A Note on Economic Ideas of Caliph Ali with

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A Note on Economic Ideas of Caliph Ali with
Special Reference to his Letter to Malik Al-
Ashtar
Sayed Afzal Peerzade*
Abstract: It was a common practice on the part of rightly guided caliphs of
Islam to write letters to the different functionaries of the government, which
contained timely and valuable instructions covering a wide spectrum. Such
letters were treated as public documents and were preserved for posterity. In
this note, an attempt is made to study economic ideas of Ali (600-661 C.E.) with
special reference to his letter to Malik al-Ashtar (d.658 C.E.). After going
through the contents of Ali.s letter to al-Ashtar, we discover certain principles
on which Ali wanted to govern his people with a difference. Much more can be
learnt from Nahjul Balagha but the present attempt is limited to the study of only
one letter. Among all the seventy-eight letters of Ali, this particular letter
occupies a unique significance for the reasons of its length and clarity of
purpose, notwithstanding the beauty of language and style. Caliph Ali's ideas
relating to matters of governance and the administration of justice do not just
reflect his personal opinions but represent core Islamic principles as enshrined
in the Quran and the precepts of the Prophet.
Introduction
Ali, according to the Sunni doctrine, was a pious and austere person, a
close companion of the Prophet and the fourth righteous caliph. The
Shias all over the world hold him as the first imam in a chain of twelve
imams. To an equally large number of Muslims across the world, he is a
peerless mystic master who publicly and privately practiced highest level
of abstinence and detachment from material comforts. He is regarded as
one of the earliest spiritual masters and held as the first link after the
Prophet in Sufi slaasil (mystic chains/orders).
* Chairperson, Department of Economics, Karnataka State Women.s University,
Bijapur, India.
 The author is very much grateful to Dr. A. R. Momin, Professor Emeritus,
Mumbai University, Mumbai, India, for his valuable comments on the draft of
this paper.
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Not much is written on the various aspects of Ali.s accomplishments
including his social, economic and political ideas. So also, not much
literature is available to highlight the sincere cooperation Ali extended to
his predecessors as well as the critical or rather highly complex situation
prevailing during his caliphate; the precarious state of affairs he had to
face; the economic, political and administrative policies he pursued and
the moral and Islamic values he upheld even in the most trying
circumstances. In recent years, however, scholars have started
identifying these gaps. There are .innumerable guides of humanity, flag
bearers of reform..builders of nations and countries and teachers of
wisdom and learning whose real accomplishments have remained
unknown to the world for hundreds of years..One of these victimized
personalities whose real worth was never appreciated was Ali b. Abu
Talib...The demands of the age in which he had lived and difficulties
which he had to face were never dispassionately analyzed.1. Similarly,
socio-economic values which Ali cherished have not received sufficient
attention. This paper, to a little extent, intends to fill-in this gap. For this
particular purpose, his seminal letter to Malik al-Ashtar is studied which
is included in Nahjul Balagha.
Introducing Nahjul Balagha
Nahjul Balagha2 (lit. Peak of Eloquence) contains masterpiece sermons,
letters and sayings of Ali. In it, there are sections on army, administration
of justice, executive officers, clerical establishments, traders and the
commoners---- all of whom speak of his deep insight. The compilation
consists of 238 khutab (orations); 78 rasa.il (epistles); 473 hikam
(aphorisms); and 9 gharib (sayings including rare words). In modern
times it has been translated into some thirty languages. It is also to be
noted that the actual number of sermons far exceed those compiled in
Nahjul Balagha. Commentaries running into several volumes are also
available.
1 Nadwi, Sayed Abul Hasan Ali., Al-Murtuza, Academy of Islamic Research and
Publications, Lucknow, 3rd Edition, 1991. The present author has followed its
English translation entitled The Life of Caliph Ali. It was rendered into English
by S. Mohiuddin Ahmed and published by Academy of Islamic Research and
Publications, Lucknow, 1991, p.2.
2 Nahjul Balagha: Sermons, Letters and Sayings of Imam Ali, compiled by ash-
Sharif ar-Radi. Several translations are available; the present author has
followed Syed Mohammed Askari Jafery.s translation, Third Edition, 1978,
published by Islamic Seminary for WSMO, U.S.A., printed at Bombay, India.
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A Selfless Advisor
In the history of Islam, the role of Ali is multifarious. He is one of the
persons who put faith in the Prophet immediately after declaration of the
prophet-hood. He proved to be a truthful companion of the Prophet who
shared with him the moments of joy, grief and sufferings. His knowledge
of Islamic doctrine and law, his love for Islam and the Prophet and his
heroic role in the early battles of Islam are all hugely applauded.
