ibn khaldun’s thought on sustainable...
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Ibn Khaldun’s Thought on Sustainable Development
Abdul Ghafar Ismail
Head of Research Division
Islamic Research and Training Institute (IRTI)
Islamic Development Bank (IDB)
Jeddah P.O Box 9201
Kingdom of Saudi Arabia
+96624646330, [email protected]
Raudha Md. Ramli
Phd Student
School of Economics
Faculty of Economics and Management
The National University of Malaysia
43600 Bangi Selangor
+60132881468, [email protected] (Corresponding Author)
Salmy Edawaty Yaacob
Senior Lecturer
Syariah Department
Faculty of Islamic Studies
The National University of Malaysia
43600 Bangi Selangor
Muhammad Tasrif
Senior Lecturer
School of Architecture, Planning and Policy Development
Bandung Institute of Technology
Jl. Ganesha No. 10
40132 Bandung Indonesia
+62222534237, [email protected]
Abstract
Muslim countries have their own principles to guide them achieving sustainable
development. This paper presents on the nature of Ibn Khaldun’s multidisciplinary
and dynamic theory in development which were rediscovered by modern economist.
The author cursorily examines Ibn Khaldun famous work al-Muqaddimah as well as
the interpretation of his work offered by contemporary scholars. This article
concludes and reinterprets on economic growth of Ibn Khaldun’s suggestion in
sustainable development. The main principles of sustainable development include the
integration of economic growth, strong legitimate government participation, good
governance, rule of law and justice. According to Ibn Khaldun, immorality, and
injustice are recognized the indicators of unsustainable development caused fall of the
nations. His perspective on economic and how he organized them can guide Muslim
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countries in drafting development policy and also can be used to promoting
sustainable development in Muslim countries into an extremely coherent model.
Keywords: Sustainable Development, Ibn Khaldun, Al-Muqaddimah
JEL Classification: B11, B31, I30, O10
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1. Introduction
The challenging branch of the broader disciplines of economics and political economy
is economic development (Todaro, 1997). According to Cebotarev (1989) and Todaro
(1997), development is a term with diversity meanings. A theory of economic
development is not always synonymous to a theory of economic growth (Streeten,
Burki, Haq, Hiks, and Stewart, 1981; Herrick and Kindleberger, 1988; Human
Development Report, 1990 and Streeten, 2000). The evolution measures of the
development from the pre 1970s ensuing the profound change in the perception and
definition of development emphasis on economic growth to later concerns with the
reduction or elimination of poverty, inequality, unemployment, income distribution
and preventing further deterioration in the physical environment within the context of
a growing economy (Human Development Report, 1990; Todaro, 1997; Piasecki and
Wolnicki 2004; Amr, Marshall and Mogahed, 2008). A review of the development
concept has emerged which aptly explained by Todaro (1997):
Development must therefore be conceived of as a multidimensional process involving
major changes in social structures, popular attitudes, and national institutions, as well
as the acceleration of economic growth, the reduction of inequality, and the
eradication of poverty. Development, in its essence, must represent the whole gamut
of change by which an entire social systems, tuned to the diverse basic needs and
desires of individuals and social groups within that system, moves away from a
condition life widely perceived as unsatisfactory toward a situation or condition of life
regarded as materially and spiritually better.
Recent studies incorporated to understand the meanings of development.
Development according to Stiglitz (1998) seeking a broader-based development
paradigm beyond economic growth, which views development as representing a
transformation of society. In his view, Gross Domestic Product (GDP) growth is
necessary but not sufficient to achieve development and freedom from hunger and
poverty, and more equitable income distribution. Salih (2003) also support that
economic growth by itself may not suffice to bring about sustainable development and
the growth and development is not necessary to occur together. National income only
measure growth rather than measuring sustainable development. Stiglitz (1998)
advocates a new development economics and promotes the new development agenda.
The new development strategy will not only raise GDP per capita but also living
standards as evidence by standards of health and literacy. The concept introduced by
Salih (2003) includes wider concerns the quality of life (QOL). The sustainability
suggests that societies need policies aimed at making development sustainable well in
the future (Holmberg, 1992).
The definition of sustainable development has evolved globally at a rapid rate. The
term of sustainable development has been used in many different contexts and
consequently has come to represent many different ideas (Fergus and Rowney, 2005).
