Your money will be safe in the Caliphate!

Bank runs are not a new phenomena, inherently they are the product of Western finance, of which one of the mainstays is the use of fractional-reserve banking.

Fractional-reserve banking is the practice where banks only hold a fraction of their deposits in reserve, and use the remainder as capitol for loans – supposedly an important function that allows for the expansion of economies. Though universally accepted across the globe as a part of modern banking, fractional-reserve banking is no more than fraud and theft.

Banks historically began as money warehouses. Whereby customers would typically deposit their (then) gold for safekeeping, and the money warehouses would charge a fee for the use of their services. Over time, these warehouses generally acknowledged that customers would only rarely withdraw their full deposits, and the warehouses soon discovered that the fraction of unused deposits could be used to generate profits, through the use of interest bearing loans. More so these warehouses – or banks – also began to issue receipts of non-existent deposits, in a greater effort to generate profit, all of which resulted in the increase of money supply beyond the actual deposit holdings.

If it were to be the counterfeiting of coins, or the theft of stored property – then these would be generally proscribed in any society. Not so for fractional-reserve banking. It is the largest heist that gets pulled every day, and eventually runs its course, to a devastating effect on the normal hardworking citizen.

Today’s world of credit-crunches and bailouts, is the natural cycle for boom-bust economies. Fractional-reserve banking is responsible for the increased inflation that is resultant of an increased money supply. Combine this with the temptation of easy credit that fractional-banking facilitates, and the picture of today’s financial crisis becomes clearer. Simply put easy credit punishes the caution of investors. In the case of the US, money poured into the real-estate sector, unscrupulous brokers took further advantage of unlimited credit, banks through the power of fractional-reserve banking, continuously pumped and primed more credit. The overheated real estate market fizzled and then crashed, bringing down with it the rest of the financial markets.

When markets get bowled over like skittles, naturally people worry. When they hear terms like ‘liquidity crisis’ or ‘insolvency’ affecting the banks in which their life savings are held, the first reaction is to withdraw their money – the money that is their decades of work, their retirement and the future for their children. This is the bank run. The banks had prayed to their false gods of Capitalism, that such a day would never come. That ‘fraction’ they hold, is merely that, a fraction, a small holding of which the rests was pilfered away.

In Islam, their is only one main bank, the Bait ul Mal. Other banks will exists, but only as a money store. Since neither usurious transactions nor fractional-banking exists, there is no relentless inflation from expanded money supply, or boom-bust cycles.

With your money remaining your money, if you run to the bank, you’ll still find it waiting for you.

Credit: www.hizb.org.uk

Islamic Economic System and Poverty Reduction

Dr. Saif Siddiqui, Assistant Professor, Centre for Management Studies, Jamia Millia Islamia (A Central University),  New Delhi – 110025 , India

Abstract

Poverty is an economic condition of lacking basic necessities needed to live a reasonable life. This includes need for money, food, water, education, and shelter. Poverty reduction is a process, aiming to reduce the level of poverty in a group of people or countries. World Bank suggests that poverty can be reduced by various means and methods, which includes economic growth (increase in income and living standard) and direct aid / private charity.

World so far has followed two economic systems, communism and capitalism. The communism was based on an emotional reaction against evil consequences of the capitalist economy, specially, against the element of inequitable distribution of wealth. But capitalism prevails, which still suffer from inequities in the distribution of wealth. The world needs a Third Economic System. Elements of Islamic Economic System involve: financing /trading, Zakat and Interest free loans. Even poor persons, with some credibility, can survive in this economic system. Islamic economics prefers co-operation to competition. . This aspect of co-operation is a key to poverty reduction. It is possible to reduce poverty by following Islamic economic system because it takes care of society and social justice.

Keywords: Islamic Economic System, Poverty Reduction JEL Classifications: P51

Electronic copy taken from: http://ssrn.com/abstract=1332618

Islamic Economic System and Poverty Reduction

Poverty is an economic condition of lacking basic necessities needed to live a reasonable life. Basic necessities include money, food, water, education, and shelter. Poverty reduction (or poverty alleviation) may also be describe as a process which aims to reduce the level of poverty in a group of people or countries. The World Bank defines extreme poverty as living on less than US$ 1 per day, and moderate poverty as less than $2 a day. It has been estimated that in 2001,

1.1 billion People had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day. The proportion of the developing world’s population living in extreme economic poverty has fallen from 28 percent in 1990 to 21 percent in 2001.

Some of the popular methods for poverty reduction as suggested by World Bank are:

• Economic growth (increase in income and living standard)
• Direct aid / private charity,and

Poverty is prevalent in all types of economic systems (capitalism and communism) due to their inherent shortcomings.