Ali acted as an able and selfless advisor to the first three caliphs and
conducted himself as a highly revered fourth caliph, though for a very
brief period (656-661 C.E.). Here is a piece of advice, rendered very
sincerely to Umar, the Second Caliph (634-644 C.E), when he asked Ali
whether he (Umar) should lead the invasion of Roman Empire. Ali
suggested: .If you command this invasion personally and if you sustain a
defeat or if you are killed then there will not remain any line of defence
for Muslims and they shall be left without a central power to protect
them. Their towns and their provinces will be left defenceless. You
appoint an experienced officer to take charge of the invasion and place
under him such soldiers who can face hardship, obey orders and have
experience of war. If God grants them victory you achieve your aim and
if they are defeated you will be at the centre to help Muslim state.3.
Following the huge conquests, the issue of distribution of conquered
lands arose upon which Caliph Umar held a consultative meeting. Ali
along with other companions of the Prophet also participated in the
meeting. One group favoured that the army personnel should be allowed,
on a permanent basis, to retain conquered lands. The other group, which
included Ali, dissented. On this occasion, Ali remarked: .Leave the land
and cultivators as it is so that it becomes a permanent source of economic
gains to the masses. If the land is distributed amongst the army
personnel, it will remain consolidated in some hands forever..
Supporting Ali, Mu.adh bin Jabal opined: .if you distribute land (among
soldiers) large parts of public lands will go to the army personnel after
whom some heir will be single woman or single man to enjoy the entire
benefits, while there will remain nothing for the government to spend on
border security and maintenance of armies. It is advisable, therefore, that
you make such an arrangement as would benefit the present as well as
the future generations.. Ultimately, Umar decided to retain the
ownership of conquered lands with the state only. The details of this
consultative meeting are available in Abu Ubaid.s classical work entitled
3 Nahjul Balagha Sermon Nos.137, p.260 and 149, p.270.
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Kitab al-Amwal4. Similarly, on several occasions, Ali is reported to have
rendered his advice in civilian and juristic matters. Umar is quoted to
have once remarked: .Umar would have been nowhere if Ali had not
been with him.5. Even the Prophet had recognized this quality of Ali for
he is reported to have said: .Ali is most competent to solve enigmatic
problems.6.
Ali once again proved himself as a selfless advisor to Caliph Othman
(644-656 C.E.) when disturbances appeared during the end of his
caliphate. Othman asked Ali: .What are the real causes of this entire
disturbance and how to control it? Openly and with all sincerity, Ali
replied: .Whatever is happening, it is all due to the wrong doings of your
governors and high officials.. Othman replied: .I have taken all the care
in selecting my governors and Umar would also have done the same,
then why this difference? Ali replied: .Yes, it is true but Umar was a
strict person and he had retained most of the powers in his own hands,
everyone was afraid of his rage, even the most rebellious camel would
have been terrorized by him. But, contrary to it you are a tender hearted
man. Your governors are taking undue advantage of it and they are
exercising their powers ruthlessly without even bringing it to your notice.
The general public feels that every action, right or wrong, is being taken
under your orders and hence you are considered responsible for it7..
Ali.s conscientious statesmanship and his principled political stand even
at the most critical times are universally acknowledged. One such was at
the time when his assassin fatally wounded him. He asked his close
family members to treat the assassin gently, maintaining that .he is also a
human being.. The impact of Ali.s personal charm, noble qualities,
magnetism of character and spell of ideas was so deep, intense and long
lasting that its hangover continues even today.
4 Abu Ubaid, al-Qasim bin Sallam., Kitab al-Amwal, (Urdu Edition), Idarah-i-
Tahqiqat-i-Islami, Islamabad, Pakistan, 1986, Shibli Numani.s al-Farooq,
International Islamic Publishers, New Delhi, 1992 and Muhammad Taqi
Amini.s The Agrarian System of Islam, Idarah-i-Adbiyat-i-Dilli, 1991.
5 Nadwi, Sayed Abul Hasan Ali., op.cit., p.97.
6 ibid.
7 Navy, Shah Moinuddin., Hazrat Ali Al Murtuza, Idara Isha.at .e-Diniyat (P)
Ltd., New Delhi, 1997, pp. 37-38. The author has quoted from Jami. Al-Tibri. p.
2938.
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The Personal Approach of Ali
The personal approach has a great bearing upon the way in which a
person conducts himself, publicly as well as privately. .The beliefs and
values held strictly, cherished and revered by a family get in-built in the
minds of the people belonging to it and any one disregarding them is
considered as the rebel and a renegade not to be tolerated by others.8.
Abu Huraira relates from the Prophet: .People are like mines of gold and
silver. Those amongst you who were men of virtue in the period of
ignorance will remain so after entering the fold of Islam, if they
understand.9.
