Islamic Economics: Islamic Perspectives On Consumption/savings Behaviour

SHARIAH PERSPECTIVES ON CONSUMPTION/SAVINGS BEHAVIOUR Ismail Yurdakok [email protected] Summary The balance of consumption/savings is very important in Islam.There are interesting examples in Quran.The Prophet Solomon was the richest man of the world and the most obedient man of his time and his palace was from crystal.If a muslim gives the zakat’s of his/her wealth,it is permissible to have great amount of savings,but destroying reason is “to be arrogant”.He (Qarun) said “ I have been given it (this huge wealth) only for my knowledge” (Qasas,78) That is “I worked and I earned” He had forgotten God’s help.The companions used to buy meat from the villagers (Bukhari,K.Buyu),but Umar’s RA warning “do not eat (much) meat,because...”(Muwatta’). Muslims used to spend money for garments and cosmetics in the middle measurements.Textile,cosmetics and pearl industries were the traditional industries for muslims in long centuries of history.Prohibited foods were/are very few for muslims.There was an active useful consumption in Islamic community.Transformation of savings to development is important for “end poverty” and underdeveloped countries have to walk on this way.

ISLAMIC PERSPECTIVES ON CONSUMPTION/SAVINGS BEHAVIOUR First,we will look at the verses of Quran in this subject Islam does not avoid to see the needings of man:eating,drinking,trading: “And they say: “What sort of Prophet is this? He eats food and he walks in markets...”(Chapter of Furqan,verse,7). All of the prophets were in the market(place)s,they were not ignore from the trading/business life. “And We never sent prophets befor you (O Muhammad),who did not eat food,and walk in the markets...(Furqan,20) Although human kind was not sent to this world only eating and drinking (but to worship to God) but God did not put a lot of prohibitions in eating and drinking: “O Prophet! Why do you forbid that which Allah (God) has made lawful to you,..” (Tahreym,1); “(He (God) has forbidden for you only carrion,blood and the meat of of pork;also any (meat) consecrated in the name of any but Allah...”(Nahl,115).Allah also had permitted the eating of all things in paradise for Adam,except one: “(Then Allah commanded): “O Adam! Dwell you and your wife in the Paradise,and eat as you wish,but come not near to this tree,lest you become wrongdoers.”(A’raf,19) The command of Allah “(Do not approach to this tree) in our time is alcoholic drinks,pork for muslims that only a few things.We do not see “Dietism of Indian ” (like in some spiritualists of India)or “Dietism or vegetarianism of western world” in Islamic resources.Eating from different foods is not a sin in Islam.From this (consumption)viewpoint there is an active circulation in the Islamic markets.

TO EAT FRUITS Eating different kinds of fruits is not a sin for muslims. “(In the paradise) Their fruits will resemble what had been given them before (in the world).. (Baqara,25) “And thereby He (Allah) brings up for you corn,olives,datepalms,grapes and every kind of fruit..”Nahl,11) We have to notice that Islamic state have to permit to import of some foods from the other countries that this trading will serve to mutual trading in international markets.Olive oil was an imported food in that days but it was encouraged in Quran: “And a tree that sprouts (grows) on Mount Sinai that yields oil and relish for the eaters.(Mu’memun,20) There are 32 verses about animal husbandry in Quran that the consumption of meat and diary products and juice (industry) are incouraged: “And in cattle (too) you have a lesson.We (God) give you to drink of that which is in their bellies,between bowels and blood,pure milk,palatable for those who drink.”(Nahl,66) “And of the fruits of the date-palm and grapes from which you drive drink and (also) good nourishment.Surely in this there is a sign for a people who use their intelligence.”(Nahl,67) And encouragement of eating honey: “...There comes forth out of their (bee) bellies a fluid of many hues,wherein is healing for mankind...”(Nahl,69) We know honey is a rich source of nourishment it also helps to protect the body against disease.And consumption of fruits, vegetables,olive,meat,milk,cheese,honey are sources of jobs for unemployeds. TWO VERSES OF MAEDAH “O you who believe! Forbid not the good things which Allah has made lawful for you,and do not transgress...” “Eat of that which Allah has bestowed on you as food lawful and fear from Allah (to do wrong acts)...(Maedah,87-8) A famous event that,the companions Ali,Ibn Mas’ud,Meqdad (R.A) gathered together at the home of Uthman ıbn Maz’un,and resolved to fast every day,to pray throughout every night,to renounce sexual relations,to renounce meat,and to wear shabby clothes for the remainder of their lives.When the Prophet Muhammad (Pbuh) heard about this he immediately came to visit them,saying: “Your body has rights over you,and your eye has rights over you,and your wife has rights over you.You should fast and pray,but also eat and sleep.I pray some of the time,and I also sleep;I fast,and I break my fast; I eat meat, and I have relations with my wives.He who leaves my way,he is not of me.”(Bukhari,K.Nekah) It was in this connection that the above two verses were revealed. In an another event the Prophet had permitted to take secretly of her (miser)husband’s store that Hind (a woman companion) had asked this, for spend for his/her children,the Prophet said: “Take for your and your cildren’s need according the common usage”(Bukhari,K.Buyu) WHAT ALLAH WANTS Allah wants to thank/to pray to Him (and not to do wrong acts) after we eat His sustenance: “O Prophets! Eat of the wholesome (and lawful) things,and act with righteousness,..”(Mumenun,51); “So eat of the lawful and good things which Allah has provided for you,and give thanks for His favours,..(Nahl,114;Baqara,172)) “(We (God) said to the Children of Israel) “Eat and drink of that which Allah has provided,and do not make mischief in the earth.” (Baqara,60) “And when We (Allah) said, “Go into this town (Jerusalem) and eat where as you wish.Make your way through the gates by bowing down,saying: “We repent.” We (Allah) shall forgive your sins..”(Baqara,58)