Is it possible to reduce poverty by following the islamic economic system ? Islamic And Other Economic Systems Mufti Taqi Usmani once opined at the International Conference of the World Muslim Congress that:

“The twentieth century has witnessed the rise of communism and the conflict between capitalist and communist countries and lastly the fall of communism. The communism was based on an emotional reaction against some evil consequences of the capitalist economy, specially, against the element of inequitable distribution of wealth, which has been experienced in the capitalist countries throughout the centuries. The capitalist economies still suffer from inequities in the distribution of wealth. There is still a large gap between the haves and the have-nots and ‘poverty in the midst of plenty’ is still the major problem of their economy. These are the real problems created by capitalism and unless they are satisfactorily solved, it may give birth to another reaction that may be more aggressive than communism.

The world, therefore, is badly in need of a Third Economic System. The Muslim Ummah can work out this system based on the Islamic norms”

J.R. Presley wrote in his book, directory of Islamic financial institutions, that, western financing (with interest) have allowed individual enterprises, countries and even part of the world to rise to a debt level which are beyond their capacity to repay. H.I. Leibling in his book, U.S. Corporate profitability and capital formation, also says that,’’ in US the main reasons of secular decline in the growth of capital stock has not been the lack of aggregate demand but higher interest’’

The third economic system is a system as taught by the The Holy Qur’an and Sunnah of the Prophet (PBUH), which is capable of solving the economic problems being faced by the world today. Benefits of this system, which combine the benefits of both communism and capitalism, are:

1. Private ownership and market economy,
2. Profit motive
3. Justice in distribution, and
4. Elimination of inequities

These benefits are related to the methods of poverty reduction as stated earlier. Economic growth is possible with private ownership; aid or charity can be a symbol of justice in distribution, which may eliminate inequities also.

Islamic economic system not only allows the market forces of demand and supply but also provides mechanism to keep them operative with their natural momentum without creating monopolies and concentration of wealth.

It is known that production; consumption and distribution are three basic functions of economics. Islam, which teaches justice and equality, clearly puts these functions as follows:

Production function:

1. Demand/ supply of prohibited goods should fall to zero
2. Production of luxury goods be checked
3. Producers should not maximize profits
4. Competition among producers should be healthy

Consumption function:

1. Prohibited goods cannot be consumed.
2. Consumption cannot be extravagant
3. Consumption should lead to an efficient and pure life
4. Every individual should consume enough goods to lead a reasonable life

Distribution function:

1. Prices should be reasonable, neither too high nor too low
2. Interest must not be paid
3. Wealth concentration should be avoided

These basic functions also provide a socialistic approach of Islamic economics, which help in reducing poverty. This system gives an opportunity to persons with lesser income to live a reasonably dignified life. As a matter of morality, Islamic economics prohibits speculative transaction and forward trading to avoid circumstances of instability. S.J. Phansalkar in his book, how not to ruin your small industry, also concluded that.’’ speculative transaction are not in favour of entrepreneurs’’

Elements of Islamic Economics

Elements of Islamic economics involve:

1. Islamic mode of financing /trading
2. Zakat
3. Interest free loans

1. Islamic Mode of Financing /Trading

Mudarabah (capital trust)

Mudarabah is a special kind of partnership in which one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called “rabb-ul-mal”, while the management and work is an exclusive responsibility of the other, who is called “mudarib. Mudarabah may take two different forms:

Al-mudarabah al-muqayyadah (restricted mudarabah)

The rabb-ul-mal may specify a particular business for the mudarib, in which case he shall invest the money in that particular business only.

‘Al-mudarabah al-mutlaqah” (unrestricted mudarabah)

The mudarib shall be authorized to invest the money in any business he deems fit. It is necessary for the validity of mudarabah that the parties agree, right at the beginning, on a definite proportion of the actual profit to which each one of them is entitled.

Musharaka (Islamic partnership)

Musharaka can be defined as a “form of partnership where two or more persons combine their capital or labour together, to share the profits, enjoying similar rights and liabilities” It is a limited period contractual agreement between the partners, to use both human and financial resources and distribute whatever profit and loss they make in accordance with capital and human resources invested.

In such a kind of Islamic partnership, partners need not have equal shares, or equitable responsibility for the management. Losses would be shared in accordance with capital contribution. It is not only the contribution of capital that governs Musharaka in Islam. In practice labour, skills, management, goodwill, credit-worthiness and contacts can also form the partners’ contribution.

Murabahah (mark up sale)

Murabahah is a kind of sale where the seller mentions the cost of the sold commodity he has incurred, and sells it to another person by adding some profit thereon. Thus, Murabahah is not a loan given on interest; it is a sale of a commodity for cash/deferred price.

The Murabahah may involves purchase of a commodity by a bank on behalf of a client and its resale to the latter on cost-plus-profit basis Murabahah is a mode of financing as old as Musharakah. Today in Islamic banks world-over 66% of all investment transactions are through Murabahah.

A simple sale in Arabic is called Musawamah – a bargaining sale without disclosing or referring to what the cost price is. However when the cost price is disclosed to the client it is called Murabahah. A simple Murabahah is one where there is cash payment and Murabahah Muajjal is one on deferred payment basis.

