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ECONOMY & SOCIETY

 

Lack of Employment in Addu

AO,17/05/2005-The lack of employment opportunities in Addu atoll and elsewhere in the country have been always linked to the absence of 'democracy' and 'freedom'. But those who understand the ideological foundations of capitalism and democratic system of governance should realise that democracy is quite a distance from achieving the ideals such as economic equilibrium, systematic governance, and justice. As regards the capitalist economic system, the tenets of 'freedom of ownership' and 'free market' mechanism are the pillars upon which the economy is built. According to these two capitalist viewpoints, it is haraam for the government to look into the affairs of the people. This idea of 'freedom of ownership' in its pure form, forbids the state to provide anything to the poor other than the right to own property. The theory claims that if people are left to be free then this will lead to the optimal level of satisfaction in the society. As we have seen it has led to nothing but a system of exploitation, fraud and deception. The idea of 'freedom of ownership' coupled with the other pestiferous capitalist concept of 'personal freedom' even push people to steal or make money out of drugs, prostitution...etc

This school of thinking was essentially the resurrection by Adam Smith and later expounded by David Ricardo. It primarily asserted that forces of free-markets is the key for allocating all economic resources and the cure for all the illness, hence the ''invisible hand of the market'' was coined. The role of the state was to enforce contracts, to print worthless paper money, control the supply of money and to provide best climate for businesses to flourish. Essentially the underlying argument advocated is that the favourable investment opportunities should provide the impetus to create the wealth that is needed for society, which is deemed as a clear prerequisite for wealth circulation. Now what then is the means for circulation or distribution of this wealth? This is explained away by the ''trickle down'' theory which purports that those who are the most skilled entrepreneurs should be allowed to function with full incentive and hence more paper money has to printed and granted to entrepreneurs to generate wealth. Once this is created, it will trickle down to other members within the society. No real explanation was provided with the exception of the fact that this was an inevitable process. In reality some wealth will inevitably trickle down, but does this lead to the desired effect of creating a satisfactory level of the distribution of wealth within the society? It would more accurate to conclude from the reality that wealth does not trickle down but remains hoarded in the hands of the few at the expense of many. Resulting in a climate where the poor gets poorer and the rich gets richer. Homelessness, poverty, and iniquity have not been resolved in a capitalist society. The figures clearly indicate the opposite, widening of the income and wealth gap between the rich and poor within the country despite the significant growth of the GDP.

The achievements of 'free market' and 'freedom of ownership' paradigms

The ironies and contradictions of western economic theories have become so abundant that people feel there is no hope for the poor.

In a few months Maldivians will be congratulating themselves for having the CHOICE of two mobile telephone service providers. This economic system provides lot of CHOICES in matters related to luxurious needs, but no choice is available in the areas of basic needs such as housing ( we mean housing with some respectable level of privacy and common comfort level for every citizen). The western economic system state that when the economy is left to be run in a free manner, the production naturally responds to the needs of the people. Is the growth of two mobile service providers a natural response to the real burgeoning needs of the people ? If that is the case, why cant it respond to the problem of housing ? In reality this system does not respond to the consumers, but it creates unnecessary needs and exploit the consumers by frantic marketing. The fundamental fault of the capitalist system is that it cannot differentiate between basic needs and luxuries. Also, the residents of Addu have been congratulating themselves for having the CHOICE of two airlines with one of them providing more leg space, more luggage, in-flight entertainment. Are these really required by people who do not have a source of income ?

What of the rich business community in Addu ? Have they been able to redress the problem of unemployment to any extent ? Surely they can soothe the symptoms to some extent. Looking at the wider society reveal that they have done a astoundingly miserable job in this department. Apart from building shiny mosques there have not been any significant contribution from them.

Islam - The ideological solution

Only Islam can address the problems of mankind as it is the system of the Creator and it differs from the capitalist system in many aspects.

