Dear Hafiz,You Really Want to know about Islamic Economy Mechanism,Aren't You?

Well,since I do blog,there's a lot of comments and thoughts that been shared together among bloggers,especially about politics,economy and "What I do Believe in".I'm glad to share my knowledge,my ideas and thoughts to be shared,or to be criticized.

And one of my blogger's friend,Hafiz or simply known as "Mata Rakyat",is a staunch supporters of Parti Keadilan Rakyat.Unlike his friend,Nami,which not clear the party he really supports,but clearly supports the socialist ideas,Hafiz clear out and say,"I support Islamic economy",but according to his article(link),he didn't have a clear idea "what is Islamic economy" anyway.What he just telling me,he just want to look for the Merciness and Berkat of Allah to the country that implement Islamic economy system.

What is Islamic Economy?


Good news for Hafiz.Today,at Memorial Park Branch Library(pic) I found a book about Islamic economy.The writer,Muhammad Umar Chapra,is a Senior Research Advisor at the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank in Jeddah,Saudi Arabia.The book,"Money and Banking in Islamic Economy",is actually answered Hafiz questions that lingering his mind,and I'm glad to help him.

Islamic economy,basicly "a capitalist system backed by government interference[Bayt-al-Mal/Baitul-Mal] funded by zakat,jizya,and nisab.The taxation in Islam requires wealth people to help poorer people,causing Robin Hood effect,to against economic inequality.So the social welfare will be together with merchant businesses will get along within Islamic economy system.

Some might say it's Third Way system,"Mixed Economy System"(based on Malaysian Basic Economy text book),or some might say it's market socialism.No,all of them were wrong.

According to this book,the real Islamic Economy System is "merchant capitalism with generosity".

So,if you ask people like Nami,he will definitely supports socialism,and blatantly agrees that the government is the one providing everything from head to toe and you'll follow the government like an idiot because you'll afraid your life may at risk if you don't follow the government.

I hate socialism.And communism as well.

Anyway,merchantilism in Islam is drives Islam from Mecca to as far as Malacca to East,as far as Cordoba to West,and opens Silk Road to China,and this concept is already done by Prophet Mohammad s.a.w himself when he helps his wife Khadijah,as a merchant.And this is a strong proof that "Islam support merchant capitalism,Islam supports businesses",even Prophet Mohammad s.a.w. once said,"Merchant and businesses is 9/10 of entire income in this world".Even the first establishment of Islamic state of Madinah,Prophet Mohammad established Masjidil Nabawi,and a market besides the mosque.Now you see,how important merchant capitalism in Islam,Nami?Not SOCIALISM!

So,is socialism helps a lot Nami?No,it didn't.It will create "lazy bum society" who begging to knee of governments to helping them.Government will act like God.I told you this before you're going far away,Nami.

OK,this article is for Hafiz anyway,so I hope Hafiz can change Nami's opinion back about merchant capitalism.I bet Hafiz will.

Islamic monetary is related with monetary economy based on Dinar,or gold coin.So,NO FIAT MONEY IN ISLAMIC MERCHANT CAPITALISM,NAMI!Because of stability of gold price,it's always be precious,the price won't going low.It is a measurement of wealth.Dinar gold coins is to pay,and to accepted for goods.So,it's so stable that Islam empire so strong for few hundred years until corruption and idioticity of some Islamic countries leader using Baitul-Mal money for sex and fun.

So,the fundemental of Islamic economy will be determined by dinar(now you clear,Hafiz?),and the supply and demand basicly by buyers and sellers.And the merchant,won't be easily filthy rich,just like that.Islam put a compulsory of zakat,to give compulsory donation to poorer people,in order for these poorer people to starts their own business.And it goes on until no longer poor people in that country.

So,Baitul Mal will determine how much Dinar at the treasury,and it measures by "how many people paying for zakat".And there's no fiat money,because fiat money is somehow like "empty promises",saying that there's gold in the bank,but it's not there.

So,Hafiz,I haven't read it completely yet,but are you so far clear about Islamic Economy System?Comment me okay?