Ijara (Islamic leasing)

Ijara is an Islamic form of leasing. Here the bank buys capital equipment or property and leases it out under installment plans to end-users. As in conventional leasing there may be an option to buy the goods at the end of the Ijara built into the contracts .The installments consist of rental for use and part-payment.

The customer selects the asset to be financed and the bank then purchases it from the supplier and leases it to the customer for an agreed period. Refinancing of assets owned by the client in a sale and leaseback arrangement is allowed under certain circumstances.

2. INTEREST FREE LOANS (Al-Qard al-Hasan)

Islam prefers a loan as a form of social service by the rich to help the poor. Islam does not recognize any loan with interest for the benefit of the debtor. M. Umer Chapra, an authority on Islamic economics, has given the definition of qard al hasan as: “Qard al-hasan is a loan which is returned at the end of the agreed period without any interest or share in the profit or loss of the business.” The receiver of qard al-hasan is only required to repay the original amount of the loan.

Economic objectives of qard al-hasan are:

1. The mobilization of wealth among all people in the society.
2. To strengthen the national economy.
3. To facilitate the poor to create new jobs market and business ventures by using their merits, skills and expertise.
4. It can remove social and economical discrimination from the society, and

Social objectives of qard al- hasan are:

1. To help needy peoples.
2. To establish better relationship among poor and the rich.
3. Non-Muslims, who might be attracted by knowing the beauty of Islam. There is a great reward in the Hereafter for giving qard al- hasan

Some verses in favour of interest free loan are mentioned as under:

He who will give Allah qard al hasan, which Allah will double into his credit and multiply many times. [Surah-Baqarah (2): 245]

Establish regular prayer and give regular charity and give Allah qard al hasan [Surah-Muzzammil 73): 20]

Prophet (PBUH) said, “In the night of the journey, I saw on the gate of heaven written, ‘reward for sadakah is ten times and reward for qard al-hasan is eighteen times’. So, I asked the angel, how is it possible? The angel replied, “Because beggar who asked had already had something but a loanee did not ask for loan unless he was in need.” [Ibn Hisham & Ibn Majah].

M.G. Bokare former VC of Nagpur university has written in his book, Islamic economics, that.’’ Many social thinkers other than Marx, in the period of ethos of socialism had expressed their views in the favour of interest free capital in economy. These are G.D.H. Cole, William Petty, Lousie Blanqui, Sismondi and Ferdinand Lasalle.’’ It is not surprising that inspired by the benefits of qard al hasan, Jews has also established an association namely; Jewish Free Loan Association in USA. In bible following verses can be found:

[God says] “If you lend money to any of my people with you who is poor, you shall not be to him as a creditor, and you shall not exact interest from him” Exodus (22:25)

“You shall not lend upon interest to your brother, interest on money, interest on victuals, interest on anything that is lent for interest. To a foreigner you may lend upon interest, but to your brother you shall not lend upon interest; that the Lord your God may bless you in all that you undertake in the land which you are entering to take possession it.” Deuteronomy (23:19-20)

In Vedic literature too condemnatory remarks on interest can be traced. Rig Veda says, ‘’ save us from usurers’’. Atharva Veda prays.’’ Let us die with debt so that our children do not carry our burden’’.

3. ZAKAT

The word Zakat means ‘purification. It is the amount of money that every mentally and financially able, free adult, Muslim, male and female, has to pay to support specific categories of needy people. Islam believes that all things belong to God, and that wealth that is held by human beings is a mere trust. .It can be purified by distributing a prescribed proportion for those in need.

“The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise.” [Surah - Tauba (9): 60]

The prophet (pbuh) said: “Any owner of gold and silver who does not deliver from them their right, on the Day of Quiyamah (Day of Judgment), (the gold and silver) will be shaped as foils of fire. Then it will be heated in the fire of Hell; (and) then with it he will be ironed on his side, his forehead, and his back”(Muslim)

Zakat is obligatory after a time span of one lunar year (approximately 355 days) passes with the money in the control of its owner. Then the owner needs to pay 2.5% (or 1/40) of the money as Zakat. The owner should deduct any amount of money he or she borrowed from others Poverty reduction through Islamic economics Islam hates state of poverty due to accompanying one hundred and one evils with such a person. Dr. M. Nijatullah Siddiqui has written clearly in his book, economic enterprise in Islam,that “poverty is not a desirable state in the eyes of Islam but love of worldly wealth is also a source of evil.” It shows that a person should rise from the level of poverty but must keep only that much wealth that is sufficient to carry him and his dependents. The surplus or a predetermined share should be distributed among poor.

The Prophet (PBUH) once said that “when Allah gives you in plenty be liberal in your livings”. These words can be analyzed with a simple principle of economics that rise in expenditure can boost the economy. In simple words, demand for a new dress by a richer person provides work for weaver, tailor and cobbler. Demand for good food by him may provide employment to a cook.