Ali appears to be a man of many parts. As an administrator, Ali was
neither an autocrat nor a weakling. Like a democrat, he believed in
consultations. He preferred peace to war and even during wartime never
attacked first. He was open to corrections as is clear from one of his
letters. .I am leaving this city either as a tyrant and as an oppressor or I
am being tyrannised and oppressed; either I am revolting against the
people or some of them have intrigued to revolt against me. Whatever the
case may be, I invite in the name of God to those to whom letter reaches
to come and see for themselves whether I am in the right or the wrong. If
they find me on the path of truth and justice they may help me and if they
find that I am on the wrong they can reason me out of it.10.
His choice of team of officers and administrators reflects the sincerity of
purpose. He wanted to create a "people-centered system of governance".
.Inclusiveness., .equity" and "moral accountability" were high on his
agenda of governance. His failures if any can be attributed to his fear of
God and love for Islam, which often withheld him from taking a wrong
stand. He was a fervent Muslim, honest both in speech and in action,
unacquainted with crooked ways and tricks. His sole concern was
religion and the basis of all his actions was the truth.
8 Nadwi, Sayed Abul Hasan Ali., op.cit., p.11
9 Hanbal, Ahmad bin., Musnad, Egypt, 1949, Vol. II, p.535.
10 Nahjul Balagha: Letter No.57, op.cit., p. 514.
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Ali.s excelled in self-discipline in personal expenditure11. At the same
time never approved of extravagant expenditure of his governors12. He
was not unaware of the caliph.s right to subsistence from Bayt-al-Mal
but he voluntarily deprived himself of it. When some of his friends
found him shivering in the cold they advised him to get a woollen
blanket from the Bayt-al-mal but he choose to forgo it. Ibn Abi Rafay
reports that Ali used to take very simple food. He asked: .Has God
prohibited you to eat better food? Upon this Ali replied: .No, but I want
to eat the kind of food which the poorest of his realm can afford at least
once a day. I shall improve it after I have improved their standard of life.
I want to live, feel and suffer like them.. During the battle of Siffin, a
man came forward to address the opponents of Caliph Ali and inquired in
a tone of astonishment if Ali had misused fay, the public wealth. They
said never did he misused and mismanaged public funds. Then he asked
what for the war? There was long silence and no reply.
Ali was very much disturbed when Abu Dharr al-Ghifari was asked to
leave Medina for publicly rebuking the rich for owning wealth and for its
unequal distribution. Ali was not so outspoken in this matter but he was
certainly against the concentration of wealth in a few hands. He
commented: .O Abu Dharr! People are afraid of you because they will
lose their worldly possessions and positions and you are afraid of them
because you thought that Islam would suffer on their account.13. This
remark of Ali reflected the rot that had by that time set in Muslim
society. On the issue of distribution of wealth, there arose an
acrimonious argument between him and Mu.awiyah, who sent him to
the caliph as a fomenter of discord and strife. The caliph in turn deported
him to a small village of Rabadah14. In Tadkhirah of Hamdun the
following is related about Abu Dharr: .When Muawiyah built his green
11 One may refer to Jurji Zayadan., History of Islamic Civilisation: Ummayyads
and Abbasids, translated into English by D.S.Margoliouth, Kitab Bhavan, New
Delhi, IV Reprint, 2006. And also Neeru Misra.s Sufis and Sufism, Manohar
Publications, New Delhi, 2004; S.M. Hasanuz Zaman.s The Economic
Functions of Early Islamic State, International Islamic Publishers, Karachi,
1981.
12 Studies of Ibn Khaldun and Shah Waliullah Muhadith Dehlvi attribute the fall
of mighty empires to the extravagant spending by the ruling classes.
13 Nahjul Balagha, Sermon No. 133, op.cit., pp.255-56.
14 Baksh, Khuda., Politics in Islam, Idarah-i Adabiyat-i Delli, first published in
1920 and reprinted in 1981, p.32. It is English translation of Von Kremer.s
Staadsidee des Islam, originally published in German.
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palace at Damascus he asked Abu Dharr what he thought of it. He
replied: .If thou hast built it with public money thou art a traitor, if with
thy own thou art a squanderer.15.
The Period of Ali
There was no caliph for three days after the martyrdom of Othman. Utter
disorder and bewilderment prevailed. People requested Ali to assume
caliphate which he refused. Upon their persistent request¸ Ali agreed and
went to the Prophet.s Mosque where people took oath of allegiance. The
proclamation of Ali as the fourth caliph was made on 24th June, 656 C.E.
