LU13 Economic and Social Welfare PDF

LU13 Economic and Social Welfare Concept of Economic Welfare in IE Economic welfare in Islamic teachings emphasizes fair and just economic practices, fostering prosperity while ensuring social balance. 1. Fair Trade Principles emphasizing honesty, transparency, and...

LU13 Economic and Social Welfare Concept of Economic Welfare in IE Economic welfare in Islamic teachings emphasizes fair and just economic practices, fostering prosperity while ensuring social balance. 1. Fair Trade Principles emphasizing honesty, transparency, and fairness in transactions. Islam allows trade, but cautions against unfairness, exploitation and deceit. Qur’an says: “Do not devour one another’s property wrongfully, nor throw it before the judges in order to devour a portion of other’s property sinfully and knowingly.” (Al-Qur’an, Al-Baqarah: 188). In another place, Qur’an says: “Do not devour another’s property wrongfully – unless it be by trade based on mutual consent.” (Al-Qur’an, Al-Nisa: 29) 2. Wealth Distribution Economic welfare in Islamic economics is closely tied to the fair distribution of wealth. The system seeks to avoid extreme income disparities and encourages the equitable sharing of resources within society. This is particularly evident in the emphasis on Zakat, a form of charitable giving that redistributes wealth from the affluent to the less privileged. 3.Prohibition of Interest (Riba) The prohibition of interest is a fundamental aspect of Islamic economics. Riba, or usury, is seen as exploitative and harmful to economic welfare. By eliminating interest, Islamic economics aims to create a financial system that is fair and just, promoting economic stability and ethical financial practices. 4. Social Justice and Poverty Alleviation Islamic economics places a strong emphasis on social justice, aiming to alleviate poverty and improve the well-being of all members of society. This is reflected in various mechanisms such as Zakat, which is designed to provide financial assistance to those in need, contributing to overall economic welfare. 5. Balancing Individual and Collective Interests Islamic economics seeks to strike a balance between individual economic pursuits and the collective welfare of society. While individuals are encouraged to engage in economic activities, these activities should not harm the broader community. The economic system is designed to promote cooperation, solidarity, and mutual support.  Waqf (endowment) Waqf, in Islamic terms, refers to the act of dedicating a specific asset, usually in the form of property or funds, to a charitable cause. Once a Waqf is established, the donated asset is no longer owned by the donor. Historically, Waqf has played a crucial role in fostering social welfare by addressing various community needs.  Impact of Waqf (endowment) 1. Perpetual Charitable Impact Waqf is designed to have a lasting and perpetual impact. The donated assets generate ongoing benefits for the community, contributing to social welfare in the long term. 2. Alignment with Islamic Values Establishing Waqf reflects the Islamic values of charity (sadaqah) and community support. It serves as a way for individuals to contribute to the betterment of society while adhering to religious principles.  Historical Examples of Waqf and Its Contribution to Social Welfare 1. Al-Qarawiyyin University in Fez, Morocco Established by Fatima al-Fihri in 859 CE, Al-Qarawiyyin is recognized by UNESCO as the world's oldest continuously operating educational institution. It was founded as a Waqf, providing free education to students for centuries and making a lasting impact on education and knowledge dissemination.  Historical Examples of Waqf and Its Contribution to Social Welfare 2. Suleymaniye Mosque Complex in Istanbul, Turkey Commissioned by Sultan Suleiman the Magnificent in the 16th century, the Suleymaniye Mosque Complex is an architectural marvel that includes a mosque, a hospital, a school, and a kitchen for feeding the poor. The entire complex was funded through Waqf, emphasizing the multifaceted contributions of Waqf to various aspects of community welfare.  Historical Examples of Waqf and Its Contribution to Social Welfare 3. Baitul Aman Mosque in Bangladesh The Baitul Aman Mosque, one of the largest mosques in the world, was built with Waqf contributions. The mosque complex serves as a community center, providing space for religious activities, educational programs, and social gatherings. Modern economic and social welfare programs inspired by Islamic principles 1. Islamic Microfinance Islamic microfinance institutions operate based on Sharia principles, providing financial services to entrepreneurs and small businesses without involving interest (Riba). These institutions often use profit-and-loss sharing models, Mudarabah or Musharakah, promoting economic development in a socially responsible manner. Example: Akhuwat Foundation (Pakistan) Modern economic and social welfare programs inspired by Islamic principles 2. Socially Responsible Investment (SRI) SRI involves investing in businesses that align with ethical and socially responsible criteria. In the context of Islamic principles, this includes avoiding investments in businesses related to alcohol, gambling, and other prohibited activities. Example: Amana Mutual Funds (USA) Modern economic and social welfare programs inspired by Islamic principles 3. Islamic Social Welfare Organizations Various Islamic organizations operate globally to address social welfare needs, combining charitable giving (Sadaqah) and organized programs to alleviate poverty, provide healthcare, and support education. Example: Islamic Relief Worldwide The end..