Sustainable development is demanded now because the progress in the last few
centuries has caused depletion of land resources (Mohammad, 2010). Human
Development Report (1994) demonstrates the sustainable development as:
Sustainable human development is development that not only generates economic
growth but distributes its benefits equitably: that regenerates environment rather than
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destroying it: that empowers people rather than marginalizing them. It is development
that gives priority to the poor, enlarging their choice and opportunities and providing
for their participation in decisions that affect their lives. It is development that is pro-
people, pro-nature, pro-jobs and pro-women.
The term of sustainable development initiated a rapid spread with the release of
United Nations (UN) report titled Our Common Future, and generally referred to the
Brundtland Report (World Commission on Environment and Development [WCED],
1987). The sustainable development meant the ability to fulfill the needs of the
present generation, without compromising the ability of future generations to fulfill
their own needs (WCED, 1987). There is an urgent need today to establish a more
integrated, effective and efficient UN development system to promote the worldwide
movement towards sustainable human development (Human Development Report,
1994).
The International Union for Conversation of Nature (IUCN) in the Caring for the
Earth: A Strategy for Sustainable Living defines the term of sustainable development
as improving the quality of human life while living within the carrying capacity of
supporting ecosystem (World Conservation Union, 1991). Quality of life is meant to
represent either how well human needs are met or the extent to which individuals or
groups perceive satisfaction or dissatisfaction in various life domains (Costanza et. al,
2007). Al-Jayyousi (2012) supported the statement by IUCN that, sustainability is the
path that allows humanity as a whole to maintain and extend QOL through diversity
of life. The United Nations Conference on Sustainable Development promotes the
core of mainstream for sustainable development that emphasizes a three dimensions
approach to institutional reform, environmental protection, social development and
economic development (Leggett and Carter, 2012). Figure 1.1 show the three pillars
of sustainability as concentric circles or as interlocking circles to demonstrate the
visual representations of sustainable development need to be better integrated with
action to redress the balance (Adams, 2006).
Figure 1.1: Three Visual Representations of Sustainable Development
According to Al-Jayyousi (2012), the definition from IUCN is broader than the
Brundtland Commission. The definition includes important elements like the
Environment
Society
Economy
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improvement of the QOL and the carrying capacity of supporting ecosystems. The
improvement of the quality of life in the definition seems more aspiring than the meet
of needs’ in the Brundtland definition. The high quality of life and high scores on
measures of human development are not necessarily associated with high GDP per
capita (Adams and Jeanrenaud 2008). The QOL depends on the extent to which an
economy utilizes its resources and achieves its objectives successfully (Salih, 2003). )
elucidated sustainable development as a satisfaction of basic human needs, achieving
equity and social justice, social self-determination and cultural diversity, maintaining
ecological integrity and biodiversity, integrating environmental and economic
consideration.
This article explains the principles of sustainable development by western scholars
and attempts to enlighten and reviews the Muslim scholars by Ibn Khaldun (1332-
1406 AD) which may contain development principles in Islamic perspective. A focus
of the paper is to find out the Islamic concept of development is rooted in the
contemporary Muslim world. The paper comprises three major areas of discussion.
First part is the introduction to concept of development, and sustainable development.
The next section reviews on the Islamic principles for sustainable economic
development and the literature on development with a particular reference to Islamic
concepts and its relevance to development. The third section discuss about Ibn
Khaldun thought and methodology on sustainable development from Muqaddimah.
The final section presents a research conclusion.
2. Islamic Perspective on Economic Development
Development seems to be emerging as a dominant theme in the area of Islamic
economic (Hasan, 1995). Economic development in Islam can be defined as a
balanced and sustained improvement in the material and non-material well-being of
humankind (Sadeq, 1991). He also describes development as a multidimensional
process that involves improvement of welfare through advancement, reorganization
and reorientation of the entire economic and social systems and through spiritual
uplift in accordance on the holistic view of Islamic teaching. According to Sadeq
(2006) and Ibrahim, Basir and Rahman (2011), Islamic economics system emphasizes
the human welfare as the basic concern of development. Thus, the Islamic teaching is
based on Quran and Sunnah provide guidance on all aspects of human life
encompassing social, economic and political (Chapra, 2006; Ahmad, 2006).
