83
Taken from the literature of Hizb ut-Tahrir

اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

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Page 1: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Taken from the literature of Hizb ut-Tahrir

Page 2: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Ideology: Creed and Systems

Systems

Creed

Every Ideology has a set of fundamental concepts known as “Creed” from which specific Systems emanate

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Ideology: Creed and Systems

Economicsystem

Economicsystem

Judicialsystem

Judicialsystem

ForeignPolicy

ForeignPolicy

Socialsystem

Socialsystem

EducationPolicy

EducationPolicy

Rulingsystem

Rulingsystem

CreedCreed

Systems emanating from the Creed

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Creed: A comprehensive idea about life and what is beyond it

After LifeMan, Life, UniverseBefore Life

Relationship

A comprehensive thought must answer following questions What is man, life and the universe? Where did life come from (What is before life)? What happens after death (What is after life)? What is man’s purpose in life (What is the relationship of this life with that which

preceded it)? What is man’s motivation to fulfil his purpose in life (What is the relationship of

this life with whatever is after life)?

Relationship

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Secularism

One canbelieve in life(s)

after death

Man, Life, UniverseOne can believeIn a Creator(s)

Secularism professes the following concepts Instead of arriving at a conclusion based on enlightened thinking regarding the

existence of a Creator, the idea of secularism advocates a compromise. Hence one can believe in the existence of a Creator and the Hereafter if he wants or reject it altogether.

They refuse to accept any role of the “Creator” in life affairs even if He exists. Man’s purpose in life, his motivation to carry out actions, his behaviour with others and

himself would be defined by man himself rather than the Creator. The people’s representatives would decide, based on majority, as to how the society

should organize its affairs; how should people carry out economic, ruling and social transactions etc.

Lawmakers should legislate upholding freedom, equalities and national interest.

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Capitalism: Extracting Systems from Creed

Secularism

Freedoms & Equalities Morality Interest & benefit

Economic Ruling Social JudicialEducation

PolicyForeignPolicy

Majority

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Islam: Sources of Legislation

Aqeedah

Qur’an(Nass)

Sunnah(Nass)

Ijma us-Sahaba

Qiyas

The primary sources of Legislation are: Qur’an Sunnah

There are two other sources indicated by the primary sources Ijma us-Sahaba Qiyas with ‘illa Shariya

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Islam: Extracting Systems from Creed

Aqeedah

Qur’an Sunnah Ijma us-Sahaba Qiyas

Economic Ruling Social Judicial EducationForeignPolicy

Ijtihad 1

(Only for Zanni text)

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Ideology: Creed and Systems

Creator

Man Man

Ibadat

Muamilat

Akhlaq

Every Ideology organizes three relationship of man

Man with CreatorMan with ManMan with himself

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Page 11: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Which country is this?

37 million people live below the official poverty line—12.6 percent of the total population

At least 2.3 million people experience homelessness at some point each year, including nearly 1 million children

The richest among them has more wealth than the bottom 45 percent of the households combined

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Answer

United States of America

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Page 15: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Rich getting richer and poor getting poorer

Microsoft CEO Bill Gates has more wealth than the bottom 45 percent of American households combined.

Business Week reports that in 1999 top executives earned 419 times the average wage of a blue-collar worker, up from 326:1 in 1998. In 1980, the ratio was 42:1.

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Percentage of wealth held by the Top 10% of the adult population in various Western countries

Concentration of Wealth in the West

Countrywealth owned

by top 10%

Switzerland 71.3%

United States 69.8%

Denmark 65.0%

France 61.0%

Sweden 58.6%

UK 56.0%

Canada 53.0%

Norway 50.5%

Germany 44.4%

Finland 42.3%

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Year Poor: Rich ratio

1820 3:1

1913 11:1

1950 35:1

1973 44:11992 72:1

Where is the world headed!!!!!

An analysis of the trend of the widening gap between the rich and the poor countries

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System not Resources

Pakistan's misery due to the rotten Capitalist system not because of lack of resources!

