islam and economics
DESCRIPTION
Introduction to Islamic economics. Definition of Islam and relationship between religion and economics. Also include the economy in the Islamic framework and economy as worship.TRANSCRIPT
MAHANI MOHAMAD
ISLAM AND ECONOMICS
CHAPTER 1: ISLAM & ECONOMICS
» DEFINITION: ISLAM» ECONOMY IN ISLAMIC FRAMEWORK» ECONOMY AS ‘WORSHIP’
What is definition of Islam?
DEFINITION: ISLAM» Islam is derived from the Arabic word ‘aslama’
i. peaceful and hapiness.ii. Submission/ obedience or surrender.
» Islam : the religion called ‘Islam” is grounded in the concept of peace in and through one’s submission to the authority and will of Allah ( God)
» Submission to the Will of God and obedience to His law » Allah SWT says in the Quran :
‘When his Lord said to him, ‘Submit,’ he said, ‘I have submitted to the Lord of the worlds.’. (2:131)
What is the relationship between religion and
economics?
RELIGION & ECONOMICS» Michel Mayer, (Instructions Morales et Religieuses, lere leson)
defines religion as “the set of beliefs and precepts which must guide us in our conduct toward God, other people and toward our selves.”
» M.’Abdullah Draz summarized as “ a chart of conduct.”» The message of the Prophet Shu’aib was basically an
economic message. The Qur’an reports him as saying:» “Will you not fear Allah? I am to you an apostle worthy of all
trust. So fear Allah and obey me. No reward do I ask of you for it; my reward is only from the Lord of the Worlds. Give just measure and cause no loss (to others by fraud). And weigh with scales true and upright. And do not withhold things justly due to men, nor do evil in the land, working mischief.’”(26:178-183)
RELIGION & ECONOMICS» Islam consists of a set of beliefs which organizes the
relationship between the individual and his creator; between the person and other human beings; between the person and universe; and even the relationship of the person to himself.
» In that sense Islam regulates human behavior, and one human behavior is economic behavior.
» Economic behavior is dealt by Muslims as a means of production, distribution, and consumption of goods and services. In Islam, human behavior—whether in the economic area or other areas—is not value free nor is it value neutral; it is connected with the ideological foundation of the faith.
ECONOMY IN ISLAMIC FRAMEWORK
Islam(way of life)
Aqidah(faith)
Shariah(practical actions)
Akhlak(ethics, behaviour)
Ibadat(man and God code of conduct)
Muamalat (man and man code of conduct)
Politics Economics Social
Banking and Finance Other Sectors
Figure 1:
Islam consist 3 basic elements:1) Aqidah concerns all aspects of faith and belief of a
Muslim in Allah and His Will.2) Shariah concerns with all forms of practical action taken
by Muslim in manifasteing his faith and belief.3) Akhlak covers all aspects of Muslim behaviour, attitudes
and work ethics with whice he performs his practical actions.
What is shari’ah?
» Literally : the road to the watering place, the straight path to be followed
» Technically : the canon law of Islam, all the different commandments of Allah to mankind.
What is Fiqh?
» Fiqh is derived from the root word of fa qa ha which literally means comprehension or true understanding.
» Imam Abu Hanifah : the knowledge of what is for man’s self and what is against man’s self.
» Al-Amidi : the science of understanding the legal obligations derived from its sources (i.e. Quran, Sunnah and other sources of Islamic law)
» Technically : the science of Islamic law is the knowledge of one’s rights and obligations derived from the Quran or Sunnah of the Prophet, or the consensus of opinions among the learned(ijma’) or analogical reasong (qiyas).
