Journal Islam Today N° 13-1416H/1995

An Economic View of the First Document Enacted by the Prophet in the Islamic Era
by Dr. Osama Abdul-Majid Abdul-Hamid Al-Ani

Introduction

The life of modern man is beset with many grave and disturbing problems, the most worrying of them all is the question of earning his living. This involves the economic side of his life. However, since individuals have not been made to live in isolation, but to live in a group, there must exist a system or theory which is meant to govern his overall behaviour, including his economic behaviour. There are many theories that have tried to interpret the behaviour of man and to establish particular principles for his economic behaviour. However, the most famous is the capitalist theory, based on the market, which has developed enormously over the ages. The capitalist countries are characterized as having achieved high levels of prosperity for man. There is also the Marxist theory which used to rule half the world, but which failed calamitously in practice a few years ago. Despite the plaudits which the capitalist theory has received and the material prosperity which it has given rise to, the only profit a man gains in those societies is to be turned into a responsible consumer who scrambles to realize the greatest economic profit, forgetting his humanity in the sea of life's problems. As for the reality of the situation (the statistics), we have obtained amazing figures about the increase in the number of unemployed in those countries, the rise in their rates of inflation, and, more dangerous than all of that, the periodic crises which buffet the economic life of these countries. And so man suffers what he suffers.

In the light of these contradictions, we must look for a route which all mankind can follow to bring him back to the straight path. There was and still is a comprehensive system covering all aspects of life, including economic life, providing each man with a life of plenty, and guaranteeing mankind as a whole a peaceful life. This system is the Islamic system.

However, the hostility of the west to this religion, on the one hand, and the failure of its proponents on the other in explaining the features of its economic system have together led people to ignore the clear solutions which this system offers to the problems of mankind. The way to recapture this lies in returning to the root, to the economic behaviour and principles which have been rooted in Islam from its very inception.

According to Dr Muhsin Abdul-Hamid, one of the systematic problems which block any attempt to arrive at a detailed, practical, comprehensive model of the Islamic economic system is the neglect by many modern writers of studying the economic situation as it was in the time of the Prophet. This is the correct way to understand texts involving economics, and grasping the purposes for which they were written. This in turn leads one to approach the spirit of the Sharia and understanding its objectives.

In an attempt to contribute at least one brick to the construction of a scholarly framework for the Islamic economic system, we will undertake an analytical study, God willing, of the economic aspects of an important document drafted by the Prophet when he declared his state in Medina. This document is the offer of peace to the Jews and the document of the rights and duties of the Ansar (the Medinan followers of the Prophet who granted him refuge after the Hijra) and the Muhajirin (the Meccans who emigrated to Medina with the Prophet in the early period of Islam), which some have called the 'first constitution of Islam'. We advise the reader, if he has access to a copy, to study this document well before he looks at the contents of this research so that he might obtain a good grasp of its contents.

The object of this research is to become acquainted with the guiding principles and most important aspects of the first document of the Islamic era. In order to achieve this, we must expound the economic situation in Yathrib before the Prophet arrived there. This will be dealt with in the first section. In the second section, we will deal with the most important economic measures which the Prophet undertook when he arrived in Medina, in order to elucidate the main features of the economic changes which befell economic life there. The economic aspects of these two documents will be dealt with in the third section, and in the conclusion we will present the most important conclusions which we have come to.

Probing into historical matters is a very complex matter. It becomes even more difficult when one is studying an aspect relating to the development of the greatest message in existence. We do not intend by this to justify the mistakes which may be found in this research, but as a reminder of the difficulties which have faced the author.

The Economic Situation in Yathrib before the Hijra

The history of Yathrib goes back to the most ancient times, and is mentioned in some writings which indicate its age (17, Vol. 3, p. 295). However, it became famous only after the Prophet migrated there. This town is distinguished by being a fertile oasis, which enabled its inhabitants to lead a settled life and develop a culture.

The fertility of the place did not restrict the nature of the work of the oasis' inhabitants to agriculture alone. Rather it helped them to take up all manner of livelihoods. They had intercourse with Mecca, and with the Arabs of the desert and Syria, and they also perfected some industries which depended on agricultural produce (26, p. 80).

There were Jews living in Yathrib as well as Arabs. They were not a small minority but a great force in the community whose warriors are mentioned by Ibn Hisham according to their numbers and tribes. The Banu Qaynuqa had 400 lightly armed troops and 300 heavily armed (25, Vol. 3, p. 248) and the Prophet captured about 800 men from the Beni Qurayza (25, Vol. 3, p. 259). The Beni Nadir had more than 700 men (12, p. 294). These statistics indicate the vast size of the Jewish presence in Yathrib and thus the strength of their influence over it, both militarily and economically.

