Poverty Alleviation: An Aim Of Islamic Economics

Poverty is treated as WMD (weapon of mass destruction) of modern world. Eradication of it bears very importance. The economic systems like capitalism and communism have presented number of instruments for the alleviation of the poverty from the world. But, these extreme ideologies failed to satisfy the need of the people. Private ownership of property, laissez-faire policy of capitalism and class war, dialectical materialism, state ownership of property of communism didn’t touch the real cause of poverty. This situation necessitates seeking the possibilities of Islamic economics in alleviating poverty. The aim of poverty alleviation can be attained, in an Islamic Economic system through reducing the inequality. It never means attaining equality but equity and justice in the income and wealth distribution. Islam eliminates the absolute inequality which arises from unequal distribution of income, but relative inequality emerges from equitable distribution of income and wealth.

First part of this article has given a small introduction to both conventional economics and Islamic economics. Then it provides a picture of poverty of current world and Islamic perspective of poverty. Then Islamic economics instruments to alleviate poverty such as zakat, sadaqa, qard hasan, ganima, khums, fay, jizya, mudaraba, musharaka, prohibition of interest, abolition of extravaganza, prohibition of speculation and hoarding have been mentioned in briefly. Influence of Islamic economic instruments on marginal propensity to consume, multiplier, price investment and production have been dealt with.

The books and articles I referred for this article are Dr. Dr.Sabahuddin Azmi’s Islamic Economics, S. M. Hasanuzzaman’s Economic function of an Islamic state (The early experience), Towards understanding the economic system of Islam written by Dr.P Ibrahim and Introduction to the economic system by Moulavi.M.V.Saleem.

Introduction

Nobody can undermine the importance of economics which is a social science that studies the production, distribution, trade and consumption of goods and services. This very importance of economics resulted in emergence of different economic systems in the world and all of those economic systems claim that they will fetch economic welfare. Those dominating and prominent economic system’s failure to accomplish economic justice, prosperity, the eradiation of the inequality and poverty make necessary an alternative economic system which can successfully make a starvation free and poverty free world.

Definition of Economics

Social scientists have developed various definitions of economics. Lionel Robinson’s scarcity definition of economics is most accepted amongst them. According to Robinson “economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses” This definition is based on two points which are scarcity of resources and the never ending needs. But in reality former is a myth. The survey conducted by UNO shows that are enough resources for 20000 million people on earth we have only 6000 million people on earth residing now. Latter point ‘never ending needs’ is also incorrect as the desire and greed of the man is unlimited but the need is countable and controllable.

Definition of Islamic Economics

As a system of life Islam has not left any area of human life without guidance. Whether it is spiritual, individual, social, economical or political Islam gives clear cut guidelines. By considering the economic guidelines of Islamic sources, Islamic economists have developed plethora of definitions. Derivation of each definition of Islamic economics is based on guidance given in the basic sources of Islamic shariah which are Quran and hadith.

According to Yusuf Ibrahim, professor of Islamic economics, Qatar University “Islamic economics is a science studying the guidance of the human behavior towards the use of resources to satisfy the needs”. This definition is based upon the following facts.

1. The resources are enough for satisfying the needs.

2. But the resources should be protected from the waste, and improper use.

3. The human behavior towards the resources should be controlled by divine injunctions.

4. Only legal needs, needs that build life on the earth, should be satisfied.

5. Illegal needs (desires), which destroy life on earth, should not be satisfied; they are never ending and never satisfied.

Islamic economic system, a normative economic system, has been built upon certain fundamental Islamic philosophies. According to Quranic teachings real and absolute ownership of the wealth belongs to the creator of the same, Almighty God. Quran says “To Allah belongs to everything in the sky and on the earth” (2:284).Role of the man is considered as trustee who is to manage the trust, i.e. wealth according to the directives of the real owner; God. Quran clearly states “And spend of that where of hath made you trustees” (57:7). So man has been granted

conditioned and limited ownership.