Ali served as a caliph for about four and half years. The period of his
caliphate (656-661 C.E.), was marked by civil wars such as Battle of
Jamal (36 A.H. /656 C.E.), Battle of Siffin (37 A.H. / 657 A.H.), Battle
of Nahrwan (38 A.H. / 658 C.E.). Ali did his best even though these and
other such internal troubles did not allow him to concentrate much on
economic and financial affairs16. .Ali chalked out an ideal political
policy from the first day of his caliphate. He could not have adopted any
other course as some of his critics and historians suggest and plead that
he could have, in that case, spared himself the hardships and difficulties
he had to face in future.17. The four and half year rule of Ali, brief by
any standard, has left an indelible mark on the pages of history.
Ali.s letter to Malik Al-Ashtar
Malik Al-Ashtar (d. 658 C.E.) was one of the most loyal companions of
Ali. Al-Ashtar embraced Islam during the Prophet.s time, and rose to
prominence during the caliphates of Uthman and Ali. During the
caliphate of Ali, he fought in the battles of Jamal and Siffin. On
battlefields, he was recognized for his fierce and steadfast defense of
Islam. At the personal level, he was very pious and God-fearing. The
appellation of "Al-Ashtar" is Arabic, meaning cut, torn, or ripped. He
earned the title of "Al-Ashtar" from a battle scar he received on his lower
eyelid during the Battle of Yarmouk.
After the Battle of Siffin, Malik al-Ashtar was appointed as the governor
of Egypt in 658 C.E. (38 A.H.). Earlier to him Muhammad bin Abu Bakr
(631-658 C.E) was the governor of Egypt who was martyred at the prime
age of 27 years. In order to capture Egypt, Muawiyah, the governor of
15 ibid
16 For a detailed discussion one can refer to Mohammad Jawad Chirri.s The
Brother of the Prophet Mohammad: The Imam Ali, 2 Vols., The Islamic Centre
of Detroit, Michigan, 1996
17 Al-Aqqad, Abbas Mahmud., Al-Abqariyat al Islamiyah, quoted by Sayed
Abul Hasan Ali Nadwi, op.cit., p. 189.
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Syria, had dispatched 6000 soldiers under the command of Amr ibn al-
Aas. Muhammad bin Abu Bakr requested Ali to send help. Ali
dispatched Malik Al-Ashtar, since Ali believed that only Malik could
beat Muawiyah and Amr ibn al-Aas. Muhammad ibn Abû-Bakr was
instructed to return to capital city, Kufa. However, Malik was martyred
on his way to Egypt. It is believed that Muawiyah.s men poisoned him.
Preamble of the Letter
Upon the appointment of Malik Al-Ashtar as the governor of Egypt, Ali
wrote a long letter to him explaining the Islamic principles of
administration and justice. It was a normal practice of the time that two
letters, containing instructions, were handed down; one to the
governor/officer, and other to the people of the region where the
governor/officer was deputed18. In the preamble of the letter Ali writes:
.In the name of Allah, the Merciful and Kind God. These are the orders
issued by the creature of God, Ali, the son of Abu Talib, to Malik, the
son of Ashtar when he appointed Malik as the Governor of Egypt to
collect zakah there, to fight against the enemies of Islam and the Egypt,
to work for the welfare of its people and look after its prosperity.19.
From this preamble we can deduce Ali.s perspective of governorship. In
his opinion it is the duty of the governor to:
1. To collect zakah from the eligible persons.
2. To protect the faith of Islam from its enemies.
3. To protect Egypt from foreign aggression.
4. To promote welfare and to ensure prosperity of its people.
From the economic viewpoint, Ali assigned primary importance to the
collection of zakah, not because it was dependable source of revenue,
but, as it will be clear at a later stage, for the reason that its primary
beneficiaries were poor and needy. Their welfare was always close to his
heart. While protection of Islam was a part of faith, protection of Egypt
and its people, without regard to their religion, was a part of good
governance. Similarly, welfare of people and their prosperity, by the way
of fight against poverty, also had a secular character. It appears to us that
in the opinion of Ali, the Islamic state should not make any difference
between Muslims and non-Muslim and two should be treated with equity
and justice. Ali warns Malik Ashtar in these words: .I order you to use
your head, heart, hands and tongue to help (creatures of) God because
18 Nahjul Balagha: Letter No. 62, op.cit., p.517.
19 ibid.
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the Almighty God holds himself responsible to help those who sincerely
try their best to help Him (in His cause and His creatures.).20.