The Arab population of Yathrib is represented by two tribes, the Aws and the Khazraj, which migrated from the Yemen and settled in it after the Jews had already settled there and seized the most fertile plots of land and the sweetest water. The Arabs therefore settled on the unused land (19, p. 60).

Agriculture in Yathrib

The predominantly agricultural character of Yathrib and its renown as an oasis makes it incumbent upon us to study the agricultural activity of Yathrib and acquaint ourselves with the role it played in the economic life of the town. Sources indicate that there were many wells and watercourses which depended on the rains. These resulted in the creation of a highly productive agriculture (28, pp. 70-71). It was well organized, widespread and conducted on a large scale. Yathrib was a large oasis whose walls were dominated by trees (18, Vol. 3, p. 151). In addition to its fame for the cultivation of palm trees, it was known for its production of gum resin which was transported from it to other towns (5, Vol. 5, p. 87). Grains were also cultivated there, like wheat and barley (3, p. 25). Thus, we can deduce that agriculture was one of the important economic activities in Yathrib. It was extensive and organized, with many wells and valleys. Its produce was not for local consumption only, but for export also (it was exported to all towns).

The agricultural development of Yathrib was due to the agricultural experience brought by the Jews from Syria and by the Arabs who emigrated from Yemen (19, pp. 58-60). As a result of the early immigration of Jews to Yathrib and occupation of the more fertile land, they were able to so enrich themselves that "they changed from being practitioners of agriculture to being investors in it, financing some of the production through Arab farmers living on the outskirts of Yathrib" (4, p. 40). This is a clear sign that the Jews practised the right of private ownership of agricultural land by employing Arabs as agricultural labourers.

From what has been mentioned it may be concluded that the Jews were an influential force in the agricultural sector, because they were richer than the Arabs. This was a natural result of the fact that they arrived in Yathrib before the Arabs and had been settled in Yathrib for a long time. However, this did not prevent the Aws and the Khazraj from imposing their authority later on over Yathrib - "The Aws and the Khazraj came to rule and they amassed wealth and grew numerous." (10, Vol. 1, p. 25). This incited the Jews to try and sow discord between the two tribes in order to maintain their power. Al-Samhouri says on this : "When the Qurayza and the Nadir saw their situation, they feared that they [the Arabs] would take over their homes and their wealth. They became so angry that they broke the treaty that was between them" (10, Vol. 1, p. 125)

The struggle between the Arabs and the Jews was not just a racial struggle, but an economic one as well. In this connection, Dr Ibrahim Baydoun mentions in his study entitled "The First Islamic State : A Study of its Creation" (p.14), that the economic rupture between the Aws and the Khazraj on the one hand and the Jews was accompanied by a disturbance in the balance of wealth in favour of the Jews. The Aws and the Khazraj began to feel the Jews exploitation which was manifested in the position of the farmer regarding the usurer who was expropriating his labour (26, p. 79).

The fact that the Jews owned the agricultural land did not mean that the right of ownership was invested in them alone. There were Arab landowners. There were the lands of Omar ibn al-Khattab and the fields of cAbdul-Rahman ibn Awf in Jarf (18, Vol. 7, p. 41). In fact, the Arab lands were so extensive that they used slaves on them (26, p. 68).

Industry in Yathrib

There were numerous industries in Yathrib, some of which depended on agricultural produce, like the production of wines from dates, miktals and quffas from palm-trees, and carpentry using tamarisk (7, p. 21). The Jews also played a role in spreading the manufacture of textiles, which the women wove, as well as household utensils and other tools necessary to an agricultural community (19, p. 59).

The fact that industry in Yathrib depended on agricultural products does not in any way mean that it did not develop as a separate craft independent of agricultural activity. Industrial products were made for purposes of exchange. The proof of this is the establishment of metal-based industries, (like the manufacture of ornaments, jewellery and toiletry equipment, the manufacture of weapons and armour), and the treatment of metals for different purposes. This was because there was much iron in the vicinity of the camps of the Salim tribe (east of Yathrib). This tribe became famous for the manufacture of iron, so that their neighbours nicknamed them the tribe of Al-Qiyoun (after Tubal-Cain who was the first blacksmith). They also knew how to smelt and purify iron (7, p. 47). In addition, the activities of exchanging and exporting manufactured products to regions within the peninsula and outside it, were one of the clearest signs of industrial activity in that period. Indeed, these were a logical development given the scale, variety and development of production. In this connection, Tha'labi mentions that "every year eighty pounds of ambergris, four thousand cloaks and three hundred camel-loads of raisins were exported from Mecca, Medina and the Hijaz annually to the Sultan" (7, Vol. 47, p. 51).

The large scale of the agricultural production in Yathrib helped in turn to enlarge and develop agriculture-based industry. In addition, the development of industry itself as a specialized activity made essential the establishment of commercial activity as a means of exporting the surplus and importing the goods Yathrib needed. This then helped turn the wheel of economic activity in both the agricultural and industrial sectors and also contributed to the development of commerce itself.