The Prophet (PBUH) also said that” your faith is not complete till you like the same for your brother as you like for yourselves”. He also mentioned that “I testify that all Muslims are brethren” It can be concluded that Islam prefers co-operation over competition among Muslims. This aspect of co-operation is a key to poverty reduction. Islamic trading, qard- al hasan and zakat, all are based on the co-operation theory. Even poor persons, with some credibility, can opt Islamic form of financing

Conclusion

Two methods suggested by World Bank to reduce poverty, are integral part of Islamic economics. But it is largely in theoretical form for which no consistent example is available.

Most of the Muslim countries do not follow the basics of Islamic economy. Some of them have given a modest start in the form of Islamic banking, but others are still following the capitalist system, which has made the economic atmosphere much worse than that of the developed capitalist countries. Some countries like Malaysia are following a dual system, based on both Islamic and conventional economics.

Shariah have given the clear cut Islamic principles that could have reduced poverty and the inequities existing in Muslim countries and others. Islamic economic principles provide answers to every economic problem with a human touch. Muslim world has to restructure their economic system on the basis of The Holy Qur’an and Sunnah to provide a living example. If the principles of Islamic economy are implemented sincerely, the third economic system can overshadow the prevailing system.

Lastly, it is said that it is possible to reduce poverty by following Islamic economic system because it take care of society and social justice , which is ignored by western economy. It is the system, that says:

‘’He who sleeps on a full stomach whilst his neighbour goes hungry is not one of us.”      (Saying of Prophet Muhammad PBUH)

“Allah will deprive usury of all blessing, but will give increase for deeds of charity” [Surah-Baqarah (2): 276]

“If the debtor is in a difficulty, grant him time till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew.” [Surah-Baqarah (2): 280]

Poverty in Traditional Islamic Thought: Is it Virtue or Captivity?

by Osman GÜNER

ABSTRACT

This article examines how the basic sources of Islam evaluate poverty, how it was lived in traditional Islam, and how it affected Muslim people in history. Islam does not see poverty as a virtue, but accepts it as a serious social problem that has negative effects that must be alleviated, and brings some suggestions concerning its solution. In this context, Muslims are encouraged to be wealthy, and wealth, as long as the poor are considered, is accepted as a blessing. The authentic ahadith narrated by the Prophet Muhammad also see poverty as a danger and threat from which people in the community should escape. However, some of those from the school of Islamic mysticism fear that prosperity may move people far from the wishes of Allah and believe that those who live a virtuous life based on Islam accept poverty as a blessing from Allah. However, this belief has been misunderstood in some Muslim communities and Muslim countries and has affected them very negatively. This article will try to examine the true aspects of poverty and prosperity in the lives of people based on authentic Islamic sources.

Key Words: Islam, Poverty, Sufism

Poverty has been a constant feature of society throughout history. History shows that poverty has always existed in lives of people. However, it is also a historical fact that although the majority of people have lived in poverty, the remaining minority has lived in luxury. This is also valid in today’s societies and nations. Again, while some countries, called first world countries, live in a very luxurious manner, the remaining countries, called third world countries, live in poverty. This also shows that poverty has been a social phenomenon and a serious problem in the past and in the present in history.

This paper examines how the main sources of Islam evaluate poverty, and how and why some people accept it as a virtue without considering its negative effects on people.

Poverty in Islamic Sources

Poverty, meaning that a person has some material difficulties and cannot do certain things and needs others, as “fakr, fakir and (plural form) fukara” is mentioned in the Qur’an twelve times. When these verses are examined, it is seen that two speak of “spiritual poverty.”1 These verses compare the inability of human beings to sustain themselves and their absolute need for Allah (al-fukara ilallah) while Allah himself who does not need anybody (wallahu’l-gani). The remaining verses are related to “material poverty” and mean helping, protecting, and sheltering poor people.2 In these verses, those who are not rich have material needs and require other peoples’ help. Thus, it is seen that the majority of verses deal with material poverty.3 The words for poverty (in the hadiths of the Prophet Muhammad) are generally used in the same way. There are many hadiths related to poverty and the poor in the Zühd (the ignorance of the world life) and Rikak (giving sensitivity to the heart) chapters of hadith sources. In these hadiths the poor mainly refer to “material poverty” as it is in the Qur’an. However, it is interesting to note that these hadiths speak of poverty in terms of both compliment and loathing.4

In the doctrine of tasavvuf, which accepts zühd as a worldview, fakr or poverty has a special meaning and place. The Sufis paying attention to the material meaning of poverty in the earliest years also accepted the act of giving up property and goods as a basic principle.5 Since ninth century, it is seen that Sufis’ concept of poverty has acquired a philosophical and spiritual meaning. Fakr means to have no need of anything or anyone except Allah. With this meaning, the poor is not a person who is far from material things and without daily food, but one who lives keeping constantly aware only needing Allah.6

