Economy is the Key to Prosperity.

Etymology:

ECONOMY: 1530; (in the sense ‘management of material resources’): from French économie,
or via Latin from Greek oikonomia ‘household management’ Meaning "frugality, judicious use
of resources" is from 1660s. The sense of "wealth and resources of a country" (short for political
economy) is from 1650s.
PROSPERITY: Middle English: 1200 .c. from Old French prosperite; “good fortune”, from
Latin prosperitas, from prosperus ‘doing well’.

Introduction: (history and development)

Economy is the production, distribution, trade, and consumption of goods and services by an
entire network of producers, distributors, and consumers of goods and services in a local,
regional, or national community. All these agents form the economic system of an area.
Prosperity is characterized by a successful, flourishing, or thriving condition, especially in
financial respects and a higher social status.
The term, prosperity can be interpreted in various references such as maximum knowledge and
skills, good physical, mental and spiritual health, being victorious, freedom, courage, authority,
harmonious relationships, etc. However, the most common type of prosperity is achieving
material wealth without compromising other values.

History:

Ancient Greek writers such as the philosopher Aristotle examined ideas about the art of wealth
acquisition. In the Middle Ages, scholasticists such as Thomas Aquinas argued that it was a
moral obligation of businesses to sell goods at a just price.
Historically Ancient civilizations like India and China were the richest places on earth. Indus
Valley Civilization was first urban and economically advanced civilization in human history.
Throughout the Paleolithic Era, (500,000–10,000 BC), the primary socio-economic unit was the
band (small kin group). Communication between bands occurred for the purposes of trading
ideas and stories, tools, foods, animal skins and other commodities, and for the exchange of
goods called the Barter system. Economic resources were constrained by density and
replacement rates of edible flora and fauna, competition from other consumers (organisms) and
climate as well as increasing productivity in all sorts of environment.
The city states of Sumer developed a trade and market economy based originally on the
commodity money of the shekel which was a certain weight measure of barley, while the
Babylonians and their city state neighbors later developed the earliest system of prices using a
metric of various commodities that was fixed in a legal code. Temples are history's first
documented creditors at interest, beginning in Sumer in the third millennium.

Link of economy and prosperity:

Essentially, it is not economy itself that influences prosperity but the ‘state’ of economic
variables. A stable and balanced economy yields a prosperous country. Prosperity often
encompasses wealth and seeking both, wealth and harmony is human nature. Economy and
prosperity are directly proportional and co-dependent on each other. If one rises, the other shoots
up as well. In a way, a prosperous economy results in economic prosperity.

For example, both, World War I and World War II were fought for the sake of prosperity and
yet, the economy was the most affected factor as a result. Establishment of imperialism,
militarism and nationalism were the key causes behind the great wars. It was believed that these
components would bring prosperity directly or indirectly to certain regions. These wars acted as
a massive macroeconomic stimulus as various nations made the political choices that created the
robust egalitarian economy of the next 30 years and a repression of finance occurred. Thus, the
only way to achieve prosperity was the termination of world wars and adapting to the after
effects as a war child as well as stabilizing the damaged economy.

Today, all of the happiest and most satisfied countries of the world such as Denmark, Finland
and Norway emphasize equality, solidarity, democratic accountability, environmental
sustainability, and strong public institutions which lead to economic development and prosperity.
So here is one model economy: German labor-market policies, Swedish pensions, French low-
carbon energy, Canadian health care, Swiss energy efficiency, American scientific curiosity,
Brazilian anti-poverty programs, and Costa Rican tropical happiness. Such a blissful
infrastructure would automatically bring prosperity on a private and public level.

Another thing to consider is the level of prosperity with respect to economy. On an individual
level, a balance between income and expenditures has to be maintained in order to gain a stable
economic foundation and prosperity as a household unit. If such a pattern is practiced in every
dwelling of a community and the income is converted to exports and expenses become imports, a
major part of the country would be economically harmonious and on the road to prosperity.

In the new economics, fairness and prosperity can’t be mutually exclusive. The seed from which
prosperity grows is produced by the well-being of society and the seed from which society grows
is produced by the prosperity of the economy. Curbing inflation, combating recession and
promoting economic growth are key indicators for bringing about development and prosperity.

Pakistan:

The economy of Pakistan is the 24th largest in the world in terms of purchasing power parity
(PPP), and 42nd largest in terms of nominal gross domestic product (GDP). In this developing
country, serious deficiencies in basic services, internal political disputes, a fast-growing
population and mixed levels of foreign investment have impacted the economy negatively,
which has also affected the prosperity of the nation. The World Bank predicts that by 2018,
Pakistan's economic growth will increase to a "robust" 5.4% due to greater inflow of foreign
investment, namely from the China-Pakistan Economic Corridor which is a huge step towards a
prosperous future.