Major Issues in the Letter
The whole letter moves around the following issues: fear of God; the
government is of God; the governors and the governed are both creatures
of God; their respective duties are laid down by God; the orphans and
deprived are trust of God and the army is the army of God. A famous
Christian scholar of Arab origin, Abdul Maseeh Anthaki, is reported to
have remarked: .(This letter) explains what a humane administration
should be like and how it is to be carried on and it justifies the claims of
Muslims that Islam wants to introduce a Godly administration of the
people for the people and by the people and it wants that a ruler should
rule not to please himself but to bring happiness to the ruled..Ali
should be congratulated for having introduced these principles in his
government and for having written them down for posterity.21.
Just and Equitable Approach
Caliph Ali.s approach to matters of governance and administration is
characterized by a remarkable openness, compassion, magnanimity and
inclusiveness. The just and equitable approach of Ali is clear when the
following instruction is read: .Remember Malik that amongst your
subjects there are two kinds of people: those who are having same
religion as yours and they are brothers unto you and those who have
other religion than yours and yet they are human beings like you. Men
of the either category suffer from the same weaknesses and disabilities
that the human flesh is heir to; let your mercy and compassion come to
their rescue and help in the same way and to the same extent that you
expect God to show mercy and forgiveness to you.22. Since subjects of
the state suffer from certain common weaknesses, Ali warns Malik
Ashtar in these words: .Do not hurry over punishment...do not get
angry and lose your temper quickly over the mistakes and failures of
those over whom you rule. Never say to yourself: I am their lord, their
ruler and all in all over them and that I must be obeyed submissively and
humbly.23.
Ali was aware of previous rules and rulers over Egypt and elsewhere,
where men in charge of public affairs generously rewarded their kith and
kin at the expense of rightful and deserving persons. Their partial
20 ibid
21 Anthaki, Abdul Maseeh, quoted in the English translation of Nahjul Balagha
op.cit., p.492-93.
22 Nahjul Balagha op.cit., p.494.
23 ibid
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attitude, on one hand, created economic inequalities, on the other, it led
to social and political unrest. This flawed practice has very often led to
the downfall of mighty empires24. Taking this particular fact into
consideration Ali warns Malik Ashtar against falling a prey to
favouritism and nepotism in the following words: .So far as your own
affairs and those of your relatives and friends are concerned, take care
that you do not violate the duties laid down upon you by the God and
usurp the rights of mankind, be impartial (in granting fiefs and delivering
justice) and do justice..nothing will bring down His vengeance and His
anger quicker than to insist upon oppression and tyranny over His
creatures....25.
Concern for the Poor
The poor and deprived always used to receive attention of Ali26. They
occupied a central place in his sermons, actions and policies. He himself
led a life characterizing real traits of poverty. His prime concern was
welfare of a large number of people and not the welfare of a few. Ali
wanted to realize this through a proactive role of government. He wanted
that his government should work for the welfare of people not with the
intent to earn their goodwill, which will automatically follow, but to
please the Almighty whose divinely arrangement of public spending is in
favour of poor and needy. One should recall here the Quranic Verse No.
9:60 which runs as follows: .Verily sadqat are for poor, needy and those
who collect them and those whose hearts are to be reconciled and to free
captives and debtors and for the cause of Almighty Allah and for
wayfarer a duty imposed by Almighty Allah. Almighty Allah is surely
All Knower and All Wise..
It is evident from his letter: .Remember that displeasure and disapproval
of common men, have-nots and depressed persons more than
overbalances the approval of important persons; and displeasure of a few
big will be excused by the Lord if the general public and masses of your
subjects are happy with you..the common men, the poor, apparently
less important sections of your subjects, are the pillars of Islam..be
more friendly with them and secure their confidence and sympathy.27.
24 One should study the al-Muqadimmah of Ibn Khaldun on the cycle of rise and
fall of mighty empires.
25 Nahjul Balagha op.cit., p.495
26 Who is poor from the Islamic viewpoint? For this purpose one may refer to
Sayed Afzal Peerzade.s . Definition and Measurement of Poverty. Pakistan
Development Review, 36:1 Spring, 1997, pp.87-97 27 ibid.
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Ali then directs Malik al-Ashtar in these words: .It is absolutely
necessary that they should be looked after, helped and well provided
for.28. The term .well provided for. signifies the provision, at the public
level, of necessities of life, which include food, clothing and shelter. In
exceptional cases, it also includes personal attendants to handicapped
persons who do not have sufficient resources to make such an
arrangement at the personal level.
In the same letter at a different place, Ali writes: .Then I want to caution
you about the poor. Fear God about their conditions and your attitude
towards them. They have no support, no resources and no opportunities.
They are poor, they are destitute and many of them are cripples and
unable to work...You should be a source of comfort, love and respect to
them. Appoint a respectable, honest and pious person, a person who
fears God, and can treat them respectfully, order him to find out
everything about them and to bring the report to you.29.