The First Islamic Conference of Environment Ministers 2002 identified the major
challenges faced by the Islamic world in the field of sustainable development,
materialized mainly in the poverty, illiteracy, accumulation of foreign debts,
degradation of economic and social conditions, disequilibrium between population
growth and available natural resources, the weakness of technical capabilities, the
lack of expertise and skills in environment management, along with the negative
impacts left by regional conflicts, and foreign occupation. The conference provided
general framework for an Islamic agenda sustainable development known as the
Islamic Declaration on Sustainable Development which revolves around the following
major areas economic growth, poverty eradication, population, and urban
development, health and environment, and natural resources (United Nations, 2002).
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Lewis (2002) blames Islam for lack of development. Certain Middle East institutions
rooted in the regions dominant religion continuing obstacle to economic development
Kuran (2004). Recent empirical study by Palani (2008) and Rees (2009) stated that
the relationship between religion and its socio-economic demonstrated that countries
with higher levels of religiosity are characterized by higher levels of income
inequality. However, Elgin, Goksel, Gurdal and Orman (2013) argue that the problem
occurred is due to the lower level of government services demanded in more religious
countries. The religion motivates individuals to engage in charitable giving and this
leads them to prefer making their contributions privately and voluntarily rather than
through the state (Elgin et. al., 2013). Study by Pryor (2007) found that there is no
special Muslim economic system. Moreover, a few economic institutions are uniquely
Muslim. He used regression analysis and found that the presence of Islam has
relatively little influence on most economic or social performance indicator and
religion does not appear to be a useful explanatory variable.
However, Khan (1991) outlined the basic concepts of Islamic economics and argued
that Islamic economics has the potential and would lead the world to benefit from it in
the future. Islam encourages the economic development which underlined with a mere
application of morality, ethics, and social justice, equitable and fair development
(Khan, 1991; Chapra, 1993; Hasan, 1995, 2006; Dar, 2004; Chapra, 2009;
Mohammad, 2010; and Ibrahim, Basir and Rahman, 2011). Development with justice
is not possible without moral and ethical development (Hasan, 1995). Holy Quran
introduces a wide range of ordinance on socio-economic justice, equality, and equal
distribution of wealth in an unrelenting approach. Holy Quran says:
“…so that it (the wealth and resources) may not circulate only between the
rich among you…” (Quran 59:7)
“Indeed We have sent Our Messengers with clear proofs, and revealed with
them the Scripture and the Mizan that mankind may keep up justice. And We
brought forth iron wherein is mighty power, as well as many benefits for
mankind, that Allah may test who it is that will help Him (His religion) and
His Messengers in the unseen. Verily, Allah is Powerful, Almighty” (Quran
57:25)
Hasan (1995) enlightened the concept of development centers around two broad
aspects of its belief system the Divine and the human. The primary function of Islam
is to guide human development on correct lines and in the right direction (Ahmad,
2006). According to (Chapra, 1993), the Islamic world-view is based on three
fundamental concepts consist Tawhid (Oneness and Unity of God), khilafah
(vicegerent of human beings) and ‘adalah (justice). Tawhid is the most important of
these concepts and implies the universe consciously designed and created by the
Supreme Being. The human being is the Supreme Beings’s khalifah or vicegerent on
earth. Allah S.W.T says:
“Those who remember Allah standing, sitting, and lying down on their sides,
and think deeply about the creation of the heavens and the earth, (saying):
"Our Lord! You have not created this without purpose, glory to You! Give us
salvation from the torment of the Fire” (Quran 3:191).
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“And (remember) when your Lord said to the angels: "Verily, I am going to
place (mankind) generations after generations on earth.'' They said: "Will You
place therein those who will make mischief therein and shed blood, while we
glorify You with praises and thanks and sanctify You.'' He (Allah) said: "I
know that which you do not know” (Quran 2:30).
Salleh (2013) outlined Khurshid Ahmad’s four philosophical underpinnings of the
Islamic approach to development are:
i) Tawhid, which refers to God’s unity and sovereignty which lays down the
rules of God-man and man-man relationships (Hablum-minAllah and Hablum-
minAnnas respectively)
ii) Rububiyyah, which refers to Divine arrangement for nourishment, sustenance
and directing things towards their perfection. The fundamental law of universe
which throws light on the Divine model for the useful development of
resources and their mutual support and sharing. It is in the context of this
Divine arrangement that human effort take place.
iii) Khilafãh, which refers to man’s role as God’s vicegerent on earth. It defined
the status and role of man, and specifies the responsibilities of man as a
Muslim.
iv) Tazkiyah, which refers to purification plus growth. It is the mission of all the
Prophets of God to perform the tazkiyah of man in all his relationships with
God, man, natural environment, society and the state.
