RECENTLY, Prime Minister Tun Dr Mahathir Mohamad announced the government initiative of shared prosperity.
The keywords here are sharing and prosperity. Most people equate prosperity with the accumulation of wealth.
The degree of prosperity is proportionate to the availability of wealth. In fact, prosperity transcends material concerns; it involves other elements, such as a sustainable environment, stable socio-political ecosystem, education opportunities, security, happiness index and a progressive people-centred economic system.
These variables form both tangible and intangible markers of prosperity.
Shared prosperity is not a new economic concept. It has been a part of Islamic conventions from the time of Prophet Muhammad: it is an integral part of Islamic teachings, which stipulate that Allah’s largesse must be redistributed to benefit the ummah.
In essence, it means that one does not own anything, and everything belongs to Allah who charges you with the responsibility of temporary ownership of wealth that should be shared with the less fortunate, such as orphans, new converts, wayfarers and the destitute.
It is not only the responsibility of the state but also the individual to ensure the redistribution of Allah’s largesse. And this responsibility transcends religious belief.
The Quran explicitly states that Allah’s largesse should not be concentrated in the hands of the few but shared among the people. Thus, the concept of zakat (Islamic taxation), wakaf and the various forms of alms are the process or ibadah to redress the imbalance in wealth distribution.
At the same time the Quran cautions against the destruction of the environment. Sharing is not merely spreading happiness but also a process of self-cleansing.
Shared prosperity has been an integral part of all democratic governments but became maligned through malfeasance in governance and greed of leaders.
Implicit in the tenets of democracy is the creation and sharing of wealth through various modes of productive employment and enterprise.
It is unlike the old days of feudalism in which prosperity was confined to the monarchs, courtesans and landed gentry while the peasants were serfs who lived in a state of shared poverty.
Such feudal systems have, however, been transplanted into modern-day communist and socialist types of governance, in which the elites enjoy prosperity while the masses have to make do with basic amenities.
On the other hand, the democratic system based on capitalism provides a better distribution of wealth and prosperity, albeit differing levels of prosperity and wealth accumulation.
It encourages freedom of enterprise within the context of a capitalist economy, which emphasises enterprises for profit and private ownerships of means of production to accumulate wealth.
It is a market economy based on competition that in theory determines the survival of only efficient enterprises.
On its own those with capital will be at an advantage: for capital creates more capital. The elite, leaders and corporate figures will enjoy a high level of prosperity while the masses survive on much less and the bottom levels are snared in poverty. The common man still has to struggle to make a living. It is still an uneven playing field.
This disparity is addressed through various forms of taxation to accumulate revenue not only for developmental purposes but also to address the economic plight of the low-income group through subsidies and welfare contributions.
It is the government’s responsibility to put in place this economic safety net for the less fortunate and destitute.
Shared prosperity does not mean equal distribution to one and all but equal to effort expended. Effort is gauged according to its value reflected in the remuneration or recognition of other intangibles.
Effort varies according to the skills and thought process expended as well as impact on the well-being of society. Thus, a doctor earns more than a manual labourer.
Government intervention through regulatory measures are intended to address the lopsided prosperity and to reduce the gap between the rich high-income cohort and the low- and middle-income masses.
A proper regulatory system must be emplaced to prevent malfeasance, corruption and hemorrhaging of public funds through administrative impropriety and to ensure a sustainable natural and living environment.
Prosperity is not a fait accompli; it has to be created by both the government and the people. Shared prosperity is not a passive aid but a catalyst to encourage productivity to improve prosperity.
The creation of prosperity is a shared responsibility and its disbursement is according to the quotient of input with a safety net for those whose share of the prosperity is below the minimum satisfactory living standards.
Thus, the sharing of prosperity should be based on productive contribution, ethical and moral principles of wealth creation, and regulatory measures to redress economic imbalance and to ensure a sustainable environment. It should not be at the expense of curbing individual or group initiatives of wealth creation and enterprise.
The writer is an emeritus professor at the Centre for Policy Research and International Studies, Universiti Sains Malaysia, Penang