The preceding passage discussed the ethics of charity and its role in society; the present passage deals with the opposite, dark side of the circulation of money, namely, usury, or to use the Islamic term, ribā. While charity denotes giving, generosity, purification, growth, cooperation and mutual social welfare, usury signifies stinginess, greed and self-aggrandizement.

Charity is giving of one’s wealth without any expectation of recompense or repayment, while usury is the exaction of a charge over and above money owed, which is usually paid for out of the sweat and blood of the borrower, regardless of whether he profits as a result of the loan or not.

It is perhaps significant that the sūrah should discuss usury immediately after dealing with a pleasant subject such as charity, in order to highlight the sharp contrast between the two, and their effects on people and society.

No other issue has been condemned and denounced so strongly in the Qur’ān as has usury; nor has any practice come in for stronger warnings, spelling out fearful doom. Infinite is God in His wisdom. For, although it was one of the most pervasive evils during the pre- Islamic Dark Ages, most of its destructive aspects have only become better known in our modern society. Only today, in the light of widespread human suffering, can we appreciate the reasons behind the Qur’ān’s determined onslaught on this evil practice. Today, we are better placed than even the people of pre-Islamic Arabia to understand God’s wisdom underlying these principles, and the suitability of Islam for the organization of human society. In today’s world, we have all the signs and evidence we need to explain and confirm the words of the Qur’ān.

We can see what havoc and what misery a usury-based financial system has brought upon the world, as well as the insidious destruction it has caused to the morals, religion, health and economic strength of modern society. As the Qur’ān says, we are witnessing a divinely-inspired war against all individuals, groups, nations and states that persist in defying God’s commands concerning the practice of usury in its various disguises.

The passage discussed in Chapter 18 laid down the basic principles for giving to charity, for the sake of God, as an important part of the Islamic social and economic system God has chosen for the Muslim community. It serves as a model for the rest of mankind to emulate and enjoy. It is presented as an alternative to a wicked and inhumane system based on usury.

We, thus, have two contrasting socio-economic systems: the Islamic system and the usury-based un-Islamic system. They are based on totally different value systems and views of the world. They can never be reconciled, as each leads in a completely opposite direction to the other and aims to achieve different ends.

The economic system Islam advocates, like its overall view of life, is based on the fundamental concept that God is the Creator and the undisputed master of all that exists. God has struck a deal with mankind and delegated to man certain duties and responsibilities on earth. He provided him with the tools, the materials and the means by which he can exercise his authority and freewill. The main proviso of God’s covenant with man is that man should live and behave according to God’s laws. Only actions, morals, dealings or religious activities conducted according to God’s law will be sanctioned and valid. The imposition of such activities by duress is rejected and condemned as injustice. God is the ultimate ruler and arbiter, and temporal human authority is derived from adherence to His law and code of living, to which human beings are bound by their covenant with Him.

Another provision of God’s covenant with man stipulates that believers must look after one another’s welfare and share the benefits of what God has provided for all of them. This does not mean common ownership in the Marxist sense, but responsible and regulated private ownership. Those who have should share with those who have not and all are equally required to seek work and earn their living according to their ability. No capable member of society should live off someone else or become a burden on the community. To support this system of social welfare, Islam has set up zakāt as a fixed obligation on the well- off and encouraged voluntary charity without limits.

God has also advised man to seek moderation and avoid lavish spending and extravagant living. This would ensure sensible employment of wealth and a surplus of funds for the payment of zakāt and a contribution to charitable causes.

Muslims are required to invest their money and seek the growth and development of their wealth, by scrupulous and legitimate means, without exploiting others or encroaching on their rights. Besides, it is not allowed to try to pervert, in any way, the fair and healthy circulation of capital and wealth in society. The Qur’ān stresses that wealth “should not be left to circulate only among the rich of you.” (59:7)

God has also enjoined honesty of intention and action and the integrity of ends and means. He has laid down rules and ethics that should be observed in the investment and development of wealth so as not to compromise the conscience or morals of the individual, or undermine the life and welfare of the community. These principles are laid down in accordance with Islam’s overall philosophy of life and worldview, and in line with the terms and conditions of God’s covenant with man that governs the whole range of human actions and activities in this world.

