subject: What Is The Wisdom Behind The Prohibition Of Riba (usury)? [print this page] Islamic economic bases on some firm fundamentals. The leadership and management of Islamic economics must be well aware of these fundamentals and construct the building of Islamic finance on the ground of these fundamental principles. It is a delicate job for the leadership and management of Islamic finance to meet the criteria of Islamic economics and contemporary challenges of financial activities without compromising the fundamentals of Islamic economics. These fundamentals must be taught in the leadership development programs to the future leaders with unfolding the wisdom behind them so that the future leaders of Islamic finance getting ready from the leadership development programs to be able to answer any objection rose against the credibility of these fundamentals.
Riba or usury is to lend money to someone and get a fixed ratio or amount of money without due consideration. This fixed monetary benefit is just the compensation for the waiting period till the actual or principle amount is returned. The wisdom behind its prohibition in Islam is that the lender treats his money as a commodity and earns through it without taking any risk of loss or profit. In this way he is in a position to exploit the situation and can accumulate money on behalf of money without taking part in the actual transaction of goods and services. A capitalist in fact has concern with his personal interest only; he has nothing to do with the society. He gets his interest at the cost of the collective good of the society.
This is the one side of the picture. On the other hand, the large enterprises take loans from banks in which the common people deposit their savings in return of a meager amount of interest. No matter how great the profit is earned by these large enterprises the humble investors get only the same fixed scanty ratio of interest. So we see that the interest is not of any good with respect to collective good of the society.
Everything in this world has both aspects of good and bad; nothing is absolutely bad or useless. At individual level Riba does have some benefits in terms of materialistic benefits, but Islamic principle to consider something Halal or Haram is that what aspect of good or bad is dominant to make an object halal or haram. For example wine and gambling are haram in Islam. Although, the Holy Quran does admit that both of them have some benefits but their harm is more than their benefits therefore they are declared as haram in the Islamic law.
They question thee about strong drink and games of chance. Say: In both is great sin, and (some) utility for men; but the sin of them is greater than their usefulness. And they ask thee what they ought to spend. Say: that which is superfluous. Thus Allah maketh plain to you (His) revelations that haply ye may reflect. (2:219)
Since wine and gambling are destructive for the society therefore their benefits for some persons are ignored and they are announced unlawful in an Islamic society for the Muslims. Same is true for theft and robbery. In theft and robbery a thief or a robber gets personal benefit at the cost of ruining the peace of society. So they are not allowed in any society.
Same goes for Riba An Nasiyah. It is not different. Its harm to society is more than its good to a group of capitalists, so it is forbidden. This is the wisdom behind its prohibition. Moreover, the loss of the hereafter is greater than any loss of this world, which is bound to be fall upon the receiver of Riba.
