Zakat as an instrument of fiscal policy

The author attempts in the article to discuss the place of the institution of zaka as the key component of a fiscal system in a developing Islamic economy. The author refers to the 'superstructure' of an economic system as the overall values, ideas, and attitudes of the society. In an Islamic society, the superstructure is one grounded in the idea of Tawheed (God's one-ness) and God's role as the sustainer of all creation. Islamic societies strive for a broad concept of well-being called falah. Falah pertains to well-being in the physical sense an in a non-material sense as well. At the heart of the Islamic approach are three basic values--freedom, equality, and justice. The author addresses economic stability and the idea of optimal employment and then turns his attention to a description of zaka and its influence on consumption. Savings and capital investments are also viewed vis-a-vis zaka. The author speaks of the Islamic values pertaining to resource distribution and the