Islamic Understanding of Property

After examining the concepts of poverty and the poor in the sources of Islam, we can pass on to the Islamic view of poverty. However, in order to be able to point out the Islamic view of poverty, first, it should be known how Islam considers worldly property, and to what extend it gives permission to use and benefit from it. We should point out that Islam is not against gaining property and commodities. As long as property does not become of a source of pride, arrogance and oppression or cause people to be enslaved to it (abdu-dinar), Islam does discourage but actually encourages people to gain property. On this point, the Qur’an reads as follows: “Say: Who hath forbidden the beautiful (gifts) of Allah, which He hath produced for His servants, and the things, clean and pure, (which He hath provided) for sustenance? Say: They are, in the life of this world, for those who believe, (and) purely for them on the Day of Judgment. Thus, do We explain the signs in detail for those who know.”7 Again, according to the Qur’an, “women and sons; heaped-up hoards of gold and silver; horses branded (for blood and excellence) and (wealth of) cattle and well tilled land” are not accused in and of themselves, but because of causing greed and passionate desires in people.8 Thus, when prosperity does not cause them to have these negative behaviors, it will be a means of blessing both in this world and the next world.

In order to sustain humanly life in this world, working and having enough property is imperative for everyone in Islam. Moreover, working to obtain property and maintain a good life is accepted as a valuable effort and worship. It is stated in the Qur’an that while the night is created for the rest, the day is created for the maintenance of life,9 and it is accepted as a principle, “That man can have nothing but what he strives for.”10 Furthermore, the Qur’an, in the Surah of Cum’a, commands that when Muslims finish their prayers they should disperse through the land and seek the bounty of Allah.11 Saying “a person does not eat anything better than he earns by himself,”12 the Prophet Muhammad also indicated the importance and holiness of working. All of these indicate that Islam sees struggling for a living by producing something or by commerce as a meritorious job.

However, it must also be noted that while Islam encourages Muslims to work and to gain their livelihood, it has also brought some regulations and restrictions related to gaining income and ownership. In this context, it has brought two important principles: Gaining income and ownership should be by legal means, and income and wealth should be spent on legal aims and the common good. Islam is against those who accumulate property for the purpose of greed and oppression as well as those who gain thorough unlawful business practices.13

Islamic Understanding of Poverty

Islam does not have any negative attitudes towards property; instead it places great value on prosperity as long as it is used properly. Again, Islam basically does not see poverty as a virtue, but as a social anomaly that must be alleviated, and a situation from which a Muslim should pray to Allah to be protected from its consequences. In addition, Islam provides some guidelines to eliminate its negative effects. In fact, other world religions also try to solve this serious problem by establishing some regulations and giving advice to her followers such as “protecting the oppressed people from the oppressors’ cruelty, helping needy persons, and maintaining the lives of aged, orphan and other handicapped persons in the society.”14

There are no verses in the Qur’an nor any hadith related to the Prophet that advocates poverty. Although there are some hadiths that speak favorably the ascetic life and devoutness and unfavorably toward a passionate desire for property, it is not correct to interpret these hadiths as advocating poverty. A normal standard of living is necessary even for an ascetic. Indeed a devout person is a person who has adequate wealth, but never puts it into his/her heart. The Prophet indicates this when he says: “Even if I had had gold as much as the Mount Uhut, I would not have kept it in me.”15 Additionally, the Prophet says: “Worldly wealth is sweet and attractive.”16 However, He meant by this hadith that everyone could not behave as he did in terms of property. Indeed, He approved that Muslims should have property and saw richness as a grace of Allah as long as they fulfilled their responsibilities towards other people and society. In this context, He said: “A clean property (goods) that is acquired by legal means is a beautiful grace for a devout Muslim.”17 Although the Prophet Muhammad states that a true richness is the richness of heart,18 it should not be understood from this that He is saying that He does not reject the property of the world. For he says “Allah loves those who are devout, rich and vow themselves to worship.”19

The issue of poverty is spoken more comprehensively in the hadiths. The authentic hadiths related to the Prophet indicate that poverty is an important danger and threat for both individuals and societies. The Prophet clearly points out that poverty is an unwanted situation from which every Muslim should protect himself/herself.20 Indeed, while He himself prayed, “O my Allah, I refuge to you from the evils of poverty,”21 he advised his friends with the following prayer: “Refuge to Allah from the evils of poverty, famine, degradation, oppressing and oppressed.”22 It is also known that some serious precautions were taken to hinder poverty and to maintain the prosperity of the society during his lifetime. Making the needy people brothers and sisters with those who are rich, freeing of slaves, encouraging the Islamic foundations for the common good, atonement, giving alms for the poor, and voluntary spending etc. are just a few examples.23