Thus we can see that usury as an economic instrument conflicts directly with the very basic concepts of Islam, because it is based on the total rejection of God’s role and the dismissal of all the principles and aims on which the divine code of living is founded.

A usurious or interest-based system assumes a total divorce between the divine will and human life, leading to the conclusion that man is the absolute master of this world, not bound by any responsibility towards God or any obligation to respect His teachings or commands. It also implies that man is free as to how he accumulates, enjoys and uses wealth, and that in this regard he has no obligation whatsoever towards God or, indeed, any liability to others; it would not matter if thousands or millions of people were to suffer in the process.

Of course man-made laws may occasionally intervene to curb this freedom by setting the rates of usury or banning certain fraudulent and illegal practices, but this is usually dictated by expediency and popular convention rather than by considerations of the principle laid down by a higher divine authority.

A usury-based system is founded on the erroneous concept that the accumulation and enjoyment of wealth, regardless of the means, is the ultimate objective of human life, which explains the resulting reckless and vicious rush for money-making and prodigality.

Such a system brings nothing but misery and suffering upon individuals, communities, and nations, while it benefits only a few moneylenders. It undermines the moral and psychological fabric of society and creates a detrimental imbalance in the distribution of wealth and economic development, leading, as it is doing at present, to the concentration of power and influence in the hands of a few greedy, unscrupulous, and malevolent individuals and institutions, at national and international level, that reap the highest benefits but have no respect or regard for human values and human effort.

These powerful individuals and institutions not only control the world economy and international wealth, but they also wield enormous influence in several other walks of life with the aim of enhancing their role and position in the world. Since they are unscrupulous and unprincipled and look with disdain on religion and morality, it is to their advantage to undermine religious belief and encourage moral degradation, promiscuity and excessive spending. They manipulate the world economy for their own benefit, manufacturing and fuelling regular economic crises in various parts of the world and diverting economic and industrial production away from the common world interest to areas that will give them the greatest advantage and control of international wealth.

This catastrophic situation has been further exacerbated by the success of these powerful finance centres and groups, through their strong influence in the political, economic, media and entertainment worlds, to create the universal popular myth that usury is a good and natural aspect of the economy, without which there would be no economic prosperity or growth. It has been alleged that an interest- based economy is the one responsible for the tremendous achievements and progress of modern Western civilization, and that those calling for the abolition of usury are unrealistic dreamers and idealists motivated by moralistic and religious considerations that are capable, if given the chance, of corrupting the whole modern economic system. What is more is that those who criticize the interest- based economic system on these grounds are ridiculed by people who are in reality victims of this very system. Another victim of the system of usury is world economy which is forcibly set on the wrong course by international usurers. Thus, it suffers periodic, stage-managed crises to ensure that all its benefits are reaped by such usurers, rather than by humanity as a whole.

Some Western economists have recognized the fact that a usurious system is a threat, from the purely economic point of view. One leading critic of the system, Dr.

Schacht, a former Governor of the German Central Bank, in a speech given in 1953 in Damascus, said that with an infinite mathematical operation it would be possible to show that the total sum of all liquid money in the world ends up in the hands of a few usurers, because a usurer-lender gains in every deal while the borrower is equally liable to gain or lose. Logically, therefore, money will ultimately end up with the one who always gains. The majority of capital today is under the real control of a few thousand people; while landlords, industrialists, farmers and traders who borrow from the banks, as well as workers and ordinary consumers, are no more than labourers working for the benefit of those in possession and control of capital.

That is not all that is wrong with a usury-based economy. The relationship between capitalists on the one hand, and those working in commerce and industry on the other, is based on mistrust, strife and resentment. Moneylenders try to make maximum gains by lending their money, and therefore favour a squeeze on the money supply to cause a rise in the cost of borrowing. This eventually leads td a slowdown in the economy, a rise in unemployment, and a fall in /the purchasing power of the individual. This creates a fall in industrial loans which, in turn, forces the moneylenders to reduce the cost of borrowing, and a new cycle of growth and prosperity begins, only to lead to another recession and more misery for borrowers and consumers. It is this vicious circle of boom and bust that brings about the regular international economic crises.

