ISLAM ACKNOWLEDGES GOVERNMENT'S POSITION IN ECONOMIC MANAGEMENT

By Zulkiple Ibrahim

KUALA LUMPUR, Feb 11 (Bernama) -- In every organised society, there must
be an authority to oversee and coordinate the economy, providing the direction
for it to move.

Institute of Islamic Understanding Malaysia (Ikim) Deputy Director-General
Nik Mustapha Nik Hassan, in the article 'An Approach To An Islamic Economic
System' sent to Bernama recently, said Islam has from the beginning recognised
the position of government in economic management.

The government is required to undertake certain expenditure as ordained by
the 'syariah' (Islamic code of law) on a permanent basis and these include,
among others, to maintain administrative machinery, law and order, defence as
well as dissemination of Islam.

He said this requires the government to generate its own revenues which can
in turn influence the economy, said Nik Mustapha.

He said certain public needs require the government to participate to ensure
economic activities to run smoothly.

Nik Mustapha cited certain examples like management of money supply and
allocation as well as participation in the production of public goods.

He said the private sector is considered as having the primary initiative in
a society's economic activities where the Islamic economic organisation scheme
highly positions the individual initiative and creativity.

Individuals are recognised to own and decide on economic activities of their
choice within the syariah requirements.

Nik Mustapha said the Islamic approach to individual participation in the
economy is through individual will and drive, generated within the religious
values built into the economic system.

He said Islam is committed to the special right and ability to guide human
nature to chart its own course.

The government's role is to safeguard individual ownership and to provide
overall direction and information for the entire economy so that it can move
along in lines beneficial to the society as a whole at that point of time.

According to Nik Mustapha, the government's participation is to complement
the initiative taken by the private sector as the Islamic system allows ample
scope for the individual to move and manoeuvre his economic activities.

Nik Mustapha said Islam recognises the significance of international trade.

He said Islam in principle discourages any kinds of trade barriers and if
they are there to be trade barriers they may be used only in the form of
reciprocal arrangements.

Being the religion for the whole of mankind, Islam is committed to the view
that international trade practices can lead to the representation of Islamic
economic practices to the rest of mankind.

Nik Mustapha also said the Islamic approach to the economic system is an
approach to human civilization as a whole.

He said Islam does not merely offer theoretical and moral economic
guidelines but also an adequate methodology for implementing those guidelines.
-- BERNAMA