Another Islamic philosophy is universal brotherhood and equality of men as their creator is one and parents are same. Hence distinction based on color, caste, creed, races do not suffer at any cost. This concept induces the people for cooperation and participation in their all efforts instead of cheating, exploiting and making fraud each other. Another aspect of Islamic philosophy is the faith in the Day of Judgment after death. In the life after death man is accountable for his deeds on earth. The implication of this faith is that economic choices one makes in world are to be judged according to the norms Allah has laid down.

These are the revolutionary points which differentiate Islamic economics from the liberal, capitalistic, imperialistic, mainstream, usurious economic system and communist, class war, state dictatorship economic system. Islam constructs a just world on the spirit of everlasting divine concepts.
Poverty

Evil of any economy is poverty. The presence of begging hands in an economy pulls that economy into decades back. Poverty midst plenty is the challenge faced in the modern world. Impact of the poverty cannot confine into starvation only, but poor people, apart from starvation, suffering limited income which leads to inaccessibility of good education it disables them for challenging careers which requires number of years long education. Absence of nutritious food results in more child morality among deprived sections. Since limited access for information and knowledge those are prevented from market and opportunities.

Every country and international organizations like World Trade Organization, World Bank and Asian Development Bank hard work to construct the countries and world on the foots of self sufficiency respectively. Mission of the World Bank is described as global poverty reduction and improvement of living standards. General Council of UN has declared October 17 as International day for the eradication of poverty. It shows how seriously they took poverty as a problem

But, it is wondering that out of 6.1 billion world population more than 1 billion are finding their livelihood in less than $1 per day and almost 3 billion on less than $2 per day. You might be provoked that 74% of total income of world is shared by the 20% of the elite class of the world. It is heartening you that there are countries whose national income is less $800 and morality of below five years age children is about 26%.It is worrying that 110 million primary school age children are out of school and 60 percent of them are girls.
.
Poverty and Islamic Economics

Below Poverty Line (BPL) fixes in Islamic economics system on the basis of ownership of nisab, which limit makes one eligible for the payment of zakat Whosoever wealth on or over the nisab is responsible for the payment of zakat. Those wealth is below nisab are zakat recipients and they are treated as poor. Hence, in Islamic economics, the size of deprived come under BPL will be large. Starvation and inaccessibility of food, shelter, cloths and education could not suffer in an Islamic economy which aims human falah, i.e. human welfare. It does not support any economic instrument that leads to the deprivation of the man. Since poverty emerges in an economy as a result of various causes so wiping out of these causes is primarily important.

Limited income, unequal distribution of income and wealth, misdistribution of resources, regional disparities, unemployment, social injustice, and decreased investments …etc are some of the obstacles in the way of attainment of self-sufficiency and welfare. Islam considers the fulfillment of basic needs of every member of society is economic, moral as well as religious obligation of the ruler. List of the basic goods extends from traditional food, clothing and shelter to seasonal clothing, personal attendant to disabled person, and expenditure on marriage of poor and expenditure on entire family of poor, which are intensified by scholars from time to time and likely to extend the list time to time for the welfare of the citizen. Islamic economic system introduces a bunch of divinely guided instruments which bring to an end of poverty and build
poverty less world.

Islamic Economic Instruments to eliminate poverty

It is advised to Muslim citizens in an Islamic county, as the part of believe, to practice certain things in their life, some of them are compulsory nature and the rest are voluntary nature. The practice of these will have vast economic implications apart from the reward of God. Non Muslim citizens also have to make certain compulsory payments, which have economic impacts, as the part of their citizenship in the Islamic country. Compulsory duties and agreements of citizens are governed by the Islamic country and violation of any part would not suffer Islamic state. In addition to these functions there are other things the Islamic state has to carry out similar to any nation does for the welfare of citizens. Both positive and negative measures have recommended by Islam for wiping out the reason of poverty.

Positive Measures

There are numerous Islamic orders and injunction to perform certain things which have immense influence on economies justice, prosperity and growth. Important divine injunctions amongst them and their influence upon the economy are briefed below.

Zakat

Zakat is the yearly obligation of wealthy Muslims to poor and it is the share of have-nots in the property and wealth of the rich. Quran commends “establish worship and pay the poor his due (zakat) and obey the messenger”. Technically we can call it as spiritual tax. It is imposed on those forms of wealth which have the capacity to grow in value or otherwise produce further, is having the custody of whole year and have exceed a certain minimum value called ‘nisab’. Quran has stated the eight specific heads for the distribution of zakat.
Due to the divine spirit for the performance of zakat, chances for evasion are less. The imposition of zakat on idle wealth urges the owners for the productive and profitable employment of idle wealth which increases the wealth of economy and again the share of zakat.