After going through the following statement of Ali, we can appreciate the
vision of his government. He wanted that his government should be propoor
and it should sensitize issues relating to poverty and sufferings of
masses. In a large number of Muslim countries where poverty is
rampant, people silently suffer from hunger, disease, malnutrition and
deprivation of different types30. These phenomena may be attributed to
several reasons, the major being lack of committed public action and
public authorities. Under the present circumstances, Muslim countries
and governments should set the goal of realizing Ali.s extraordinary
vision. He instructs Malik al-Ahstar: .When poor cannot reach you, you
must reach the poor. That nation or government cannot achieve
salvation where the rights of depressed, destitute and suppressed are not
guarded and where mighty and powerful persons are not forced to accede
these rights.31.
This pro-poor role of the government was advocated and practiced at a
time when poor and deprived were left at the mercy of nature to fend for
themselves. They never found any place in public agenda. In the present
day secular economies, it is a very recent phenomenon that the
governments have started responding to the needs of poor and vulnerable
sections. Till the first half of 20th century governments across the world
28 Nahjul Balagha op.cit., p.499
29 Nahjul Balagha op.cit., p.505
30 For a detailed study of deprivation of different types, one may refer to various
issues of Human Development Report. One may also refer to various
publications brought out by Mahbub ul Haq Human Development Centre.
31 Nahjul Balagha op.cit., p.506
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were apathetic towards poor for the reason that they were still under the
hanger over of the policy of laissez faire and efficiency of market forces.
They had a firm belief in the effectiveness of invisible hand, an idea
propounded by Adam Smith. A few developments in the beginning of
twentieth century, however, paralyzed invisible hand. These
developments made governments pro-active and pro-poor32. This shift in
the policy was out of compulsion and not on account of their concern of
poor and needy.
When the government is interested in reaching out its people, it must be
very particular about the appointment/selection of public persons.
Favoritism, nepotism and bias make it difficult for the government to
achieve desired objectives, in particular extending a helping hand to the
poor. This was exactly the reason why Ali, at different places in his
letter, has spoken about the necessity of appointing God-fearing persons
to public offices. He sought to infuse a sense of commitment, dedication
and moral accountability among rulers and administrators. He demands
that the public officers should regularly investigate the sufferings of poor
and report to the same to their higher ups. In particular, Ali writes: .Do
not accept advice of misers, they will try their best to keep you away
from acts of kindness and from doing good to others. They will keep
you frightening from poverty and destitution.33. What is meant here is
that misers think that public treasury would be empty when funds
available at its disposable are spent for the welfare of poor and needy.
Similarly, Ali advises: .At the same time, avoid greedy and covetous
persons who aspire to the position of acting as your
counselors..Remember that miserliness, cowardice and greed appear to
be different wicked qualities but they all arise from the same evil
mentality of having no faith and no trust in God.34.
Ali emphasizes the need for a complete overhauling of the then
prevailing administration. He warns Malik Al-Ashtar: .Your worst
ministers will be the men who had been a minister to the tyrannical and
oppressive rulers before you and who had been a party to atrocities and
32 . Major developments were: (1) The Russian Revolution of 1917. (2) The
Great Depression of 1929 and (3) Publication of Keynes. General Theory. The
first provided political shock, the second provided economic shock and the third
development generated academic shock damaging the old notion of nonintervention.
33 Nahjul Balagha op.cit., pp. 496-97
34 ibid
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151
savage cruelties committed by them (on poor masses).35. Ali advises that
officers should be first appointed on probation. The period of probation
will provide an opportunity to evaluate the performance of officers. To
put it in other words, Ali did not favour awarding permanent postings
and appointments at the beginning of tenure itself.
Need for Sincere and Honest Rule
Ali asks Malik Ashtar to be sincere in his rule: .Remember Malik! that
Almighty God will not absolve any ruler of the obligations laid upon him
unless he sincerely tries his best to discharge duties..... the things
which should gladden the heart of ruler must be the fact that his state is
being ruled on the principles of equity and justice and that his subjects
love him. And, your subjects will love you only when their hearts are not
sore against you.36.
In the opinion of Ali, there are only two types of rulers. One is Godfearing,
sincere, diligent and taking right action at the right time and
place. He follows the principles of justice and equity and protects the
rights of others. He is not the one who takes shelter behind gorgeous
curtains, show of pomp and pride. The other is one who is utterly
apathetic to the needs of ruled and leads a life ostentation and
extravagance. He fails in meeting his private and public obligations37. Ali
then repeatedly asks Malik Ashtar to be a sincere and God-fearing ruler.
