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In the name of Allah, the Compassionate, the Merciful

 

09 Jumada El-Awwal 1430 H.,

04 May 2009 A.D.

 

The Office of His Eminence

The Religious Authority

Sayyed Muhammad Hussein Fadlullah

"Information Department"

The Economic System in Islam

Q: One of the bases of establishing a state is its economic system. The common system nowadays is capitalism, what about the economic system in terms of the "Islamic state"?

A: The Islamic economic system is based on justice and realism, for Islam disapproves usury. The Islamic theory states that money does not produce money, for when I lend you money, the money you borrowed does not produce money in return for me. Islam depends on the system of speculation, i.e. the correlation between work and money. A person owns the capital but lacks the work or experience; another person possesses work and experience but lacks the capital, so they enter into a partnership in which each one of them gains a share of the profits, if achieved. If they do not achieve any profits, then the capitalist is the one who shoulders the loss, since the worker would have automatically lost his job. This system is the alternative of the system of usury, because it grants the worker a certain right in the capital in return for his work, knowing that this capital belongs to someone else. At the same time, it grants the capitalist a right in return for offering the worker the opportunity of gaining a profit.

Islam has forbidden cheating, deception, misappropriation and the like. It has also forbidden anyone from dominating over the country's wealth; for the minerals and petroleum…etc. are the possessions of the nation. No one is entitled to deal with them except the guardian or the ruler. In conclusion, we believe that had the Islamic system been applied, it would have been a just system at the level of the economy.