Donations

Sadaqa is the one of the voluntary economic instrument. No limit and eligibility criteria for performing contributions to needy. It can be divert, apart from the eight heads mentioned for the distribution of zakat, to any needy. and it will strengthen what economic implications emerged by zakat.

Qard hasan

It is an arrangement of interest free loans for unproductive purposes or for the needy to meet the expenses like hospital expenses, home expenses and education expenses etc which are do not make any earnings. So it is not able to charge any material benefit, like profit share, from qurd hasan. These are provided as the part of kindness to human beings. In an Islamic economy individuals and institutions like Islamic banks will offer this type of loans expecting the reward of Allah. Availability of qard hasan reduces the financial burdens like interest, of deprived.

Profit and loss sharing

Islam formulates profit and loss sharing as the tool of trade contracts instesd of interest. The motivation behind it is the cooperation amongst the people. In profit sharing there are different types of financing such as mudaraba (profit and loss sharing) and musharaka (participation) …etc
Mudaraba is the agreement between both capital owner and entrepreneur to share the profit arises from the business and in case of loss capital owner’s capital reduces and entrepreneur’s time and effort loose. Musharaka is the agreement to share profit and loss where all contributors participate in management of business. Both mudaraba and musharaka help the people, who have inadequacy of capital, to engage in business, production and contribute their share into the welfare nation and earn for their own.

Ganima (war booty), Khums (one fifth) and Fay

Ganima is the property Muslims seize from the enemy. Four fifth of the ganima is divided among the fighting army and one fifth (khums) of the entire ganima move to state fund, which is earmarked for the special beneficiaries mentioned in Quran. Fay is the property receives from the enemy without actual fighting. This source of state revenue is generalized for the common good of the entire population and public welfare.

Kharaj (Land- Tax)

Land-Tax, a source of revenue of state, is the levy imposed on land produce. This is actually the rent for the use of value of agricultural land. The rate of kharaj and method of collection can be declared by state from time to time as there is no direction of Quran and tradition of prophet in this regard.

Jizya (Poll tax)

Jizya (poll-tax) imposed on the non-Muslim citizens of Islamic country for securing their wealth, property and lives from damage. It helps them to contribute their skill, talent, health, wealth and property for the prosperity of the country

Waqf (Endowment)

Waqf (endowment) is regular source of revenue which is earmarked and dedicated fund of Muslim for supporting charitable and welfare activities
State ownership on uncultivated land:
Any economic instrument that hinders productivity is harmful to economies prosperous. According to Islamic shariah, if a land is remained uncultivated three consecutive years lead to moving of ownership of that land from current owner to other who is ready for cultivate the land and produce. Prophet (pbuh) said “The original rights of ownership in land are God’s and the prophets and then yours afterwards. But he who revives any dead land acquires the right of ownership to it”. There is an another institution, iqta, boost the circulation and tax revenue of the state by transferring the uncultivated/dead land to someone in return for ushr or khraj.

Combined ownership of natural resources:

Individual ownership of natural resources like fire, water, pasture and salt are restricted by the Islamic shariah. People have combined ownership in these natural resources which should be accessible to anyone. This rule allow anyone to use the benefit derives from the natural goods and ensure that nobody is away from the natural goods which are easy to get to without any hard work.. List of natural goods, in addition to mentioned goods, can be extended into more goods in time to time. Prophet (pbuh) said “people are joint owners in water, pasture and fire”.
There are other sources of revenues like property of deceased with no legal heir, lost and found with no claimants and additional taxations.

Negative Measures

There are some prohibitions of God which has influence on the economies prosperity and welfare of every men of country.
Prohibition of interest
Interest, whatever form, has been contemned by Allah and His messenger. Quran says “Allah has permitted trade and hath prohibited riba” (interest). Islam doesn’t support interest but profit and loss sharing. Every financial transactions of Islamic economy should be free of Interest. But absence of interest in an Islamic economy doesn’t create any hindrance to prosperity but flourish the prosperity.

