Islamic financial system aims for social justice
and redistribution the money from wealthy to poor people. A set of financial
roles (conditions) was designed and is believed if, implemented will help
social justice.
First, Risk Sharing: which means that any party
engaged in a business transaction should both share the profit and loss of the
outcome and that no individual party bear the loss or even gain the whole
profit (sharing principle and social justice).
Second, the availability of financial resources: it
is emphasised by both no interest on loans and zakat money which eventually
reduces poverty, creates employment opportunities, self-employment, increase
both demand and production. This is mainly based on the idea of redistribution
of wealth.
And it all came from the basic principle, that the
money does not have a value but it is a medium of exchange which goes back
retrospectively to Say’s theory.
However, the ultimate thing which this system aims
to is dignity, which is an essential human need.
The Islamic system claims in its
teaching that the full or semi application of the Islamic finance
system reduces poverty and inequality. But surprisingly rare or sometimes
no evidence provided by Muslim countries which evaluate it
effectiveness on poverty and social justice.
Hence, it raises the point that what
prevents Islamic countries from the full application of zakat?
- Is it the influence and power of rich people?
- Or the hole in the faith of Islam!
I hope that John Bird , Founder and Editor-in-Chief, The Big Issue is wrong on that:
"Humans love to take rather than to give”. And that is the power is the
reason.
