Crisis free economic justice - economy in the Khilafah

It is our privilege to be able to produce here for the first time the key note speech from the International Economic Conference held in Khartoum, Sudan on the 3rd of January organised by Hizb ut-Tahrir. This address was made by Abu Khaleel the official spokesman of Hizb ut-Tahrir, Sudan. Due to the length of the address, we will present it in parts. The introduction (today) followed by the balance over the next 3 days. The speech has been translated from Arabic.

The Islamic Economic System under the Khilafah State (providing crisis-free economic justice)

The importance of the economic aspect in man’s life is becoming more and more acute in the present times, so much so that nations consider economic might as a parameter of their strength, which can influence resolutions on global issues. Some even regard the economic weakness of the erstwhile Soviet Union as the reason for its breakdown and fall from its position of being the second most powerful nation in the world. Economics is so strongly linked to global politics that the colonial powers aspire to plunder the resources of the weaker nations and this is amply manifest in the General Agreement on Trade & Tariffs (GATT).

The most prominent of these examples is the United States of America whose political domination is a direct result of its economic stranglehold through American control of capital in industry, utilities and services, over the weaker nations’ production, and through manipulating them to suit its own economic agenda.

Crises like the global financial crisis, globalisation - in all its forms - including economic globalisation, financial globalisation, monetary globalisation, privatisation, alliances and economic unions, have emerged in the present times. The European Union (EU), the annual summit of the industrialised nations or the Group of 8 (G8), the North-South conferences, the meetings of the nations of the Mediterranean Sea, several other economic conferences and GATT are all examples of this trend. Then there are the multi-national and trans-continental companies and so on…

Yet, despite the several disasters caused by the Capitalist system, the West is convinced of its achievements, living conditions and committed to its systems. They are overwhelmed by its glimmer and gloss more than is deserved, and are smitten by its civilisation and institutions and follow it blindly. They believe that this system has no competition and cannot be replaced by anything else. This has resulted in them losing clear perspective and their own sense of identity.

A keen observer of the capitalist system would notice that the people who are beholden to it are the ones described by Allah (swt) in the Quran:

“They have hearts wherewith they understand not, and they have eyes wherewith they see not, and they have ears wherewith they hear not (the truth).” [TMQ 07: 179]

If one were to observe its reality, one would see all its past failures since its inception and not merely after the emergence of the current international financial crisis alone. One can clearly see that the foundations of the capitalist system are rotten and decayed from its very beginning like Solomon’s staff which remained erect only because no one ever touched it with his hands!

Distinguished audience:
You have listened to the reality of the Capitalist system and how the seeds of its failures are intrinsic to it, especially when confronted with a crisis which causes its very foundations to tremble. You have also seen that nations actually tinker with its very basis and that this contradicts their own principles which rule out national interference. The Capitalist system is founded on the freedom of the market or liberal economy and the classical view is opposed to state interference. This view talks of the ‘invisible hand’ and self-balance of the economy. The Capitalist system carries the famous slogan given to it by Adam Smith, the concept of laissez faire which requires that states do not interfere in the markets or tinker with it. When the crisis of 1929 hit, John Maynard Keynes, the noted economist argued in favour of the need for modifying this classic slogan of the system and advocated that states can, and should intervene. And surely they did… then came the 80’s and the capitalist states refrained from market intervention, yet now again they have returned to intervention. This state intervention has not been resisted or decried by the Western thinkers, rather they have welcomed it as in their opinion state intervention will salvage their economy from the present dangerous mess. The Western scholars, instead of noting that the Capitalist system has failed miserably in solving the economic crisis, are arguing it remains the best system, and furthermore they say that if not this, what else?! The reason for their stand is that they are either ignorant of the Islamic Economic System or are pretending to be ignorant. They compare their reigning capitalist system with the collapsed system of communism and argue that their system which is still alive and surviving (barely) is the best. This may be all right as long as the competing system is the collapsed communism. If they were to consider the issue on its merits, even without being a believer in Islam, they would certainly come to the conclusion that the economic system of Islam alone can provide a secure economy free from disasters. Indeed the great Islamic economic system has been designed by Allah (swt) who is the Creator, the Sustainer, who is all Knowing and Aware of the needs of His creations and what is good for them. They could see that this system would achieve for them a secure and prosperous life:

“Should not He Who has created know? And He is the Most Kind and Courteous (to His slaves), the Well-Acquainted (with everything).” [TMQ 67:14]

Since the ruling class who control the affairs of the world today and dictate its policies, and the politicians have chosen to ignore the economic system of Islam and have confined their sights to just the two systems; the collapsed communist system and the capitalist system which is on the verge of collapse; their ignorance will only harm them and will certainly not harm Islam’s economic system which continues to state the truth in anticipation of the re-establishment of a Khilafah State (very soon) with the grace of Allah (swt) which will apply and implement it just as it had done so for over thirteen centuries. The people will be blessed with it and will again live an economically secure & prosperous life.

Distinguished audience:
The short duration of this conference does not permit an elaborate description of the economic policies of Islam, however, I would sketch the broad outlines, which Allah (swt) willing will be sufficient to drive home the point that the economic system of Islam alone is capable of ensuring a crisis-free and secure economic life for the people.

(tomorrow the first 3 of 9 key Islamic Economic policies)