Eco 413 Module 3

Islamic Welfare State Under the Prophet And His Successors

The Prophet of Islam, Hadrat Muhammad (May Allah’s peace be upon him)
migrated from Makkah and settled at Madinah in the year 622 A.D. Soon after
he concluded a three-party pact comprising Muhajirin (Muslims who had
migrated with him), Ansar (Muslims of Madinah who had welcomed him) and
Jews of Madinah. This pact came to be known in history as Charter of Madinah
which laid down the foundations of a small Islamic state at Madinah headed by
the Prophet himself. The income of public treasury of this tiny state was too
small to undertake work of social security and public relief at a large scale.
Moreover the state was always engaged in warfare as its security was constantly
in danger due to frequent invasions of Quresh of Makkah and intrigues of Jews
of Madinah.
Initially the only source of income of the state was Zakat. Later on spoils of
war augmented the government resources, as four-fifth of it was distributed
among the fighting soldiers and one-fifth was taken for the public treasury for
the cause of the poor. Out of these available revenues, the Holy Prophet always
provided financial assistance to the needy and the poor, and monetary help to
those who were sick, invalid and hence unable to earn. He also helped those who
were unemployed either in the shape of monetary assistance or in getting
employment. When the position of public revenue improved during later part of
his reign, he started paying off the debts of those poor Muslims who were unable
to repay the same or who died leaving behind no property to clear their debts.
Thus the Holy Prophet established a sort of social security system whereby the
Islamic state could provide at least basic human needs to all those members of
the community who were otherwise unable to provide the same for themselves
and for their families.
Islamic Welfare State Under Abu Bakr
Abu Baker, who succeeded the Prophet of Islam, strictly followed the policy
initiated by the Prophet regarding financial assistance to the poor and the needy.
He declared war on those who had refused to pay Zakat, because the Zakat was
the share of the poor and the destitute in the wealth of the rich and well-to-do. In
the distribution of funds among the eligible persons, Abu Bakr followed in the
footsteps of the Holy Prophet and gave equal share to each without making any
distinction. When some companions insisted that the earliest Muslims should be
given preference and paid higher allowances than the later converts, Abu Bakr
rejected their plea saying : “I am fully conscious of the superiority and
excellence of the people you have mentioned; but it is a thing which will be
rewarded by God. But here is a matter of livelihood, where equality is better than
the principle of preference”. During his reign a regular Bait-ul-Mal on
permanent footing was established and its income increased considerably due to
accession of some conquered countries to the Islamic state. So the state
assistance to the poor and the needy also substantially increased.
Umar the second caliph of Islam, who succeeded Abu Bakr, established a full-
fledged and an all-embracing system of social security and public maintenance
as the revenues of the Bait-ul-Mal substantially increased due to conquest of
many rich countries of Iranian and Roman empires like Iraq, Syria, Iran, Egypt,
Palestine, etc. So it was during his time that an ideal welfare state of Islam with
large scale system of public maintenance and social justice was established
which guaranteed fair and equitable distribution of wealth and minimum but
reasonable standard of living for all citizens.
Islamic Welfare State Under Umar
‘Umar (rta) took the Sunnah of the Prophet (sws) and basic Qur’anic principles
and synthesized them into a convincing economic program. The program’s
success had a lot to do with ‘Umar’s extraordinary vision and impeccable
character. Here, it is important to understand Islamic economics as a dynamic
system in which there is room for a variety of approaches. ‘Umar’s approach
was consistent with the demands of the fledgling Muslim empire. In the context
of the times in which he lived, he was able to propose solutions to the problems
and dilemmas that the empire was facing. Muslim empire.
The Islamic State Under Umar was characterized with the following
characteristics
1. Equality : The Islamic state that ‘Umar (rta) ruled was one where equality
extended everyone, even the caliph himself. ‘Umar (rta) believed that no
one, no matter how important, should live in a way that would distinguish
him from the rest of the people. ‘Umar (rta) lived a simple life
anddetached himself from any of the worldly luxuries. He wore worn-out
shoes and was usually clad in patched-up garments. In one particularly
telling instance, some of his companions were waiting outside for him and
were curious as to why the caliph was taking so long to come out. They
later found out that ‘Umar (rta) had no clothes to wear. He only had one
suit in his possession and had to wait until it dried.
‘Umar (rta) could often be found sleeping on the bare floor of the
mosque. Other times, he was among his people, helping the poor or
delivering water and other goods to the widows When he would travel
from Madinah to Makkah, he wouldn’t even bring a tent and instead
 would sleep under the shade of the trees. His eating habits also resembled
those of a poor man rather than the leader of a great empire. His usual diet
consisted of only olive oil and bread. During the year of famine, ‘Umar
(rta) suffered along with his people eating even less than before. In
‘Umar’s (rta) mind, it would not have been fair to eat well while his
people were suffering. He cared deeply for the welfare of his people and
would go to great lengths to ensure that everyone was content with his
rule. Sometimes, he would even wander the streets at night as an
anonymous passerby, where he would get the chance to meet and talk to
his people, making sure that they were satisfied.
