Zakat: Quranic Economis

Before beginning this final part of our discussion of Zakat , let us briefly summarize the first two parts to maintain focus and continuity.

In the first part we showed how our present approach to Zakat has turned into a lifeless ritual leading to differences in Zakat items and Zakat rates among various Sunni sects; major differences between Sunni and Shi'ia sects in this matter; non- uniform policy for collecting Zakat by Muslim governments which can range anywhere from voluntary contribution to compulsory deduction from bank accounts. These certainly were not the ways our Prophet ( PBUH ) and the rightly guided Khalifas practiced Zakat.

In the second part we emphasized that the real system of Zakat must lead to economic growth and development, and that, for this to occur, Zakat needs a strong foundation. Several verses from the Quran were presented which provide the basis of this foundation.  Although Muslims continue to give the ritual Zakat , the economic problems continue to get worse.  In fact, corruption in the system of Zakat collection and distribution is quite common in many Muslim countries and charitable organizations.

We also pointed out that we really cannot talk about a system of Zakat as long as Allah-given resources are under the control of dictators/kings, capitalists, and/or priests whose primary objective is not to serve Allah or his servants, but to maintain their own power and control. Until Allah's resources are purified from their corruption (the root of Zakat also means purification), we cannot truly hope to implement Zakat.

In this final part of the article, we venture to show how the Quranic concept of Zakat , if implemented in its pristine form, will, ultimately, lead to economic growth and development of not only Muslims but of the entire human race.  This may sound strange or even impossible under the present system of Zakat being practiced by Muslims. But this situation has to do with Muslims and not Islam. We must differentiate between  Muslims and Islam .

No one can argue that we, Muslims, are no longer the Ummah referred to in the Quran. We are divided into sects. We make excuses to justify our sectarian divisions in spite of Allah's stern and clear warnings against it 6:159,30:31,32. We play with the verses of Allah and compile books—such as the book of tricks mentioned in Part-I—to circumvent Allah's clear orders about “giving Zakat.” According to the Quran, accumulating wealth and looking for ways to multiply it leads to hell (104:2-4).

 On the other hand, if we follow in the footsteps of the Prophet (PBUH) and his companions there will be no doubt or skepticism about the universal goal of Zakat. The skeptics (both Muslims and non-Muslims) have to go back to the period of the Muhammad (PBUH) and the rightly guided Khalifas—and not to the Umayyad and Abbasi periods—to find a proof of the positive impact that the economics of Zakat created on the society. That society was established and ruled solely on the basis of the universal permanent values of the Quran.

 Quranic Zakat Requires Its Own Independent State

 Because the Quran is a Constitution, it requires its own independent and free state where  its unique economic system of Zakat can and should be implemented. The positive output (growth and nourishment at all levels) of this economic system is termed by the Quran “Aata-wuz-Zakaat” or “to give Zakat.” The Quran says:

(Concerning the group of oppressed people which has at last risen to wipe out transgression and zulm) If We bestow on them the authority to rule and they do come into power, (they will not do any injustice and oppression but) they will establish Salat (so that everyone in society follows the system of Divine Laws). They will provide means of development to each and everyone and enforce Laws which are in conformity with the Divine Code (the Quran); and forbid people from doing anything that is contrary to it. In other words, in every case they will first look for the guidance given by Allah's Law; and then after discussion and consultation decide their affairs according to the Divine Law . Al-Hajj 22:41

“Establish them in the land,” means the establishment of an Islamic state by the momineen or the believers.  The beneficial outcome of Zakat must manifest in this world through its own government established along the lines of the Muhammad (PBUH) and the Sahaabaa (R).

Therefore, the establishment of this Islamic state is different from the ones established by the proponents of so-called Shariah, from the Ummayah and Abbasids down to the present. How can a so-called Islamic government under the control of kings/dictators, capitalists, and/or priests implement the Quranic economics of Zakat when, in fact, they are the ones who corrupt it? The Quran does not even recognize their existence, let alone allow them to rule in the name of God. In fact, the Quran condemns religious priests who unjustly devour people's hard earned wealth (9:34).  