The objective of Islamic economic development is to achieve a comprehensive and
holistic welfare for people to live a balance life in this world as well as in the
Hereafter (Akheerah) (Khan, 1991; Chapra, 2009; Ul Hassan, 2010; Anto, 2011 and
Ibrahim et al. 2011). It is called as Falãh. Falãh refers to inclusive state of spiritual,
cultural, political, social and economic well-being in this world and God’s pleasure in
the Hereafter (Khan, 1991). Tazkiyah appears to be the focal point of Khurshid
Ahmad philosophical in Islamic development concept which the result of tazkiyah is
Falãh-prosperity in this world and the Hereafter Salleh (2013). Salleh (2003) defined
the right ultimate aim of Islamic development is Mardhatillah (the pleasure of Allah
S.W.T) instead of Falãh. According to him, only one who gains the pleasure of Allah
S.W.T will likely to have Falãh. Salleh (2003, 2013) suggested seven philosophical
foundation that more comprehensive. There are mould, actors, time-scale, framework,
methods, means and ultimate aim. The established in earlier writing by Salleh (2003),
the mould of Islamic development is Islamic worldview (tasawwur), the actors of
Islamic development are human beings (‘abdAllah, or servant of God and
khilafatullah or vicegerent of God), the time-scale covers three worlds of pre-birth
(malakut), present (ad-dunya) and Hereafter (Akheerah). The framework is the
Islamic obligatory knowledge (fard ‘ain), the methodology is the worship (ibadah) of
God, the means is the natural resources, and the ultimate goal is the pleasure of God
(mardhatillah) as illustrated in (Figure 2.2).
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The primary purpose of Islamic development is to ensuring the human well-being of
all mankind and it should be consistent with the objectives of Shariah or Maqasid
Shariah (Sadeq, 1987; Dar, 2004; Hasan, 2006; Chapra, 2006, 2009; and Anto, 2011).
The Quran and Hadith reveal an overriding interest in the overall welfare of mankind
and need to balance between this world and the Hereafter:
“And of them there are some who say: "Our Lord! Give us in this world that
which is good and in the Hereafter that which is good, and save us from the
torment of the Fire!” (Quran 2:201)
“But seek, with that which Allah has bestowed on you, the home of the
Hereafter, and forget not your portion of lawful enjoyment in this world; and
be generous as Allah has been generous to you, and seek not mischief in the
land. Verily, Allah likes not the mischief-makers” (Quran 28:77)
Figure 2.2: The Integration between Knowledge of Fardhu Ain and Knowledge of
Fardhu Kifayah in Islamic Development
Allah S.W.T
Revealed knowledge
(Fardhu Ain)
Acquired Knowledge
Monotheism Ethics/Virtue Islamic
jurisprudence
(Fiqh)
Business (Muamalat)
Marriage
(Munakahat)
Lower Level
of High Level
of
Knowledge
Development
Human beings and Vicegerent
Goals: Pleasure of God
Balance life in this world as well as in the Hereafter
Ibadah
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Source: Salleh (2003)
Thus, development in Islam can be defined as a balance and sustained improvement in
the material and non-material well-being of man, and development as a
multidimensional process which involves improvement of human welfare through
advancement, reorganization and reorientation of entire economic and social systems
in accordance with the norms and values of Islam (Sadeq, 1987). Aforementioned on
definition and objective of Islamic development can be concluding in Kurshid
Ahmad’s fundamental principles and values. Kurshid Ahmad delineated five essential
features of the concept of Islamic development in Salleh (2013) as follows:
i) The Islamic development concept is comprehensive in character and includes
moral, spiritual and material dimensions. Development becomes a goal and
value-oriented activity, devoted to the optimization of human well-being in all
these areas, for their welfare in this world and the Hereafter.
ii) The focus for development effort is man. Development, therefore, means
development of man, his attitudes and ambitions, his behavior and lifestyle
and his physical and socio-cultural environment. Man is act as the premium
mobile, not merely in a mechanical sense, but in the fullness of the human
potential.
iii) Economic development is looked upon by Islam as a multi-dimensional
activity, with different factors and forces, which have to be balanced,
harnessed and mobilized.
iv) Economic development involves a number of changes, quantitative and
qualitative. It has to be balanced between each other.
v) Islamic development involves two dynamic principles of social life. Firstly,
the optimal utilization of resources that God has endowed to man and provided
in his physical environment. Secondly, the equitable use and distribution for
the promotion of justice amongst all human relationships.