The people of Yathrib practised trade on a large scale with neighbouring towns, especially Mecca. Documents and treaties were made between it and the merchants. These were involved with the protection of rights and usufruct arrangements (25, Vol. 2, p. 59). Their trade was not limited to Mecca but went beyond it to Arab countries and countries further away as well (3, p. 29). Markets were held inside the city like the Qaynuqac Souq, the Medina Souq (25, Vol. 2, p. 246; 25, Vol. 3, p. 259), the Jisr (bridge) Souq, the Bathaa (valley) Souq, and the Zabala Souq (3, p. 29). This is a clear indication of the interest of the Arabs and Jews of Medina in trade and the large scale of their involvement in it. The Arabs were exploited by the Jews in matters of trade as well, in that they worked for Jewish investors and helped to increase their wealth (8, p. 239).

In dealing with agricultural, industrial and commercial activity, we notice the existence of a side activity that was at the core of economic profit, usury. Although it was practised by both Arabs and Jews, the role of the Jews was greater because of their vast capital, their involvment in and influence on various economic activities.

This brief presentation of the economic situation in Yathrib before the arrival of the Prophet (Peace and Blessings be upon him) there gives us a picture of the sophisticated level of civilization arrived at there, the ample availability of the elements of economic activity, and the development of the agricultural and economic sectors, which stimulated the development of trade not only in the peninsula but also further afield. It also makes clear that there was an ethnic and economic struggle between the Jews and the Arabs on the one hand, and among the Arabs themselves on the other. The latter was encouraged by the Jewish tribes known for the large amounts of capital they had amassed and their control of economic life in Yathrib.

The Economic Measures Undertaken by the Prophet (PBUH) when he Arrived in Medina

The Hijra was not just a means of mobilization through which the Prophet (PBUH) expected to obtain more protection for Muslims. Rather, it was a divine decree issued in order to establish the Islamic state, after the individuals who were to constitute this state had been prepared, educated and indoctrinated in the principles of the True Religion over a period of more than ten years. The Hijra caused a radical change in the life of the Muslim (whether one of the Muhajirin or the Ansar) in his traditions and daily behaviour, in the way he looked at things, and in the way he dealt with people, even with his own family, both socially and economically. Above all this, he began to be careful about every action he did in the knowledge that there was a watchman over him, the one and only incomparable God; whereas he had previously fashioned his lord sometimes from clay and sometimes from dates, which he would eat if he became hungry. All this led to an incredible change in the intellectual development of the Arabs.

Amongst the mass of radical changes which occurred on all levels, those of an economic nature were not inconsiderable. We can say that Islam had these in view ever since the Prophet (Peace and Blessings be upon Him) arrived in Medina. No sooner had he entered it than work was begun on the building of his mosque as a centre for religion and the state. Everybody contributed to the building of it, even the Prophet (Peace and Blessings upon him), in order to stress the importance of work for the Muslim. In fact, when one of the Muslims saw him working, he composed some poetry (25, Vol. 2, p. 114) : "It is an erroneous action on our part to sit down while the Prophet keeps working."

This practical example set by the Prophet (Peace and Blessings be upon him) demonstrating the importance of work was preceded by numerous verses, revealed in Mecca, which urge people to work, and to populate and civilize the earth. For example :

"And remember how He

Made you inheritors

After the 'Ad people

And gave you habitations

In the land : ye build

For yourselves palaces and castles

In (open) plains, and carve out

Homes in the mountains;

So bring to remembrance

The benefits (ye have received)

From God, and refrain

From evil and mischief

on the earth."   (Heights 74)

Islam did not only focus on work as a means of earning one's daily bread, but also as a means of safeguarding the dignity of the individual. In his Sahih, Al-Bukhari relates the following hadith : "It is better for you to take responsibility for your own life than to beg from other people" (2, Vol. 2, p. 36). Working at the most menial job, collecting wood, is better than begging. These menial jobs safeguard a man's dignity and keep him from demeaning himself and stretching out his hand to beg.

The journey of the Muhajirin to Mecca was no small undertaking. Obstacles faced them ever since they had begun the Hijra. They faced economic, social and health problems when they arrived in Yathrib (later called Medina). The Muhajirin's economic problems centred on the fact that they had left their wealth in Mecca and arrived penniless. Even the wealth which they had left in Mecca had been confiscated by Qureish. Among those who had left their wealth and emigrated from Mecca was Suheib Al-Rumi (May God be pleased with him) whom Qureish made to choose between emigrating and keeping his wealth; he preferred to emigrate (25, Vol. 2, p. 89). Nor did the Muhajirin know anything about agricultural work (the dominant employment in Medina), because the dominant source of employment in Mecca was commerce, which they could not practise in Medina for lack of the necessary capital.