Zakat Must Lead to Growth and Development of All

The term “giving Zakat ” means a) making available to all human beings the provisions of growth and development by providing equal opportunity within its jurisdiction and b)  purifying a corrupt economic system. This is in contrast to the present situation where the governments “ take away (a ritual) Zakat ” instead of “giving (the Quranic) Zakat ” to the people as instructed by Allah.  

In the first place, the duty imposed by Allah for “giving Zakat ,” i.e. making available the provisions of growth and development, cannot be fulfilled unless the Quranic government has the capability to discharge this responsibility. The needs of the people determines how much Zakat is taken. Zakat is not a special religious tax or levy that is different from the government tax.  In a Quranic state it is not possible for some people to hoard  material possessions beyond their needs and indulge in excesses, while the rest are deprived of the basic means and provisions of life. The Quran explains the justification for this. 

i. The Earth is the source of all the provisions of life. Like water, air and light, the Earth has been created by Allah for the benefit of all . Therefore, no one has the right to own it except Allah. We, humans, are only the trustees and  beneficiaries. We are not owners. As discussed in the second part of this article, the claim of ownership of any part of the Earth by human beings is shirk in the sight of Allah.

ii. In this system, individuals cannot hold onto surplus wealth.  

“ O Rasool! your companions ask you about the use of those things which benumb the human intellect e.g. wine etc. and about easily acquired money. These things are beneficial to some degree but the damage they do is far in excess of the benefit.

They also ask you as to how much they should spare for the help of others. Say: all that is surplus to your needs [*3] (7/199).

In this way Allah Almighty makes His Laws clear to you so that you may reflect upon matters relating to this world as well as the Hereafter” (2:219). 

iii. Surplus wealth should go to the treasury ( Baitul Maal ) of the Islamic government, as was the case during the time of the rightly-guided Khalifas. Therefore, in this system, there is no question of individual, or group investment.

iv. This system will provide all the basic needs of life like housing, hospitalization, and education. No one will need to borrow money with interest for the above; no one will have surplus money to invest with interest.

v. The question of individual business for profit also does not arise in this system. Shops will be cooperative distribution centers, not sources of individual profit. Those who run the centers will receive compensation for their efforts.   

[Note: Some may claim that the above advocates Communism. Nothing can be farther from the truth. Contrary to Islam, Communism does not believe in any power higher than itself.  While people in a Communist state work for the good of the state in this life, Muslims work for the benefit of all to develop the individual soul for the Afterlife.]  

Interest-free Economics Based on the Quran 

The economic system of the Quran must be run on an interest-free basis. While this topic is hotly debated in Islamic circles, the proponents of interest-free Islamic economics mostly seek ways to adapt it to Western capitalism. But the economic system of Zakat , grounded in the Quran, is unique, relying on the desire of individuals to uplift themselves morally and spiritually, not materially.  Brothers and sisters! Just as Islam is opposed to Communism for putting the State before God and the “Self”(Soul), it is also opposed to Capitalism for putting money before God and the “Self.” 

The term Riba in the Quran encompasses more than “interest.” Riba is the foundation of an economic system that is so directly opposed to the economic system of the Quran that Allah asks believers in the Quran to declare that this system is a war against “Allah and the Prophet (PBUH)” (2:279) and, therefore, to fight it. Ironically, today our Ulema occupy themselves with seeking solutions to the Riba -based economy of an un-Quranic system. Otherwise, what other explanation could there be for Imams (religious leaders) and Fuqahaa (religious jurists) who allow indirect silent partnership in business or land (read investment), a relatively mild form of exploitation compared to Riba ? [Detailed discussion of Riba requires a separate article.] 

To recollect, our discussion of Zakat thus far can be summarized as follows: 

1) Whatever is collected in the name of Zakat nowadays is really a charity. It has nothing to do with the Quranic Zakat.

2) For Zakat , the existence of an Islamic government based solely on the Quran as its Constitution is essential (22:40). This must replace any man-made economic system (like Capitalism or Communism) or purify any system based on an amalgamation with the divine system like the one based on the so-called “Shariah” developed under the Abbasi rule.

3) It is this government that can truly give (the Quranic) Zakat   (“ Aatawuz Zakat ”) to its people by providing the means of growth and nourishment to everyone equally while demolishing such barriers as wealth, status, race, gender, ethnicity, language, etc.