WEARING GOOD CLOTHES,JEWELLERY “O Children of Adam! Wear your beautiful adornment at every place of worship,and eat and drink,but do not be prodigal.For Allah loves not the prodigal.”(A’raf,31) In Islam,cleanliness and proper appearance is very important.Men and women should wear clean and sufficient attire.At times of worship (that is every day,because muslims go to the mosques five times every day, not only a few hours in sundays,like in Christianity) every muslim should wear the most beautiful and the most clean clothes he possesses,as long as he is not extravagant. “Say: “Who has forbidden the adornment of Allah which He has brought forth for His servants,and the good things of His providing?” These things are for believers for this world,but especially (for them) in the Day of Resurrection..”(A’raf,32) One day a man came into the mosque but his man’s hairs and baird were dishevelled.The Prophet pointed to him “go out (from the mosque)” That the Prophet wanted from him to put right his hair and beard.The man improved his head and then came..”(Muwatta’,K.Shaar,B.2), The Prophet saw a shepherd in an old costumes.Shepherd went to the sheep,the Prophet asked Jaber : “Is not there any new costumes for him ?” Jaber said: “There are his spare new garments in his bag that I gave him, O Prophet” Prophet said: “Call him and say, he should wear his good clothes” Jaber called him,the shepherd wore new clothes (Muwatta’K.Lebas) Caliph Umar RA had said “When Allah give you an abundant wealth,you also should give abundant to your body (as good garments etc.) (Bukhari,K.Salat,B.as Salat Fil Qameys) Umar also had said. “I like to look at a reader of Quran that he reads Quran in white (good) garment” (Muwatta’,K.Lebas,B.1) Textile industry in Islamic countries a traditional industry that adds a lot of added value for these economies.Allah does not want in the earth as naked like animals but: “ Allah is Who ...has given you garments to protect you from heat,and coats (of armour) to save you from your own violence...”(Nahl,81) The Prophet Muahammad informed the measurement of men’s garment: “ a believer man’s skirts have to be long at least to middle of his leg.If he allows to heels,no sin for him.(But) What ( a garment) is lower from heels, they are in the hell.Allah will not look at (with His compassion,mercy) a man in Doomsday who drags his skirts as a proud. (Abu Dawud,K.Lebas,B,7;Ibn Majeh,K.Lebas,B,27; Muvatta’,K.Lebas,B,5). Pearl industry has been also a traditional industry for muslims in the long centuries: “And two seas are not equal;this,fresh,sweet,good to drink,this (other) bitter,salt.And from them both you eat fresh meat and derive the ornament(pearl)that you wear.”(Fater,12; Nahl, 14) Trading of gold,diamond is not a sin for muslims: “Pearls and corals come from both,which of your God’s blessings would you two deny ?” (Rahman,22-3) We know,after great depression in 1929,the government of USA prohibited to have gold for its citizens,but Islamic states have not put like a this prohibition even in critical times of the history.Although strong solidarity of Islamic communities is a famous reality,but when muslims give the zakats (religious annual tax) of their wealth,they can have got gold and other jewelleries, in what amount, they wish.Great savings is not prohibited in Islam.But Islam gives great importance not to be proud.The Prophet prohibited to drink from silver pot that the reason is to avoid to become haughty. (Bukhari,K.Ashrebah,B,28;Muslim,K.K.Lebas wa-z Zeynat,B,1) In Islamic community,there is a high useful consumption rate.For example Islam encourages more population: “Do not kill (abortion etc.)your offspring for fear of poverty.It is We (God) Who provide for them,and for you.Indeed their killing is a great sin.”(Esra,31) More population means more production,more firms,more companies,and as a result more employment. RAISING OF PROHIBITIONS

