Yazar : Najmul Hasan

Social Security System on Islam with Special Reference to Zakah

The paper highlights the need for social security in an Islamic set- ting so that the social cost of industrialisation is minimized and the Muslim community is enabled to adjust easily and quickly to the demands of the new socio-economic realities. The author tries to define social security and explains why it is necessary. Social security is viewed as a scheme to provide relief to the victims of social contingencies. It is argued that the social security schemes which can operate under the auspices of the state may assume any of the three patterns: it may pass required legislation and supervise the implementation of the scheme; it may pass legislation, finance and administer the scheme; and it may pass legislation, subsidies and monitor the implementation of the scheme. However, the paper argued that social security may be provided through social insurance or social assistance. Social insurance is a plan of giving benefits in return for contributions up to the subsistence level, as of right, so that individuals may build freely upon it. Social assistance is a scheme that provides benefits, for persons of small means granted as of right, in amounts sufficient to meet minimum standard of need and financed from taxation. The author then tries to explain the different types of social sec- urity systems that exist in different parts of the world. He reaches the conclusion that there are three main models namely: the ILO model, the communist model and others. In an Islamic system the main reliance for providing contingency protection is placed on Zakah. It is not a tax that can be levied or withdrawn by the state. It is an obligation on the part of the rich towards the poor. The author therefore argues that Zakah provides the basis for social security in an Islamic set-up. In certain respects it resembles social assistance. But the beneficiary of social assistance carries legal title to benefits while Zakah beneficiary has only moral but no legal title to it. Social assis- tance is financed from general revenues but Zakah is a special levy and can be used for specified purposes only. The author has also pointed out the limitations of social insurance. The author summarises up his discussion by making a comparison between Islamic social security and the secular social security bringing out the merits and the demerits of secular social security scheme and suggesting ways in which an Islamic state can implement or operate its social scheme.

Social Security of Islam with Special Reference to Zakah

Sees zakah as a main pillar of the social security system of Islam. While discussing new problems, expresses an opinion of zakah on joint stock companies, treatment of depreciation, on non-residential buildings, on shares and securities. Proposes to set up a system of social ‘insurance on the principle of aqila. Discusses implications of social security programmes for efficiency, saving, cost of production, justice and economy in general. A comprehensive paper. For Muslim economists. Based on primary sources. Documented.