Prohibition of speculative instruments

Instruments which don’t have any advantage to real economy such as futures and option are not permitted in Islamic economy. Stock market instruments like day trading, marginal trading are prohibited, either. Absence of these instruments in the economy reduces speculation which is harm to the entire economy.
Implications

The implementation of shariah guidelines we discussed above in an economy lead to number of positive fruits which make the state free from every form of poverty.
Increased redistribution of income and wealth will result in, when the people perform the religious obligations like zakat, donation, waqf, inheritances, fithr zakat and kaffarath etc… It leads to flow of wealth and money from rich to poor. Thus the concentration and accumulation of wealth in a few hands come down. Poor and needy spend approximately eighty percent of their earnings to fulfill their basic needs. Economically Marginal Propensity to Consume (MPC) of the poor is larger than middle and high class. A large portion of whatever comes into handy of poor will flow to economy for consumption of basic goods; it lead to more demand for primary goods and then it result in the increased production of basic goods. It is difficult to restrict luxurious consumption and production completely by law and force. But the increased rate of redistribution of wealth and income increase the demand for basic goods and decrease the demand for luxurious goods. Automatically it reduces the utilization of resources for the production of luxuries. Consequently, natural resources use for the production of basic goods and for the benefit of public welfare
This increased redistribution of wealth to poor enables them to get the accessibility of good education and nutritious food. Increased knowledge and skills help the poor to get good jobs and earn. This raises the entire poor family and dependence to heights. In turn, increase of income more than a certain limit make them capable for performing zakat and other voluntary donations for the sake of the benefit of have-nots. Rise in the redistribution help to reduce the gap between haves and have-nots and bring economic justice to all citizens.

Increased MPC of poor as the redistribution of income results in more multiplier effect in economy that fuels more income to the overall income of economy that help the poor section of people to raise their per capita income and living standards.

According to Professor Keynes, investment depends on two variables which are current rare of interest and the marginal efficiency of capital or expected profit rate. Investment would take place only if the expected rate of profit exceeds of interest. Due to the absence of interest, in an Islamic economy, only the size of expected rate of profit of profit will be the determinant of investment.

Speculative motive of money and liquidity theory of money will have no place in an interest free economy which reduces investment. But the presence of only expected rate of profit will result in investments, even in low rate of expected rate of profit to increase their principle amount and to avoid the deterioration of principal through zakat. The increased investment raises the production, employment, wages and overall national income of economy. It flows wealth to poor and raises their economic status.

Fisher’s quantity theory which states that quantity of money affects the price and value of money. It means that increase in the supply of money will proportionately increase the price in economy but the output will not increase. But in the case of Islamic economy money should not be supplied without making increase in the output. The central bank and commercial banks of Islamic state increase the money supply through making investment contracts on the basis of profit and loss sharing. So every flow of money into economy results in output growth without making proportionate hike in price. It is helpful to the poor to get need things at reasonable price

Conclusion

Way of eliminating poverty in Islamic economy is simple. Faith in the oneness of God (tawheed) motivates to the performance of zakat and profit and loss sharing and avoiding interest and extravaganza. Increased redistribution and productivity are the outcome of these instruments which helps finally to attain alleviation of poverty.

Economic Empowerment of Women

When we talk about “economic empowerment of women” we must understand that the biggest problem that women face today is that their work is not recognized at all. Women have always contributed to the society and the economy in the form of a helping hand in agriculture and food production in the developing countries and in the form of part time and temporary workers in developed countries. This is apart from their role as a homemaker which is not even valued economically. In fact the recent statistics of the UN tell us that 53% of work in developing countries is carried out by women and out of $ 16 trillion global output which is invisible, $ 11 trillion is contributed by women. Even after so much contribution there is a lack of acknowledgement regarding the role of women in every sphere of life. The problem is actually much larger than what we perceive and therefore the issue is not just about economic empowerment of women. It is in fact about the deep rooted bias and discrimination against women that is prevalent in the society.