It is a known fact that Ali led a very simple life, ate minimum of simple
food, wore very simple clothes, and used torn out shoes. He knew it well
that his governors may find it difficult to replicate his standard, yet he
advised them to lead a life devoid of pomp and extravagance. In this
context, he writes: .Do not place a prestige curtain between you and
those over whom you rule. Such pretensions and show of pomp and pride
are in reality manifestations of interiority complex and vanity.38. In
another letter similar direction is given to Othman bin Hunaif, the
governor of Basra province. .Oh ibn Hunaif! Fear God and be content
with the bread that you get with lawful means so that you may be
exempted and freed from the fire of hell.39.
35 Nahjul Balagha op.cit., pp. 496-97
36 Nahjul Balagha op.cit., p.500
37 ibid
38 Nahjul Balagha op.cit., p.507.
39 Nahjul Balagha: Letter No. 45, op.cit., pp. 483-486.
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152
Typology of People
For the purpose of smooth administration of the state, Ali instructed
Malik Ashtar to put people into the following categories:
1. Army personnel who defend the cause of God.
2. Secretaries of the state who issue general or special orders on the
direction of caliph/governor.
3. Judges and magistrates who administer justice.
4. Officers maintaining law and order.
5. Common men, both Muslims and non-Muslims, who pay taxes.
6. Professionals and artisans.
7. Poor and have-nots40.
It is highly significant to note that this typology is based on two major
criteria: faith (distinguishing Muslims from non-Muslims), and
profession or callings. There is no mention of tribe, caste, creed and
colour. It is also not based on wealth or social status of a person. As
usual, the poor and deprived find a place in the above-mentioned
classification.
After categorizing people into different groups, Ali remarks that all these
represent a closely woven net. They are all dependent upon one another.
He writes: ..the prosperity or welfare of each class of the society,
individually and collectively, is so interdependent upon the wellbeing of
the other classes..one class cannot exist peacefully, cannot live happily
and cannot work without the support and good wishes of the other...41.
In the context of the maintenance of army, Ali speaks of importance of
tax collection: .The upkeep and maintenance of an army depends upon
the taxes collected by the state out of which God hath fixed for them a
share. With this amount they provide their requirements, maintain
themselves and their arms in fit position to fight for religion and cause of
justice.42.
Collection of Taxes
Ali was always extremely careful about tax collection. In addition to this
letter, there are several passages in Nahjul Balagha wherein tax related
issues such as types of taxes, tax rates, methods of collection, etc., are
dealt with a rare mastery. Particularly, for tax purposes, the
categorization of land according to its fertility and classification of rich
40 Nahjul Balagha op.cit., p.498
41 ibid.
42 ibid
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153
people according to their wealth deserve a serious attention43. His
treatment of ahl uz zimmah needs to be highlighted.
Ali knew this fact very well that earlier governments, in Arabia and
elsewhere, were unpopular mainly because of inhumane nature of their
tax collection. Ali attributes poverty of people to the desire of rulers and
officers to amass wealth and possessions whether by fair or foul means.
They wanted to make most during the shortest time at their disposal.
.They never learnt any lesson from the history of nations and never paid
any attention to the orders of God.44.
In the matters of taxation, the overall approach of Ali contains .supplyside
. ideals. This refers to a policy alternative wherein importance is
attached to production, productive agents and related tax incentives. As
against this, the demand management approach, attaches importance to
regulating/deregulating demand to control economic fluctuations. In this
context, it may be quoted from Ali.s letter: .So far as collection of land
revenues and taxes are concerned you must always keep in view that the
welfare of taxpayers is of primary importance than the taxes
themselves.45. From this instruction, it is clear that Ali wanted that the
welfare of taxpayers should be a dominant reason of tax policy. In
several other letters/instructions issued to the governors, this consistency
in the approach of Ali is noticed.
The above-mentioned stand of Ali is still more explicit in the following
instruction. .More importance should be attached to the fertility of land
than to the collection of taxes because actual taxable capacity of people
rests upon the fertility of the land. The ruler who does not pay attention
to the prosperity of his subjects and fertility of land but concentrates
only the collection of revenue, lays waste the land, (he) ruins the state
and brings destruction to creatures of God. His rule cannot last for
long.46.
The above instruction of Ali should be held as the golden maxim of
taxation wherein importance is attached to the tax base and its attributes
and not to the tax rate and amount of revenue to be collected. This
essentially is the message of modern period fiscal experts. Now, across
the world, tax reforms movements on one-hand and tax administrators on
43 Peerzade, Sayed Afzal., .Tax Reform: Learning Lessons from Shariah.,
Journal of Objective Studies,Vol. 9, No.2, 1997.
