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The economics of zakat and its relevance to modern times is a hotly debated issue among both religious and liberal Muslims. This series of articles will attempt to explain the concept of zakat in the light of only the Quran and the faithful implementation of this concept by Prophet Muhammad (peace be upon him). We will see how a similarly implemented system can solve the current economic problems of not just Muslims, but of the whole world.

Contrary to the beliefs of both religious and secular Muslims, the Muhammad's achievements were based not on ephemeral but on the permanent values of the Quran. He brought about the greatest revolution – even an economic and political miracle – in human history (see Michael Hart, THE 100, pages 3-10). In a very short time after the prophet migrated to Medina and implemented the system of salaah and zakat, the economic condition of the people changed. (For a detailed discussion about the system of salaah, see a two part article in MONITOR, pages 6-10, September/October 1998, and pages 7-12, December1998/January 1999).

The Muhammad (pbuh) is reported to have said: If a single person were to sleep hungry in a town, then God's protection is lifted from such a town. [ Masnad Imam Ahmad ] This hadith emphasizes that no one (Muslim or non-Muslim) under this system should go hungry. Thus this zakatsystem created the first universal welfare system in human history. It also gradually transformed the existing slave-based economy to a universal welfare-based economy. By the end of the Muhammad's period, the entire Arabian Peninsula enjoyed economic as well as political security. This system reached its pinnacle during Khalifa ‘Umar's time (again, see Michael Hart, THE 100, pages 261-265), a time when, history tells us, hardly anyone was in need of charity.

What has occurred then in the intervening years that the Muslim masses are suffering economic deprivation even though they live in areas with plenty of natural resources? The answer is that we have changed or abandoned the system implemented by the Prophet Muhammad.


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