Economic empowerment of women: Discrimination against women

It is ironical and sad to note that that there is a wide scale discrimination against women in virtually all aspects of life. She is in a disadvantageous and deprived position even as regards to basic rights like the right to education and health. Further she does not have access to capital or other resources to make an informed choice in her life. Women are kept out of the decision making power structure in every sphere of life including the political, economic, social and religious structures of the society. Coming back to the question of active contribution made by women in economic terms or otherwise we find that the society happily laps up the labour efforts of women in every part of the world but when it comes to sharing the spoils of that labour she is kept out. This is not only happening in the developing countries but it is also true for the developed countries where majority of women who are working in the informal economies as part time workers have less access to basic health care services, education, financial resources, employee rights and land ownerships. If we look at the “decision making structure” in any field whether it be economic, social, political or religious arena then we will find that it becomes virtually impossible for women to climb up the ladder and reach the positions that matter because of open discrimination and bias. But we cannot sit with all these problems and loathe about it. Somewhere we have to make a beginning and making a beginning at the economic front is the best step forward.

Economic empowerment of women: Income generation and increased flow of capital in the hands of women

A major initiative that is needed for changing the situation for women is to increase the flow of capital in the hands of women. More the women get financially empowered and generate income the more is the chance of her overall development and progress. This is because of the fact that women use a major chunk of their income for providing themselves and their family better healthcare, education and nutrition. Moreover steady income in hand makes women more confident to take economic and other decisions related to her family. It has been seen that when women start earning they also adopt more of environmental friendly lifestyle as well as they tend to have lower fertility rates leading to fewer children. Overall we can see that more the women are economically and financially sound more they become capable of taking informed choices about their life. Stable income and financial independence leads to improvement and progress of women through various efforts like contraception, age of marriage, fertility, child mortality and modern sector employment. Economic empowerment of women leading to steady income generation and financial independence will therefore definitely help women take decisions and select the best among choices in their personal and professional life.

Economic empowerment of women: Resistance to economic empowerment of women

We must acknowledge the fact that when we talk about economic empowerment of women and enhancing the financial independence of women we face great resistance from the current structures of the society at every level. The resistance comes in various forms and it is entrenched in the society as gender bias and gender discrimination. There are many ugly facets of it around the world and many of them are in the form of open physical and psychological abuse. One of the most common forms of abuse is violence against women. Violence against women is virtually seen in every part of the world. Major types of violence against women are in the form of domestic violence and rape. Apart from violence there is great gender discrimination and bias in the form of substandard and pathetic living conditions that is forced upon women. There are millions of women around the world who don’t have even their basic needs met in terms of food and nutrition, healthcare and education.

Further in many countries there are horrendous practices that are taking place and which can be equated to genocide amounting to crime against humanity. Female feticide falls in this category. Other evils like trafficking of young women and girl child, early marriage and dowry system play a major role in pulling down women to a life of infinite misery and suffering. In these conditions how can we think about economic empowerment of women? To top it all we can find a clear bias against women in the decision making power structures of the society which is insensitive to the cause of 50% of human population and which is in fact poorly represented by women in the first place. Fighting all these odds, even if women think about generating income on their own with the help of a economic enterprise then they face the hurdle of capital and other resources. In total women are in a highly disadvantageous and marginalized position. The tragedy is that this situation prevails even when studies show that once women are economically empowered they become the biggest assets of their family, the society, the nation and the world in terms of their savings and their efforts towards the overall development of the family, the society as well as the nation. This is true because when women starts earning, she channels back a major chunk of her earning into the family for better health, education and nutrition. This has a tremendous impact on the growth and development of the next generation who are the future seed of human evolution.

Economic empowerment of women: Statistics show the alarming situation

Statistics show how bad the situation is for women. As per recent UN figures, 60 % of the world’s 135 million children who are not getting education are girls. These girls end up living a life of drudgery, misery and open exploitation. Out of the number of girls going to primary school only 1 in 4 remain in school after four years and the rest who drop out are sucked back into the vortex of living hell with open marginalization, discrimination and abuse. It is shocking to note that out of the 880 million illiterate adults of the world two-third are women. What more proof we need to understand the circumstances of women in our society and the world.