Their social problems related to the fact that many of them had left their families or had been prevented from seeing their families since leaving Mecca (e.g. Abu Salma (May God be pleased with him) (25, Vol. 2, p. 77)). This was in addition to their homesickness for their families and the wrench they felt at leaving Mecca. In addition, for most of the Muhajirin, the climate of Medina was different, which led to many of them catching fever (25, Vol. 2, p. 22). For all of these reasons, it was imperative to find a way to deal quickly with the situation of the Muhajirin. The divine wisdom was manifested in the position of the Prophet (Peace and Blessings be upon him) when he enacted the system of brotherhood, according to which the Prophet (Peace and Blessings be upon him) made the Muhajirin and the Ansar brothers (25, Vol. 2, p. 123).

On the basis of the system of brotherhood, special beneficence rights were established between the two adopted brothers. This beneficence was not limited to particular things, but was absolute and included every kind of help they might need in facing the burdens of life, whether financial help, or care, advice and love. On the basis of brotherhood, adopted brothers were to inherit from one another before full siblings, which raised the relationship between adopted brothers to a level both deeper and higher than that between blood brothers (19, pp. 75-76).

The system of brotherhood provided a solution to both the economic and the social problems of the Muhajirin, including their feelings of being clients (halif) of the Ansar. The client is not descended from the eponymous grand-father of the tribe, but falls under the protection of and inherits from the tribe which extends its protection to him. The blood money to be paid for his life was half that of full members of the tribe, and one was not to avenge a client by killing (15, p. 27). For this reason, the Prophet (Peace and Blessings be upon him) wanted to substitute the system of clientship with a superior system that would make his followers equal, whether they were Muhajirin or Ansar (15, p. 36). The Prophet (PBUH) stressed this in the second ceremony of allegiance when he said to the Ansar : "I call upon you to keep from me all that you would keep from your women and children" (25, Vol. 2, p. 250). The Ansar replied : "We will defend thee from which we defend our wives and families and even our very selves." (25, Vol. 2, p. 50).

It is clear from this that, as well as the economic dimensions it contained, the aim of the system of brotherhood was to lay new foundations for the Islamic society and to put an end to the tribal tendencies of the Arab by implementing a system based on Islamic brotherhood, which is higher than any other tie, in addition to the economic dimensions it embodied.

In order to provide the Muhajirin with the opportunity to work, the Prophet (PBUH) sought to find a place where they could practise commerce, which was their chief employment. We must not forget that Islam encouraged commerce, and that the Prophet (Peace and Blessings be upon him), as well as some of the more senior Sahaba, practised it. Such a market, where Muslims could practise their trade, was absolutely essential, and since its establishment in Medina, Islam has always tried to provide a place of this sort. Thus we notice that the Prophet (Peace and Blessings be upon him) no sooner finished building his mosque than he began to look for a place for a market.

The souq of Medina was situated in the quarter of the Beni Qaynuqac, who were Jews. Their nature had got the better of them, in that they were imposing a tax on trade, selling stalls in the market to stall-keepers, renting out stalls, or monopolizing them for themselves. Thus they were able to dominate the market (22, pp. 99-100).

This is what led to the confrontation. Should Muslims enter the Jewish souq and subject themselves to their laws and their influence ? Or should they start their businesses in their own market under new conditions ? The Prophet (PBUH) decided to set up a new market not far from the souq of the Beni Qaynuqac A large marquee was set up as a banner under which the Muslims could gather to trade. The Jews were furious, and one of them, Ka'ab bin Al-Ashraf, dared to cut the ropes and take down the marquee. The Prophet (PBUH) did not want to make an issue of this behaviour, so he said : "I will make a market which will arouse his anger even more than this one." He went to a spacious plot which was pleasant and vacant, planted his foot in it, and said : "This is your market. Don't try and squeeze each other out, and don't impose a tax." (13, pp. 3-4). He meant that they should not drive each other away, monopolize or exploit places in the market.

Before dealing with the characteristics of the first souq which Islam established, we must acquaint ourselves with the most important characteristics of what is called in modern economics the perfect market. It must be characterized by total freedom, easy and speedy communication between dealers, a large number of participants and sellers so that no-one can influence supply and demand, standardization of commodities; and all dealers in commodities should have full information about the state of the market (21, p. 152).