One of “...He (only) former Israel

the main characteristics of the Prophet Muhammad is : (Muhammad) makes lawful for them all good things and prohibits for them the foul...”(A’raf,157) Allah did not prohibit a lot of foods also for nations but : “All food was lawful to the children of Israel except what forbade himself before the Torah was revealed..”(Al Emran,93)

TO LIVE IN PALACES Building wonderful cities,luxury buildings is not a sin. “There was indeed a warning for (the people) of Saba in their houses;two gardens on the right hand and on the left.Eat from the sustenance of your God and (you should) thank to Him. (This is a)Pleasant city and an All-Forgiving God” (Saba,15) Allah only wanted from them to thank (pray) to Him “But they turned away..” (Saba,16) To live in luxury flats,houses is not a sin but to watch porno films in these houses or to forget the conditions of the poor,this the great sin.There are approximately 150 verses about just income distribution in Quran.The Prophet Solomon was the richest man of the world and most obedient man of his time and his palace was from crystal.We see the Prophet Solomon’s crystal/glass palace also in Quran: (Bilqis is asked to enter the great Palace (of the Prophet Solomon) itself.Its floor was made of slabs of smooth polished glass,that glistened like water,and tucked up her clothes to pass through it,showing her legs.) “It was said to her: “Enter the hall”.And when he saw it she deemed it a pool and bared her legs.Solomon said: “It is a hall,made smooth,of glass.” (Naml,44) But Solomon was praying day and night,and he was not proud of his wealth and his real estates: “And Solomon ...said: “My God, arouse me to be thankful for your favour wherewith you have favoured me and my parents,and to do good that shall be pleasing to You,and include me in (the number of) Your righteous creature (worshipper).” (Naml,19) “And We (God) bestowed on David,Solomon.How excellent a creature ! (worshipper) Lo! He was ever turning in repentance (toward Allah) (Sad,30) One day the Prophet Muhammad asked Jaber : “Have you got figured carpets ? ” Jaber said: “Where we find figured carpets ? “ (they are very poor but Prophet said): “You will have figured (priceless) carpets” (Bukhari,K.Bad’el Khalk,B.Alamat-al Nubuwwah) After some years, this very high per capita was seen in the community and Jaber had got very good carpets.The statement of Prophet points that it is permitted to use high quality carpets etc. in the houses.This is also an explanation for the limits of luxury in Islam. Cosmetics idustry is also the traditional sector of muslims from the early days of Islam.The Prophet ısed to use perfume frequently.Abu Qatadah used to apply ( a kind of) oil for his hair two times every day,because the Prophet had said to him “You should take more care for your hair” (Muwatta’,K.Shaar),Abubakeyr RA used to dye his hair (Muwatt’,K.Shaar) TOURISM To visit historical/arceological places is encouraged in Quran,in 13 verses of different chapters: “Say: “Travel in the earth,and see the nature of the conseQuence for the rejecters” (An’am,11) “Say (O Muhammad): Travel in the in the earth and see how He(God) originated (started) the creation..”(Ankabut,20) Hajj (pilgrimage to Mecca) and Umrah are also a consumption of rich muslims from their wealth. ISLAMIC THEORY OF SAVINGS To be a big boss is permissible in Islam.Even he/she can has got trillion dollars when he/she gives the zakat.Allah does not condemn Qarun (Korah)for his big wealth even Allah gave this huge wealth to him,but he was condemned for his proud behaviors:

