chpter 1 islamic econ

8/3/2019 Chpter 1 Islamic Econ

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By: DR. SELAMAH MAAMOR

0.75 School of Economics Building

04-9283611 /[email protected]
mailto:[email protected]:[email protected]


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Definition

Philosophy

Principles Objectives


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Ibn Khalduns Definition:-

Chapter five of Ibn Khalduns Al Muqaddimahto the study of history is devoted to the

economic problem that he considers animportant part of sociology or, to use Ibn

Khalduns phase, the study of humankindscivilization and human association.

The name given by Ibn Khaldun as a title is alimran al bashari.


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Western Definition:-

Adam Smith defines economics as thescience of wealth or the study of how nations

become rich, being the subject of his ownbook.

Alfred Marshal redefined economics as thestudy of people in the ordinary business of

life, which examines that part of individual andsocial action most concerned with theattainment and use of the material requisitesof well being.


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Western Definition:-

Robbins defines economics as the sciencethat studies human behavior as a relationship

between ends and scarce means that havealternative uses. The focus points of Robbinsdefinition are two: scarcity of resources andinfinity of wants.


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M. Akram Khan defines Islamic economics as thestudy of human falah (salvation) achieved byorganizing the resources of earth on the basis of

cooperation and participation. Muhammad Ariff defines it as the study of Muslimbehavior that organizes the resources, which are atrust, to achieve falah.


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i) Islams is a philosophy of the right

ii)This philosophy of the right is best spelt out byfour ethical axioms:

(a)Tawheed ;

(b) Aladlwal ihsan ;

(c) Ikhtiar ;

(d) Fardh .


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iii) The Islamic concept of freedom is quitedifferent from the concept of the absoluteautonomy of Man, which is secured by

obeying the laws that Man makes for himself. iv) Islam rejects the concept of absolute

ownership, either of the individual or of thestate.


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1. Allah determines Right and Wrong:

2. Principle of Use:

3. Principle of Moderation:

4. Economic Freedom: 5. Principle of Justice:
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1. Allah determines Right and Wrong:

To determine what is permitted or lawful(Halal) and what is forbidden or unlawful

(haram) is the soul privilege of God. None butGod is empowered to pronounce what is rightand what is wrong.
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2. Principle of Use:

Within the bounds of lawful (Halal) andunlawful (Haram) prescribed by Allah and also

keeping in view the rules of moderation andprudence, the man has been allowed to makefull enjoyment of Gods gifts bestowed on him.The Quran says: O mankind ! Eat of that

which is lawful and wholesome in the earth,and follow not the footsteps of the devil. Lo!he is an open enemy for you. (2:168).
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3. Principle of Moderation:

Islam unequivocally discourages its followersto cross the limits and follow extremes. The

Muslims have been called by the Quran amiddle nation (2:143). Therefore, the principleof moderation carries paramount importanceespecially in the economic field.


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4. Economic Freedom:

Islamic principle of economic freedom meansthat an individual has been allowed liberty by

God to earn wealth, own it, enjoy it and spendit as he likes.
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5. Principle of Justice:

Islamic principle of justice operates in everysphere of human activity, may it be legal,

social, political or economic. Islamic economicsystem, in fact is based upon the principle ofjustice which governs all the basic aspects ofeconomy like production, distribution,

consumption and exchange.


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1. Achievement of Falah:

2. Fair and Equitable Distribution:

3. Provision of Basic Human Needs:

4. Establishment of Social Justice: 5. Promotion of Brotherhood and Unity:

6. Achievement of Moral and MaterialDevelopment:

7. Circulation of Wealth:

8. Elimination of Exploitation:
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1. Achievement of Falah:

The first and the foremost aim and objectiveof Islam is falah or well-being of the mankind

in this world and in the next world. That is whyal-Quran, the revealed book of Islam,admires those who pray to God : Our Lord !Give unto us in the world that which is good

and in the Hereafter that which is good, andguard us from the doom of fire (2 : 201)


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2. Fair and Equitable Distribution:

The second most important objective of theeconomic system of Islam is to make

distribution of economic resources, wealthand income fair and equitable. Islamdiscourages concentration of wealth in fewhands and ensures its circulation among all

the sections of society.


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It is also an important purpose and objectiveof the Islamic economic system that basic

necessities of life like food, clothing andshelter should be provided to all the citizensof the Islamic state.
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4. Establishment of Social Justice:

One of the major objectives of the Islamiceconomic system is to establish socio-

economic justice among all the members ofthe nation. Al-Quran says: He (Allah) placedtherein firm hills rising above it, and blessed itand measured therein its sustenance in four

days, alike for (all) who ask (41 : 10).
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5. Promotion of Brotherhood and Unity:

The Holy Quran says: It is not righteousnessthat ye turn your faces to the East and the

West; but righteous is he who believeth inAllah and the Last Day and the Angels andthe Scripture and the Prophets; and giveth hiswealth, for love of Him, to kinsfolk and to

orphans and the needy and the wayfarer andto those who ask, and to set slaves free; andobserveth proper worship and payeth Zakat(2 : 177).
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6. Achievement of Moral and MaterialDevelopment:

The economic system of Islam aims at

material as well as moral development of theMuslim community. It achieves this objectivethrough its system of taxation and fiscalmanagement particularly through Zakat.
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7. Circulation of Wealth:

About hoarding of wealth the Quran says:They who hoard up gold and silver and

spend it not in the way of Allah, unto themgive tidings of a painful doom. On the daywhen it will (all) be heated in the fire of helland their foreheads and their flanks and their

backs will be branded therewith (and it will besaid unto them). Here is that which yehoarded for yourselves. Now taste of what yeused to hoard: (At-Taubah-9 : 34-35).


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8. Elimination of Exploitation:

To achieve this end Islam has taken manyeffective measures such as riba, slavery and

etc.


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chpter 1 islamic econ

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