Tala'al Badru 'alayna,
Min thaniyyatil Wada
Wajaba al shukru 'alayna
Ma da'a lillahi da'
O the White Moon rose over us
From the Valley of Wada
And we owe it to show gratefulness
Where the call is to Allah
Ayyuha al mab'uthu fina
Ji'ta bi al amri al-muta
Ji'ta sharrafta al Madinah
Marhaban ya khayra da
O you who were raised amongst us
Coming with a work to be obeyed
You have brought to this city nobleness
Welcome! best call to God's way
The people of Medina welcomed the Prophet Muhammad (peace be upon him) with this song over 1400 years old during his hijra. Medina, the first Islamic state, was one of the key turning points and perhaps marks the changing of the political landscape for Muslims from one of oppression to one of ascendancy. Perhaps someday, Allah will grant us our Medina and we can sing the same to our migrants from around the world.
What follows are some ideas on how such a state would react in the immediate aftermath.
Internal and external forces would attempt their best to sabotage such a state. We have seen this time and again by not only the United States, but also by Europe, Israel and others. It is imperative that such saboteurs are preempted. Drastic measures and policies will need to be adopted.
It is of utmost importance to change the fundamental power equilibrium in the country. The first important measure would be to eliminate the power base of the old secular elite. It is of vital import to take drastic measures to ensure these elite, entrenched over ages, chooses subservience or flight rather than their fight instincts.
The biggest robber barons that have looted the country, having the biggest overseas bank accounts will need to answer for their deeds. They will have to return the money. Those that escape to their master foreign countries could possibly be renditioned, just as the Mossad renditioned Nazis that escaped WWII. Big or small robber, our secular elites will have to compensate for their deeds in some appropriate manner, including perhaps having to serve labor time, building roads, canals and planting trees for the country, as payment for their robbery of the common Muslim.
Nationalization & Privatization
Much of the industry is owned by local elites and multinational corporations. This needs to be changed. At face, a rather Marxist argument of gaining control of the means of production. Yet, at the same time, we do not want to hand these over to cronies of the new administration, nor do we want the government to keep ownership of industry, which would go against our free market principle and would result in great inefficiency.
One possible solution is to redistribute a portion, perhaps half of the equity to the employees of the company, in accordance with each employee’s salary as a proportion of net company salary, a rather large equity bonus if you will. The other half of the company can by floated in the stock exchange, staggered over a few years so as not to flood the market. A small percentage, for instance two percent can be kept by the government to diversify its revenue sources.
The major companies as they stand today are often subsidiaries of foreign multinationals. As such they are not companies as we would understand them but rather neutered and genetically modified beasts that lack essential elements like R&D, certain key elements of manufacturing, branding, product development and marketing assets. All such companies must be made aware of these deficiencies and they can learn by trial and error to fix these issues on their own. The government cannot and should not fix these for them.
All foreign companies that seek to participate in the local economy beyond direct export would need to conclusively prove that their funding sources do not include riba. This is nearly impossible as virtually all foreign companies are geared with interest financing. However, that is not the fault of the Islamic state; one must play by the rules of the Islamic state to do business there.
Everyone gets a fresh start and all debts are considered null and void. Interest will be banned from the economy. As concerns our foreign trading partners, they can take back their loans from the beloved elite that siphoned off the money to Switzerland and other such places. The IMF and World Bank should not receive their money back from us. The Islamic State will not be a member of these organizations. All foreign NGOs will have to pack their bags.
All local NGOs with foreign funding will have to seek funding from elsewhere. If foreign countries wish to help us, they can open their economies to trade with the Islamic state rather than provide us with strings-attached charity. The only foreign nations that can legitimately seek their debt back will be those that have given honest and sincere funds for the benefit of the country and have remained friends and trading partners post-revolution. This could prominently include China. Even this may be restricted to the capital sums and not the interest portion.
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