“We (Allah) gave him (Qarun) so much treasure that the keys thereof would verily have been a burden for a troop of mighty men.When his nation said to him: Do not be arrogant;Allah does not love the arrogant.” (Qasas,76) The word “troop”(“usbah” in original text) of verse: a body of men,here used indefinitely.It usually implies a body of 10 to 40 men. The old-fashioned keys were big and heavy,and if there were hundreds of treasure chests,the keys must have been a great weight.There are/were five principles for Qarun (and the other rich men) in the same verses: (1) “Do not be arrogant” (2) “Seek the abode of the Hereafter in that which Allah has given you” (3) “And Do not forget your portion from the world”, (4) “Make goodness as Allah has made for you” (5) “Do not seek corruption in the earth” (Qasas,76-7) That is, spend your wealth in charity and good works.Nor should you forget the legitimate needs of this life,as misers do,and most people become misers who think too exclusively of their wealth. Destroying reason for Qarun (and the other rich men): “He (Qarun) said: “I have been given it (this huge wealth) only for my knowledge...” (Qasas,78) (I earned with a knowledge of I possess) The rich men/women that has got savings he/she should not forget that Allah gave this wealth to him/her.There are a lot of intelligent/owner of knowledge men in cities or villages have not any wealth in the world. NOT TO SAY... Much property is not a sin but: Quran also tells us what rich men should not say (as the proud sentences): “This man had an abundant produce and he said to his companion while conversing with him: (1) “I am richer than you and mightier in respect of men (servants).” And when,having thus wronged his soul he entered his vineyard,and he said: (2) “I do not think that this will never perish. (3) Nor do I believe that the Hour (of Judgement) will ever come;and even if I am returned to my God I should surely find better than this a resort.”(Kahf,34-6) In the following verses of Chapter of Kahf, another man, a good rich man (owner of garden) is mentioned with good sentences. IS THERE A LIMIT FOR SAVINGS ? In the time of the Prophet Muhammad,to have a (one) camel was an indicator of a man that he was at least from middle class.A lot of companions of the Prophet,had got (only) one camel even some of them had not got one sheep,even some of them,had not got one hen.But Uthman RA had got 700 camels and a lot of burden trading goods on these seven hundred camels before Tabuk war.Although Uthman gave his wealth to the Islamic Army but the Prophet did not put a limit for his wealth.Historians Mas’udey,Ibn Saad, Ibn Keseyr say, especially in the time of Uthman’s administration,the companions had got a lot of wealth and land.Uthman RA had got 150,000 denar (gold coins) and one million derham (silver coins) when he was killed.Zubayr had got 400,000 denar, 1,000 horse,and 11 houses in Madina, 6 houses in Basra, 1 house in Kufa and a trading house in Basra.Talha’s daily income from Iraq was 1,000 denar.Abdurrahman had got 84,000 denar, 1,000 horse, 1,000 Camel, 10,000 sheep when he died.Zayd b. Sabet left a wealth of 100,000 denar.Abdullah

b. Umar’s overcoat was a value of 500 derham and Abdullah b.Abbas’s overcoat was 1,000. (1) Although Quran condemns wicked impertinent/saucy capitalists “Woe to every slanderer and backbiter,Who gathers wealth and counts it,Thinking his wealth will render him immortal !...”(Humazah,1-3), but advices to the good rich men to forgive the some ignorant poors and they had to go on supporting the aid (Nur,22).The verses of Humaza are obvious that who recognizes his/her wealth as his/her god and who does not think the next world he/she is wicked capitalist.We understand that to be “ulu-l fadl wa-s seah” (rich men,Nur,22) “to have savings” is not a sin.If we have -as our community- a lot of rich men, they will do the duty of kard-u hasan (lending without interest).The more muslim rich men is the more zakat for poors.We –as muslims- do not look at the rich as exploiter,but Allah gave them the wealth and they are in a test about their wealth in this world and this examination is not easy for them. PARTNERS OF THE SHIP Quran points a reality,14 centuries ago,it is possible with small savings to do big projects (companies,plants) : “As for the ship,it belonged to poor people working on the sea...”(Kahf,79) Probably,in the time of Moses, a group of poor men had bought a ship and this ship was working between the ports of Red-Sea (or Nile) LAW OF HAJR