In such an economy, every consumer pays part of the price of goods to the moneylenders albeit indirectly. Industrialists and traders take the extra cost of borrowing out of consumers’ pockets by raising the prices of goods and services, thus spreading the burden over the widest possible area. Government borrowing to finance public projects is also met by ever-rising taxes imposed on the earning sections of the population, spreading the cost again over large numbers of people.

This led to the rise of colonialism, and remains the root cause of war and conflict in the world today.

When considering the Islamic attitude to usury, we must bear in mind a number of essential facts.

The teachings and ethics of Islam, as we have seen, are in total conflict with a usurious economy. All the rulings, issued by the official ‘clergy’ in Muslim countries, and the arguments advanced to show that usury may be accommodated into the Islamic system, are pure humbug aimed at deceiving the public.

The usury system is a curse on all humanity, not only ethically and religiously, but also economically and practically. It is a system that creates unhappiness and restricts the growth of harmony and stability in society, despite its deceptive promise of prosperity.

Moral and practical considerations are inextricably linked. In all his actions, man is governed by the terms of God’s covenant; he is here with a mission and a responsibility and will have to account for his actions in the hereafter. An Islamic economic system must be built on moral and ethical principles. Such principles are not a merely desirable addition that can be done without in people’s life.

A usury-based economic system is bound to undermine the moral and ethical character of individuals, their feelings and their desire to help each other. It encourages greed, selfishness, lechery and speculation. In the modern world, it has opened the gates for the most sinister and corrupting forms of investment ever known, such as the drug trade, pornography, prostitution, all in pursuit of guaranteed astronomical profits. Borrowed money is not used in the service of humanity but for maximizing profit, regardless of the nature of the trade or the methods by which that profit is realized.

Islam is a comprehensive way of life. Its economic system completely discounts the need for usury and organizes the social life of the community in such a way as to eliminate usury altogether. At the same time it maintains the balance and progress of economic, social and human development in society.

Under Islam, there is no need for the abolition or removal of existing economic and financial institutions, such as banks and commercial companies, which play a vital role in modern economic development. Islam can reform these institutions and enable them to function along the sound and constructive rules and regulations it lays down.

Most importantly, Muslims must realize that it is a conceptual impossibility that God Almighty should prohibit something that is vital for the perpetuation and preservation of human life. By the same token, no practice that is inherently corrupt could ever be essential for the organization and progress of human life. A Muslim who truly believes in God as the creator, preserver and controller of life and the world cannot conceive that God would forbid anything that is vital, or prescribe anything that is vile or obscene. The reasons for widespread belief in usury-based economic and financial systems can be traced to ignorance and the obnoxious propaganda systematically waged by capitalist and money lending lobbies and institutions. These continue to exert their pervasive influence on governments, international political organizations, and private and public media and information establishments.

The claim that the international economic and financial systems cannot exist or function without usury is simply a myth and a monstrous lie sustained by big business and international vested interests. Usury-free economies have existed and performed very successfully. To revive them today requires determination and a concerted, well-considered international effort by at least the Muslim countries of the world, in order to revive some hope of future stability, prosperity, happiness and real peace and justice in our world.

It is beyond the scope of this commentary to discuss in detail the practical methods of implementing the Islamic system. We will only look more closely at how Islam succeeded in the eradication of that abominable practice of usury.

Those who gorge themselves on usury cannot rise up except as he may rise up whom Satan has confounded with his touch. That is because they say, ‘Trade is just the same as usury;’ whereas God has made trade lawful and usury forbidden. He who receives an admonition from his Lord, and thereupon desists [from usury] may retain his past gains, and it will be for God to judge him. Those who revert to the practice [of usury] are indeed the inmates of the fire, wherein they shall abide. God blots out usury and causes charitable offerings to grow and increase. God does not love confirmed unbelievers who persist in wrongdoing. (Verses 275-276)

It is a frightening image, far more effective than any threat or admonition. The image of a person possessed by the devil is an evocative and terrifying one, most effective in deterring usurers and in conveying the message to others. It shakes the human conscience and brings home the horrible reality of the effects of usury on individuals as well as society as a whole.