Economic empowerment of women: Biased patriarchal structure and the need for fundamental change

We must recognize the fact that until we drastically change the structure of the society which is patriarchal and highly biased against one half of human population we can never think of eradicating the evils of gender bias and gender discrimination that exist in our society. Without the fall of the patriarchal structure based on power and control and replacement of it by an all inclusive structure based on unification of forces we cannot think of moving forward to achieve true economic progress and development. To change the existing structures women need to take initiative. They need to come forward for creating new structures which will positively empower them as well as act as a catalyst for massive change in the society. We have to make a beginning somewhere and the beginning can be through the economic empowerment of women. Only when women get empowered economically we can think about a movement which will work towards further change whereby better healthcare, education, housing and nutrition will be available for the next generation. The seed for change are the next generation and their future lies in the hands of women who are economically empowered today and who can make informed choice about their life and their family. So if we have to start somewhere it would be to work in the direction of economic empowerment of women. Only through this route we can think about tackling the many other aspects related to women’s empowerment. Every problem in the society today hits the women hard whether it is war, health issues like AIDS, poverty, violence, unemployment or population growth. The solution to all these problems is definitely complex but the initiative can begin with the economic empowerment of women.

Economic empowerment of women: Bringing women into the mainstream economy

When we talk of economic empowerment of women we need to understand one more point very clearly. It is a fact that despite efforts to bring women into the mainstream of economic activity, the majority of the active female population continues to be confined in the micro small-scale enterprises and the informal sector. This is represented by agriculture and daily wage jobs in the rural sector and part time jobs in the urban sectors. The big question is how to bring these women working in the informal sector into a broader loop where their rights are protected and where they are not exploited in any form. Formation of functional associations for the protection of the rights of women in these sectors needs to be a top priority. More than protection these associations should work towards finding means for overall development of their women members with a great focus on economic empowerment.

On the other hand there are also some indications that women are increasingly seeking self-employment in the formal private sector and that’s a good trend that needs to be encouraged further as it is a creative and generative form of economic empowerment. Moreover women are now organizing themselves into associations of entrepreneurs or bankers in order to enhance their economic status and have an impact on economic policies. However, their integration into the formal sector is still constrained by limited access to credit, property, technology and technical skills. Keeping all these developments in mind, creation of multilateral financial institutions exclusively catering to women at the international, national and regional levels would help cater specific financial needs of women at all levels and help faster integration of women in the informal, formal and organized sector.

Economic empowerment of women: Initiation steps for economic empowerment of women

Economic empowerment of women can be initiated by working on some very fundamental issues like training and education of women for gainful income generation, bringing about gender sensitisation in all spheres of human life as well as initiating awareness programs which can help women make informed choice regarding the various aspects of their life. The following are some major initiatives which can be taken towards economic empowerment of women

1. Recognizing that education and training are important for economic empowerment of women in the short term as well as long term periods.

2. To acknowledge and accept the glaring gender based bias that is so much prevalent in all parts of the world and taking concrete steps towards gender analysis and gender sensitization in every sphere of human life.

3. Empowering women who are part of the labour force by increasing awareness regarding the rights of an employee.

4. Work on the communication skills of women so that they become self-confident and master the technique of advocacy and negotiation.

5. Encouraging and supporting women entrepreneurs to develop marketable models of enterprise through expert guidance and “skills development” support.

6. Planning educational and training modules for women based on their professional as well as home commitments and helping women to balance between the two.

7. Using communication technology to galvanize women for a radical shift in their thinking through shared experiences of success and skills. These communication activities can be taken across the rural and urban landscape for motivating women to take up self empowerment programmes.

8. Educating and training women to gainfully engage in markets and institutions where they primarily go for generating income.

9. Publicizing the central role of women in the national economies and celebrating the success stories of women entrepreneurship and women professionalism in every field.

10. Gender training and sensitization of the current structures of the society represented by the government, social bodies and private enterprises.

11. Proving opportunities to women for interlinking and interacting across border for economic empowerment. Networking, export development and joint venture promotion among female entrepreneurs and relevant associations can be taken under the interlinking and interacting activities.

12. Improving the flow and access of credit and finance for women through financial institutions for female entrepreneurs at the governmental and social levels.