(PUTTING UNDER RESTRAINT)

Hajr is to place the legally incompetent person under the care of a guardian.It is a precaution against much (over)consumption.The majority of the Islamic jurists say:Islamic law can prohibits the deeds of spendthrift (prodigal) and put him/her under restraint and Islamic judge appoints a man in charge of properties of spendthrift.This man gives enough money for spendthrift’s living conditions: “Do not give the weak of understanding the property which Allah has given you to maintain,but cloth them from it,and speak kindly to them”(Nisa,5).Also for orphans,there is a precaution against over consumption; “Put orphans to the test until they reach the age of marriage;then,if you find them sound judgement,deliver over to them their property...”(Nisa,6) BURIED TREASURES Quran has not prohibited to accumulate the savings (also when we give its zakat): “As for the wall,it belonged to two orphan boys in the city.There was beneath it a (buried) treasure belonging to whom,and their father had been righteous man...”(Kahf,82) Fearing the dishonesty of the wicked townsmen,the children’s father had buried their ihheritance so that they could recover it when they came of age.Quran did not condemned this behaviour even the word “saleh: righteous” was used this father. GREEDIES Althoug Quran permitted to eat from different foods,but there is an heavy expression for greedies,gluttony: “...while the disbelievers take their comfort in this life and eat even as the cattle eat;..”(Muhammad,12) That is there is a boundary for consumption in eating/drinking. In heavy economic conditions,mankind have to be patient that God condemned the children of Israel when they were in Sinai desert and they were not hungries but

they wanted more food from Moses: “And when you (O Children of Israel) said. “O Moses! We can not endure only one kind of food,so call on your God to give us some of the varied produce of the earth,green herbs,cucumbers,garlic, lentils and onions ! He (Moses) said “Would you exchange that which is higher for that which is lower ? Go down to the settled country.There you shall obtain what you have asked for.”(Baqara,61) The Prophet had said: “Muslim eats for to fill one bowel but disbeliever eats to fill for seven bowels.”(Muslim,K.Ashrebah; Muwatta,K.Sefat-al Nabey) Although there are some greedy muslims and sometimes we see some disbelievers eat very few but as a general tradition and a characteristics, muslims do not eat very much.Caliph Umar used to say (frequently) : “(You should) Avoid to eat meat.Because there is a habitual in meat like in wine” (Muwatta’,K.Sefat-al Nabey) .One day,Umar saw Jaber b. Abdullah that Jaber was going and there was a meat in the hand of Jaber.Umar said “What is this?” Jaber: “O Ameyr- al Mumeneyn(Head of State) I wanted to eat meat very eagerly (I rared) that’s why I bought some meat with one derham.” Umar said: “Do not you want to eat less and to offer some food to your neighbour or to son of your uncle (relatives) and Umar recited this verse: “...it will be said to them: “You have exhausted your share of the good things in your life of the world and sought comfort in them...”(Ahqaf,20) (Muwatta’,K.Sefat-al Nebey) Although Umar did not said “Meat is forbidden” but he wanted to remind not to eat frequently and to eat cheaper foods to follow the economy. Consumption in eating became a big problem for especially new generations in the world.The number of obeses increased 400 % in Englang in last 25 years.Obesity increased 3 times among childeren and youngs in last 20 years.Habit of overnutrition causes the diseases in heart,veins,kidneys and different psychological illness.The British government spends $ 9 billion for the problems of obesity.An estimate: after 15 years, 50 % of British children and youngs will be obeses.The House of Common established a committee for the investigate of obesity problems.(2) Even in western world some news encourages the obesity: “Woman Chows (Eats) 38 Lobsters In Eating Contest : America’s top speed-eater wolfed down 38 lobsters in 12 minutes saturday to win the World Lobster Eating Contest. Sonya Thomas,of Alexandria,Va. won $ 500 and a trophy belt for her efforts,consuming 9.76 pounds of lobster meat...This year’s competition at the Pilot House Grill & Boatyard was sanctioned by the International Federation of Competitive Eating,which ranked Thomas the country’s top speed-eater.We see after advertisement, a slogan that “Join as An Eater” (3) And in a similar news: “ He ate 53,5 sandwich in 12 minutes ” This competition has being organized since 1916 and A Japan Takeru Kobayashi has won the championship in last three years.In Coney Island of NewYork,every July 4,this competition..”(4) We see the adverstisements frequently in dailies,magazines in western (even in recent years in some Islamic countries) world “Get fit this summer” Fitness Health Center.Enfeebled (Fitness) Industry (!) became a growing sector especially in rich countries, even an underdeveloped country,Turkey, the people spent 3 billion dollars last year (5) Influential advertisements are also a problem for western consumers.We see a sentence in the Oxford Dictionary: “Entice: Advertisements try to entice (tempt,persuade) people into buying more things they need” .But in the early years of economic development of the British Empire, in Cromwell’s Britain,preacher Richard Baxter was warning the British people: “Avoid to use your wealth for a luxury life, this life takes you to the way of hell.Use your richness for the advantage of the people.You should be a useful element for the community” (6)