Therefore, many scholars have been oriented towards a multidisciplinary approach
that considers economic development to be a part of overall human development
(Chapra, 2006). They take into account the most relevant variables, socio-economic
and political environment affects human well-being. The greatest Islamic scholars
namely Ibn Khaldun (1332–1406 AD), have discussed the principles of development
including the component affect to rise and fall of civilizations within the
multidisciplinary model and framework. This paper is intended to show the
contribution made to the discussion by Ibn Khaldun more than 600 years ago to
explain the causes of the Muslim decline during his lifetime. Though most of what is
written by Ibn Khaldun become part of the conventional wisdom and studied by many
scholars of various diciplines, it is still relevant to implementing a new economic
model. A public policy maker can learn and review the paradigm of mainstream
economic and consider a new economic paradigm as an antidote to the current
economic problem propounded by Ibn Khaldun.
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3. Ibn Khaldun’s thought on Growth and Development
The intellectual legacy of Ibn Khaldun is unique among the works of Muslim thought.
According to Spengler (1964) and Essid (1987), Ibn Khaldun’s contributions to
economic theory have been referred to as “economic thought of Islam”. Ibn
Khaldun’s Muqaddimah known as Prelegomena is a model of a distinguished and
remarkable work of scholarship that defined the socio-historical realities and
intellectual progress of its time (Agil, 2010) and it was published four centuries earlier
in 1377 (Spengler, 1964). The origin theory of economic growth is traced to Ibn
Khaldun (Boulakia, 1971). The Muqaddimah was the first promulgated the economic
theories put forward by Adam Smith in his Wealth of Nations (Spengler, 1964; Agil,
2008). This substantial body of economic knowledge was rediscovered the virtues and
the necessity of a division of labor theory before Smith, Karl Marx in necessary and
surplus labor, and the principle of labor value before Ricardo. He elaborated a theory
of population before Malthus and insisted on the role of the state on the economy
before Keynes though Ibn Khaldun may not be clear as Karl Marx and Ricardo
(Boulakia, 1971).
The Muqaddimah of Ibn Khaldun also focuses on the relationship between religious
factors and the economic explanation in his ideas compared to the Wealth of Nation
(Agil, 2008). The main economic concepts discussed by Khaldunian’s thought are the
division of labor, economic growth, population growth, poverty, inflation,
unemployment, business cycles, crime, environmental degradation, migration and
urban growth and decline cities that are also economic issues and contemporary social
relentless impact of modern man (Agil, 2008), value, distribution, development,
money, prices, benefits of trade (Soofi, 1995) and political economy (Boulakia, 1971).
Ibn Khaldun’s theory of economic growth is based on his theory of man and society
integrated within the Islamic Weltanschauung (Agil, 2008). The focus for
developmental effort and the development process is man and Islam insists the area of
operation relates to man (Ahmad, 2006). Ibn Khaldun’s conclusions are based on real
facts of his time and were molded by Islamic way of life (Mohammad, 2010). Ibn
Khaldun uses religious texts, logical reasoning, historical facts and empirical
observation to explain economic problem and phenomena during his times and proof
his economic propositions (Agil, 2010).
Religion in The Muqaddimah is a one of the factor in improving economic growth,
business activity and entrepreneurial growth in the formulation of public policies
based on the business-friendly, fairness, economic justice and freedom (Agil, 2008;
2010). Current debates by Patrick, Welch and Mueller (2001), and McCleary and
Barro (2003, 2006) believe that economics are religious matters. A study by Barro
and McCleary (2003) used an international survey on religiosity for a broad panel of
countries to investigate the effects of church attendance and religious beliefs on
economic growth and has a two-way interaction with political economy (McCleary
and Barro, 2006). Religion viewed as an independent and dependent variable. A
central question in religion as a dependent variable is viewed as how the economic
development and political institutions affect the religious participation and beliefs.
