The document discusses the importance of mutual cooperation and social security systems in society. It argues that smaller, localized institutions focused on cooperation and mutual help are needed. Islamic principles of supporting one another, as seen in hadiths, encourage providing security for the vulnerable. Historically, pre-Islamic systems also involved mutual cooperation arrangements. The document suggests various formal and informal institutional structures could provide social security, risk mitigation, and future planning for members. This includes limited companies, friendly societies, takaful insurance, microfinance, and jointly owned charitable endowments. Such mutual systems could also help with savings, investments, and future expenses.

1. ‫اوتار‬ ‫ریپ‬ ‫لگنم‬ ‫دبھ‬ ‫رعمجات‬ ‫ہعمج‬ ‫ہتفہ‬
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‫ن‬‫مضمو‬ ‫ایک‬ ‫انہ‬‫ز‬‫و‬‫ر‬
‫رپ‬‫وموضاعت‬‫فلتخم‬
●‫ارقلان‬‫مہف‬
●‫ابدحلثی‬‫زتریک‬
●‫ریست‬
●‫اترخی‬
●‫میلعت‬
●‫تیصخش‬‫ریمعت‬
●‫رغجاہیف‬
●‫اسسنئ‬
●‫ادب‬
●‫الخایقت‬‫ا‬
●‫بتک‬ ِ‫اعترف‬
●‫اوالد‬‫رتتیب‬
●‫اابعلد‬‫وقحق‬
●‫اکحایت‬‫آومز‬‫قبس‬
●‫وبنی‬ِ‫بط‬‫ﷺ‬
●‫ہفسلف‬
●‫ایسفنت‬
●‫ااظتنایمت‬
●‫اعمایشت‬
●‫امسایجت‬
‫دمری‬:
‫گیب‬‫ادمح‬‫اردش‬
‫اشمورت‬‫سلجم‬:
●‫اخن‬‫رخم‬●‫اخن‬‫اہلل‬‫رتعف‬●‫فیس‬‫اخن‬‫اصبح‬
‫ہمظتنم‬‫سلجم‬:
●‫اقمس‬‫انزش‬●‫دصیقی‬‫بیط‬
‫روزہ‬‫تفہ‬
Weekly
Cooperation and Mutual Help-Key
to
Strengthen Social Security in our Society
Takaful system as a business model and as an
alternative to insurance has developed considerably
over last two decades to attract even global financial
institutions, but it “still needs to address fundamental
questions” (IFSB-IRTI Mid-Term Review, May 14).
Rather, its compound annual growth rate of 22 %
between 2007 and 2011, decelerated to 16 % in 2012
(IFN, Feb. 14).
In the competitive business world, some „Corporations‟
are bigger than some economies even (e.g. Exxon is
bigger than Thailand, Conoco Phillips is worth more
than Pakistan, and Wal-Mart‟s revenues now put it
ahead of 157 of the world‟s 182 countries). When a
superstore moves into an area, small and medium
outlets in the neighborhood suffer and many lose their
bread earning source.
Human beings need to have smaller level institutions
with relatively focus on mutual and cooperation based
entities. The governments, regulators, think tanks and
scholars must support localized, small-scale,
community-level institutions. At the outset, the focus
needs to be on social security and mutual help
institutions.
By Muhammad Ayub,
Director Research, RCIB
‫دربمس‬2014‫ء‬
‫ر‬ َ
‫ف‬
َ‫ص‬1436‫ھ‬

2. We need any sort of organizations whose structure and values reflect the
mutual/ cooperative form. While for informal sector, only smaller / local level
entities could work properly, at medium and large scale, only formal
institutions regulated by the relevant State organs would be needed to avoid
fraudulent practices on the part of unscrupulous elements in the society.
Such institutions might include limited companies owned by people-based
organizations, fraternity based committees, friendly societies, takafuls, non-
profit micro finance and SME ventures, jointly established awqaf for benefit of
lower and the middle class, community organizations and foundations. This
mutual system could also be used as savings / investments and house
construction / motor vehicle /marriage plan, etc. vehicle.
According to a well-known Hadith, “The attitude of the believer and feeling of
brotherhood to one another is like that of the single body. When one part of
the body is hurt, it shall have an effect on the whole body."Quran and Sunnah
have encouraged the providing of security for the widows, orphans and the
poor. The holy Prophet (PBUH) is reported to have said: “Tie your camel and
then have tawakkul in Allah”; “To leave your hairs wealthy is better than to
leave them helpless asking people for their needs”; “Love your brothers as
you love yourself”, and that “Believers support one-another”
The system of mutual help in Islamic culture can be traced back to some pre-
Islam historical systems including, inter alia, al-nahd (‫د‬‫ه‬
‫ف‬
‫لن‬‫)ا‬ (partnership in the
provisions on mutual cooperation basis), al-`aqilah (‫)العاقلة‬ (kinsmen paying
blood money to the heirs of the murdered), etc [fordetails, see JIBM, Vol.4,
No. 1). Islam accepted such arrangements of mutual help and mitigating the
impact of harms and losses to human being or the assets as is evident from
hadith of al-'ash`ariyyin ( ‫دحي‬‫ف‬‫األرعشي‬ ) according to which the Holy Prophet
(PBUH) paid tribute to his 'ash`ari companions who put forward a mutual help
concept and practiced it in their life as explained by Imam Nawavi ( ‫رشح‬‫اونلوي‬‫ىلع‬
‫حص‬‫ملسم‬ 16/62 :).
For the purpose of maximum inclusion, the security, risk mitigation and future
needs related plans, both in formal and informal structures, may be for one to
20 years and may start as low as Rs.1,000/ month with payment options.
‫ربا‬‫ۓ‬‫بیقعت‬‫و‬‫ولعمامت‬
‫ویوینریٹس‬‫ارٹنلنشین‬‫رافہ‬
‫سکیلپمک‬‫ازیملان‬
274‫اپاتسکن‬،‫راوڈنپلی‬،‫روڈ‬‫اشپور‬
HR Department
tameer.emag@riphah.edu.pk
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