Most commentators have suggested that the sūrah refers to rising before God on the Day of Judgement, but I am of the view that this is a metaphor for what actually happens in life on this earth. This interpretation is supported by a later passage warning usurers of an impending war against them by God and His Messenger which, in my view, we can see going on in the world today. The whole world is currently reeling under the dire consequences of a pervasive international usury- based financial system.

However, before we study the Qur’ānic text in detail, let us review the different types of usury, or ribā, known at the time of revelation and how the Arabs of the pre- Islamic jāhiliyyah, or Dark Ages, viewed the whole practice of usury. There were two main types, known in Arabic as ribā al-nasī’āh, increase related to deferment, and ribā al- fađl, increase based on difference in quality.

Ribā al-nasī’ah, according to Qatādah, applies to selling goods on credit for an agreed term. When the term expires, and the buyer finds himself unable to settle, the seller raises the price in lieu of extending the settlement term. According to Mujāhid, if a borrower fails to settle a debt, he agrees to make an additional payment, over the original loan, to the lender in return for an extension of the settlement period.

According to Abū Bakr al-Jaşşāş, ribā al-nasī’ah was no more than a deferred loan conditional on an implied premium, the deferment being granted in return for the additional payment over the original amount.

In his commentary, Imām al-Rāzī says that ribā al-nasī’ah was the more widely known in the pre-Islamic days. People would advance money for a fixed term in return for an agreed monthly fee, keeping the original amount unchanged. At the end of the fixed term, the borrower would either pay back the original loan in full or be granted an extension with higher monthly payments.

Usāmah ibn Zayd quotes the Prophet as saying: “Ribā al-nasī’ah [i.e. increase related to deferment] is the only real form of usury.” [Related by al-Bukhārī and Muslim] Ribā al fađl [i.e. increase based on difference in quality] applies to premiums on spot transactions involving the exchange of quantities of the same commodity, with something extra: gold for gold, silver for silver, wheat for wheat, and so on. Such transactions are considered usurious because they bring exploitation, a feature common to all types of usury. This fact will be of great importance in our discussion of the contemporary situation.

“Those who gorge themselves on usury cannot rise up except as he may rise up whom Satan has confounded with his touch.” (Verse 275) This is a reference not only to those who take interest or charge a usurious gain, but also to society as a whole.

Jābir ibn `Abdullāh reports that the Prophet has cursed the person who charges usury, the one who pays it, the two witnesses and the one who writes the contract, saying: “They bear the same responsibility. [Related by Muslim, Aĥmad, Abū Dāwūd and al-Tirmidhī] These rules apply to private, one-to-one transactions, while the whole community is condemned to the onslaught of God’s wrath in societies where usury forms the basis for financial transactions. Such a society lives in turmoil and constant insecurity; and if there were doubts about this fact during the early days of the capitalist system, some four centuries ago, its record since then totally vindicates it.

The world we live in today is full of anxiety, instability and fear. Western leaders, intellectuals and scientists themselves admit to the frightening spread of nervous and psychological diseases in the West, despite its spectacular industrial, scientific and economic success. The other frightening aspect of today’s Western-dominated world is the spread of conflict and strife, and the imminent threat of global war and mass destruction.

As a result, a dark cloud of depression and despair hangs over this world of ours which Western civilization, with all its achievements and capabilities and wealth cannot remove. What, then, is the point of material progress if it does not bring happiness, peace and security to individuals and societies?

It is a fact that no fair-minded person could ever deny: the majority of people in the most affluent and materially advanced countries, such as the United States of America or Sweden, lead the most miserable lives. Anxiety, depression and boredom are eating into people’s lives who, despite their affluence and energy, are driven to a culture of fads and mental and sexual perversions, and all kinds of anti-social escapist behaviour that allows them no peace or security The fundamental cause of this pervasive unhappiness is the spiritual wilderness in which Western societies are living today. For, in spite of the prosperity and material well-being they enjoy, these societies lack the spiritual reassurance and faith that can only come with belief in God and placing our full trust in Him. They no longer have any universal goals or aims to aspire to. They have lost faith in human life and man’s mission and role in the world as defined in God’s covenant with mankind.