13. The access of credit to be financed through collateral for loans. Such loans should be made available to those women who do not have any individual resources, property and land rights. Further micro-finance schemes to be made available to women.

14. Building and strengthening networks where women come together from different nations and regions for common goals of economic empowerment of women. Such networks can influence the international and national policy formulation including international and national economic agreements. Further these networks among women from different nations can help in increased participation of women in the governmental structures like chambers of commerce, can help them access latest technologies, can help them access management and marketing skills and can help them in nurturing female entrepreneurs in the incubator centres for training and skills development.

For free information and advice on topics and issues related to women, visit [http://www.rise-of-womanhood.org]

[http://www.rise-of-womanhood.org]

This site envisions the rise of womanhood in true sense that is the rise of the “essence” of womanhood in the physical, mental, intellectual and the spiritual planes. It calls for the beginning of a campaign for the true rise of women in all spheres of life for the restoration of the balance in nature.

Somewhere we have to make a beginning and it’s always better if we make the initiation at our own self. We can strengthen this mass movement for the “rise of womanhood” by bringing about the necessary changes in our own life as felt by our inner self. Further we can transmit the new thinking to others who care to listen. A small step today will definitely lead to a giant leap tomorrow.

Quantum Economics – Philosophy of the Economy

The philosophical comparison of social developments such as economy to the particle related quantum mechanics may look incidental or incoherent but conceptionally said the human perception has changed from certainty and simplicity to uncertainty and complexity too, therefore the perception of principle understanding processes in economy philosophically must change too the way it has changed in Physics and Mathematics , because the “uncertainty” of the information for particles in their “position” and “momentum” goes much farther in social sciences where the “uncertainty” of the social-economic developments and processes as reported by Governments or private groups are even more unclear and subjective. The similarity of the old “certain” and “simplified” approaches in Physics where particles were taken as measurable and static was well used in Philosophy and Economics where the processes were simplified and taken as measurable or at least easily put in systems of evaluation; thus there is not difference between the approaches in Physics and Economics in terms of thought and conventionalizing of simplifying processes and what in science seems irreversible is the constant conventionalizing complex reality. More “uncertainty” must go in the same way and apply to Philosophy and Economics as well.

The similarities between science in Physics and Economics goes even beyond the evolving perception from simplicity to complexity into the reality of realization of “unpredictability” and “uncertainty” when the same way when in Physics was realized that a “particle” is in constant change that there isn’t way it could be measured without error. It isn’t just because of the insufficiency of the human technology but because of multiple and mutually changing realities and even farther because the reality is extremely unpredictable and unknown. The same way in Philosophy and Economics could be easily realized that social economic processes are not static but “unpredictability” and “uncertainty” of ever changing social economic realities are not measurable by any means therefore to think that by using a few statistical measurements might give us a realistic picture of the economic situations is unrealistic and uncertain but even beyond the processes in social and economic structures are so diverse and changing that they are more like the particles in quantum mechanics then to any theoretical explanations of the statistic economics or principle of evaluations of Philosophical conceptions such as Marx’s or John Lodge’s or whoever’s. The ever changing reality and the uncertainty coming out of it may only be theoretically explained by some theories and philosophical conceptions but these could not provide an adequate picture of the ever changing and uncertain social-economic reality in which especially economic processes are at the most unpredictable and uncertain. The ideologies of some economic structures such as Communism or Capitalism, or Socialism which are conventionalized based on philosophical conceptions are far away from explaining the social-economic processes but more likely they are providing some “security” in a very diverse and insecure realities; these ideologies did work somehow in a political world of cold wars and ideological confrontations when one was better then the others, but do not work in an open free world where these philosophical conceptions do not find any applications or support.

To measure statistically or anyhow a realistic picture of the social-economic processes is uncertain the developed tools and indicators for such measuring are inadequate and limited but even they were developed to perfection they still would not be able to measure these processes because the processes by themselves are uncertain and could not be measured.

