The Economic System of Islam — Page 56
56 Similarly, cartels formed across countries are also unlawful un- der the Islamic economic system. Such cartels involve businesses belonging to different countries, which get together and agree on a price for a particular commodity. While trusts are monopolistic arrangements between local businesses, cartels are formed across countries. For example, firms from America and England, or Amer- ica, England and Germany, or England and India might come to- gether to agree on the terms for trading in specific commodities. Suppose these firms entered into an agreement in the chemicals in- dustry, which is largely in the hands of American, English and German firms. If firms from these countries were to collude in fix- ing the prices of medicines, the world would be compelled to pay the higher prices, and deliver the negotiated profits to the cartel network. The system of cartels is so dangerous that many governments are troubled by it. Just a few days ago the government prosecuted some businesses on anti-trust charges and even punished them. Islam is against any mechanism that leads to guaranteed profit and hence the monopolization of wealth in a few hands. It seeks to ensure that money continues to circulate throughout the economy so that the poorer segment of society also has a chance to improve itself. Thus, cartels and monopolies are not allowed in an Islamic system of governance. Withholding Supplies from the Market Forbidden Islam also demands that supplies should not be deliberately with- held from the market with the purpose of artificially boosting