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Islamic Economic Systemvs

Capitalist System

Comparison

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Economic ProblemKhilafah Democracy

Human needs are of two typesBasic Needs (limited)Luxurious Needs

World resources are enough to fulfil basic needs of all the people of world 1

Human needs are unlimited while there are limited resources to fulfil them

Solution:Distribution of wealth and resources to

guarantee all basic needs to each individual

Create opportunities so that maximum number of people can work to fulfil there luxurious needs

Solution:Needs of all the people won’t be

fulfilledIncrease Production to fulfil

needs of as many people as possible

Rules related to collection of funds and its distribution constitute “Economic System” and cannot be taken from other than Islam

Methods to increase production is “Economic Science” and can be taken from other civilizations including the West

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The United Nations Development Program (UNDP) reported in 1998 that the world's 225 richest people now have a combined wealth of $1 trillion. That's equal to the combined annual income of the world's 2.5 billion poorest people.

As of 1995 (the latest figures available), Federal Reserve research found that the wealth of the top one percent of Americans is greater than that of the bottom 95 percent

According to the US Census Bureau, 35.9 million people live below the poverty line in America including 12.9 million children. (http://www.census.gov)

The wealth of the three most well-to-do individuals now exceeds the combined GDP of the 48 least developed countries

UNDP calculates that an annual 4 percent levy on the world's 225 most well-to-do people (average 1998 wealth: $4.5 billion) would suffice to provide the following essentials for all those in developing countries: adequate food, safe water and sanitation, basic education, basic health care and reproductive health care.

Resources are limited- Non sense

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Ownership

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Economic System:

Ownership & Types of PropertiesKhilafah Capitalism

Three types of ownershipIndividualPublicState

Oil, Gas1, non-delectable minerals2 etc and anything on which society depends and people will disperse in pursuit for it, remains in public ownership

If these were owned individually this will deny the public from benefiting from these huge resources, creating misery for the common man

Freedom of ownershipIndividuals or companies

can own anything and everything

Multinational companies are ‘free’ to own public properties such as oil, gas, parks etc

They are ‘free’ to spend or hoard the wealth as they please

Huge resources for people’s welfare Cost of utilities much lower The foundation of economic colonisation

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Page 25: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Economic System:

Pakistan’s Privatization DrivePrivatized To Be privatized

ABL, HBL, UBL, MCBBankers Equity LtdHub Power Co, Kot Addu Power CoPTCL (Ufone, Paknet, TIP, CTI)Steel Mill (Decision Reversed)Ghee Corporation of PakistanKESCUCH Power Ltd, Saba Power LtdDharki Power LtdOil and Gas exploration Licenses are

innumerable

OGDCL, PSO, PPL, SNGPL, SSGPLNIT, ICPSindh Engineering, Bolan TextileLyallpur Chemical and Fertilizer Co.Javedan Cement, Karachi ShipyardRepublic Motors, Lasbella TextilesHeavy Mechanical ComplexHPFL (Hazara Phosphate Fertilizer

Limited)Jamshoro Power Co, Pak Arab

Fertilizer, Mustahekam Cement

In first ten month of 2004-2005 assets worth $3.6 billion has been sold: Survey 2005:2006

Current year privatization target is 75 billion rupees.

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Taxation

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Taxation in a Capitalist System

Tax the poor and average man

Give tax-breaks to the Rich Multinational companies Landlords

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Taxes in America

Who Benefits from Bush's Tax Cuts?

George Bush's 2001 $1.3 Trillion tax cut was the largest in US history

The Top 1% supper-rich got 37 % of Bush's tax cut as saving ($481 billion)

Whilst the bottom 80% of Americans only got 29 % of the total tax cut ($377 bn)

The tax cut savings clearly shows that Bush works for the Super-Rich, and that he is willing to promote their interests above those of all other Americans

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Taxes in Pakistan

Agriculture sector in Pakistan contributes 40% to the GDP whilst astonishingly its contribution to the tax revenue is a meager 1%

GST, which is an indirect tax extracted from common man, constitutes 37% of the total tax-revenue of Pakistan

No Zakat taken from the land mafia which owns billions of rupees of land for the last decade or so. Islam requires a Muslim to give two and half percent of the value of the tradable goods in alms as Zakat

Currently No Ushr and Kharaj being levied on Agriculture produce

No wonder in democracy the elite legislate laws to tax the poor and give tax breaks to themselves