The Situation of Poverty in the Islamic Tradition

Although Islamic sources approve of benefiting from the world and of being rich, and see poverty as a social illness and threat that must be eradicated, it cannot be said that this has been properly understood or applied by Muslim societies in history. The historical events show that while a part of society lived in luxury, forgetting the Islamic teaching of modesty and the middle road, others preferred to live in poverty and withdraw themselves from any of the benefits of the world. Thus, a group of people called “zuhhad” affected mostly by foreign cultures such as Iranian and Indian emerged that advocated withdrawal from food and worldly goods. Later, this current of thought found a place for itself in the area of tasavvuf and deeply affected the entire Islamic world.24 Although Islam commands its followers to have an active responsibility concerning matters of divine will, those who accept the Sufis’ understanding forgot this Islamic command and defended a passive submission and trust in Allah. They viewed working in economic activities as unnecessary effort, concerned only with temporal life without value for the future, and lastly preferred the principle of fakr, meaning absolute poverty in matters of the world. Ultimately, this caused all Muslim societies to be backward. In order to defend this way of life, some people wrote some particular chapters in the sources of Sufis that denigrate worldly wealth and advocated living in poverty, and even fabricated many hadiths for this purpose.

In order to encourage people to worship, the Sufis’ sources fabricated many hadiths that denigrate the benefits of the world and prosperity, but encourage, even compliment poverty. Sufis used these kinds of narratives to defend their mystic understanding that include reducing food eating, sleepless, and rest and become of less concerned for the affairs of the world. Although some of the narratives (hadiths) that are used in the works of the Sufis are authentic, most of them are fabricated. One of these fabricated narratives is as follows: “Poverty is my honor and I am proud of it.”25 “The present of the believer in the world is poverty.”26 In another narrative, poverty is described as a personal honor. “Poverty is more ornamented for the believer than bridle on the face of the horse and whiteness of forehead of the horse.”27 According to another narrative which it is not possible to believe, the Prophet said “When the poverty comes to you, meet it saying, ‘Welcome Oh, sign of pious people’; however, when the prosperity comes to you, say it that ‘you are a sin that causes a future punishment.’”28

Although good standing before Allah depends only on faith, good deeds and pious behavior, some Sufis believe that only the poor may have the most valuable rewards in the life after. “There is a key for everything. The key of the paradise is to love the poor and the destitute. The poor who are patient will be with Allah.”29 They even claim that the Prophet himself preferred to die poor. The narrative concerning this claim is as follows: “O my Allah, make me die as a poor man, do not make me rich, and resurrect me in the next world with those who are destitute.”30 They emphasized that Muslims should look down on worldly wealth that Allah made legal. “Avoid yourself from the world, for it is more captivating than Harut and Marut.”31 In the works of Sufis, there are many narratives that are opposed to the teaching of the Qur’an.32 The Qur’an says: “But seek, with the (wealth) which Allah has bestowed on thee, the home of the Hereafter, nor forget thy portion in this world…”33

Those who are against Islam called (Z nd q) also played an important role in terms of fabricating these kinds of narratives. Their purpose was to make the poor people enemy to the rich and to create jealousy between them, and thus to create a social crisis. The zanad q (the plural form of z nd q) fabricated the following hadiths: “Poverty is my favor”34 To them, the prayer of the Prophet Muhammad will be also with them. In this context, as if the Prophet said: “O my Allah, make me and my Community live as Muslims and resurrect me together with the poor.”35 Oppressing the poor was to be a great sin. “Whoever oppresses a poor Muslim without any rights, he will be punished as if he destroyed the Mecca and Baytu’l Makdis, and killed a thousand angels who are close to Allah.”36 They assigned the duty of forgiveness to the poor instead of Allah. “The poor are handkerchiefs of the rich. The rich people clean their sins by the handkerchief of the poor.”37 According to the assertions of zanad q, even Allah himself will apologize to the poor. “Allah apologizes to the poor in the Hereafter.”38 At this point, whatever the poor do, there will be any option for Allah except forgiving the poor. “Allah certainly forgives the poor in
Hereafter.”39

Since poverty is elevated superior, it follows that the wealth should be blamed. As a result of this understanding, a poor person should not even sit with the rich, even with their children. “Do not sit with the children of the rich, for their sedition is more dangerous than that of a virgin girl.”40 They (zanad q) stated that the rich are the worst group at all. According to their claims, when somebody asked the Prophet: “Who are the worst scoundrels from your community,” the Prophet replied, “they are the rich.”41 Wealth is even accepted as a sign of polytheism. “Wealth grows hypocrisy in the heart as the water grows.”42 While the food of poor will be delicious, the food of rich will not be. “Allah certainly gives the deliciousness of the food of the rich to that of the poor.”43

The superiority of the poor over the rich will continue in the Hereafter too. The keys of Paradise will be in the hands of the poor. Thus, the poor will enter into Paradise before the rich. Even the entrance of rich people to Paradise will depend on the mercy of the poor. According to a hadith related by Anas b. Malik, “We were together with the Prophet Muhammad. The angel, Cibril came and said to Him: “O Messenger of Allah, the poor of your community enter the Paradise five hundred years before the rich.”44 In another narrative, “Poor Muslims enter Paradise forty years before the rich.”45

