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The Economic System of Islam4 min readViewed 1 time

25.8 Policy of Self-Sufficiency


The policy of self-sufficiency means that a country aims towards being self-sufficient and to form a closed economic unit that could survive on its own. This country would not import nor export any commodities. Her aim would, in this instance, go beyond the protectionist theory, differ from the theory of national economy and contradict the free trade theory.

The theory of self-sufficiency which has been implemented between the last two world wars has been highlighted in two forms: Isolationist self-sufficiency and expansionist self-sufficiency. Nazi Germany represented a model of a country which adopted a self-sufficiency policy; it was, for her, a measure triggered by Germany’s home and foreign policies, which no longer fitted with the rules of international trade.

Although the policy of self-sufficiency represented in fact a host of measures which had political aims, the champions of such policy deem that it represents a fundamental economic basis, which is summarised in the fact that a country who possesses raw materials, chemicals, machines and manpower, should be able to survive. The point at hand would be organisation. As for capital, this is secondary. It is the government which chooses for itself a political program, to which they submit the economic and financial management. In order for the policy of self-sufficiency to achieve its aim, which would be to render the local economy able to be self-sufficient, the government should be prepared to manage without many of it’s needs; because the policy of self-sufficiency would make a country unable to fulfil all her needs. What is important for this policy is to be able to fulfil the basic needs of the individual, the nation and the State while relying exclusively on the local economy, in a manner that would set her in an upward trend. Therefore, the State which operates a policy of self-sufficiency in foreign trade would be obliged to annexe the countries she would need in order to acquire raw materials, markets, manpower, and experts etc. This annexation would either take the form of a direct merger, or that of commercial treaties. As for the abolition of economic frontiers, this would mean annexing the country i.e. abolishing the political borders, for it would be impossible to abolish economic borders without the abolishment of the political borders. If the State could not annexe the countries that she needs in order to acquire the materials she lacks, she should in this case persevere without fulfilling some of her needs, while aiming to avoid a shortage of basic necessities, for in such a case she would not be able to persevere, whereas lacking non basic necessities could be afforded.

This is a summary of the isolationist and expansionist self-sufficiency policies. The isolationist is where the basic needs are available; whereas the expansionist policy, within a specific scope, is achieved by annexation or treaties in order to provide all the necessities, be they basic or luxuries. If one were to look closer at the policy of self-sufficiency, one would realise that it does not rise to the level of being a commercial or economic solution. It is merely a temporary preventive measure which the State would undertake against a potential foreign economic or commercial siege. Therefore, it is not a remedy for foreign relations, but a reactive measure that a country may undertake if she were subjected to a foreign economic or commercial embargo. Therefore it would form part of the styles and means and not the rules. It would therefore be wrong to ask what the Shari’ah rule is concerning this policy. It would also be wrong to say that it contradicts or differs from Islam, for it is merely a style that might be adopted. Therefore, this policy could be taken as a style if it were to have a practical reality i.e. if a country were under siege and it were possible to rely solely on the home economy to meet it’s basic needs. This policy would not be adopted if it had no reality and it was impossible to be self-inefficient regarding the basic needs of the State, the Ummah and the individuals.

This policy is part of the management of affairs undertaken by the Khalifah and which Shar’a has allowed Him to opt for, in whichever style He deems appropriate and in the interest of the Muslims.