In a survey, “Canadians spend an average of $ 7,000- $ 10,000 on their funerals.” (7) Islam prohibited all kinds of waste.There is a heavy statement in the verse : “the extravagant are Satan’s brothers..”(Esra,27) The Prophet Muhammad had prohibited to hang a spread on the wall for decoration and said: “Allah did not enjoin to us to cover the stone (wall)” (Bukhari and Muslim)

STORAGE OF FAMILY NEEDINGS Prophet Joseph encouraged to accumulate the corns for the future scarcity years“ “He (Joseph) said: “You shall sow,as usual,for seven years.Leave in the ear the corn you reap,except a little which you may eat.Then will come after that seven years of severity, which will consume all but a little of that which you have stored for them” (Yusuf,47-8) This verse also points muslims should follow recent indicators in economy and they have to think (follow) the impact of weather conditions on corns etc.And Islamic state and charity foundations like Red Crescent etc. have to store corns,food for disasters and probable scarcities.The Prophet Muhammad (Pbuh) used to store his family needings for one year.(Muslim,K.Jehad wa-s Seyar,B.15,Had:49) EVEN IN CHARITY Islam enjoined to walk in the middle way even in charity: “Do not tie your hand to your neck (do not be miserly) nor stretch it without any restraint for then you should sit down rebuked,denuded” (Esra,29) (Our giving should not be niggardly to the point where it becomes rebuked by the righteous,nor extravagant to the extent that our families are denuded of means) .The Prophet did not permit for Sa’d b. Abey Waqqas to give for charity two thirds of his wealth,only permitted one third of it.(Bukhari,K.Janaez) CONCLUSION Professor of Economics of MIT Paul Krugman notes the cahracteristics of East Asean development:“very high savings rate: Malaysia was doing investment in 1997 more than 40 % of its GDP and Singapore half of its GDP (8) Umar Chapra mentiones: “In reaching to high savings rate,Singapore and Hong Kong imitated Japans.In 1987, total savings had recahed to 40 % in Singapore (39.9 %). These high rates were in South Korea 37.6 %,Taiwan 37.0 %, Japan 33.4 %, Hong Kong 30.7 %, (but) Latin America States 19.8 %, Middle East and North Africa 17.0 % (9) Muslims are enjoined following a balance between consumption/savings (even in charity): “And those who,when they expend,neither squander,nor are parsimonious, but keep staright between the two.” (Furqan,67) A nation should not be addicted to demonstration effect.Demonstration effect is the biggest obstacle to savings.Muslims are the men of thinking.Quran enjoined them to think on the social/economic/cultural problems.Muslims have to think/search how the other nations have developed.And then, they should take out a good prescription with the

support of Islamic teachings.

(1) Hasan al Zaman,Economic Structure in Early Islamic States,part:14 (2) Guardian,May,27,2004 (3) Associated Press,Aug.,21,2004 (4) Daily Milliyet,July,6,2004 (5) Daily Milliyet,July,6,2004 (6) Fernand Braudel,Material Civilization and Capitalism 1400-1800,1979 (Istanbul,1991) (7) Ivan Emke,Sshrc researcher,(please look:www.sshrc.ca/web) (8) Paul Krugman, “ The Return of Depression Economics”,W.W.Norton&Company,New York,2001,p,36 (9) Umar Chapra, “Islam and Economic Development,Islamabad,1993,p,83 (from the World Bank,World Tables,1988-89,v,1,pp,66-9