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Taxes Comparison

2009-10 2008-9

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Evidences

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Economic System:

Taxes

Khilafah CapitalismNo Taxes on common man1

GST, Income Tax, Withholding tax, toll taxes etc are all haram and will be abolished

There will be following permanent taxes Al-Kharaj 2

Al-Jizya 3

Al-Ushr 4

The fifth of Al-Rikaz 5 (hidden treasures minerals)

Import and export duty on foreign traders 6

Zakat on import and export of the Muslim Trader 7

Hima (Protecting from public properties)

63.93% (Rs 840 billion) of revenue of Pakistan comes from taxes on the people as per the budget 2006-07 figures.

Out of these taxes 67.66% (Rs 569 billion) are indirect taxation that are to be paid by even a beggar, unemployed, handicapped, widow, elderly people and children without

any differentiation.

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Laws related to Agricultural land

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Economic System:

Agriculture and Land lawsKhilafah Capitalism

Lease of agricultural lands (Muzariyat) is haram1

Leasing of agricultural lands is permitted

Agricultural land if not used for 3 years will be confiscated2 and allotted to someone who would cultivate it

No such restriction applies to an owner. He is “free” to do whatever he pleases

Anybody who occupies a dead land (outside the planned city area) and revives it by building a house or a factory etc becomes the owner of the land as well

No such incentive in the current Pakistani system

Prohibition of Muzarat coupled with obligation to cultivate land will give rise to land distribution of optimum productivity

Eradicates injustice to Muzarays. Delivers a fatal blow to the colonialist Feudal system (“jageer darana nizam”)

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Evidences

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Economic System:

Agriculture and Land laws

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Evidences

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Evidence

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Residential LandKhilafah Capitalism

The State guarantees housing for the one who is in capable to build a house for himself and his relatives are also poor cannot support him

The Prophet (SAW) said: “The Son of Adam has rights to food, clothing and shelter.”

The system doesn’t allow the people to use the resources which Allah has bestowed to man

Common man’s biggest problem in building a house is the inflated prices of residential land that can easily be solved through the Khilafah state.

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Currency

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Currency

Khilafah CapitalismMetallic Currency

Gold SilverAny other precious metalCurrency notes can be used in lieu

of gold and silver

Fiat currency backed by confidenceDollarEuro

Protects the currency from foreign controlPuts a check on devaluation and fake inflationReturn of the Gold standard will strike a fatal blow to the

colonialist economy

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Riba

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Evidence

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RibaKhilafah Capitalism

Interest transactions not allowed1

No interest based debt servicingEncourages the wealthy to under

take local investment rather than depositing their money in high interest deposit accounts

Freedom of ownership allows people to hoard money

Riba is the bate for the people to take money out of circulation/ investment and to put into deposit account

In 2006:07 Pakistan will pay 295 billion rupees in interest payment. This is 55 billion more than all foreign loan and grants for the year.

Relief to common man/ investorNo interest servicing to IMF and WB.

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Investment before the advent of Banks

Investor Skilled labour

Inventor

Investor

Investor

Investor

Investor

Investor

Businessman

Entrepreneur

Trader

In a society devoid of Banks investors are in need of entrepreneurs and businessmen to help increase their wealth

On the other hand the skilled labour, inventors and businessmen are in need of investment in order to generate more wealth

Hence it is a marriage of convenience for both parties

They join together in a partnership to benefit from each other such that the investor bears the risk and the other partner does the work

Page 47: اسلام کا معاشی نظام بمقابلہ مغربی سرمایادارانہ نظام

Bank monopolizes the wealth of the society

Investor Skilled labour

Inventor

Investor

Investor

Investor

Investor

Investor

Businessman

Entrepreneur

Trader Bank

Bank’s Profit = (20-12)%

12%12%20%20%

ProfitProfitInterestInterest

The Bank drains the society off of its wealth by guarantying the investor of sure profit (interest)

As a result an entrepreneur and skilled labourer is forced to borrow money from the bank on exploitative terms.

According to the contract not only the borrower has to pay hefty interest but he also has to return the principle amount in full even though if his business was in loss.

