Advertisement

Manpower Exchange and Social Security System for Islamic Economic Co-operation

  • Masudul Alam Choudhury

Abstract

The Principle of Distributive Equity in Islam necessitates the institution of social security as mandatory for the Islamic society. An instrument for financing this social security fund is ‘Zakat’ (specific target wealth tax in Islam). But, when we are financing a social security system in relation to the labour market in general, then ‘Zakat’ cannot be used as a principal instrument in it. The reason for this is that in the labour market there would be claims on the social security system from the Islamic ‘needy’, on whom ‘Zakat’ can be spent, and from those who do not come into this category of recipients, on whom ‘Zakat’ funds cannot be spent. Thus, in the Islamic social security system, the ‘Zakat’ fund can at best be treated as a specific target social welfare expenditure. Other areas of social security, such as group life and health insurance, unemployment insurance, workmen’s compensation, family allowance and the like, must be financed through an individual contributory premium system in conjunction with government and employer contributions.

Keywords

Social Security Mutual Fund Social Security System Insurance Contract Group Insurance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Notes and References

  1. 2.
    A. Rahim, Muhammadan Jurisprudence. (Lahore, Pakistan: Sh. Muhammad Ashraf Press, 1963).Google Scholar
  2. 3.
    M.A. Choudhury, ‘The Rate of Capitalization in Valuation Models in an Islamic Economy’, in Ahmed et al.. (eds), Fiscal Policy and Resource Allocation in Islam. (Jeddah, Saudi Arabia: International Centre for Research in Islamic Economics and Islamabad, Pakistan: Institute of Policy Studies, 1983).Google Scholar
  3. 5.
    J.L. Athearn, Risk and Insurance. (New York: West Publishing Co., 1977), ch. II.Google Scholar
  4. 7.
    M. Muslehuddin, Insurance and Islamic Law. (Lahore, Pakistan: Islamic Publication Ltd., 1969) ch. Ix.Google Scholar
  5. 8.
    A. Ali, ‘Risk-bearing and Profit-sharing in an Islamic Framework: Some Allocational Considerations’, Fiscal Policy and Resource Allocation in Islam. (Jeddah, Saudi Arabia: International Centre for Research in Islamic Economics, King Abdulaziz University and Islamabad, Pakistan: Institute of Policy Analysis, 1983).Google Scholar
  6. 11.
    International Labour Office (Geneva, Switzerland), ‘The Impact of International Labour Conventions and Recommendations’, 1976.Google Scholar
  7. 15.
    M. Nerlove, ‘Household Economy: Toward a New Theory of Population and Economic Growth’, Journal of Political Economy. (April 1974).Google Scholar
  8. 21.
    L.S. Pontryagin et al., The Mathematical Theory of Optimal Processes. (New York: John Wiley, 1962) chapters i and ii.Google Scholar
  9. 22.
    M.D. Intrilligator, Mathematical Optimization and Economic Theory. (Englewood Cliffs, NJ: Prentice-Hall, 1971) ch. ix.Google Scholar
  10. 24.
    M.A. Choudhury, Contributions to Islamic Economic Theory: A Study in Social Economics. (London: Macmillan, 1986) ch. 7.Google Scholar

Copyright information

© Masudul Alam Choudhury 1989

Authors and Affiliations

  • Masudul Alam Choudhury
    • 1
  1. 1.University College of Cape BretonSydneyCanada

Personalised recommendations