Economy and Prosperity according to Islam:

The fundamental sources of Islam - the Quran and the Sunnah of the Prophet[1] - provide
guidelines for economic behavior and a blueprint of how the economic system of a society
should be organized. Therefore, the values and objectives of all “Islamic” economic systems
must necessarily conform to, and comply with, the principles derived from these fundamental
sources.
The Islamic teachings construct an exclusive structure of a successful economic system that
simultaneously yields prosperity. For one, it defines the valid sources of income and enforces
morality by rejecting bribery, interest, theft, monopolies, lies and deceit. It is also commanded to
pay the wages before the laborers’ sweat dries.
“And measure full when you measure. And weigh with an even balance. This is better and its
end is good.” (Al- Bani- Israel: 35)
“They who hoard up gold and silver and spend it not in the way of Allah, unto them give tidings
(O Muhammad) of a painful doom.” (Al- Tauba: 34)
Prophet Muhammad (pbuh) said: “May Allah’s mercy be on him who is lenient in his buying,
selling, and in demanding back his money [or debts].” [Bukhari & Tirmidhi]
Prophet Muhammad (pbuh) said: “A time will come upon the people when one will not care how
one earns money, i.e. legally or illegally.” [Bukhari]
Prophet Muhammad (pbuh) said: “The truthful and trustworthy businessman will be in the
company of Prophets, saints and martyrs on the Day of Judgment.” [Darimi & Tirmidhi]
Keeping the commodities of general use in possession and not supplying them in the market for
the sake of increasing the price is prohibited. [Ahmed-Bin-Hanbal]
Prophet Muhammad (pbuh) said: “The Lord’s commandment for every one of His slaves is,
‘Spend on others, and I will spend on you’.” [Bukhari & Muslim]
“Do not keep your hand fastened to your neck nor outspread it, altogether widespread, for you
will be left sitting rebuked, destitute.” [Al-Bani-Israel: 29]
“Those people, who when they spend, are neither extravagant nor miserly but keep the golden
mean between the two (extremes).” [Al-Furqan: 67]

Act of charity such as Zakaat (2.5% on total wealth) is immensely encouraged in Islam. This one
task alone is enough to balance economy and bring prosperity to a region.

Prophet Muhammad (pbuh) said: “Wealth is not in having vast riches, it is in contentment.”
[Bukhari & Muslim]
Islamic Economic System is based on four principles:
1. All the wealth belongs to Allah (swt):
“And give them of the wealth of Allah which He has given you.” [An-Nur: 33]
2. The community is the trustee of the wealth:
“Believe in Allah and His Messenger, and spend whereof He has made you heirs.”[Al-Hadid: 7]
3. Hoarding of wealth is prohibited: “And those who hoard up gold and silver and spend not in
the way of Allah; announce to them a painful chastisement.” [At-Tauba: 34]
4. Circulation of wealth is a duty:
“Whatsoever Allah may restore unto His Messenger – is due unto Allah and unto His Messenger
– the orphans and the needy …so that it may not be confined to the rich amongst you.” [Al-
Hashr:7]
Islam focuses on the distribution of wealth not just the production. All basic needs are satisfied.
Circulation of wealth is a duty. Prohibition of Riba and encouragement of investment is
acknowledged.
The Islamic economy is based upon wealth generation where participants partake in investment,
employment and trade in the real economy.
Al-Bukhari reported on the authority of Abu Hurayrah that the Messenger of Allah (saw) said:
“He who takes money from people with the intention of paying it back Allah will pay on his
behalf, and he who takes it with the intention to waste it Allah will waste him.”
Islam has its own company structures, there are 5 types which are all related to real partnerships
between body and capital. These are Al-‘Inan (equal), Al-Abdan (bodies), Al-Mudharaba (two or
more), Al-Wujooh (faces) and Al-Mufawadha (negotiation).
Islam neither believes in a free market (capitalist) nor a command economy (communist).
the basis of the currency in Islam is Gold & Silver, the currency is backed by and is
interchangeable with it.
The era of Caliph Hazrat Umer Farooq (R.A) was a golden and prosperous time. He was the one
who focused on a stable economic system the most by introducing pensions, taxes submitted to
the treasury, providing income to everyone and working on welfare economically to ensure
prosperity throughout Arab.