This produces a win-win situation for the investor and the bank. Hence the rich becomes richer and the poor poorer

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In Muslim societies Banks were not very successful

Investor Skilled labour

Inventor

Investor

Investor

Investor

Investor

Investor

Businessman

Entrepreneur

Trader

Bank

Bank’s Profit = (20-12)%

12%12% 20%20%

ProfitProfitInterestInterest

In Muslim societies since people considered Interest as haram therefore Banks was not in total control of the money flow in the society. Billions of dollars of money remained outside Banks control. And skilled labour didn’t need to go to the bank to borrow money as investors were there to help them.

As a result banks who thrive on monopolising the money and then forcing people into exploitative contracts couldn’t function properly.

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Islamic Banking is helping Capitalist Banks

Investor Skilled labour

Inventor

Investor

Investor

Investor

Investor

Investor

Businessman

Entrepreneur

Trader

Bank

Bank’s Profit = (20-12)%

12%12% 20%20%

ProfitProfitInterestInterest

IslamicBanking

$$$

The Banks opened up a Window for Islamic Banking through which Muslims were encouraged to give their money to the banks instead of investing it themselves following Islamic laws

This achieved the objective of draining the society off of wealth and hence the skilled labour has become more dependent on the Banks

Hence Islamic Banking has actually helped Capitalist system by having stronger grip on the money flow and hence exploit the masses

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Islamic Banking in the Capitalist system

Islamic banking is also tool a via which the Imperialist forces engage sincere Muslim in the current Kufr system and deceive them in believing that they can have an Islamic system within the frame work of the existing Kufr Capitalist system. As a result enormous time and effort is wasted in trying to “reform” this kufr system instead of uprooting it and implementing Islamic system in a comprehensive and radical manner

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Banking SystemKhilafah Capitalism

Bank do not serve as financial intermediaries. Hence in capitalist sense there are no banks.

They will provide services of the like debit card, LC for import export, Online fund transfer, internet payments, etc.

They will facilitate/establish communication between the investor (Muwakkil) and worker (Mudharib)

Banks acts as financial intermediaries

They provide services like debit card, LC for import export, Online fund transfer, internet payments, credit cards. Financing for various heads on interest etc

A source of hoarding of wealth

Khilafah takes advantage of financial institutions providing financial services and networking whilst protecting the masses from the current banks system which spread their evil through hoarding of wealth, marginal reserve system and interest etc.

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Banks in the Khilafah

Inventor

Investor

Investor

Investor

Investor

Businessman

Trader

Bank

• Bank is not a part of the financial contract

• Bank is only a financial adviser and facilitator similar to that of a property dealer

• Only introduces the two parties and takes service charges for its effort

The banks will continue to undertake all non-interests based services and take service charges on them such as: Current accounts for its

customers Money Transfer Cash Station Cards Lockers for valuable items LC (Bank as a Guarantor)

The banks will act as financial advisors and facilitate the marriage of investors and entrepreneurs /businessmen etc.

Government bank will also provide grants and interest free loans to its citizens to enhance economic activity

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Company Structure

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Company StructureKhilafah Capitalism

All contracts should conform to contracts laid down by shari’ah. Hence exploitation of the needy is not possible

Man made laws aimed at benefiting corporates are to be complied. Rules have been written to benefit those who wrote them. Golden rule! “he who has the gold rules”

Public limited companies Illegal. i.e. no stock exchanges, futures trading etc. in Khilafah

Stock-exchange an integral part of western corporate business.

Speculative contracts lead to fiat (Alternative) economy and indexes which is used by the corporations to loot common man’s money while keeping them in dark as happened in the latest saga of energy giant Enron and second largest telecom company WorldCom.

Khilafah’s economy will be protected from economic crisis as were witnessed in South East Asia during the late ’90s when “Asian Tigers” were wiped by the powerful foreign investors

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Stock exchangesKhilafah Capitalism

No stock exchanges are there in Khilafah.

No speculative transactions are allowed as per Islam. Investment is done only in real trade strengthening economy.

No chance of drowning of money in stocks as recently happen when 4 billion dollars of small investors were lost in a matter of a week when KSE index dropped from 10,000 to 7000 points.

A major portion of investment is done in stocks whose more than 90 % portion has nothing to do with real trade.

