The Outcome

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.