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When public revenues became abundant during the Second Successor, Umar, the

When public revenues became abundant during the Second Successor, Umar, the government not only ceased asking for voluntary contributions, but provided rival and excludable goods, such as, food stuff to private consumers.

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When public revenues became abundant during the Second Successor, Umar, the

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  1. When public revenues became abundant during the Second Successor, Umar, the government not only ceased asking for voluntary contributions, but provided rival and excludable goods, such as, food stuff to private consumers. The historical experience of Muslim society may indicate that the role of individual and institutional philanthropy in providing public goods may be instrumental. For instance, until the introduction of Western system of education in the Muslim countries, education has always been provided free to its users by Islamic Institution of Awqaf. In fact, whenever certain rulers wanted to support education, the help itself would be channeled through Awqaf. This has happened many times and good examples of it are the Ayyubites's and mamluks' Awqaf on schools in Palestine. 2.2 Alternatives to Public Provision of Social Goods Obviously, there is always a minimum level of social goods below which the government itself either does not exist or is not able to fulfill its essential functions. Such a minimum level should be provided even without revenues at all. Once, the list of public goods expands beyond this minimum level, the budget burden increases and if revenues are not sufficient a deficit arises. Consequently, providing social goods by agents which do not require the use of public funds reduces the financial burden of the budget and may therefore be considered an alternative of public borrowing. Non - government provision of social goods may be either voluntary of profit motivated. ______________________________________ 16 Islamic Research Center for History and Arts (IRCICA), The Muslim Pious Foundations (Awqaf) and Estates in Palestine, Istanbul 1982 17 It should be noticed that the Islamic system does not allow the provision of certain of certain social goods by private or voluntary agents. Law enforcement is an example. Additionally, Muslim fuqaha arguer that certain social goods cannot be made subject to market conditions on moral grounds, such as giving religious opinions (fatwa). 23

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