Fourteen centuries ago, the Prophet laid the foundations of a market which contemporary economics is struggling breathlessly to realize some aspects of. This is not exaggerating, for the first Muslim souq forbade the monopolization of stalls, guaranteed freedom for all, and did not impose any tax (kharaj) which might restrict the freedom of traders. Similarly, the Prophet (Peace and Blessings be upon him) said : "If you have truly given allegiance to me, say no to cheating" (2, Vol. 2, p. 13). The Prophet (Peace and Blessings be upon him) also said : "The parties to the sale have the right of refusal until they go their separate ways. When they do go their separate ways, if they have been truthful and open, they will be blessed in their bargain, but if they have concealed the truth and lied, they forfeit God's blessing upon their bargain" (2, Vol. 2, p. 7). In other words, the seller must reveal the true nature of his goods; there must be full knowledge of the state of the goods. Similarly, Al-Bukhari mentions in his Sahih, on the authority of Salim on the authority of his father (May God be pleased with him) : "In the time of the Prophet (Peace and Blessings be upon him) I saw those who were buying food for speculative purposes being beaten so that they would sell it and not take it to their houses." (2, Vol. 2, p. 15). This indicates that monopoly was forbidden.

Economic history informs us about the total economic freedom of the market. In the hadith dealing with pricing, which is related by Ans (May God be pleased with him), it says : "Prices rose in the time of the Prophet of God (Peace and Blessings be upon him), so they said, "O Prophet of God, why don't you set the price ?" He said, "God is the Restrainer and the Releaser, the Provider, and the Setter of prices. I hope to meet God (To Whom be ascribed all Perfection and Majesty), so let no-one ask me to act the tyrant in any matter involving blood or money."

After studying the circumstances prevailing in Medina in the time of the Prophet (PBUH), Sheikh Ibn Timiya interprets this situation, and concludes by saying that forbidding price fixing on the basis of a superficial reading of this hadith is not appropriate. The goods in the souq at Medina were imported, and forcing sellers to sell their goods at a particular price was unjustified. In this connection, Dr Muhammad Mubarak says that Ibn Timiya's analysis of the situation in the souq at Medina at the time of the Prophet (Peace and Blessings be upon him) indicates his discernment and sound understanding of economic factors. He distinguished between the closed market and the open market which existed in Medina (14, pp. 13-14).

One of the important tasks in regulating the processes of buying and selling in the market is the standardization of weights and measures. The Prophet (PBUH) undertook this in Medina, choosing the weights used in Medina since it was the agricultural centre (20, p. 97). He also chose the measures used in Mecca, which he previously confirmed by saying : "The (authorized) measures are those of the people of Mecca" (24, p. 49). This is due to the fact that Mecca was the commercial centre and largest market of the Arabs at that time. In this, he showed a wide comprehension of commercial affairs, facilitating the process of exchange inside Medina and also standardizing measures for external trade.

Islam also dealt with an important issue that was prevalent in Medina and other Arab towns, and which played an important role in economic life : the practice of usury. Islam was exposed to it gradually, and in the Meccan period the following verse was revealed :

"That which ye lay out

For increase through the property

Of (other) people, will have

No increase with God :

But that which ye lay out

For charity, seeking

The Countenance of God,

(Will increase) : it is

These who will get

A recompense multiplied."   (The Roman Empire 39)

Most commentators say that the term usury as used here refers to the situation that occurs when one man gives a gift to his brother and then asks for something in return. This is not liable to interest in the eyes of God, and the giver will not be rewarded by God if he asks man for something in return. However, there is no sin in it if he gives a man something in order to have it replaced with more later on (11, p. 536). However, in the Medinan period, in the second year after the Hijra, a discussion took place between Abu Bakr (May God be pleased with him) and Phinehas the Jew. The latter said, "Abu Bakr, we have no poverty so that we should be thrown upon God, for he is always poverty-stricken in his dealings with us. We do not beseech aid from him as much as he beseeches aid from us. We are rich due to our own efforts, for if he were rich, he would not have asked to have a loan of our riches, as your friend [the Prophet] claims he has when he forbids you to practise usury but to give instead." (25, Vol. 2, p. 187). This shows that usury was forbidden at this early stage in the Medinan period. Although Islam only forbade usury gradually, we can see the logic of forbidding it only at that point. It can only be forbidden if there is an authority which can forbid it and call to account those who practise it, and this only existed in the Medinan period, when the Islamic state was set up.

From the above, it becomes clear to us that the Prophet (PBUH) implemented important economic measures when he went to Medina which show a high awareness of economic affairs. He focused on the importance of work and man's effort in earning his daily bread. He established the principles of dealing in the Islamic market and laid down its specifications, which approximate to what is called in modern economics the perfect market. He forbade usury and laid down the principles of financial dealing within the sphere of economic activity.

The Economic Dimensions of the First Constitution in Islam

Before dealing with the components of the covenant which the Prophet (PBUH) drafted, we must point out a few things about it. The first is that the document is genuine and not forged (16, pp. 4-5). The second is that the document was originally two documents which historians later combined into one. The first contains the Prophet's (Peace and Blessings be upon him) offer of peace to the Jews, and the second is the pact setting out the rights and duties of the Muhajirin and the Ansar. The first was written before the Battle of Badr and the second was written after Badr (19, pp. 112-117). The authorized text of this document is contained in a collection of political documents edited by Muhammad Hamid Allah, who compared the different accounts and noted the differences in the margins.