1) The basis for economic thinking is different from the capitalist view of the economic problem to the Islamic view. The capitalists view the economic problem as supply and demand while Islam view the economic problem as the distribution of wealth. This also means that Islam would priortise in solving people's needs because Islamic economic thinking makes a distinction in human needs, between the basic and luxurious needs. The priority of Islamic economic thinking is to first ensure that the basic needs of all people have been satisfied. This is one Islamic evidence which stipulates the prioritisation:

''The son of Adam has no better right than that he would have a house wherein he may live and a piece of cloth whereby he may cover his nakedness and a piece of bread and some water'' (Hadith) ( i.e. basic needs have to satisfied before thinking about multiple mobile telephone service providers, multiple airlines, multiple internet service providers...etc)

2) Islam gives people the right to own land to cultivate according to the following legal evidence.
''Whoever cultivated a dead land it becomes his '' (Hadith)
However if the land was not worked on for more than three years then they would lose ownership of that land according to the following evidence:
''The one who circles a land has no right in it after three years'' (Narration by Umar the second caliph)

Practically this means that economic activity is pushed and people can cultivate land without unnecessary red tape. Whilst also preventing people to own vast amounts of land which are not being used - who prevent productivity of that land and maintain their economic power over people through such injustice.

3) Utilities which society depends upon to survive such as oil, electricity, transport, telecommunications, gas or water would be public property. Private ownership is prohibited in Islam according to the following evidence: ''Three things are not prevented from the people; the water, pastures and the fire '' (Hadith)

4) The government would legislate and enforce the distribution of wealth in society. That is to say excess wealth would have to be invested into the economy. This based upon the following evidence: ''Lest it circulates solely among the wealthy amongst you'' ( Al-Hashr: 7)

5) The currency of the state is based on the gold/silver standard rather than fiat (paper currency ) standard. This means the state cannot print worthless paper without any real increase in the wealth within the state.

6)In case of huge disparity between the rich and poor, the state will impose an emergency tax on the rich to redress the specific situation temporarily. But taxation is not the preferred solution to redistribute wealth. Under Islamic economics the hierarchy of obligations starts from the individual, then goes on to immediate family and only then is it the state's responsibility. By obliging immediate families to support individuals is a distinct difference between capitalist and socialist societies. It also has the benefit of keeping state welfare payments lower and therefore the amount of tax that needs to be collected is also lower. In the Capitalist system, the wealth is re-distributed by imposing a plethora of taxes such as income tax, GST, capital gains tax on shares, inheritance tax (all coming soon to Maldives). The need to impose such heavy taxation arises because of the fundamental failures caused by 'freedom of ownership' and 'free market' economics.

Ministries - Too many competing egos and blurred boundaries

Finally, there is great confusion as to who should take the responsibility of tackling the unemployment issue. In the Republican ruling system, the ruling authority is vested in a ministerial Cabinet whose members share collective responsibility for the rule. Each minister is assigned a specialised portfolio over which he has some mandatory powers. Among the ministers is a Prime Minister ( or a president) who is considered ''prima pares,'' meaning first among equals. Now the question is, which ministry is responsible for redressing the problem of unemployment and poverty ? Is it the labour ministry ? Is it the finance or planning ministry ? Or is it the atolls ministry ? The exact boundary of a specific ministry is blinkered and mysterious.

Leadership in Islam is Singular

Allah (swt) ordered the implementation of Islam among all Muslims, however the execution of these laws is the duty of the Khalifah. The Khalifah is the shield for the Ummah, and it is he who is given the amana (trust), for which he will be held accountable. In one translation, the Prophet (saw) said, ''The Imam is a guardian and he is responsible about his subjects'' [Bukhari]. The ruler (Khalifah) and his executive assistants are not restricted by the artificial and blurred boundaries of a narrow portfolio.

In conclusion we should say real democracy is present in Maldives and wrecking havoc on ordinary people. What is required in this juncture is a honest debate about its validity.


Source: AdduOnline
Ends

 

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