2. Declaration of Assets: Umar (rta) would expect no less from the
governors and officials of the empire. His officers were not permitted to
ride Turkish horses, eat sifted flour, wear expensive clothing, or keep a
doorman at their homes. In addition, when an official was appointed, an
inventory of all his possessions would have to be taken. If any increase in
his possessions or in his overall financial position was noticed, then an
inquiry into the matter would have to be made and the added possessions
were usually confiscated. Officers were often dismissed if they showed
any outward signs of pride or wealth which might distinguish them from
the people. One time, after a battle in 16 AH, ‘Umar (rta) saw Muhallim, a
corpulent Bedouin leader dressed in magnificent regalia with sashes,
necklaces, and the like. ‘Umar (rta) was disgusted by this extravagant
display and so he ordered him to take everything off in front of his own
people. While these specific actions were not based on any specific laws
in the Qur’an or the Hadith, they were certainly in keeping with the spirit
of the Qur’an and its command to establish justice. To modern
sensitivities, these restrictions might seem contrary to individual freedom.
In some cases, though, the good of the community takes precedence over
the individual. Infusing the empire with the ideals of egalitarianism and
justice would not have been possible unless government officials set the
best of examples. After all, it is impossible to have true justice without
leaders who themselves are just.
workings and mechanisms of the Islamic welfare state during ‘Umar’s
reign.
3. Unemployment Insurance: While many West European countries did not
have unemployment insurance until the late 19th century, the Islamic
empire had it from the beginning. When a man was injured or lost his
ability to work, then it would become the responsibility of the state to
make sure that his minimum needs were met. He and his family would
 receive an allowance from the public treasury. ‘Umar’s state also provided
‘social security’ for the elderly; the old who had stopped working could
count on receiving a stipend from the public treasury. Abandoned babies
were also taken care of. One hundred dirhams per year were spent on each
orphan’s development.
‘Umar (rta), acting as guardian of the poor, would go to great lengths to
make sure that no one in his empire went hungry. Sometimes ‘Umar (rta)
would even distribute stipends among the people with his own hands
(Nu‘mani, 228). During the great famine of 18 AH, the Islamic welfare
state was tested. In the end, though, those who were in need of food,
regardless of social position, received food coupons with which they could
obtain wheat and flour .
In distributing the spoils of war, the caliph abolished all distinctions
based on wealth, privilege, or position. He instead distributed the stipends
based on service in the path of God. And while this was certainly
subjective, some of the criteria that were looked upon included one’s
performance in battle and one’s overall service to the community.
Uthamah Ibn Zayd, for example, a slave, received a greater sum than
‘Abdullah, ‘Umar’s own son.
4. Public trusteeship or ownership: is another integral part of the Islamic
economic system under ‘Umar (rta). What this means is that utilities,
infrastructure, or resources are allotted for public consumption as opposed
to individual ownership. Specifically, Awqaf, or charitable trusts, serve to
transfer wealth from the individual or the few to a social collective
ownership. Awqaf are intended to provide services to the community at
large. For example, ‘Umar (rta) once bought a piece of land from the
Banu Harithah. Instead of keeping it for his own individual benefit, he
made it into a charitable trust. The profit and produce from the land went
towards benefiting the poor, slaves, and travelers
5. Introduction of Income floor: The goal of Islamic economics is to
establish social and economic justice. Implicit is the recognition that
Muslims will be able to focus on Allah if their basic needs are provided
for. The caliphate of ‘Umar (rta) succeeded in ensuring a minimum
standard of living for all; virtually no one lived under the poverty line. We
should look into how this was possible. ‘Umar (rta) did this by first
determining the poverty threshold. He then ordered that twenty-five seers
of flour be baked. This amount of flour fed thirty men. The conclusion
was then drawn that fifty seers would be sufficient to feed a man for a
month. And indeed, the poor would receive a food ration of fifty seers of
flour each month. Not only that, but the poor and disabled were
guaranteed a cash stipend as well. Today, in the richest and most advanced
country, the United States, thousands are homeless and must struggle day-
in and day-out to find enough food to survive. This notion of an income
floor was quite innovative and ‘Umar (rta) and the Islamic state should be
credited with beginning this practice.
In the spirit of balance though, to make sure that these government
services weren’t taken advantage of, begging and laziness were not
tolerated. Those who received government benefits were expected to be
contributing members in the community. Furthermore, the Islamic state
did not go so far as to advocate absolute equality, for such a notion is
clearly at odds with the different capabilities and talents that God blessed
us with. And, absolute equality could only come about at the expense of
the individual economic freedom that God has granted us. The Qur’an
acknowledges the inevitable existence of inequality: God has bestowed
His gifts of sustenance more freely on some of you than on others.
(16:71). The goal of the Islamic state is therefore not to abolish inequality
but rather to minimize it as much as possible.