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Chapters (110)
  1. 11 Introduction to the Economic system
  2. 21.1 The Capitalist Economic System
  3. 31.2 The Economic System versus Economic Science
  4. 41.3 The Socialist Economic System
  5. 52 Economy
  6. 62.1 The Basis of the Economic System
  7. 72.2 The View of Islam towards the Economy
  8. 82.3 Economic Policy in Islam
  9. 92.4 The General Economic Principles
  10. 103 Types of Ownership
  11. 113.1 Private Ownership
  12. 123.2 Definition of Private Ownership
  13. 133.3 The Meaning of Ownership
  14. 143.4 The Means of Owning Property
  15. 154 The First Means of Ownership - Work
  16. 164.1 Cultivation of Barren Land
  17. 174.2 Extracting that which exists inside the earth
  18. 184.3 Hunting
  19. 194.5 Mudharaba
  20. 204.6 Share Cropping - Musaqat
  21. 214.7 Hiring-Employing an Employee
  22. 225 The Work Of The Employee Worker
  23. 235.1 Definition of the Work
  24. 245.2 The Type of Work
  25. 255.3 Duration of the Work
  26. 265.4 Wage for Work
  27. 275.5 The Effort Spent in the Work
  28. 285.6 The Ruling Regarding Hiring Over Prohibited Benefits
  29. 295.7 The Ruling of Hiring Non-Muslims
  30. 305.8 Hiring Someone to perform Worships and Public Services
  31. 315.9 Who is the Employee?
  32. 325.10 The Basis upon which the Assessment of the Wage is Established
  33. 335.11 Estimating the Employee's Wage
  34. 346 The Second Means Of Ownership
  35. 356.1 Inheritance
  36. 367 The Third Means of Ownership
  37. 377.1 The need for Property for Sustenance
  38. 388 The Fourth Means Of Ownership
  39. 398.1 That which the State gives of its Properties to the Citizens
  40. 409 The Fifth Means Of Ownership
  41. 419.1 The Property obtained by Individuals
  42. 4210 The Way To Dispose Of Property
  43. 4310.1 Right of Disposal
  44. 4410.2 Increasing Property
  45. 4510.3 The Rules of Lands
  46. 4610.4 Cultivation of Barren Land
  47. 4710.5 Disposal of Land
  48. 4810.6 Preventing the Leasing of Land
  49. 4911 Trading And Manufacturing
  50. 5011.1 Trade
  51. 5111.2 Manufacturing
  52. 5212 The Laws Of Partnership Companies
  53. 5312.1 The Company in Islam - Partnership
  54. 5412.2 The Company of Equal - Al-Inan
  55. 5512.3 The Companies of Bodies - Al-Abdan
  56. 5612.4 The Company of Body and Capital - Mudharaba
  57. 5712.5 The Company of Reputation Faces - Wujooh
  58. 5812.6 Company of Negotiation - Mufawadha
  59. 5912.7 Dissolving the Company
  60. 6013 Capitalist Companies
  61. 6113.1 Commercial Company of Joint Liability
  62. 6213.2 Joint-Stock Company - Share Companies
  63. 6313.3 Shares of the Share Stock Company
  64. 6413.4 Co-operative Societies
  65. 6513.5 Insurance Ta’meen
  66. 6614 The Prohibited Methods of Increasing Ownership
  67. 6714.1 Gambling
  68. 6814.2 InterestUsury (Riba)
  69. 6914.3 Criminal Fraud
  70. 7014.4 Deceit in Trade
  71. 7114.5 Monopoly
  72. 7214.6 Price-Fixing
  73. 7315 Right of Disposal to Spend in Gifts and Maintenance
  74. 7416 Public Property (AlMilkiyyah Al- Ammah)
  75. 7517 State Property
  76. 7618 Nationalised Property is neither Public nor State Property
  77. 7719 Seclusion (Hima) in the Public Interests
  78. 7820 Factories
  79. 7921 Bait ul Mal (The State Treasury)
  80. 8021.1 Revenues of Bait ul-Mal
  81. 8121.2 The Expenditures of Bait ul-Mal
  82. 8221.3 The State Budget
  83. 8321.4 Zakat
  84. 8421.5 The Head Tax (Jizya)
  85. 8521.6 The Land Tax (Kharaj)
  86. 8622 Distributing Wealth among the People
  87. 8722.1 Economic Equilibrium in Society
  88. 8822.2 The Prohibition of Hoarding Gold and Silver
  89. 8923 Riba and Currency Exchange (Sarf)
  90. 9023.1 Riba (Interes-tUsury)
  91. 9123.2 Currency Exchange (Sarf)
  92. 9223.3 Exchange Transactions
  93. 9324 Money-Currencies (An-Nuqood)
  94. 9424.1 The Gold Standard
  95. 9524.2 Benefits of the Gold Standard
  96. 9624.3 Problems facing the Gold Standard
  97. 9724.4 The Silver Standard
  98. 9824.5 Metallic Money
  99. 9924.6 Paper Money
  100. 10024.7 Issuing of Currency
  101. 10124.8 Exchange Rate of Currencies
  102. 10225 Foreign Trade
  103. 10325.1 The Reality of Foreign Trade
  104. 10425.2 Balance of Tarde
  105. 10525.3 Currency-Monetary Relations Between Countries
  106. 10625.4 Foreign Trade Policy
  107. 10725.5 Free Trade
  108. 10825.6 Protectionism
  109. 10925.7 National Economy
  110. 11025.8 Policy of Self-Sufficiency