The Prohibition of Interest as an Important Part of the Muslim Tradition - Essay Example

The prohibition against interest in Muslim tradition Introduction It would not be a mistake to suggest that religion has always played an important role in the development of the human civilization. Indeed, the traces of its influence can be seen almost at the very dawn of the society. However, it must be noted that sometimes religion does not only deal with some abstract and moral matters, but might influence other areas of social life. For example, the countries that belong to the Islamic world live according to Sharia – a set of norms that are taken directly from the Quran which the sacred book of the Muslims. That is why there are certain rules that do not exist in other parts of the world. This paper will explore the prohibition against interest in Muslim tradition, touching different dimensions of it and proving that it should be regarded as an irreplaceable element of social life in this cultural framework. The definition of riba To begin with, one should point out that there is a specific term that is used in the Islamic legal and spiritual literature that refers to prohibition of interest. It is called riba. Nevertheless, it would not be logical to limit this notion exclusive to it. In order to get a better understanding of the issue, it may be beneficial to analyze different shades of meaning of it. The first and the most concrete meaning of it as follows: “an unjustified increment in borrowing or lending money” (Ahmad). This shows that originally riba was applied to operations that were carried out by the individuals. Secondly, the term in question is also used to denote any kind of unequal exchange between the people. Thirdly, later in history riba was recognized by a part of the scholars as a specific term that refers to banking interest. Finally, it is suggested that the concept of riba should be engaged whenever there is an excess of something that is received by a person. Pre-Islamic riba It would be a mistake to suggest that the idea of riba was introduced by Islam. Thus, word as well as the term itself existed in the Pre-Islamic society and meant an amount of money that increased, traditionally doubled, per year when a person was not able to pay the debt. There is a concrete indication in the Quran about it: “do not devour usury, making it double and redouble, and be careful of Allah” (Quran 3:130). There is no doubt that this kind of practice was extremely negative in terms of treatment of a person who has a debt: it meant some kind of slavery that a person entered because of the inability to repay the money. Keeping in mind that from the very beginning Islam promoted social equality, it is rather logical to see that it condemned such kind of treatment of the people. That is why one might suggest that originally the prohibition of interest was conditioned by the dominant negative practice in the society. Violation of Sharia versus a sin The discussion of the issue in question would not be full without a proper understanding of the very nature of the conflict. On the one hand, banking interest is regarded as a violation of Sharia. Contrary to the common perception, this does not have any religion implications: Sharia is a legal system that is influenced by the Muslim faith, but it is still a legal framework. That is why one should note that the interest in question is seen as a crime. On the other hand, there are certain spiritual justifications for outlawing banking interest. Thus, making money out of lending money teaches a person not to work hard which goes against the fundamentals of Islam. Another point that should be noted in particular is that in the Quran there is a specific place which explains why financial interest should be prohibited: “Deal not unjustly, and ye shall not be dealt with unjustly” (Quran 2:279). One might argue that this is a variation of the Golden rule of interaction. Nevertheless, since the legal tradition is grounded on the spiritual one in the Muslim world, it is obvious that the passage in question was understood literally. Trade versus usury The idea of interest is largely engaged in usury. Many people in the Islamic world understood it and pointed out that it is not logical to exclude it from the social life. That is why there was a debate about the permission of it which is reflected in the Quran. The second surah reads: “That is because they say: "Trade is like usury," but Allah hath permitted trade and forbidden usury” (Quran 2:275). This is particularly important since it shows the fundamental difference between trade and usury as it is recognized by Islam. According to it, the former, namely trade, is a kind of human activity which encourages a person to put efforts to accomplish something and get a just reward. One should keep in mind that in the times of creation of Quran trade was a rather dangerous and risky activity as the merchants had to cross the desert and protect their goods from the bandits. On the other hand, usury allows a person to earn money doing nothing which is, of course, something that the newly introduced faith could not accept. Charity versus usury It is rather surprising, but in Islam there are many concepts that deal with percents and money. The high significant of usury in the discourse has already been justified. However, if one takes a look at one of the Five Pillars of Islam, one will be able to see that the third of them, namely zakat, prescribes a person to give 2.5 % to other people. This donation is mandatory and is associated with a spiritual meaning of purification of one’s soul. It is clear that Islam has a long tradition of managing money of its believers and making sure that it is distributed evens. With this in mind, it is rather obvious that this faith would condemn usury as it is responsible for accumulation of money in the hands of a particular group of people. Ways to get around riba It is quite understandable that the above mentioned prohibition on interest would making banking absolutely useless. That is why there are several legal ways to avoid riba and carry out the financial practice effectively as well as in compliance with the Sharia law. One of the ways to do so called murabaha and refers to the situation when instead of issuing a credit to a person to buy a specific object, the bank buys this object for the person and sells it to him with a higher price. Another practice is called musharaka is describes a situation when the bank lends money without any interest, but in exchange for a part in income of people who receive this money. Conclusion Having examined all the points which were brought up in the paragraphs above, one is able to come to the following conclusion: the prohibition of interest is an important part of the Muslim tradition. Originally it was developed to counter the negative practice that existed in the Pre-Islamic society which almost justified slavery of the people who were not able to pay the debt. The definition of riba may not be understood in one dimension only. It has different aspects, ranging from the broadest ones (excess of anything) to the most specific (banking interest). What is more important is that there are several ways to avoid the forbidden practice. Works Cited Ahmad, Abdel-Rahman Yousri. "Riba, Its Economic Rationale and Implications." Institute of Islamic Banking and Insurance. 2015. Web. 30 May 2015. . Read More