4) To discharge this responsibility, the entire revenue of this government can be called Zakat. There cannot be a permanent fixed-for-all-time Zakat rate or Zakat items. The government will determine these based on the needs of the time and place. Whatever the Prophet ( PBUH ) fixed was based upon the needs of his time and place and was not meant to be permanent for all times and all places.

5) The charitable contributions to deal with emergency situations are called Sadaqaat (not Zakat ) by the Quran.  

Incentive for Giving 

As we have seen, according to the Quran, it is the responsibility of the Islamic state to provide equal opportunity to all as a basic human right for growth and development. For this purpose, every family returns its surplus wealth to the Islamic state (2:219). Moreover, it is the duty of Muslims to extend this system to include the entire humanity (1:2). 

What is the incentive that will drive people to give their surplus wealth to the Islamic system willingly?  What benefit will the individual derive who gives his/her surplus wealth to this system?  

Without satisfactory answers to the above questions, people will not be motivated to part with their surplus wealth. No one wants to part with his/her hard earned money without receiving some benefits in return.  The Quran says:

(Some may argue that if Allah Almighty has created everything why is it that there is evil along with good. The conflict between evil and good is necessary for the evolution of the universe. This may be understood by means of the following examples). Allah Almighty sends down rain from the heavens and this causes streams to flow and the deluge which follows sweeps away all the dirt in the soil (leaving clear soil behind). Similarly, when metals are used for making ornaments or other articles of use, they are purified by being put into the fire which separates the impurities (and the pure remains). As a result of the conflict between truth and falsehood the negative forces pass away like scum but that which is beneficial for the humanity endures. This is how Allah Almighty explains His laws by means of analogies . Ar Rad 13:17

The above verse reveals clearly and beautifully the answer to our questions: only that system will stay forever which is beneficial to all of humanity. This is the fundamental law that decides whether a system or an ideology is capable of being maintained or is transient and will disappear. According to this law, a system which is designed to benefit only a particular group or nation, will disappear sooner or later.  The ruins of past empires (including  Muslim ones) attest to the effectiveness of this law.

Therefore, when we choose an ideology of life other than what the Quran prescribes, we have to face the consequence of that choice.

Two Alternatives, Two Choices

Individuals tend to work for their own benefit. This is the driving force which motivates people to work. But according to the Quran:

Ø That system in which everyone works for one's own individual benefit does not have the ability to stay—no matter how much tinkering or patch-up job is done to save it. On the contrary,

Ø The system in which everyone works for the benefit of entire humankind will stay forever. It stays on the basis of its own intrinsic strength and power.

In the second system, individual benefits are not ignored.  They just do not occur immediately or directly. Rather, they occur indirectly – and in the long run, while, in the first system, everyone gets his/her individual benefit right away. The Quran calls this  short-term gain or Mataa‘uddunya , while the long-term gain that comes to a person who has shared and circulated his/her worldly benefits with humankind, is called the future benefit or Aakhira . This is also referred to as the life of the future or Ha-yaatul Aakhira which includes the life after death as well (87:16-17).

Thus, according to the Quran, an ideology based on the welfare of the individual is short-sighted and doomed to perish, while the one based on the welfare of the entire humankind is just.

The Quranic Ideology: Universal Welfare

The Quran does not advocate this ideology on the basis of emotion or blind faith. Unlike other religions, the Quran provides objective proof for every claim it makes. So, why is an ideology based on the welfare of an individual or a family, or a race, or a nation wrong while the one based on universal welfare right? The Quran explains it through a practical example and provides an objective proof for this claim.

If human beings lived only at the animal level, then it would have been acceptable to look for one's own self-interest. Eating, drinking, and the pursuit of happiness from material things in life would have been their goal (47:12). But life at the human level is different than at the animal level. Animals do not have a sense of tomorrow or future.  This distinguishes human beings from everything else in the universe. The human body in this world, which is a vehicle for the “self,” or “soul,” is left behind while the soul journeys on to another dimension which the Quran calls Ha-yaatul Aakhira , just as the mother's womb is a vehicle for the fetus which eventually separates and journeys on independently.

