Invisible Exploitation

1. Profit attainment from barren trade capital can be explained in the following manner: The peddler takes 10 pots from the potter and sells them at an overall price of 13 pots. He retains the cost of 2 pots for himself and gives the cost of 11 pots to the potter.

This malpractice would lead to a chain effect and constitute an invisible exploitation. To avoid such a phenomenon, introduction of price control machinery, which is one of the most complicated economic issues, is needed.

2. Scarcity of investment opportunities in production and service domains deprives the individuals, possessing the requisite skills and qualifications of engaging in such fields on one hand, and forces them to accept whatever unjust work formula and conditions are put forward by people engaged in these fields on the other. The second sub-paragraph of the Article 43 of the constitution therefore assigned the task to remove such lacuna.

Therefore, in keeping with the principle, we provided the agricultural land legislation and recommended a 3 billion Tomans loan for service work and reinforcement. The reconstruction organ, upon taking the loan to the rural areas, stated that the allocation of the loan among the enterprising people of the rural areas would fetch each household a sum not more than 15,000 Tomans.

We believe that small agricultural loans can indeed perform miracles in opening up a diversity of investment channels for the rural masses. The loans could be spent on purchase of clothes, chickens, seeds, plowing tools, irrigational facilities, land, etc.

The rationale underlying such an attempt is infusion of new working spirit and healthy competition which in turn is conducive to self-sufficiency. If a farmer feels ineffectual or senses the threat of partial or complete failure, as he deems suitable, can coalesce with a colleague and carry out the work jointly.

Such circumstances ensure to break the nucleus of the unjust economic relations peculiar to serfdom. On the other hand, through provision of congenial work conditions an unprecedented fertile ground is prepared for his full growth beneficial to his own person as well as the society.

Judging his own caliber and the production possibilities in small or big groups, he will be geared to boost the production scale to an extent hitherto inexperienced in the country. This is what the sec.ond sub-paragraph of Article 43 in the Constitution has envisioned.

Another guiding principle must be encouragement of mobility of farmers from a more densely populated area to sparsely populated areas. The idea behind this is to ensure adequate allocation of arable land to each farmer. For example, if in a rural area, the farming population is 3,000 and the arable land is 300 hectares, it is rather incorrect to allot 0.3 hectares to each farmer. On the other hand, care must be exercised to ensure a minimum of 20-30 hectares allotment to each individual farmer. The remaining farmers should be induced to migrate to other places where similar conditions as per government undertaking for farming purposes are provided to them. Land and all the farming facilities would be made available to them on a temporary basis and so far as they fulfill the condition of conscientious farming only.

It is, indeed, tragic to witness dissipation of time, energy and talents in useless debates. Such energy and capabilities should be constructively diverted to the immediate implementation of these works. Now that the principles are accepted as being in full conformity with innate logic, it is high time to embark on their enforcement. In the process, however, we may face two enforcement hurdles, that is, production and distribution.

Firstly, the production phase must ensure extension of production tools, capital and the allied services to households with the essential rapacity, skill and zeal, be it in individual form or joint partnership firm or cooperative farming.

A successful initiation and completion of the projects are irrefutably aligned to experience; desire to achieve breakthroughs, creativity and even healthy competition.

Secondly, elimination of profit peculiar to trade capital (impotent and unproductive capital) must be set as another goal towards its fulfillment. We must consistently strive to achieve this goal. The only type of remuneration or profit allowed and encouraged in the course of distribution, must necessarily mirror a commensurate task thus performed. In the meantime, due account of the prevailing inflationary rate must be taken.

Such measures merit great attention and their implementation must be done with utmost care. That constitutes the crux of our problem here.

It was indeed disappointing to discover the individuals supposed to possess the essential expertise in this field ignoring the pivot and the core, and instead sticking to the trivialities or crust of the problem.

We have had enough of such superfluous inordinate formulas. It is high time a formula approved by our constitution is considered and enforced, and without additional expenditure of time on acquainting you with the Islamic economic principles, I, can assure you that extending due weightage to the two above-mentioned issues not only does not infringe upon Islamic rules in the domains of commerce, economics and ethics, but on the other hand is in full consonance with the same.

As stated earlier, profit associated with productive capital and productive assets have logical support and, at the same time, Muzareeh and Musaghat, which are in the same nature, enjoy equal sanction. Meanwhile, lease takes the form of either production or productive asset, and Muzarebeh, is an offshoot of production and distribution service.

Thus they do not only violate Islamic principles, but also constitute effective leverage in our economy based on accommodating only individual citizens with concrete and useful contribution to the production stream. Moreover in a social system, not yet having fully developed insurance systems for unemployment, retirement etc., these mechanisms can act as provisional insurance systems.

The problem of superannuation invariably exists under various institutions of Capitalism, Marxism or even Islamic economy. The aged stratum of the society cannot possibly be liquidated. The aged are unproductive consumers drawing from the resources of the productive citizens. Likewise infants and children, prior to their growth, are inevitably parasitic on the available production stream. Thus, human beings, at the two extreme points of their life span, necessarily have to be fed and maintained. Satisfaction of an individual's needs upon his superannuation can be effected through drawing on his crystallized accumulated savings of past labor in his possession or from that collected, preserved and maintained by the government on his behalf.

The aftermath of a 60 year old farmer's surplus labor could be in the form of a tractor and a piece of tended land with all its accessories such as irrigation facilities, etc., which, due to his getting aged, could no longer be attended to by him and could consequently be leased to a younger farmer, on the condition that a share of the product is assigned to the former.

The same task could also be devolved upon and accomplished by the government on behalf of the farmer. However, in view of the enormous financial expertise and time element difficulties involved that entail such a proposition the idea is shelved. Besides, there is no guarantee that the socio-economic cost of this affair would not out weight its benefits.