Introduction to Economic System Part 4 ~ Islamic Education

The partial abolition of ownership in Socialism is a limitation of ownership by quantity, rather than by the ways and means of ownership. It prevents ownership of some properties, which by their nature and by the nature of their origin should be individually owned. Socialism either limits ownership in magnitude, such as limiting ownership of land up to a certain area, or it limits ownership of certain properties such as the means of production. Individuals could own many of these properties, by their nature. Ownership restrictions of this type of property restricts activity whether the restriction was pre-specified by the law, such as preventing inheritance, ownership of mines, railways, or factories; or if it were left to the State to decide, on a case by case basis, to prevent possession wherever public interest requires it to do so. All this is restriction of the activity of individuals, for individuals can own these properties by their very nature.


The organisation of production and distribution through people cannot (and should not) be achieved by inciting disturbances and anxiety amongst people, or by inciting hatred between them. This can only lead to anarchy, rather than organisation. Furthermore, the organisation of production in the community cannot be achieved naturally by making the working class feel the oppression of business people, since the business people could be smart and ingenious enough to satisfy the needs of the labour force, as is the case with the factory workers in the United States. So the working class does not feel the oppression in terms of having the fruits of their efforts exploited. In this way the evolution that would better organise production and         distribution would not occur.

This organisation should come through proper laws and solutions that are built on a definite basis that deals with the real nature of the problems. Socialism relies on organising the production and distribution, whether by inciting tension and disturbances amongst the working class, or by the natural law of evolution in society, or through manmade (Wadh'iya) legislation and canons that do not emanate from a definite basis or creed. Therefore this organisation is false from its basis.

This outlines the fallacies of Socialism. With regard specifically to the Socialism of Karl Marx, its fallacy appears in Three aspects:      

Firstly:
His view on the theory of value is erroneous and disagrees with reality. The view, stating that the only source for the value of the commodity is the work spent in its production, disagrees with reality since the spent work is only one but not the only source of its value. There are other elements, besides the work, that enter in the value of the commodity. There is the         raw material upon which the work was carried out or the demand for the benefit of the commodity as well. The raw material could contain a benefit that exceeds the work spent in its procurement such as in hunting for example. The benefit of the commodity could have no demand in the market, and be forbidden for export, such as wine for Muslims. So putting work as the only source of value is incorrect, and does not conform to the reality of the commodity as it is.

Secondly: 
His view states that the social order existing at any time is a product of the economic situation, and that the various transformations which befall this system are all due to one reason, which is the struggle of the classes for the objective of improving their material situation. This opinion is erroneous, baseless, and built upon a doubtful and hypothetical assumption. The reason for its error and disagreement with reality is obvious from historical events and the current situation. We see that the transformation of Russia into Socialism did not occur due to a materialistic evolution, or due to a class struggle that led to the change of the system. Rather, a group took over through a bloody revolution, and started to apply its thoughts upon the people, and changed the system. The same happened in Socialist China. The application of Socialism in East Germany rather than West Germany, and Eastern Europe rather than Western Europe did not occur as a result of any class struggle. Rather it occurred through the conquering of these countries by a Socialist State that imposed its system upon the conquered nations. The same occurred with the Capitalist states, with the Islamic State, and with any other system. Furthermore, the countries that this law predicted would change their system through class struggle, namely Germany, England, and the United States, are all Capitalist countries where the owners of capital and workers are many. They were not Czarist Russia or China, which were agricultural rather than industrial, and where the number of owners of capital and workers were much fewer in comparison to the West. Despite the overwhelming presence of the two classes in Western Europe and the United states, they were not converted to Socialism, and they all still apply Capitalism till this day. The presence of these two classes (i.e. Capital owners and workers) did not have any effect on their system. This alone is enough to refute this theory from its basis.

The third aspect of error in Karl Marx's theory appears in what he said about the law of social evolution, that the system of economic life is destined for extinction by the effect of the economic laws which control it, and that the middle class which won the battle against the class of the nobles i.e. the owners of the capital will ultimately evacuate their place for the labour class, due to the law of concentration. The theory of Karl Marx concerning concentration of production, on which he builds the increase in the number of the workers and the decrease in the number of the owners of capital, is false. This theory is false because there is a limit which concentration of production cannot overstep. So it arrives at a certain limit and stops and thus will no longer be a catalyst in the evolution imagined by Marx. Moreover, concentration of production does not exist at all in one of the main branches of production, namely agriculture. How then can the law of evolution occur in society? Besides, Karl Marx asserts that concentration of production is followed by concentration of wealth (resources), which results in a reduction in the number of financiers, and an increase in the number of workers, who own nothing. This view is erroneous, since the concentration of production could result in an increase in the number of capital owners, and could result in the working class becoming capital holders. The major projects, which are conducted by the large Corporations, usually have shareholders from the working class, which is an example that refutes this theory. Moreover, many of the working class in the factories has high salaries, such as engineers, chemists and managers, thus being able to save a great part of their salaries, and becoming investors themselves, without the need to establish independent projects. Therefore, what Karl Marx propounded about workers and evolution does not apply to them.

This is but a brief examination of the principles upon which the Capitalist and Socialist from which the Communist economic systems came is established. From this examination the fallacies present in these principles are apparent. This is on the one hand; on the other hand, both systems are contradictory to the Islamic method in addressing the problems and contradictory to Islam itself.

As to their contradiction to the Islamic method of solving the problems, one finds that the islamic method in solving the       economic problem is the very same method Islam uses in solving any of the other human problems. The common approach of Islam is to study the reality of the economic problem, understand it, and then deduce a solution for the problem from the Shari'ah texts after studying these texts, and to ensure that they apply to that particular problem. This is different from the Capitalist and Socialist method. In Capitalism, the situation that resulted from the problems, is used as a source for the solutions (pragmatism). In Socialism the solutions are taken from hypothetical assumptions that are imagined to be existent in the problem, and the solutions are put according to these assumptions. Each of these two methods is different to the method of Islam, so it is not allowed for a Muslim to adopt them.


The contradiction of the Capitalist and Socialist, including the Communist, economies to Islam is that Islam adopts its solutions as divine rules ( Ahkam Shar'iyyah) derived from the legislative sources while the Capitalist and Socialist economic solutions are not divine rules, but are from a system of Kufr. Judging on things according to them means ruling with other than what Allah has revealed, which is not allowed for any Muslim to adopt in any way. Their adoption is an open sin (Fisq) if their adopter does not believe in them. But if he believed that they are the proper rules and that Islamic rules do not suit the modern age and do not offer solutions to the current economic problems, then this is kufr, may Allah (SWT) protect us from it. 

Origin from : The Economic System Of Islam (Taqiyudin An Nabhani)


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