Real trade has gradually been reduced to less than 10 % of international trade and 90% is only financial transaction.

Last year stock market crashed several times drowning trillions of rupees of investors.

Stock exchanges are a source of diversion of investment from real trade to speculative business.

If all the money that is invested in stocks is directed to real trade it will give rise to a robust economy

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Valid Companies in Islam

Khilafah CapitalismThe Company of Equal (Al-’Inan)The Company of Bodies (Al-Abdan)The Company of Body and Capital

(Mudharaba)The Company of Reputation Faces

(Wujooh)Company of Negotiation (Mufawadha)

Public Limited Company

Private Limited Companies

Guarantee Limited

Unlimited Company

A Man is not separate from his company

He is responsible for the debt of the company. He the stake holder money is safeguarded

A man can not hide behind the corporate rules at the time of bankruptcy

The Company and the owner are two separate distinct bodies

Owner is not responsible for the debt of company beyond his investment

Owners always hide behind the corporate rules at the time of bankruptcy.

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Zakat

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Zakat

Zakat is only taken from Muslim citizen after the passage of one year if his wealth exeeds Nisab which is different for different catagories

Liquid Currency Stocks (Raw material or Finish Goods)Receivable – DebtsLive StockLand (Ushr)Any tradable commodity including property

Hence as a whole more than 2.5% of the total wealth of the economy is collected from the society and injected back into the poorest echelons of the society.

This is a tremendous mechanism of producing a balance in the distribution of wealth within the economy apart from other Ahkam of Islam which allow the down trodden people to improve their economic situation

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Foreign Loans

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Foreign Loans- no way

Khilafah CapitalismTaking Foreign loans would not be

allowed 1

Membership in colonial organisation is also not allowed like Paris club, ADP, Islamic Development Bank, World bank and of course IMF.

Foreign loans are the integral part of Pakistan’s capitalist economy

This year 239 billion rupees will be received as different type of foreign loans.

In 1980 Nigeria took a loan of $3.5 billion from the Paris club. By 1985 this debt had risen $5.8 billion. By 1998 it had risen to 20.9 billion, and is today estimated at 27 billion.

Sovereignty of Pakistan was mainly eroded due to foreign loans

IMF and WB dictate all our internal policies under the guise of ‘reforms’ and ‘good governance’

Khilafah would liberate us from IMF & WB Structural Adjustment programmes (SAP’s), Poverty reduction strategy Papers (PRSP) conditionalities and improve our economy

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Evidence

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Economic System:

Foreign Traders − not MNC’sKhilafah

Foreign trade is assessed on the basis of the citizenship of the trader and not the origin of the goods except goods from countries we are in actual war with like Israel.

Merchants from countries that have treaties with the State are treated according to the terms of the treaties

Merchants from countries in a state of war with the State are prevented from trading in the State, unless given a special permission

Any country with whom we have actual war with, its citizens (such as Israel) is excluded from these rules. The rules applicable to the actual land of war (Dar al-Harb Fa’lan) apply to such country in all the relations

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Trade

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Economic System:

Local TradersKhilafah Capitalism

Merchants who are subjects of the State are prevented from exporting any goods that the enemies could benefit of militarily, industrially or economically

No such provision, hence Pakistan is helping India fulfil her energy needs by building two gas pipelines. Which would further strengthen Indian industry and Military to be used against Muslims of Pakistan

This Trade Policy protects the state from potential enemies in the future

They are not prevented from importing any property they own under the pretext of protecting the local industry

The government hurts the local trader under the pretext of “Smuggling” while reduces import duty to give monitory benefit to the foreign trader under the guise of “foreign investment”

There is nothing known as “Smuggling” in Islam as long as the citizen of the state imports Halal items

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Import export dutiesKhilafah Capitalism

A Muslim trader only has to pay Zakat (2.5%) of the property during import and export once a year1

No import or export duty other than zakat

Import and export duties may be as high as 15 to 20%.

Import duties on luxury cars reduced to suit the rich

A Zimmi (non-Muslim citizen) will pay according to the contract he had with state at the time of conquest 1

No such distinction

A Harbi (foreigner non-Muslim) will pay the same percentage of duty as his country applies on the traders of the Khilafah 2

No such distinction

Low import and export duties will enhance trade and improve not only the conditions of the trader rather it will also help our exports

In a Capitalist state people in the legislative assemblies reduce and increase duties to suit their interests and make money.