The key issue in religion as an independent variable looks into how the religiosity
affects individual characteristics such as work ethics and honesty, which thereby
influence the economic growth and performance (McCleary and Barro, 2006).
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Ibn Khaldun was the first economist to link religious in orders with economic justice,
economic growth and development, tax revenue and population growth (Agil, 2008).
Weber (1905) was among of the scholars to argue that religion plays a significant role
in economic development. He analysed the role of Protestantism on Europe
economies during the industrialization (Pryor, 2007). Injustice to Ibn Khaldun is
contrary to religion and it can cause a contraction in the economy. Ibn Khaldun
stressed that the factors religion strengthens the group feeling or unity because it
creates good qualities in themselves and bring a member of the group for shared one
insight. It reduce the tendency into self interest and other reprehensible which can
cause disunity and conflict and finally, political and economic become failure.
Khaldunian’s thought was discussed economic growth and development as one of the
foundations for rise and fall of civilisation (umran) (Spengler, 1964; Agil, 2010;
Mohammad, 2010).
3.1 Ibn Khaldun’s model of economic development
Chapra (2006) has interpreted a multidisciplinary model with dynamic character of
The Muqaddimah. The entire Muqaddimah of Ibn Khaldun links all important socio-
economic and political variables including the development (g) and justice (j),
sovereignty (al-mulk) or political authority (G), belief and rules of behavior or the
Shariah (S), people (ar-rijal) (N), wealth (al-mal) or stock resources (W), in a circular
and interdependent manner. Each variables influence the others and in turn being
influenced by them (Figure 3.1). Chapra (2006) summarize his views relating to the
model as follow:
The development or decline of an economy or society does not depend on any one
factor but rather on the interaction of moral, social, economic, political, and historical,
factors over a long period of time. One of these factors acts as the trigger mechanism
and, if the others respond in the same direction, development or decline gains
momentum through a chain reaction until it becomes difficult to distinguish the causes
from the effect.
Figure 3.1: Interrelationship of variables of economic development and the chain
reaction.
Source: Chapra (2006)
Chapra (2006) extended Khaldunian’s model to the sovereign:
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i) The strength of the sovereign (al-mulk) does not materialize except through
the implementation of the Shariah.
ii) The Shariah cannot be implemented except by the sovereign (al-mulk).
iii) The sovereign cannot gain strength except through the people (al-rijal).
iv) The people cannot be sustained except through development (al-imarah).
v) Development cannot be attained except through justice (al-adl).
vi) Justice is the criterion (al-mizan) by which God will evaluate mankind.
vii) The sovereign is charged with the responsibility of actualizing justice.
Mohammad (2010) simplified and reinterpreted the model by Chapra (2006). A strong
economic development according to Mohammad (2010) requires (Figure 3.2):
i) Collective entity (state)
ii) Rules and regulations
iii) Law enforcement institutions
iv) People
v) Wealth or economic empowerment
vi) Development
vii) Justice
viii) Moral legitimacy
Strong Economy/
Society
People
Wealth
Development
Justice
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Figure 3.2: Core interdependent components of economic growth
Source: Mohammad (2010)
Human being or theory of man (N) plays a central analysis of Ibn Khaldun and cause
of economic growth if they have incentive to participate in the economy (Rosenthal,
1967). The rise and fall of civilizations is closely depends on their well-being or
misery of the people (Chapra, 2006). People occupy a unique position in social and
economic thought of Ibn Khaldun. He begins his analysis by referring to human
nature in the development of human society and civilization. Human ability to think
and sociability of human nature, aggressive and desires power is important in the
evolution and development of the community and be an impetus for change (Agil,
2008). Ibn Khaldun contends that God gives man the power in the form of the ability
to think not only to achieve the necessary requirements of life, but also to fulfill a
higher goal to perform his role as His representative on the earth. Ibn Khaldun sees
the primary role of man to ensure that man does what is good and avoids what is
harmful (Agil, 2010), for instance, corruption, criminal violence and others. Ibn
Khaldun defines corruption as unethical practices of making a living and these bad
qualities become traits of character and habits for most of the urban people (Agil,
2010). It has been clearly acknowledging that corruption, criminal, violence practices
are un-Islamic and specifically condemned in Islam (Rehman and Askari, 2010). The
Divine scheme of life as enunciated in the Quran views fasãd (corruption) with great
displeasure as it abhors zulm (injustice) in the society (Zaman, 1999).