The processes in social-economics could be only given “parameters of expansion or contraction” so they can develop in “certain areas” to “certain extend” and then changed or adjusted, it may be done in a way to disperse accumulating energy so instead of big wave: the ways energies are accumulated and create big waves is the example of Real Estate market appreciation: which is positive for the economy to the extend of providing additional capital and equity thus expanding individual capitalization and investing but as we saw in the current crisis when this process of appreciation expanded over its positive for the economy effect such over appreciation had devastating consequences to literally crashing the existed economic structures; the negative accumulation of energies because of the over appreciation wasn’t dispersed to the rest of the economy so the ripple effect was unavoidable; in case a possible way to minimize such over-appreciation is not by not allowing or even limiting appreciation as all but by establishing “parameters” which will ring the bell for over-appreciations or even better they will automatically trigger “prevention valves” to limit the over-appreciation or under-appreciation as well.

The differences between the self adjusting so called capitalism or socialism economics where governments use very political tools to adjust these fluctuations; as well Fiscal and Monetary policies and talk about distribution and redistribution of wealth or limiting or expanding business activities may not necessary be the right economic tools to set the needed “parameters” so “over expansion” or “under expansion” do not occur.

The “Iquanta” is a quanta but is not anymore a part of a particle or an energy, or any thing in physical aspect but a philosophical measured quantity of “energy” or just a “word” which could be considered as an abstraction or an “imaginary particle” as well, it will depend from the point of view: when some could believe that social-economic processes have their own energies or some not; for me such believes do not have any meaning because the most important thing is going to be to establish the parameters of it; The same principles would apply to “Iglued plasma” and some others terminology taken from the Quantum Mechanics which will be used in this research.

This research is attempting to challenge the status quo of the ideologically motivated Philosophy and Economics with the principle of uncertainty of the processes of economic development; to show the similarities existing between the Quantum Mechanics of Physics and the Iquantum Economics of Social-Economics Philosophy; to set some “parameters” of social-economic processes which eventually could be used in practical Economics to limit “big waves” of economic recessions or at least explain these “parameters.”

To show that even unpredictable by nature and impossible to be put into one philosophical structure which could explain all of these social-economic processes, though there are still some parameters which could limit the occurrence of big wave and not the least to show that economic downturns and recessions even uncontrollable are not a part or a tool of somehow “free market development”, but the violent adjustments are a result of occasional build up of energies to a big wave and in the same time some of these energies could be put in parameters /diversified thus it may prevent these big waves from being so frequent or so violent.

What is an iquanta? – it is not a part of any particle it might be part of energies or part of conceptional particles for explaining certain philosophical conceptions which particles move, contract and expand in limited predictability. It is influenced by social-economic processes and developments. It accumulates energies mostly based on social-economic occurrences and fluctuations.

What is igloued plasma?- the powers which connect the iquantas and other parts of a constantly changing and moving occurrences and processes in social-economic processes; we can imagine these terminology as a mirror of these social-economic processes so thus they could be located in their changes and explained in their changes, vibrations, accumulation of energies and creating violent social-economic adjustments. The physical quantities are built up by iquantas and other parts rapidly changing and moving, where the igloued plasma connects these parts and gives them the meaning of occurrence; the “energies” build up by the acceleration of the iquantas and other parts and the fluent economic developments become violent big waves: similar to the monster waves in the ocean. Well, common qualities of such build up is concentration of energies between the neighboring waves but this observation is not a principle. In real development of the economies some factors have positive effect over expansion and progress in certain time and the same factors might have negative effect in different time or mostly when passing the level of a positive build up: (for example the real estate appreciation has a positive effect on the economic development to the extent when the market prices are not supported by income to expanse ratios, or until the withdrawn and reinvested capital do not bring the supporting profit flow; or until becomes exuberant compared to the other business activities or if etc.), many variety of conditions hence if particular waves in the physical quantities relate the real estate built energies which might push up the big wave and this wave might well shake a lot of other sections of the real economy.

So comes the difference between quantum mechanics and iquantum economics: the uncertainty of observation of the iphysical quantities do not relate only ever changing realities but also the ways of observations when in the quantum mechanics the main issue is measuring and observing in the iquantum economics is putting parameters after analyzing of the information when the difference between iphysical quantities and final observations are even greater hence the vectors may start from the same or even totally opposite points so the relevance between and among these vectors is based on their directions, length and the angles of their projections.

The founding formula in explaining the existed uncertainties in the social economic development and processes is