Because the peace offer to the Jews is earlier than the document dealing with the Muhajirin and the Ansar, we will deal with the former first.

The peace offer to the Jews comprises Articles 24-47 (6, pp. 41-47). It is noteworthy that Articles 24 and 38 state that (the Jews will pay the costs of defence along with the Muslim believers as long as they are at war). The Prophet (Peace and Blessings be upon him) guaranteed them freedom of religion (Article 25) and the right to live in Medina. What more appropriate, then, than that they should bear the burden of the costs of defending the lands where they lived. This article contains the most exalted signs of social justice, for they were not to bear the costs of the army when it was attacking, but they had to pay a part of the costs of protecting their lands and families. This is confirmed by Article 44 which states that they must play their part in giving assistance to those protecting Yathrib from surprise attack; in other words, the Jews should bear part of the expenses of defending Medina.

Article 43 makes it clear that the Jews were forbidden to make usufruct arrangements with Qureish or to give them aid. The aim of the Prophet (Peace and Blessings be upon him) in this was to obtain a commitment from the Jews that they would not make usufruct arrangements with Qureish, whose trade to Syria passed to the west of Medina. Through obtaining this commitment, he wanted to prevent the Jews from hatching plots to help Qureish. Thus he made the Jews understand that the trade of Qureish was a legitimate target of raids by the Muslims, since Qureish had allowed themselves to declare the wealth of Muhajirin in Mecca a public property. Since the trade of Qureish was threatened and exposed to raids, it was an implicit declaration that an economic blockade had been imposed on the enemy, and that he would not be allowed to slip his products into Medina via the Jews. In addition to this, the enemy would not be allowed to obtain profits from international trade. Article 36 also forbade the Jews to leave Medina unless they first asked permission from the Prophet (PBUH). This restriction on their movements was probably intended primarily to prevent them from undertaking any military action like participating in tribal wars outside Medina which might threaten the security or economy of Medina (19, p. 128). In other words the Prophet (PBUH) wanted to be kept informed not just of the military activities of the Jews, but also of their economic and commercial activities so as to prevent them having any commercial dealings with Qureish or with the enemies of the Muslims.

It can be deduced from this that the peace offer to the Jews guaranteed them freedom of employment and the right to make a profit, provided that they remained within the bounds of God. It also guaranteed them protection as they bought and sold amongst themselves or with the Muslim believers. The Jews were obliged to pay the costs of defending Medina and not to make any usufruct arrangements with enemies of the Muslims or to cooperate with them against the Muslims. The Muslims guaranteed to maintain internal security and to prevent wars inside Medina, as is stated in Article 39 : "The People of the Book must not sow sedition within Yathrib." Guaranteeing internal security was a necessary condition for boosting the economic life and thus enabling the individual to go about earning his daily bread. Therefore, it was up to all parties in Medina to work towards guaranteeing security. It is noteworthy in this document that economic activity was open to all, although its administration and organization became subject to the dictates of God and his Prophet (PBUH).

Article 1 of the treaty between the Muhajirin and the Ansar states that Muslim believers are one umma irrespective of their origin, thus defining the identity of this umma. This document melted all previous treaties and ties in the crucible of the Islamic state.

This document goes on to list the factions of the Ansar : "The Bani ... according to their living quarters shall be the first to pay blood money, and each faction shall redeem its supporters according to tradition and the fairness due in dealings among believers." This is included in Articles 3-11 (6, pp. 41-47). In other words, the document spells out the responsibility of each faction, that each tribe is to determine blood money for itself according to its traditions (9, p. 294). The clan would work to redeem its prisoners; "They are to redeem their helpers according to custom." In mentioning the factions of the Ansar, it meant to emphasize that the individuals of the clan were responsible for claiming their rights and to fulfilling their duties, i.e. solidarity in paying blood money, in redeeming prisoners and helping the needy among them. The aim was not to reinforce the spirit of tribalism among them but to benefit from the system of the clan in order to bear the burdens of its members. Islam developed this clan obligation from a tribal passion into a religious obligation for which the Muslim would be accountable before the Lord of the Worlds. It was encumbent on the Muslim to give alms and to fulfil the obligation of zakat which is one of the pillars of Islam.

Helping the needy among them is one of the duties of Muslim believers. They should not leave among them anyone weighed down with debts and children (25, Vol. 2, p. 120).

We must deal here with the concept of poverty in Islam. In Islam, what is meant by a poor person is someone who is living on a level where he is separated by a vast gulf from the standard of living prevalent in the local society. In other words, he is someone who cannot maintain a standard of living appropriate to that time and place. In terms of Islamic economic thought, he is someone who does not have enough (23, p. 338).