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MiscellaneousAhkam

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Evidences1. The hoarding of gold and silver was prohibited explicitly in the Qur’an. Allah (SWT) says: “And let those who hoard

gold and silver and do not spend them in the way of Allah know that a severe and painful punishment is awaiting them.” [At-Tauba: 34] This warning of severe punishment for those who hoard gold and silver serves as a clear evidence that the Law Giver has decisively ordered us to refrain from doing so; it is therefore forbidden to hoard gold and silver.

2. Islam prohibited pricing absolutely, due to what Imam Ahmad narrated from Anas who said: “Prices increased at the time of the Messenger of Allah , so they said, O Messenger of Allah, we wish would you price (fix the prices). He said: “Indeed Allah is the Creator, the holder (Qabidh), the Open-handed (Basit), the Provider (Raziq), the Pricer (who fixes prices); and I wish I will meet Allah and nobody demands (complains) of me for unjust act I did against him, neither in blood or property.” Also Abu Dawud narrated from Abu Huraira, he said, “A man came and said, O Messenger of Allah, fix prices. He said: “Rather Allah reduces and increases.”

3. S’aid ibn Al-Musayyab narrated from Mu’ammar ibn Abdullah Al-‘Adawi in Bukhari that the Prophet (saw) said: “No one monopolises except the wrongdoer.” Al-Athram narrated from Abu Umamah, he said: “The Messenger of Allah (saw) forbade that a foodstuff be monopolised”. And Muslim narrated through his chain of narrators from S’aid ibn Al- Musayyab that Mu’ammar said: “The Messenger of Allah (saw) said: “Whoever monopolised is a wrongdoer.”’ Monopoly is prohibited (Haram) in all things without a difference between the human foodstuff or animals foodstuff, a foodstuff or not, and of the people’s necessities or luxuries. This is because the linguistic meaning of the word monopolised (Ihtakara) is to compile a thing in its absolute sense (without specification). The word monopolised did not come in the meaning of compiling the foodstuff or the people’s necessities, rather compiling the thing, so it should not be confined to other than its linguistic meaning.

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Evidences

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Economic System:

Hoarding of Wealth & Price Fixing

Khilafah CapitalismHoarding of wealth (money) is

haram and state will take practical steps to prevent it 1

People are “free” to hoard wealth for no reason

Islamic system ensures circulation of wealth In Capitalist system banks offer “interest” to encourage

people to inject money into economy

Islam prohibits price fixing 2

Islam prohibits monopoly 3 Capitalist are still in dilemma as to how

to get rid of monopolies; e.g. Microsoft break up litigation

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Evidences1. The Islamic economic system came to secure basic needs, irrespective of market conditions for such products.

Muhammad (SAW) said, “The son of Adam has no better right than that he would have a house wherein he may live and a piece of cloth whereby he may cover his nakedness and a piece of bread and some water.” According to this principle the Islamic State must ensure for all its citizens (Muslims or Non-Muslim) of the Islamic State a security which western people will never achieve in the heartless obduracy of the application of its free market.

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Economic System:

Basic needs of the massesKhilafah Capitalism

Basic needs of all citizens are guaranteed such as food, clothing, shelter, education, health etc.

The land laws discussed earlier allow people to attain self-sufficient in food and housing as explained above

In the purest form of capitalism there is no concept of public welfare.

Khilafah alleviates the suffering of the massesDecreases crime and insecurity in the societyProduces a secure economic atmosphere which increases

economic activity and investment as the investor doesn’t run the risk of being homeless and struck by hunger in case of a loss

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Economic System:

State RevenuesKhilafah Capitalism

Sources of Bait -ul-Mal The booties and the spoil of war1, Al-Fai2 and the fifth3

Al-Kharaj Al-Jizya Protecting some Public property (Hima) 4

State property of land, building utilities and their revenues)

Al-Ushur Money attained illegally by the rulers, the employees of

the State, illicit money and money from penalties The fifth of Al-Rikaz (hidden treasures) minerals 5

