MAN AS GOD DEPUTY

The Holy Quran indicates that Allah (God) has created man as His deputy on earth to enjoy and protect God’s creation. Behold, thy Lord said to the angels; “I will create a vicegerent on earth” (Quran, 2:30); “It is He who hath made you the inheritors of the earth” (Quran, 6:165).

In Islam, the earth and its resources belong to Allah, and moslems are obligated to protect these resources for future generations. Consequently, Islamic norms will not allow one to benefit from these resources and impose cost on others. A complete application of Islamic norms will eliminate the problem of negative externalities and provide a safeguard for environmental protection.

It is important to remember that Islamic economics is of a normative form. Thus, the use of these resources is subject to Islamic norms of moderation and avoidance of wastefulness. The earth and its resources must be protected for all generations to come. In a few words, Islamic social justice demands intergenerational equity as well. This suggests that while we are allowed to use these resources for our own benefits, we must also protect them for our progeny. Consequently, Islamic economics could resolve a major problem that has preoccupied Western economists for a long time, namely, the problem of negative externalities and its impact on the environment.

In Islam, ownership in an absolute sense belongs to Allah. The earth and its natural resources are Allah’s blessings that He has mercifully made available to mankind for his/her sustenance. Allah said: (1) “To Allah belongs al that the heavens and earth contain” (Quran, 2:284); “Do you not see how He has subdued to you all that is in the earth?” (Quran, 22:65); “He has subjected to you what the heavens and the earth contain; all is from Him” (Quran, 45:13).

We have already established that absolute ownership belongs to Allah, and human beings are His trustees and care takers who have the right to use and enjoy the earth and its resources and yet they must protect and preserve it for future generations. Therefore, one can argue that Islam has pragmatically established the limited right of private ownership as a system of rewards and incentives to motivate individuals in their trusteeship function. Then, private ownership is God’s reward for those who fulfill their obligations.

THE ECONOMIC SYSTEM

As a complete way of life, Islam has provided guidelines and rules for every sphere of society. God (Allah), the Creator of all, knows that people love to gather material possession, and that much of their effort are for the sake of gathering the various material means of the world. The relationship between economics and religion only has a very solid ground in Islam.
Ibn Khaldun wrote about the economic system in Islam in the 15th century. The Islam economic system has its own principles and philosophies, and the only way to understand them is to refer back to what is called the primary sources of learning about Islam and its principles. These are mainly The Holy Qur'an, which is viewed by moslems as the word of God, and The Prophetic tradition which explained and elaborated upon how to apply those principles.
Look at this fact: First, Islam seeks to guarantee the freedom of property owners to spend, give away, and invest it as he or she deems fit. Then, Islam has set some standards, based on justice and practicality. Earnings should not be based on cheating and sweandling. The Islamic ideal is based upon absolute justice on the personal as well as the societal level.
Second, Islam is concerned with the spirit of the economic system. There is no monopolization of necessities. Wells and other sources of water, for instance, are unlawful to use and monopolize as personal property, thereby eliminating another potential for oppression.
Third, Islam teaches that God has created provision for every person, who God has brought to life. Interest (riba) is strictly forbidden. Interest is defined as a set return on a loan, and as such implies a profit based on no risk and effort.
Fourth, Islam encourages investment and loan given as a means of charity. Interest has crumbled empires, while making oppressors out of others. The true moslem realizes that the wealth in his or her possession is in actuality in the possession of God. Through such measures, The Prophet Muhammad (peace be upon him) sought to reduce the gap between rich and poor.