While Muslims should live in society as brothers and sisters and show regard and Islam commands love for each other as, the z nd q group misunderstood and even abused this understanding of Islam as well. They fabricated some narratives concerning this understanding as follows: “Whoever condescends to the rich just because of their richness, one third of his religion is wasted.”46 In another narrative, “Allah curses the poor who condescend to the rich just because of their property. Whoever does this, one third of his religion is lost.”47 They emphasized the value of poverty for Muslims instead of prosperity. “Death is more important than life, poverty is more auspicious than prosperity, and abasement is better than dignity for believers.”48

Conclusion

The type of thinking regarding the value of poverty is absolutely opposite to the Islamic teaching, for this kind of understanding makes Muslims withdraw from worldly life and makes them live in very hard conditions, and causes them to live in abasement and degradation. As we stated earlier, this kind of understanding has continued among the masses throughout Islamic history and has affected their total social life. This understanding, which is not approved by Islam, also affected the individual and social lives of the people. Poverty has been a great threat to their beliefs, their moral attitudes, their worldviews, their family lives, and their gaining and maintaining individual and societal needs.

We can say that if, today, the Muslim world is generally economical backward and dependent on developed countries, this misunderstanding has played an important role in this process. This understanding has become an important threat to the political and economic independency of Muslim communities. In addition, this understanding has caused the Muslim community to entertain foreign thoughts, which are opposed to Islamic thinking. When we consider on the effects of this misunderstanding, we can say that such thinking can in no way be accepted in the name of religion. In order to solve this crucial problem that the majority of the Muslim community is faced with, Muslims should turn to the basic teachings of the Qur’an instead of relying on fabricated traditions and foreign thoughts.

Notes

Dr. Osman GÜNER is an Associate Professor at Ondokuz May s University, Samsun; TURKEY

I would like to express my thanks Mustafa Köylü who translated this article and David Meeks who

edited it.

1              The Qur’an, Fât r, 35/15; Muhammad, 47/38; Haşr, 59/8.

2              The Qur’an, Bakara, 2/268, 271, 273; Âl-i İmrân, 3/181; Nisâ, 4/6, 135; Tevbe, 9/60; Hacc, 22/28;

Nûr, 24/32; Kasas, 28/24; Haşr, 59/8.

3              See for this meaning used in the Qur’an, Kasas, 28/24; Haşr, 59/8.

4              See for more information, A.J. Wensinck, Concordance et Indices de la Tradition Musulmane (el

Mu’cemu’l-Müfehres li Elfâz ’l-Hadîsi’n-Nebevî), Çağr Yay., İstanbul, 1986, V/186-189.

5              See Abdulkarim Kuşayrî, Kuşayri Risâlesi, (S.Uludağ), Dergah Yay., İstanbul, 1991, pp. .440-441.

6              İEbu’l-Alâ Afîfî, Tasavvuf: slam’da Manevî Hayat, (translated by E.Demirli-A.Kartal), İz Yay., İstanbul,

1996, pp. 233-34. See for the definition of fakr and more information Kuşeyrî, Kuşeyri Risâlesi, s.440

9; Hucvirî, Keşfu’l-Mahcûb                 (Hakikat Bilgisi),    (S. Uludağ), Dergah Yay., İstanbul,     1982, s.99-110;

Kelâbâzî, Ta’arruf (Doğuş Devrinde Tasavvuf), (S. Uludağ), Dergah Yay., İstanbul, 1979, p.144-146.

7              The Qur’an, A’râf, 7/32.

8              The Qur’an, Âl-i İmrân, 3/14; see also Hadîd, 57/20; Bakara, 2/201.

9              The Qur’an, 28/73.

10           The Qur’an, 53/39.

11           The Qur’an,           62/10.

12           Al- Buhârî, Buyû’, 15. See also.Buhârî, Zekât, 50.

13           Sabri F.Ülgener, Zihniyet ve Din, İslam,Tasavvuf ve Çözülme Devri İktisat Ahlâk , Der Yay nlar ,

İstanbul, 1981, p. 67.

14           See for exapmles from other religions The Bible, Proverbs, 21/13, 22/9; Deut, 15/7-8; Matt, 5/41-42;

10/42; Luke, 11/41; 14/12-14.

15           Al-Buhârî, Zekât, 4; Muslim, Zekât, 10.

16           Al-Buhârî, Cihâd, 37; Muslim, Fiten, 26.

17           Ahmed b. Hanbel, al-Musned, IV/197, 202.

18           Al-Buhârî, Rikâk, 4; Müslim, Zekât, 40; Tirmizî, Zühd, 40.

19           Muslim, Zühd ve Rekâik, 11.

20           İbn Hanbel, II/231, 250, 410; Al-Nesaî, Vesâyâ, 1; Zekât, 60; bn Mâce, Vesâyâ, 4. İ

21           İbn Hanbel, VI/57, 207; Ebû Dâvud, Edeb, 101; Al-Nesaî, İsti’âze, 14, 16; Sehiv, 90.

