Overview of the Muslims contribution

in Economics

SYED ANSAR ALI SHAH

Albert Julius Meyer

An America Economist Albert Julius Meyer once said :

“The Arabic, Turkish and Persian-speaking East has no continuity of economic ideas such as those which come

from the Christian West”.

Today I will prove Mr. Albert Julius Meyer

Wrong !!!

The contribution of Muslims in the field of economics dates

back to the early days of Islam. It dates back to 7th century

and has its roots till 18th century.

So when did it start ?

Islamic era, refers to the economic ideas enunciated in the Quran and in the Traditions of the Prophet and as interpreted and elaborated by the early Muslim scholars. These scholars drew upon four basic sources, namely:

(i) The Holy Quran

(ii) The Traditions of the Prophet

(iii) Ijma [consensus among jurists and legal experts)

(iv) Ijtehad

Islamic Era of Economics

Many Muslim scholars made outstanding contributions to the

social sciences, especially to economics. Some of them are

mentioned bellow:

Prophet Muhammad (P.B.U.H)

Abu Ubayd Abu Yusuf

Nasiruddin Tusi Ibn abi al-Rabi

Al-Ghazzali

Ibn Khaldun

Al-Mawardi's

Ibn Taimiyah

Muslim’s Contribution to Economics

The Prophet Muhammad (P.B.U.H) not only brought about

radical changes in people's faith and rituals but also in their

economic practices and institutions. Control over lending,

reform of corrupt market practices and a systematic

transfer of funds in favor of the poor.

Prophet Muhammad (P.B.U.H)

He authored a major work on land taxation, entitled Kitab al Kharaj. His contribution lies on the taxation of land Much

before Adam Smith, who is generally regarded as the father of modern economics.

Abu Yusuf (d. 798 AD)

Authored a book entitled Kitab al Amwal. It can be regarded as the most systematic and comprehensive work on public finance. He gathered more than two thousand Traditions of the Prophet(P.B.U.H) which pertain to

finance and fiscal affairs.

Abu Ubayd (d.858) AD

Ibn abi al-Rabi wrote a book entitled “Suluk al Mamalik fi Tadbir al-Mamalik”. said that ruler should take appropriate

action to ease the hardships of farmers in order to stop them from abandoning their farms. He should collect taxes in accordance with the norms of justice and the principles of Sharia in order to avoid the possibility of any injustice

Ibn Abi Al-Rabi (d.885 AD)

Al-Mawardi's wrote “Al-Ahkam al-Sultaniyah” [Rules of Governance] is an outstanding work. Al-Mawardi

highlighted the responsibilities of the ruling class and emphasized that the ruler should arrange for the

collection of kharaj (land tax) and zakat in accordance with the laws of sharia.

Al-Mawardi’s (d.1058 AD)

Al-Ghazzali. In his book “ Ihya ulum al-Din” (The Revival of the Sciences of Religion) stated that economic activities are mandated by the Sharia because they are linked to

the very survival of human beings.

Al-Ghazzali (d.1112 AD)

Nasiruddin Tusi in his book “Siyast Nama “(The Book of Politics) discussed revenue and expenditure of household budgets and those of the states. He

emphasized saving and warned against extravagance in expenditure. He opposed expenditure on assets such as

jewelry and uncultivable land.

Nasiruddin Tusi (d. 1274 AD)

Ibn Taimiyah has written extensively on different aspects of Islamic Sharia. His major works include:

1. Al-Siyasah al-Shariah (The Policy of Shariah)

2. Risalah al-Halal wal-Haram (Treatise on the Legitimate and the Illegitimate),

3. Al-Hisbash fil Islam (Inspection of Public Morality in Islam).

He wrote on several economic issues, including price control, market regulation, fair market practices, state intervention and provision of basic needs, and private ownership and its control under certain circumstances.

Ibn Taimiyah (d.1328 AD)

Ibn Khaldun has been hailed as one of the greatest philosophers, historians, sociologists and economist of all times. Ibn Khaldun discussed a wide range of economic issues including:

1. Division of labor

2. Price system

3. The law of supply and demand

4. Consumption, money

5. Capital formation

6. Population growth

7. Public finance

8. Trade cycles.

Ibn Khaldun (d.1406 AD)

Ibn Khaldun also discovered a great number of fundamental economic notions a few centuries before their official birth. He discovered:

• The virtue and necessity of division of labour before Smith.• Principle of labour value before Ricardo. • He elaborated a theory of population before Malthus.• Insisted on the role of the state in the economy before Keynes

His name should figure among the fathers of economic science.

We can see that the muslims have played a major role in the field of economics. Most of the new

theories were actually introduced by muslims in there books.

Not to forgot I have also proved

Albert Julius Meyer ….. ……

Conclusion

WRONG !!!

QUESTIONS ???

?

THANKS !!!!!