The Muqaddimah examines the relationship between division of labor, specialization
and creation of wealth which cause a nation’s prosperity. Ibn Khaldun believes that
division of labor results in economic surplus, generates wealth and spur the growth
which eventually leads to beneficial impacts of an increase in population, prosperity,
urbanization, advancement of scientific knowledge and technology, innovation,
education, the emergence of the wealthy class and improvement in the quality of labor
and skill, growth of the cities (Agil, 2010) and as a source of value added (Weiss,
1995). Division of labor and specialization are necessary for the accelerated
development of any economy (Rosenthal, 1967: I. 89-92). Ibn Khaldun explains how
man depended upon division of labor and specialization, and indicates a measure to
the accumulation and protection of wealth (Spengler, 1964; Chapra, 2006). The
greater the specialization, the higher will be the growth of wealth (Chapra, 2006).
Wealth of people can be gained through productivity and sustained while participate
in the development (Mohammed, 2010). Wealth is an incentive for people to
participate in the development activities. By specialization of labor, some producers
are able to generate surplus products and through exports to other communities and
satisfying the luxury wants of the consumers and these are the great deals of wealth
(Soofi, 1995).
Development (g) and justice (j) become the most crucial links in the chain of
causation. Khaldunian’s thought on development model does not refer to economic
growth (Rosenthal, 1967: I. 39 and II. 243-249) but it compasses all-around human
development enriches the others (S, N, G, W, j and g) and contributes to the well-
being or happiness of people and component to raise of civilization (Chapra, 2006).
The rise and fall of civilization according to Ibn Khaldun depends on strong State and
implementation of law through institutions and rule of law, people, wealth,
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development and justice (Mohammad, 2010). Economic development needs moral,
social, political and demographic support and it may not be sustainable if these
supports do not available. The role of moral value is clearly recognized by Ibn
Khaldun (Mohammad, 2010). Development with justice is not possible without moral
and ethical development (Hasan, 1995). Holy Quran introduces a wide range of
ordinance on socio-economic justice in an unrelenting approach. Holy Quran says:
“Indeed We have sent Our Messengers with clear proofs, and revealed with
them the Scripture and the Mizan that mankind may keep up justice. And We
brought forth iron wherein is mighty power, as well as many benefits for
mankind, that Allah may test who it is that will help Him (His religion) and
His Messengers in the unseen. Verily, Allah is Powerful, Almighty” (Quran
57:25)
Thus, Ibn Khaldun emphasizes clearly and unequivocal that religion promotes justice
with prohibits unfair and unjust by the government. He saw clearly positive
relationship between religion, economic justice, business motivation, economic
growth, tax revenues (Agil, 2010) and a balance in human society can be achieved
based on justice (Ahmed, 2002). The interdependence of states, law, people, wealth,
development and justice is the recipes of economic model successful where free
market can be thrive (Mohammad, 2010). According to Ibn Khaldun, injustice causes
the ruining of civilization (Spengler, 1964).
Thus Ibn Khaldun is clear and unequivocal statement that religion promotes justice
with public policy prohibits unfair and unjust by the government. Therefore, the
Muslim countries like other developing countries looking for a development strategy
that would help them accelerate growth with justice and reduced instability (Chapra,
1993). Muslim countries need to rebuild an idea of classic Islamic civilization which
includes justice, integrity, tolerance and the quest of knowledge (Ahmed, 2002).
Ahmed (2002) suggest to West countries to put pressure on Muslim government to
ensure justice and provide clean administration. Justice according to Chapra (1993,
1995) makes the well-beings and principal goal of Islam. The well-being of human
means a balanced between materialization and spiritual needs. Chapra (1993)
highlights the development with justice could be considered to have been realized if
dictates of khilafah and ‘adalah are satisfied through the need fulfillment of equitable
distribution of income and wealth, full employment and environmental protection.
The primary basis in Muslim society is the Shariah (S) (Chapra, 2006). Hasan (1995)
assert that there are two broad aspects in development centers; its belief system the
Divine and human. The Divine Laws command the doing of good and prohibit the
doing of what is evil and destructive (Rosenthal, 1967; II. 142) and for the good of
human beings and serve their interests (Rosenthal, 1967; I. 292). The Shariah can
only give rules of behavior and it is a responsibility of the political authority (G) to
ensure compliance through incentive and deterrents (Rosenthal, 1967; I. 262-263).
