CHAPTER II

CHAPTER II
Economic and fiscal system in the reign of the prophet.
A. BACKGROUND
The presence of the prophet to the town of Yathrib is in waiting by the two largest tribes in the city, namely the Aus and Khazraj tribes. Since the two tribes are always engaged in the conflict to seize power.
Some groups took the initiative to meet with residents city of Yathrib the prophet to be their leader, even they also promised to maintain the safety of the prophet and his followers, who then known by the term bai'at aqobah al.
The strategy taken in the early lead of the prophet is to do things - the following:
1. Building a mosque
In addition to being a place of worship, the mosque also serves as an Islamic center, all activities of the Muslims in focus in this place.2. Rehabilitating the Muslims.
To avoid negative impacts in the future, the prophet implement policies that are very wise and prudent, by way of instilling kinship between the muhajirin and Anshor, by forming a new fraternity, the brotherhood on the basis of religion, brotherhood based blood substitute.
3. Creating a State constitution.
The next task will be undertaken the prophet Muhammad is the constitution of the sovereign State which menyatakn medina as a State. This administration asserts the rights, obligations and responsibilities of every citizen, both Muslims and non-Muslims, as well as defense and state security system in accordance with the principles - the principles of Islam.4. Laid the foundations of the State financial system
The whole paradigm of thinking that is not in accordance with Islamic religious teachings be deleted and replaced by a new paradigm that corresponds to the value - the value of Qur'anic, including in the economic field as well as applications in social life.
B. ECONOMIC SYSTEM
The economic system that is applied rasulullah, rooted in the principle - the principle of Qur'anic. Some of the economic system that applied the prophet is as follows:
1. A balance between this world and hereafter.2. Having the freedom to make a living in a fair manner.3. Recognizes private ownership.4. Against the run of economic activity by way of illegal and immoral.5. Running Qur'anic economic activity6. One's success will be realized if traversed by hard work.7. Islam considers women have equal rights with men - men in gaining wealth.8. A ban on the practice of usury and interest.
The principal economic policy of Islam in the Qur'an are as follows:
1. Allah is the supreme ruler as well as the absolute owner of the entire universe.2. Humans only caliph in the earth instead of the actual owner.3. All of which is owned and in humans is get over the grace of God, therefore people who are less fortunate have a right to some property owned by his brother.4. Wealth must be spun and should not be piled.5. All forms of exploitation must be eliminated.6. Establishing the system of inheritance as a medium of redistribution of wealth that can eliminate the sharing of the conflict.7. Define the various forms of sorts shodaqoh (mandatory or sunnah of the individuals who have a lot of wealth to help the less able)
C. Finance and taxes