According to Islam, poverty has two main causes. One is the problem of the under-exploitation of natural resources. This can be blamed either on man's negligence :

"And He giveth you

Of all that ye ask for.

But if ye count the favours

Of God, never will ye

Be able to number them.

Verily, man is given up

To injustice and ingratitude." (Abraham 34)

Or it can be blamed on man's ingratitude towards the favours of God, so that he deprives himself of the opportunity of profiting from and using what God created (27, p. 29).

The second cause is the injustice of the rich and their failure to undertake their duties as they should. The Holy Quran says:

"And when they are told,

Spend ye of (the bounties)

With which God

Has provided you," the Unbelievers

Say to those who believe :

"Shall we then feed those

Whom, if God had so willed,

He would have fed, (Himself) ? -

Ye are in nothing

But manifest error." (Ya-Sin 47)

Man is the cause of poverty, sometimes by his neglect, sometimes by his injustice to his fellow man, and sometimes by his ingratitude towards the favours of God. For this reason, Islam obligates the Muslim to help his brother, beginning with relatives and then to those who are further afield :

"And render to the kindred

Their due rights, as (also)

To those in want,

And to the wayfarer :

But squander not (your wealth)

In the manner of a spendthrift." (Children of Israel 26)

To deal with poverty, there must be individual effort. The poor person must work in order to support himself. Others must help by giving alms and paying zakat, or through a group effort undertaken by the state. This is what has recently been called "social mutual assistance" (through the individual effort) and social security (through the state effort).

By social security is meant the responsibility of the Islamic state towards all those residing in it, whatever their nationality or religion. It fulfils this responsibility by giving assistance to needy people in deserving cases. Social mutual assistance is the responsibility of individuals to one another. In Islam, it is not restricted to abstract sentiment, but is a material compassion where each individual who is able is responsible to help his brother in need. We can understand by all this that Islam is the religion of social security in terms of the responsibility of the state, and a religion of social mutual assistance in terms of the responsibility of individuals (33, pp. 350-351).

This relationship between social security and social mutual assistance has been applied by Islam in its early times in Medina in the era of the Prophet (PBUH), as was very clearly manifested in the articles of the pact between the Muhajirin and the Ansar. When the members of a clan sponsor the needy among them and redeem their prisoners, they realize social mutual assistance, and when Muslims are required as a group to do everything possible to help anyone weighed down with debts and children, they are realizing social security. Thus by undertaking their duties (social mutual assistance), individuals contribute to relieving the burdens on the state, especially its duty of social security.

We stress here, as is stated in the biography of the Prophet (Peace and Blessings be upon him) from the first day of the Hijra, that no individual is allowed to shirk work. Work is a duty, although the individual may sometimes be in need in spite of his work.

From what has been said, we can determine the most important attributes of social mutual assistance and social security in the early days of Islam :

1. Coordinating between the duty of the individual and the duty of the state, and defining the limits of each of them. Social mutual assistance is undertaken by individuals, while social security is the responsibility of the state. Both perform their duties in such a way that individuals help to lighten the burdens on the state.

2. Social mutual assistance is a duty on every Muslim who is capable of giving help to his fellow Muslims.

3. Social security embraces all deserving individuals without distinction.

4. The aim of both social mutual assistance and social security is to bring the members of society up to a level of sufficiency.

5. Work-shyness is not allowed in any form.

The concept of social security is a term used in contemporary economics. However, Islam applied it fourteen centuries ago. Nevertheless, there are contemporary applications of social security, of which we shall try and present the most important, both in the capitalist system and in the communist system as it was.

The American writer George M. Bracey, the expert on social insurance affairs speaks about this in his book The Life of Workers in Russia : "Social insurance law in Russia has a number of distinguishing characteristics, which make it more beneficial to workers than any other contemporary law. It embraces all workers who are members of trade unions and work for a wage, and is able to offer allowances of great generosity during periods when people are unable to work or when they are having babies." However, the same writer mentions the shortcomings of the system : "Man's ingenuity is unable to forestall all the problems which might arise, and this system, created by the hand of man, has been found wanting. It was based on a pure technical applied foundation, which led to the appearance of a new class of technocrats. They were a class of engineers and managers, who came to disrupt the balance of social life. With the passing of time, they began to develop vested interests, and thus became like the capitalists before them. The workers had to perform the rites of beatification for their new masters." (27, pp. 87-89).

The social insurance system in capitalist systems like the one in the United Kingdom which was proposed by William Beveridge, and which was called after him, was an attempt to resist the socialist tide. However, it was still-born, since it was opposed by capitalists who considered it a means of disappropriating their wealth. Therefore the Conservatives rejected it and then continued to block it until the Labour government came to power and adopted it as a basis for its social policy.

