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Islamic principles of limited government

Date: March 18, 2003 | 14 Muharram 1424 Hijriah
Blog: veiled4allah
Subjects: islam, libertarianism
Since I know that most people don't want to read a 22-page article called An Islamic Perspective on the Wealth of Nations, I plan to summarize a few of its highlights in my blog, inshallah.

The article is divided into four major parts, dealing respectively with private ownership of property, hard currency monetary policy, low taxation, and limited government. In the article, author Imad ad-Dean Ahmad sets out several principles that Muslim nations should follow. These include:
  • Decentralization of ownership of the resources down to the level of the individual, protected by a system of well-defined private property rights including the internalization of costs incurred by environmental impact must be the first concern of any Islamic government towards the end of an economically successful society.
  • In any case, sound monetary policy is a pre-requisite for sustainable comprehensive development. Hard money is the sunnah method for establishing sound money through the natural process of the market.
  • If Muslim states wish to see prospering economies they should reduce the variety and size of taxes. Ideally they should impose only those taxes authorized by the Quran and at those rates practiced by the righteous caliphs.
  • Muslim states which wish to see an industrial revolution should pursue a policy that permits the private sector to engage in any and all lawful pursuits.
I'm not an economist so I can't go into a great deal of detail explaining what Ahmad is saying but the clear thrust of all of his arguments is that the government needs to get out of peoples' lives and out of their dealings with each other (which make up the basis of the economy). Ahmad also believes that limited government is the Islamic way and the example of the Prophet Muhammad (sAas) and the early caliphs and he cites verses of the Quran and historical narratives to back up his case.

Next: A look at the "hard currency" issue.
~ Posted by Al-Muhajabah, a member of the reality-based community, at 03:12 PM

Comments

one of the top five commentors on this blog! Jonathan Edelstein said: Total comments: 91   gold stargold stargold stargold stargold star

I'm not sure I agree with this, especially the part about setting tax rates no higher than under the rashidun. The nature and functions of the state have changed enormously since that time, and government is required to perform many more functions. In the time of the early Caliphs, for instance, there was no need for public schools, because very few jobs required formal education; the same is not true now. Communication and infrastructure functions, like a postal service, are also more critical to maintaining a modern society than in the seventh century, and public health is also important. At least some of these functions are very hard to privatize effectively, given that they can't be made profitable without sacrificing services in some areas.

I don't think that a 2.5 percent zakat is really enough to run a modern state and provide social welfare funds at the same time. I'm not an Islamic scholar and I haven't checked the citations in the article, but I'd be willing to bet that it's also possible to find support in the Koran for the idea that taxes should be set at the rate that maximizes the well-being and standard of living of the citizens.


~ Posted at March 19, 2003 06:43 AM | Comment Permalink
moderator Al-Munaqabah said: Total comments: 996   gold stargold stargold stargold stargold star

Well, I would have to see more detailed explanations from Ahmad about what exactly he thinks the government should do and how much he anticipates that it would cost before I could really comment on whether his proposal is realistic.

As for the amount of taxes, as far as I know there's no limitation in the Quran or Sunna on that. What I would say is that because the taxes Ahmad mentions are commanded by the Quran and Sunna, they would be levied automatically by an Islamic state.

Further taxes could be levied if the people consented to pay those taxes (Islamic democracy!). I believe the Arabic term for these extra taxes is dara'ib. It's funny you mentioned education because that was the exact idea I had in mind. The government consults the people, who agree to let the government handle education (i.e., establish public schools) and they'll pay for it via taxes.

In other words, I don't necessarily agree with Ahmad that the minimal system he advocates for is ideal, but if you take it to be the only part of the system that is required to be established, and the rest must be done by consultation with the people, I think we've got something I can get on board for smile

In any case, my main purpose in posting this was to spark debate and to show the range of visions in Islam. Not everybody thinks it should be like the Taliban.

~ Posted at March 19, 2003 07:04 AM | Comment Permalink

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