From that fundamental cause springs the curse of usury which undermines the whole economic edifice of society in such a way that the economy inflates but never seems to grow in a healthy and equitable manner or benefit all sections of the community. A usury-based economy is a lopsided one, in which the faceless privileged few prosper to the most obscene extent at the expense of the industrial and commercial resources of the community. Financiers and moneylenders control the flow of money into the market and thereby impose their wishes and interests rather than seek to meet the needs of the people or serve the public interest. Their aim is not to provide regular employment or long-term security of income, leading to happiness and social stability, but to maximize their own profits, even if that means the suffering and deprivation of millions, or the destruction of the security and welfare of the rest of mankind.

In contrast to the preceding example of disbelief and wrongdoing, the sūrah presents the case of faith and righteousness, highlighting the essential attributes of the community of believers and the basis of the economic system which disavows usury and has the firm foundation of the important institution of zakāt: “Those that have faith and do good deeds, attend regularly to their prayers and pay zakāt, shall have their reward with their Lord. They shall have nothing to fear, nor shall they grieve.” (Verse 277)

The main element in this verse is that of zakāt which denotes giving willingly, expecting nothing from any human being in return. The verse also introduces a feature of the community of believers and one of its important pillars, before it goes on to describe the total reassurance, tranquillity and happiness such a community enjoys.

The institution of zakāt represents the foundation of a caring, sympathetic and supportive society, which has no cause to resort to usury in any aspect of its life. The image of zakāt has faded somewhat in the minds of those unfortunate generations of Muslims who have had no experience of life under Islam. They have not seen Islamic laws, ethics and principles shaping the daily lives of people, and creating a healthy, virtuous, decent society. They have had no experience of how zakāt works in practical terms to bring about economic growth and prosperity as a reward for individual diligence and honest cooperation.

These generations have become accustomed to the odious effects of the materialist usurious system, which promotes greed, unashamed self- interest and social antagonism. They have come to accept that economic and commercial life cannot be run without usury, although under this system, the transfer of wealth is often accompanied by exploitation, while people who have no money have no security in life, and industry and commerce become hostages to the moneylenders.

To contemporary eyes, zakāt appears as an outdated form of charity that does not fit into modern economic or financial systems. Yet zakāt is paid out by people educated by Islam to implement Islamic laws and regulations, and to establish a system that can hardly be imagined by those who have never experienced it. Zakāt is levied by Muslim authorities at the yearly rate of 2.5 per cent on liquid money (or 5- 10 per cent on crops, and 20 per cent on mineral resources), as an incumbent duty rather than optional charity. The authorities then distribute the proceeds among those in need in the community as widely as possible, in order for the beneficiaries to meet their basic necessities and alleviate their hardships. Debtors who are insolvent are helped with zakāt money to settle their debts, whether these are personal or commercial. Poor people are helped to find appropriate work that makes them self- sufficient.

The form in which such a system operates is of secondary importance: what is important is the spirit in which the system and society come together and function as a whole to bring about genuine care and effective social welfare.

Having evoked an atmosphere of calm and peace, the sūrah makes a final passionate appeal to the true believers to eradicate usury and rid their society of it completely, or face a relentless war waged against them by none other than God Almighty and His Messenger: “Believers, fear God and give up what remains outstanding of usury gains, if you are true believers. If you do not, then war is declared against you by God and His Messenger. If you repent, however, you shall remain entitled to your principal.