According to Ibn Khaldun, political authority has the same relationship to a
civilization and it is not possible to conceive of political authority without civilization
and civilization without political authority (Rosenthal, 1967; II. 291 and 300). One of
the most important contributions of Ibn Khaldun to theory of economic growth is his
idea on the role of government and public policies (Spengler, 1064; Boulakia, 1971;
Chapra, 2006; Mohammad, 2010 and Agil, 2010). Ibn Khaldun emphasizes and
International Conference of Global Islamic Studies 2014
170
characterized the role of the state in development as good governance (Chapra, 2006).
The survival of the political authority depends eventually on the well-being of the
people to ensure by providing a proper environment for actualizing development as
well as justice through the implementation of the Shariah (Chapra, 2006). Therefore,
Ibn Khaldun viewed State to be accountable and transparent, responsible for its
permissive to participate in decision making according to the principle of shura
(Chapra, 2006 and Mohammad, 2010).
In the endogenous model, government can promote growth by implementing
appropriate policies and Ibn Khaldun considers economic freedom as a necessary
condition to spur growth as well as increase the government revenue (Agil, 2010).
Sen (1999) described the national growth or individual incomes can be important as
means to expanding the freedoms enjoyed by the member of society. Development
should be seen as a process of expanding freedoms. But freedoms depend on the other
determinants such as social and economic arrangement as well as political and civil
rights. For instances, facilities for education, healthcare and liberty to participate in
public discussion and scrutiny. He argues to achieve development, requires the
removal of poverty, tyranny, social deprivation, neglect of public services, and the
machinery of repression. Amr et. al (2008) support the statement by Sen (1999) that
human development embraces the concept of human freedom and development of the
human spirit, as well as good governance. Khaldunian mind prefers the introduction
of fiscal policy which inclined towards moderate taxes and moderate government
spending to spur economic growth and increase revenue (Nagarajan, 1982; Chapra,
2006 and Agil, 2010). Ibn Khaldun emphasis the potential of government spending
and taxation will influence the aggregate demand, thus, the lower tax imposed by
government, government spending continue, market economy can be sustained (Agil,
2010; Mohammad, 2010).
Karatas (2006) listed main point of Ibn Khaldun mind on growth, political stability
and the rise of the nations must be:
i) The establishment of private property rights and freedom of enterprise
ii) Rule of law and the reliability of the judicial system for the establishment of
justice
iii) The security of peace and security of trade routes
iv) Lower and less taxation in order to increase employment, production and
revenues
v) Less bureaucracy and much smaller efficient army
vi) No government involvement in trade, production and commercial affairs
vii) No fixation of price by the government
viii) A rule that does not give monopoly power to anyone in the market
ix) Stable monetary policy and independent monetary authority that does not play
with the value of money
International Conference of Global Islamic Studies 2014
171
x) A larger population and larger market for greater specialization
xi) A creative education system for independent thinking and behavior
xii) The collective responsibility and internal feeling for the setting up of a just
system to encourage good deeds and prevent vice.
Conclusion
Sustainable development should be carried out in a way that brings betterment to the
current generation without depriving the future generations. Many scholars have been
oriented towards a multidisciplinary approach to sustain the economic and
development. This paper enlightens and reviews the Muslim scholar’s principles of
sustainable development by Ibn Khaldun (1332-1406 AD) which may contain
development principles in Islamic perspective. Ibn Khaldun discovered a great
number of fundamental economic notions and consequence on evolution of economic
thought a few centuries ago. He divided his writing into the causes of development
and the causes of fall in civilization. The main principles of sustainable development
include the integration of economic growth, strong legitimate government
participation, good governance, rule of law and justice. Immorality seems to be the
root cause for economic problems in the world. The role of religion promotes the
economic growth. Khaldunian mind viewed state as neither a laissez faire state nor a
totalitarian state. The state ensures the prevalence of the Shariah and serves as an
instrument for accelerating human development and well-being. The function of state
comprises people, human rights, principle of justice, morality and ethics. Unjust
public policy causes the economy to decline. Thus, Khaldunian mind encompasses the
time dimension and still relevant with the current economic condition. A public policy
maker can learn and review the paradigm of mainstream economic and consider a
new economic paradigm as an antidote to the current economic problem propounded
by Ibn Khaldun.
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