44 Nahjul Balagha op.cit., p. 503
45 Nahjul Balagha op.cit., p. 502
46 ibid
A Note on Economic Ideas of Caliph Ali with Special Reference to his Letter to Malik Al-Ashtar
154
the other, have realized that, in the matters of revenue collection, tax
base is more important and not the tax rate. If the base is broad and
productive, more tax revenue is likely to be collected with low rates. A
regime of high tax rates neither brings in more revenue nor improves
prosperity levels. On the contrary, the efficiency costs of high tax rates
are huge. Ali is perfectly right when he remarks that a ruler, who is
interested only in revenue collection and ignores issues such as fertility
of soil and greater welfare of its people, brings nothing but disaster.
People get frustrated when they observe that huge sums are collected in
taxes but at the same time, there is inefficient provision of public goods
and services. They revolt against unjust and corrupt systems, sometimes
peacefully through ballot boxes and at other times violently.
Ali also speaks of heavy burden of taxation, and asks his officers to
reduce their burden as and when the situation warrants. He writes to
Malik Ashtar: .If taxpayers complain to you about heavy incidence of
taxation, of any accidental calamity, of vagaries of monsoon, of scarcity
and stoppage of the means of irrigation, of floods or destruction of their
crops on account of excessive rainfall and if their complaints are true
then reduce their taxes. This reduction should be such that it provides
them opportunities to improve their conditions and eases their
circumstances.47.
Ali also anticipates that on account of reduced taxes, revenue would fall
and the state would face difficulties. The difficulties get compounded
further when the state is required to make huge public expenditure to
solve economic and social difficulties of its subjects. Such a situation
would make the ruler depress. Ali, however, has a different view when
he writes: .Decrease in state income due to such reasons should not
depress you, because the best investment for a ruler is to help his subjects
at the time of their difficulties. They are the real wealth of a country and
any investment on them even in the form of reduction of taxes, will be
returned to the state in the shape of the prosperities of its cities and
improvement of the country at large, at the same time you will be in a
position to command and secure their love, respect and praise along with
the revenues. Will not that be a lasting happiness? Remember Malik! If
a country is prosperous and if its people are well-to-do then it will
happily and willingly bear any (amount of tax) burden.48.
47 ibid
48 Nahjul Balagha op.cit., p.503.
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Public Interest and Private Interest
Several socio-economic ills may be attributed to a situation where clear
lines are not drawn between public and private interests and where the
private interest is promoted at the cost of public interest. Ali warns Malik
Ashtar to be very careful about public interest and asks:
1. Not to give land in permanent lease to relatives and friends.
2. Sources of water supply should never be under the custody of
private persons.
3. Lands, which have special public utility, should not be reserved
for private use.
The reason cited by Ali was that if a privileged few .get possession of
such holdings they will oppress others to derive undue benefits and thus
gather all fruits for themselves leaving for you a bad reputation in this
world and punishment in the next (world).49. It is apparent that Ali was
afraid of concentration of wealth in a few hands and its consequent
socio-economic evil effects. Ali asks Malik Ashtar: .Do not reserve for
yourself anything which is common property to all and in which others
have equal rights.50.
Conclusion
After a through reading of Ali.s letter to Malik al-Ashtar, it is possible to
learn certain principles. A few of them are noted as under:
 There should not be any discrimination of people on the basis of
religion, tribe, wealth and social status.
 Justice, equity, economic fair play, inclusiveness, and moral
accountability should be the hallmarks of public policy and
governance.
 Poor, deprived and destitute must find their rightful place on the
economic and public agenda before the government.
 Government, with regard to poor, should play pro-active and propoor
roles. It should reach out to the people.
 Public resources should not be used for private purposes.
 Tax base is more important than tax rate and tax revenue.
 Tax revenue should be primarily used for financing public welfare. It
should not be used for pomp and glory of rulers.
The above mentioned principles are in fact time-tested and these are
highly relevant even today. These reflect moderation on one hand and
49 Nahjul Balagha op.cit., p.508
50 Nahjul Balagha op.cit., p.510
A Note on Economic Ideas of Caliph Ali with Special Reference to his Letter to Malik Al-Ashtar
156
humanism on the other. Both Ali and Malik al-Ashtar, however, were
victims of circumstances. Neither al-Ashtar could reach Egypt to assume
the governorship, nor could Ali get sufficient time to implement his
grand vision. Al-Ashtar was poisoned on the way to Egypt and Ali was
entangled in the internal strife. Given the sincerity of purpose and
commitment to the cause of public good and extremely cautious
governance of Ali, the Muslim world would have been definitely a better
place to live in had Ali and Malik Al-Ashtar got sufficient time to
consolidate themselves. This is, thus, another tragedy in the history of
Islam where there is no drought of tragedies.
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