Thus, you shall commit no wrong, nor suffer any wrong yourselves.” (Verses 278-279)

This passage makes the rejection of usury a condition of true faith; Muslims shall only become true believers when they fear God and reject any usury money they are owed. No faith could be claimed, even as a mere form of words, without total acceptance of, and submission to, God’s will and command. The Qur’ān is very explicit on this point and leaves no room for confusion. There is no chance for anyone wishing to declare their faith and belief in God verbally, only to adopt a way of life that is the antithesis of His laws and teachings. Those who separate religious belief from their daily affairs of life are deluding themselves if they think they are true believers, no matter how much they insist they are, or how regularly they observe religious rituals.

The sūrah exonerates Muslims of all previous dealings involving usury, making it clear that there would be no appropriation of property previously gained or acquired through usurious transactions. Islam has laid down an important rule that everything is permissible unless it is specifically declared otherwise, and no rules may be retroactively applied. Everything done previously would be suspended and left to God to judge and assess. Thus Islam ensured that the transition to a usury-free system was smooth and with little, if any, social or economic difficulty. Only very recently has this approach been incorporated into modern laws. Islamic legislation deals with practical human situations, while always aiming at purifying society and directing and promoting human progress and prosperity.

God also makes it a condition that Muslims, in order to be true believers, should accept this legislation and implement it in their daily life as soon as they become aware of it. The sūrah also stresses that fear of God and consciousness of Him are a necessary corollary to following His teachings and implementing His laws. This fear of God is an important safeguard for the enforcement of the laws and regulations, reinforcing the guarantees inherent in them. Thus, Islamic laws have a far better chance of being obeyed and adhered to than man-made laws. The enforcement of the latter is solely contingent upon the force of external authority which is easily evaded and circumvented in the absence of the inner incentives and convictions of a vigilant conscience.

The alternative is far more gloomy. “If you do not, then war is declared against you by God and His Messenger. If you repent, however, you shall remain entitled to your principal.

This passage dealing with lending and borrowing is concluded with advice on how to deal with insolvent debtors. In such cases, the solution would not be to impose further penalties in lieu of deferred payment, but the debtor should be granted a reprieve until he is able to settle his debt, or the lender should be magnanimous enough to write off the debt completely. “If [the debtor] is in straitened circumstances, grant him a delay until a time of ease. And if you waive [the debt entirely] as a gift of charity, it will be better for you, if you but knew it.” (Verse 280)

The words evoke an atmosphere of tolerance and benevolence. They provide a respite from the harshness and severity of greed and selfishness. They call for clemency and compassion on the part of creditor and borrower, as well as by society as a whole.

These words may not make a great deal of sense to those ‘rationalists’ who apply purely materialistic criteria. It makes even less sense to moneylenders, individuals as well as faceless institutions, that justify their exploitative and extortionate practices on utterly amoral and inhuman principles and considerations. These Qur’ānic exhortations may never reach their hearts. But, as believing Muslims, we recognize that these are words of truth that are certain to bring about happiness and security for all mankind: “If [the debtor] is in straitened circumstances, grant him a delay until a time of ease. And if you waive [the debt entirely] as a gift of charity, it will be better for you, if you but knew it.” (Verse 280)

Under Islam, a debtor is never put under duress by either the creditor or the law, but is always given another chance to settle his debt. Furthermore, society at large will not stand idly by when a borrower is suffering genuine hardship because of his indebtedness. God calls on the creditor to willingly waive the debt, and if’ he does so it will be good for him and for the debtor, and for the welfare and cohesion of the community as a whole.

The abolition of usury would lose much of its purpose if the creditor were allowed to harass and squeeze the debtor while he was not able to settle the debt. Thus the sūrah urges that he should be given time to settle, and advises the creditor to waive the debt, in full or in part. Other Qur’ānic statements (9: 60) specify that insolvent debtors, who borrow money for legitimate purposes and are unable to pay it back, qualify for help from zakāt funds to clear their liabilities and alleviate their situation, provided that their debts were incurred for legitimate purposes.

Then, in a highly inspiring comment, the sūrah recalls the fearful Day of Judgement when people shall stand defenceless before God to account for their actions. These words cannot fail to move a thoughtful and conscientious person to write off any money he might be owed by some helpless borrower. “Fear the day when you shall all return to God; when every soul shall be repaid in full for what it had earned, and none shall be wronged.” (Verse 281)