The inheritance property of the one who has no inheritors 6

The property of apostates 7

Charity Funds – Zakat Taxes (only from the rich Muslims and in specific situations)

Predominant source of income is Taxes from the common people. People in the west are taxed upto 35% of their income

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Budget expenditureKhilafah

The expenditures of the State are based around seven areas:The Zakat funds – on fix 8 categories mentioned in the Qur’an.Spending money on the destitute and the poor to ensure their basic needs is a

must on the State.Spending on defence, heavy industry and security of the State as well as

carrying the Islamic Message to other lands.Allowances of State employees such as salaries of soldiers, civil servants,

judges, teachers and the like.Provide utilities to the people such as roads, water services, power services,

mosques, schools and hospitals and any other utility considered as necessity for the people.

Emergency expenditures such as during famine, flood, earthquake or attack by enemy.

Spending on development projects – Only if funds available

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Decision making in Autocracy (dictatorship of an individual)

Decision making

Legislative Mubah(General issues)

Mubah(needing expertise)

Economic Ruling Social JudicialEducation

PolicyForeignPolicy

The ruler

The ruler

The ruler

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Decision making in Democracy (dictatorship of an elite group)

Decision making

Legislative Mubah(General issues)

Mubah(needing expertise)

Economic Ruling Social JudicialEducation

PolicyForeignPolicy

Elite Group

Elite Group

Elite Group

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Decision making in Khilafah

Decision making

Legislative Mubah(General issues)

Mubah(needing expertise)

Economic Ruling Social JudicialEducation

PolicyForeignPolicy

Khaleefah is final authority after discussing with experts

People Through their representatives decide based on majority

Allah’s Ahkam Are implementedderived from thesources, Qur’an,Sunnah, Ijma us SahabaQiyas

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Ruling System:

Law making - the actual Cause of Corruption

Khilafah DemocracyPolitical system gets cleaned from

corrupt peopleThe representatives cannot use the

system to cover up their corruption by legislating laws for their own interests

“Professional politicians” find no reason to invest millions as the job of the representative is to be serving the Ummah rather than a source of money making and exerting power

Corrupt people are attracted towards politics like bees towards nectarThe process of law making gives

parliamentarians the authority to make laws to not only protect their interests rather legitimize their corruption

“Professional politicians” invest millions of rupees in elections and rear “Ghundas”, to keep sincere people out of the political arena

Once in power, the corrupt entourage of these “Professional Politicians” i.e. the local “Ghundas” become untouchables, free to take “Bhatta” and kidnap for ransom

Hence democracy is the actual source of corruption in the society. It starts from the politicians at the top and goes all they way to the bottom with local “Ghundas” and “Jaggas” who have the protection and backing of these politicians and Govt. institutions

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Ruling System:

Political Hierarchy (Flow Chart)

Khaleefah• Elected directly by the Ummah

Or• By Muslim members of

Majlis-e-Ummah

Ameer Al-Jihad

JudiciaryDelegatedAssistant

• Has all powers of ruling like the Khaleefah

• Has to report to Khaleefah after taking an action.

• His ruling can not contradict the adoption of Khaleefah

• Only has executive powers

• No ruling powers

• Implements rulings of the Khaleefah and brings him feedback from the Ummah

Executive Assistant

The State Departments

• Three types of qadies, Qadhi Aam, Qadhi Mohtasib, Qadhi Mazalim

• Qadhi Mazalim can impeach the Khaleefah. During the hearing the Khaleefah cannot remove the Qadhi

Governors

• Appointed by the Khaleefah

• Assists the Khaleefah in ruling and implementing Islam in the province

• Distributes income to public and collects funds for the State

• A body of the people which executes the Islamic State’s orders

• Motor vehicle dept.

• Zakah Collection dept.

• Marriage and divorce dept.

• And others

Majlis-e-Ummah

• Elected by the people to represent them• Short lists nominees for Khaleefah• Scrutinize newly adopted laws and

decision of the Khaleefah• Make the Khaleefah change the Walies

AllCitizens of

Khilafah

InternalSecurity

Industry

• Police and other law enforcing agencies

• Heads the millitary

• Responsible for their training

• Heavy Industry geared towards supporting Jihad.

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