This policy of social insurance is based on three pillars :

1. The provision of child benefit for the parents of each child.

2. The establishment of a comprehensive system of health insurance.

3. The provision of unemployment benefit.

Nevertheless, the Beveridge plan contains gaping holes. By paying benefits, it makes unemployment like employment, thus inculcating a sort of laziness and lethargy. This threatens the morale of those benefiting, while at the same time not providing them with enough for their actual needs. In addition, it stresses the necessity of productive work being continued, and forces those who are working to contribute to the support of those who are unemployed (27, pp. 9-91).

This swift comparison of the communist and capitalist social security systems has established their failure and their inability to find a comprehensive and total solution to the issue of poverty. Despite the superiority of the communist system of social security to that of the capitalist system, it nevertheless gave birth to a class which controlled the organization and distribution of benefits : the technocrats. In addition, it was restricted to unionized workers. The capitalist system gave birth to a new social malady, the class of the unemployed whom it was up to the state to support. Thus it created a sort of laziness and work-shyness. The Islamic system of achieving social security is superior to all the other systems, in that it made it a duty encumbent on both individuals and the state. When a Muslim helps his brother Muslim, whether through alms or zakat, Islam considers this a good work for which he will be rewarded. More importantly, it embraces all people, without distinction. In addition, Islam does not allow work-shyness, except when someone is unable to work, because of disability, illness, or old age.

Article 14 forbids Muslims to help unbelievers. This help is a wide concept, and we believe that it applies to both peace and war. Since Jews were forbidden to help Qureish, it goes without saying that they were forbidden to help unbelievers, whether by making usufruct arrangements or conducting financial dealings with them which might strengthen the position of the enemy. It is to be noted that Article 20 did not allow polytheists in Medina who remained in their unbelief to cooperate with Qureish either financially or militarily.

Any action, whether economic, social, political or military, will be lacking and anarchic so long as it does not have any foundations which govern it or a base for which to refer when new situations arise. This base is the Holy Quran and the Sunna of the Prophet (PBUH). For this reason, Article 23 refers everything to God and his Prophet.

From the above, it is clear that the first constitution of Islam paid great attention to the economic question. It contains many concepts which approximate to what is called in contemporary economics an economic blockade. It forbids any sort of financial or military dealings with the enemy by those living in the Islamic state, whatever their religion. The constitution also provides solid foundations for a system of social mutual assistance and social security, superior to modern man-made systems which have appeared fourteen centuries later. Similarly, the Islamic economic system is subject in everything to the Holy Quran and the Sunna of the Prophet (PBUH).

Conclusion

1. Yathrib had achieved a high level of economic sophistication, which Arabs and Jews shared. It was distinguished by the presence of large-scale agriculture and industry which led to the development of its trade. It is clear that the Jews were more wealthy than the Arabs at that period because they had settled in Yathrib before the Arabs and had taken control of the more fertile lands. This gave them great influence and enabled them to dominate the different economic sectors.

2. There was an economic contradiction and a national struggle between the Jews and the Arabs. The first manifestation of this was when the Arabs felt persecuted by the influential Jewish land-owners or usurers. The second manifestation was when the Jews began to fear the appearance of an Arab power which might stretch its influence over Yathrib.

3. The Hijra of the Prophet (PBUH) caused radical changes in life in Yathrib. These changes were apparent from the first day of his arrival and from the building of his mosque as a centre for religion and the state. This change was particularly apparent in the intellectual life of the Muslim.

4. Principles for Islamic commercial dealing were established through the first Islamic market in Medina which was established by the Prophet (PBUH). This market was distinguished by the absence of either monopolies on stalls or the squeezing out of buyers, and the removal of taxes (kharaj) which might restrict the activity of buyers. The Prophet (Peace and Blessings be upon him) standardized weights and measures in order to facilitate the activities of buying and selling. All these features meant that the Muslim market approximated to the concept of the perfect market as it is understood in contemporary economics.

5. The peace pact offered to the Jews included a guarantee of their freedom to earn their livelihood and their freedom of belief. However, sovereignty belonged to God and his Prophet. They were forbidden to conclude treaties with enemies of the Muslims and were made to bear part of the costs of the defence of Yathrib against surprise raids. It is noteworthy that the document submitted economic activity in Medina to the will of the Islamic Sharia in order to guarantee that Jews would not deal with enemies of the Muslims, and to guarantee the impermeability of the economic blockade which was imposed on the enemies of the Muslims by strangling their trade, which passed close to Medina.

6. Specific means were established to implement the system of social mutual assistance and social security. This system is superior to the man-made legislation which followed in that it embraced all those who were deserving and spelt out the responsibilities of individuals and the state in implementing and realizing justice in the Islamic society.

If I were to make any recommendation, it would be to encourage and direct research in this area in order to seek out foundations which could regulate the features of Islamic economics and confirm the importance of returning to them in order to extricate ourselves from the present social crisis.

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