While Economics deals with man’s activities in pursuit of wealth, the Politics is concerned with the form, organisation, and administration of state. Since economic activities are carried on within the framework of state we have to study the form and features of Islamic state.
Islamic state, as specified above, has to conform to the spirit of Islam which is a practical way of life, hence, it does not attach much importance to the external form of government, the enforcement of Divine law being its ideal.
The head of Islamic state has delegated powers and is only a Vicegerent of God and, as such, cannot be an autocrat. He himself has to obey the law of God.
It is rightly remarked by Fisher that in Islam, ‘Law preceded the state which only existed to enforce the law. If the state failed to enforce the law, the state’s validity ceased.
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The Caliph or Khalifa as head of the state was charged principally with the enforcement of law’ (Fisher, A History of the Middle East, p. 99).
Islam is both a religion and state. It is of interest to note that pre-Islamic religions did not think it important to study the political organisation as they were merely concerned with religious affairs.
This is to the credit of Islam that it has regulated religious as well as worldly affairs. It deals not only with the relations between the Creator and the created but also with the relations between man and man.