It is this sense of a larger future (or future life) that binds a human being with the rest of humanity just as individual members of a family work together for the future success of all the family members. Working for the benefit of humanity's future leads, in turn, to development and growth of the “self,” an essential requirement for each individuals' future journey. The Quran says:

This diversity is for the distribution of functions (labour). (Due to this distribution, the aims of your endeavors in social life are different. This is how the system functions so smoothly.

If you consider that this distribution of labour divides humanity into schisms, one having no connection with the other, then this is a misconception. If you superficially look at day and night, or the distribution between men and women, you will find that each one of them appears to be different from the other. However, if you look more closely, you will notice that both are linked with each other. They are branches of the same origin as well as facets of the same fact. Inspite of this distribution of labour, human beings are an indivisible unit. Surah Al-Layl 92:4-18

Human efforts are spent in different directions. But the one who “gives” (Muttaqi) saves himself/herself from dangers. (The root of Taqwa is: protection from dangers, therefore Muttaqi is one who is protected).

The above verses also provide the motivation for why one should “give.”  “Giving” achieves two things. First, it provides a source of nourishment, growth and development at the physical level. This is so obvious that it does not require further elaboration. Second, what is not so obvious is how it affects the non-physical or “human” aspect of life. In the interest of simplicity and brevity it is said that “giving” leads to spiritual growth. But what is this spiritual growth and how does it occur?

Human Activity Is Subject to Higher Law

The Quran explains in concrete terms that “spiritual growth” is not something imaginary or metaphysical. It says there is a higher law that operates on the “self” just as the physical law operates on the body. This higher law is that the “self” grows by giving whereas the body grows by “taking.” Let us see a rational explanation for this law.

When human beings employ intelligence as a tool, human emotion tries to fulfill its ambitions and desires to excel by competition. Since human intelligence knows no other world than its own, it guides human beings to compete for this world. This is the material concept of life in which people try to outwit each other in conflict situations using every means, primarily power, money, influence. This is amplified several folds (in terms of its influence and impact) at the national and international levels. The Quran says that this way of life is transient, leads to waste of human potential, and ultimately to human catastrophe. 

(Their eyes are always set on quick worldly gain, although according to the Quranic concept of life) These are merely toys that provide temporary amusement. You may use them as ornamentation or decoration and boast about them. You may pride yourself that you possess more than others or compete amongst yourselves in respect of wealth and children. (These things too are important, provided they are used/utilized for achieving a higher goal in life. However if they are taken as an end in themselves then this is a false concept). The gain you get from it can be described like the parable of a crop that sprouts and swells after a few drops of rain and the sight of which delights the farmer. However with a little bit of heat it starts to wither, turns yellow and then crumbles to dust, eventually becoming a grave calamity for the farmer. There is only one way to get out of these disasters and that is to keep one's struggle in harmony with Divine Laws.

Listen once again. If this worldly existence is taken as an end in itself one can certainly acquire comforts, but these would be temporary and cheap. Human beings are deceived in this way (16:92; 83:36; 102:1) . Sura Al-Hadid 57:20

Human Desire to Compete Cannot Be Crushed

Thus, according to the above verse, the Quran recognizes the very real existence of the human emotion to compete. But it also warns that the end result of the competition for material things is short-lived. The race for material things weakens rather than strengthens the human “self” and character. Instead, the Quran tells us to compete in a different arena, one which will not only strengthen our character and “self”, but the results of which will encompass both this world and the hereafter:

(The instinct to excel over each other is natural in every person4; but you have selected a wrong field in which to satisfy this desire. The right field is that) You should seek protection from destructive forces by following Divine Laws and working towards the Jannat whose comfort, bliss and happiness are spread throughout the universe. It is not confined to one place but covers the heavens and earth (3:132). It has been prepared for those who believe in Allah Almighty and His Rusul. These comforts and luxuries can be obtained by everyone who wants to achieve in accordance with Divine Laws. Allah Almighty is the Giver of abundant comforts and bounties. So if you want to excel, do so in this field. Al-Hadid 57:21

This competition leads to a system in which Allah's bounty flows like a continuous river – a river that covers the breadth of the heavens and the earth—satisfying everyone's needs in this life and extending to the other. No one, in this system, erects any barriers in this free flowing economic bounty (garden) of life. Rather, everyone seeks forgiveness from Allah from such acts so that this bounty remains freely available for nourishment and growth for all, as Allah has promised (1:2, 17:31).