» In Islamic framework, fiqh divided into four:
Fiqh
Ibadah Muamalat Munakahat Jinayat
FIQH IBADAH VS MUAMALAT
Fiqh Ibadah - Prayer- Fasting - Almsgiving (zakat)- Pilgrimage (hajj)
Fiqh Muamalat- Commercial transcations- Management of finance of the
state- Administration of justice- The rights of non-Muslims in an
Islamic state- The relationship between an
islamic government and a foreign goverment
- The political system in islam - Other laws governing the
relationship between man and other Allah’s creature
FIQH MUNAKAHAT VS JINAYAT
» Fiqh Munakahat: ˃ Marriage ˃ Divorce˃ Inheritance, guardianship and
related matters.
» Fiqh Jinayat˃ Unlawful sexual intercouse
(zina)˃ theft (sariqah), Robbery
(hirabah) False accusation of unlawful sexual intercouse (qazaf)
˃ Drinking of liquor (shurub al-khamar) and other matters
The distinctions between shari’ah and fiqh
SHARIAH
The wider circle, includes all human actions
Body of revealed injunctions found both in the Quran and Sunnah – 3
main components
FIQH
Confined to what are commonly understood as human acts as far as
their legality and illegality are concerned
One components of the shariah
The distinctions between shari’ah and fiqh
SHARIAH
Fixed and unchangeable.
Based on revelations on which the knowledge is only obtained from the Quran and Sunnah
FIQH
Certain ruling of fiqh changes according to the changes of the circumstances under which they
are applied.
The power of reasoning is stressed and deductions based
upon knowledge are continuously referred to with
approval
The distinctions between shari’ah and fiqh
SHARIAHRules which is explicitly
mentioned by the text of Quran & Sunnah without any
ambiguity (sarih) in its meaning and inference to a
particular rule, example zakat, fasting and prayer.
FIQH
Rules which the full grasp of the knowledge relies on the human
understanding and deduction from various sources.
ECONOMY IN ISLAMIC FRAMEWORK
» WAAJIB/MUST» » MANDUB/RECOMMENDED MAKRUFAT » » MUBAH/ALLOWED
» MAKRUH/HATED » MUNKARAT» HARAM/PROHIBITED
MAKRUFATFardh (Must)
• That for which the one who performs it is rewarded, whilst the one who abandons it is punished. Avoid in involving in riba activities either as the riba taker or the riba giver.
Mandub (Recommended)
• That for which the one who performs it is rewarded, whilst the one who leaves it is not punished. This category is recommended for the Muslim to do such as donation and the recording of the debt..
Mubah (Allowed)
• This category is left undecided and left for the person.Doing or not doing the Mubah does not count as a good or bad deed. Intention of the person can change Mubah to Fardh, Madub, Makruh or Haram. All contracts and transactions are permissible.
MUNKARATMakr
uh (Hate
d)
• This category is a detested and hated such trade in the mosque. Not doing the Makruh counts as a good deed and doing it does not count as a bad deed
Haram
(Prohibite
d)
• This category is prohibited for the Muslim to do such as stealing, lying, riba in banking and misappropriation of another’s wealth. Doing the Haram counts a bad deed and not doing it counts as a good deed.
ECONOMY AS WORSHIP » Means worship˃ "Worship means submission" (Lisan al-'Arab). ˃ "He prayed to Allah means he worshipped Allah".
» Who is the worshipper of Allah? » Allah said in Quran (62:9-11):» O ye who believe! When the call is proclaimed to prayer on Friday (the Day
of Assembly), hasten earnestly to the Remembrance of Allah, and leave off business (and traffic): That is best for you if ye but knew! And when the Prayer is finished, then may ye disperse through the land, and seek of the Bounty of Allah. And celebrate the Praises of Allah often (and without stint): that ye may prosper. But when they see some bargain or some amusement, they disperse headlong to it, and leave thee standing. Say: "The (blessing) from the Presence of Allah is better than any amusement or bargain! and Allah is the Best to provide (for all needs)."
Economy activity becomes worship and counts as a good deed if he follows the condition:
» Right aqidah» Right intention» Work based on Islamic needed» Methods doing the work should align with Islamic
needed» Give a right impact and bring benefit to all people» Completeness the worship that must be done.