as sharaiah econ topic 1

7/28/2019 As Sharaiah Econ Topic 1

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Main References

Muhammad Akram Khan, (1989),AnIntroduction to Islamic Economics, IIIT andInstitute for Policy Studies, Islamabad.

Mohamed Aslam Haneef (1996), `Islam, theIslamic Worldview and the Methodology ofIslamic Economics',Journal of Islamic

Economics & Management, Vol. 1 No. 1, June.

S.M.N. Al-Attas (1975), Islam and Secularism,(Chap. 3,pp. 47-69), ABIM, Kuala Lumpur.


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Why Islamic

Economics?


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Why Islamic economics?

Worldview and ideology

Methodology Operational design

Problems and shortcomings in

the conventional economic

system


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Defining Islam

Peace

submission, surrender,

obedience

ad-din

Syed Muhammad Naquib al-Attas in Islam and Secularism

(p.52)


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Islam as ad-Din

Debt

From mans point of view =>Allah is

worthy of being worshipped; man mustbe grateful to Him

From Allahs point of view => our

existence is according to His iradah andmanifestation of His power.

Covenant


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Covenant (Al-Araf 7:172)

when Thy Lord drew forth from the

Children of Adam - from their loins -

their descendants, and made themtestify concerning themselves, (Saying):

"Am I not your Lord (Who cherishes

and sustains you)?"- They said: "Yea!

we do testify!" (This), Lest ye should

say on the Day of Judgment: "Of This

we were nevermindful.


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Why Islam is appealing?

Khurshid Ahmad in Islam: Basic Principles

and Characteristics

Simplicity, rationality and practicality

Unity of matter and spirit

A complete way of life

Balance between the individual and society

Universality and humanism

Permanence and change

Complete records of teaching preserved


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Worldview is a particular philosophy of life or

conception of the world.

Worldview is individuals perception of theworld, which on average tend to conformto the norms of what has socially beenagreed (Zubair Hasan, Islamization, 1998)

Islamic Worldview (Ruyat al-Islam li al-wujud)


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Islamic worldview

vs.secular worldview


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Islamic worldview

Islamic worldview is based

on Islam (Aslam, 1996). Allworldviews must at leastinclude views on God, Din,

Man, Nature, Aim in life and

Knowledge


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View on God- Tawhid

- Secular

- Atheism is an ideology that claims god does notexist or irrelevant to human life.

- Nietzsche proclaims that "God is dead" - FriedrichNietzsche. The Gay Science (1882)

- Power of the Nature- Invisible hand


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View on Religion

Ad-din

Secular

Human beings get to decide onstandards and values.

Religion has no role in public affairs

Only in certain ceremonial events Science and market as the authorities


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View on Man (Secular)

Neo-Darwinism ideology considers

man as the most highly evolved of

all creatures, and man therefore isresponsible for directing and aiding

the evolutionary process.

Man as factor of production

Utilitarian


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View on Aim in Life (Islam)

Falah

Al-Ghazali suggested the following 4 meansto achieve falah: Al-Fadhaail al-Nafsiyyah (the good of the soul)

iman and good akhlaq

Al-Fadhaail al-Jismiyyah (bodily good) - health,strength, long life, beauty (good Impression)

Al-Fadhaail al-Kharijiyyah (external good) - wealth,influence, family, noble birth.

Al-Fadhaail al-Tawfiqiyyah (divine grace) -guidance, leadership, strengthening.


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View on Aim in Life

(Secular)

Materialismhedonistic


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View on Nature (Islam) repeated numerous times in the Qur'an,

"heavens and the earth and all in between" todescribe nature/universe.

Seen and unseen

Nature is in natural submission to God(Qur'an 7:54; 22:18; 24:41)

to contemplate the existence of God, torealize His greatness and to work towardsachieving falah.


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View on Nature (Secular)

An end in itself

To be explored and beutilized for economic gain

Reject the unseen world


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View on knowledge (Islam) Revealed knowledge al-Quran and as-

sunnah. Acquiring knowledge of prerequisites to revealed

knowledge is fard ayn. Examples: the science of Quran, the science of

hadith, Principles of Islam (tawhid, Islam, imanand ihsan), life of the Prophet, ethics and Arabic.

Acquired knowledge Science

fard kifayah upon Muslims.


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View on knowledge

(secular)Reject revelation

Knowledge is derivedfrom human reasoning,

observation, experiment

and historical experience.


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Conclusion


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ISLAMIC ECONOMICS (IE)

Dr. Mohd Nahar Mohd Arshad


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IE

IE is an approach to interpreting and solving

man's economic problems based on the values,

norms, laws and institutions found in, and

derived from, the sources of knowledge in Islam(Haneef, 1997, p. 50).

Islamic economics aims at the study of humanfalah achieved by organizing the resources of

the earth on the basis ofcooperation andparticipation (Muhammad Akram Khan, 1989)


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Falah

World

Survival

Freedom from want

Power and honour

Herafter


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Conditions of falah

Spiritual condition of falah

Economic conditions of falah

Cultural conditions of falah Political conditions of falah


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Resources

Gift

Signs - for man to realize the power of theCreator (Al-ambiya, 21:30; Az-Zaariyat, 51:47)and also for man to observe the universe as asource of knowledge

Means to falah

Trust


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Resources

Scarcity

Limited resources

Unlimited wants

Improper use

Imbalance distribution


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Resources

Scarcity, in essence arises from the twoinherent conflict between wants and ability.The limited resources assumption is made to

show that mans ability to exploit resources islimited by his knowledge. In this mannereconomics looks at relative scarcity and not

absolute scarcity.


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Resources

no absolute scarcity in Islam - Abraham:32-34 It is Allah Who hath created the heavens and the

earth and sends down rain from the skies, and with itbringth our fruits wherewith to feed you; it is He whohath made the ships subject to you, that they may sailthrough the sea by His Command; and the rivers (also)hath He made subject to you. And He hath madesubject to you the sun and the moon, both diligently

pursuing their courses; and the Night and the Dayhath He (also) made subject to you. And He giveth youof all that ye ask for but if ye count the favors of Allah,never will ye be able to number them.


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Resources

Islam recognizes that human desires are unlimited. Fair-seeming to men is made the love of desires, of

women and sons and hoarded treasures ofgold and silverand well-bred horses and cattle and tilth land: (3:13)

And you love wealth with exceeding love (89:20) He thinks that his wealth will make him abide (104:3)

Narrated Ibn Abbs and Anas bin Mlik: Allahs Messengersaid, If a son ofAdam had a valley full of gold, he woulddesire to have two. Nothing can fill his mouth except theearth (of the grave). Allah turns with mercy to him whoturns to Him in repentance. (Al-Bukhri and Muslim)


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Resources

Islam provides clear guidance to manage theresources in terms of:

Acquisition of the resources

Utilization of the resources

Transfer of the resources


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Participation and cooperation

contracts like mudharabah and musharakahwhich are greatly encouraged in the Islamiceconomic system.

The distributive schemes such as zakat,sadaqah, maniha and many more are alsopromoting ties of brotherhood and

cooperation in the economic system.

as sharaiah econ topic 1

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