22           İbn Hanbel, II/540.

23           See for more information about this matter, Yusuf Al-Kardavî, Müşkiletü’l-fakr ve keyfe âlecehe’l

İslâm, Müessesetü’r-Risâle, Beyrut, 1987, p. 37.

24           Süleyman Uludağ, “Dünya”, TDVİA., X/23.

25           es-Sehavi, Mekâsidu’l-Hasene, Bağdat,            1956, p.                 480; Aliyyu’l-Kari, el-Esrâru’l-Merfûa Fi’l-Ahbar ’l

Mevdûa, (thk. M. Lutfi es-Sabbağ)), Beyrut, 1986, p. 254. İbn Hacer el-Askalânî and Sübkî said that

these kinds of hadiths were fabricated. See Tabâkâtu’ş-Şâfiiyyeti’l-Kübrâ, (thk. Mahmud M.et-Tanâhî),

Cîze, 1992, III/134.

26           Ebû Tâlib el-Mekkî, Kûtu’l-Kulûb, Dâru Sâd r, no date., I/243; Ebû Hâmid el-Gazzâlî, hyâu Ulûmi’dİ

Dîn, Beyrut, 1992, IV/287.

27           Ebû Tâlib el-Mekkî, Ibid, I/243; Gazzâlî, Ibid, IV/287.

28           Ebû Tâlib el-Mekkî, Ibid, II/194; Gazzâlî, Ibid, IV/288. Sübkî said that this was not a hadith, but

belonged to the People of the Book. See Es-Sübkî, Ibid, VI/366.

29           Kuşayrî, Kuşeyri Risâlesi, p. 440. İbn Arrâk said that this narrative was not true. See Tenzihu’ş

Şeriati’l-Merfûa ani’l-Mevdûa, Beyrut, 1981, II/286.

30           Ebû Tâlib el-Mekkî, Ibid, I/263. İbn Adî and Zehebî said that this narrative was not authentic, thus it

İ was fabricated. See İbn Adî, el-Kâmil fî Duafâi’r-Ricâl, Beyrut, 1988, III/10; ez-Zehebî, Mîzânu’l- ’tidâl
fî Nakdi’r-Ricâl, Dâru’l-Fikr, Beyrut, n.d. I/645; el-Acluni, Keşfu’l-Hafâ ve Muzilu’l-İlbas, Beyrut, 1351,
I/181.

31           Ali el-Hindi, Tezkiretu’l-Mevdûât, Beyrut, 1399, s.178; Mevlânâ, Mesnevî, (trs. V.İzbudak), İstanbul,

1991, I/256.

32           The Qur’an, Kasas, 28/77.

33           See for the sources of these narratives Ahmet Y ld r m, Tasavvufun Temel Ögretilerinin Hadislerdeki

Dayanaklar , pp. 383-412.

34           Ali el-Hindi, Ibid, s.179; Ali el-Kari, Ibid, s.57.

35           Celâleddin es-Suyûtî, el-Leâli’l-Masnûa Fi’l-Ahâdisi’l-Mevdûa, M s r, n.d. II/324; Ebu’l-Ferec İbnu’l-Cevzi,

Kitâbu’l-Mevdûât, Medine, 1968, III/142.

36           İbn Arrak, Tenzihu’ş-Şeriati’l-Merfûa ani’l-Mevdûa, M s r 1375, II/316; Suyûtî, Zeylu’l-Alâi’l-Masnûa, (thk.

Seyyid M.Ma’şukuli), Hindistan, 1303, I/191.

37           İbnu’l-Cevzi, Ibid, II/154; İbn Arrâk, Ibid, II/128; Ali el-Hindi, Ibid, s.64.

38           Beşir Zafir el-Ezherî, Tahziru’l-Müslimin mine’l-Ehâdisi’l-Mevdûa,M s r, 1903, p. .87.

39           İbn Arrâk, Ibid, II/317.

40           İbn Arrâk, Ibid, II/214; Ali el-Hindi, Ibid, p.189.

41           Ali el-Hindi, Ibid, p.178.

42           IMuhammed el-Guzi, el- tkân Ma Yuhsinu Mine’l-Ahbâr ’d-Dâireti Alâ’l-Elsine, (thk. Halil M.el-Arabi), Kahire,

1415, I/1169.

43           Muhammed Kavukc , el-Lu’luu’l-Marsû’ fima K le la Asla lehu ev bi Asl hi Mevdû, M s r, n.d. p. 26; Sehâvî,

Ibid, s.119.

44           İbn Arrâk, Ibid, II/233.

45           el-Ceberi, el-Müştehir Mine’l-Hadisi’l-Mevdûa Ve’d-Daife, I/31.

46           Ali el-Hindi, Ibid, p.178; Ali el-Kari, Ibid, p. 339.

47           İbn Arrâk, Ibid, II/287; Suyuti, Ibid, II/323

48           İbn Arrâk, Ibid, II/394.