always said that it is far better for one even to take his rope, cut wood, pile it up and sell it in order to eat and give charity than to beg others whether they give him or not. According to Islam, the status of honest working men cannot be lowered on account of the kind of work they are doing for a living. Yet the laboring workers have no limited scope for improving their lots and raising their standards as high as possible. They have equal opportunities at their disposal and enjoy freedomof enterprise. ROLE OF STATE: State in Islam plays a significant role in the provision of both economic and social balance among the society.Infact the role of State is pivtol and very critical in the fullfilment of the fundamental needs of the individuals living in the community. Not only has this it had to ensure the economic security and well-being of the people. The enterprising individual is responsible for the prosperity of state and state in return has to cater for the responsibility of him. The providence of full rights and protection is the duty of the state to be guranteed.Under a true Islamic econ omic system, the menace of greedy capitalism and destructive communism never arises. The enterprising individual is responsible for the prosperity of state and state in return has to cater for the responsibility of him. For the security of the individual, State has to ensure that class conflicts should be replaced with cooperation and harmony, fear and suspicion should be eliminated and it should give its members a mutual security and confidence regarding their economic aspects. EQUAL FOOTING FOR ALL: The economic systemof Islam is not built on the light of arithmetical calculations and capacities of production alone. In fact it is a comprehensive systemof morals and principles. The person who is works for another person or for a firm or an institution is ordained by God to do his work with efficiency and honesty.The Prophet said that if any of you undertakes to do any work, God loves to see himdo it well and with efficiency. Once the work is done, the worker is entitled to a fair wage for his services. Failure by the employer to pay the just wage, or attempts to cut it down and waver on it is a punishable act, according to the Law of God. Islam stresses the importance of man's dignity as it has been said in the Holy Quran, "Verily we have honored every human being" As human being and all are men are equal, no man or no state has the right to exploit the basic individual rights. There is ensured of an equal foorting for all and it is the foremost duty of the state to maintain a balance between the society and arrange an equal distribution of wealth for all. For this reason Islam has devised a system of zakat, which is an assurance forthe maintence of balance regarding the monetary aspects ofan individual. State has a critical role to play in this regard. BUSINESS TRANSACTIONS AND ROLE OF THE STATE: Business transactions enjoy a great deal of attention from Islam. Honest trade is permitted and blessed by God. This may be carried out through individuals, companies, agencies and the like. But all business deals should be concluded with frankness and honesty. Cheating, biding defects of merchandise from the dealers, exploiting the needs of customers, monopoly of stocks to force one’s own prices are all sinful acts and punishable by the Islamic Law. If one is to make a decent living, it has to be made through honest ways and hard endeavor. State’s responsibility is to show the people the right path and to make sure that all the systems should run according to the way which Islam has devised
  • 5. 4 | P a ge for running of the economic systemwith complete honesty.According to Prophet (PBUH) the "Unlawful provisions will be a burning fuel to the Hell Fire on the Day of Judgment." Thus to combat cheating and exploitation, Islam demands from the state to adopt honesty in business, to warn the cheaters,to encourage decent work and to forbid usury or the taking of interest just in return for lending money to the needy. These acts by the State will show men that they rightfully own only what they work for, and that exploitation of other people’s pressing needs is irreligious, inhuman and immoral. In the Qur’an God says: "Those who devour usury will not stand except as stands one whomthe Evil One by his touch has driven to madness. That is because they say: ‘trade is like usury’. But God has permitted trade and forbidden usury. Those who, after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for God (to judge). But those who repeat (the offense) are Companions of the Fire; they will abide therein (for ever). God will deprive usury of all blessing, but will give increase for deeds of charity; for He loves not creatures ungrateful and wicked.” "Woe to those who deal in fraud, those who, when they have to receive by measure from men, exact full meas ure, but when they have to give by measure or weight to men give less than due. Do they not think that they will be called to account on a Mighty Day, a Day when (all) mankind will stand before the Lord of the Worlds” Besides that, there are numerous Traditions of Prophet Muhammad excluding the cheaters, exploiters, monopolizes and dishonest businesspeople fromthe band of the true Muslims. Any business dealthat involves injustice orcheating or exploitation is strictly inhibited and cancelable by the Law even after it is concluded. The main purpose of the Islamic legislation’s on economics and commerce is to secure the rights of the individual and maintain the solidarity of society,to introduce high morality to the world of business and enforce the Law of God in that sphere of enterprise. It is logical and consistent that Islamshould be concerned with such aspects as these,because it is not merely a spiritual formula but a complete systemof life in all its walks. A PURE ISLAMIC ECONOMIC STATE: A perfect economic systemcan be built up by the state only though the following of the basic rules and guidance provide by God. A State must comply fully with the total allegiance to the divine rules of Allah, must also strive for the complete implementation of Islam and form the government on the fundamental features of Islamic religion. As Islam endeavors to build a classless systemof society free from all distinctions it is the duty of the State to provide the assurity that to build a systemwhich serves the proper economic and social interests of the individuals. By Ehsan Khan Shahabzai. University Law College Quetta