overview of islamic economics
TRANSCRIPT
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PRE-EXAM QUESTIONSPES
Overview of Economics
Worldviews and Economics
Sources of nowled!e
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Overview of Economics
Q "# $iscus %&e 'ro(lem of economics from(o%& secular and Islamic 'ers'ec%ives#
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Scarci%) of Resources *Economic resources are limitedrelative to wants)
Unlimi%ed Wan%s *People’s desires to use goods andservices that provide satisfaction.
+&oice *Scarcity of resources requires choices to be
made)
he Economi!ing Problem
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Scarci%) means that people want more than isavailable.Scarcity limits people both as individuals and as a
society.
"s individuals# limited income# time and ability#restrict people from doing or having "$$ what theyli%e.
"s a society# limited resources such as manpower#machinery# and natural resources limit the amountof goods and services that can be produced.
Scarcity
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People must choose which of their desires theywill satisfy and which they will leave unsatisfied.
&hen people# either as individuals or as a
society# choose more of something# scarcityforces them to ta%e less of something else.
Economics is sometimes called the study ofscarcity because economic activity would note'ist if scarcity did not force people to ma%echoices.
Scarcity (equires hoice
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People ma%e choices about what goods and
services they wanted.
People wor% harder and do business to earn
income or ma%e profits in order to satisfy theirunlimited wants.
ommodities# money and profits constitutetheir happiness.
hoice
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W&a% is our main o(,ec%ive in %&isear%&
.ow %o wors&i' Alla& %&e w&ole da)
Economics from Islamic Pers'ec%ive
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Islamic Economics is a social science hichstudies the economic !roblems of !eo!le
imbued ith the values of Islam"
It is the study of social science hich
enables !eo!le to !erform their obli#ationto $llah and to their society
*efinition of +slamic Economics
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I% s%udies man no% onl) as an isola%ed individual (u% ofa social individual &avin!/
fai%&0 e%&ics *(elievin! in %&e si1 ar%icles0 &is deeds is
accoun%a(le %o Alla& as i% is !uided () Shari’ah# &e is also re2uired %o 'ro'a!a%e !ood doin! and
'ro&i(i% (ad doin! al-Amr bil Maruf wa al-Nahy anil Munkarin %&e socie%) *wa%c& &is (usiness e%&ics3
+on%# $efini%ion of Islamic Economics
%&
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A4&ira&, the hereafter for accountability#and for getting the outcome of all deedsincluding economic activities# in an eternal
life.Economic and Non-Economic well-
(ein! for leading a good life and
discharging socio-+slamic obligations in thisworld and for achieving the home ofhereafter.
Islamic Economic
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.ow Islam views %&e
Economic Pro(lems Scarcity of (esources
nlimited &ants / hoice
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(esources in +slam
"llah 0swt) 1as created resources in abundant.1owever recourses in the eyes of mans is
scarce2limited due why3due to lac% of means to reach this resources
0which is the results of man’s choice such aslac% of %nowledge# s%ills# etc.)
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+slam recogni!es that human desires areunlimited. his is e'plained in the 4uranand in the 1adith.
nlimited &ants
%4
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567 89 8: ; 8?@ 8 A B
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0M) NO QR ?T,
5 678 9 :;;7? @B @CD F :GH8 JKLB H B 67 ? H 6 G 8 9 :V7:= >;7? @B :;
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1ence scarcity of means necessitateschoice which can provide higher valuesbut at same time performing one’s mission
in this life.
hoice in +slam should be ran%ingaccording to need fulfillment and not togreediness
hoice in +slam
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"cquiring &ealth in +slam+s it prohibited 3
_es`No
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&hen a man dies he will be as%ed on four,H- 1is youth how he spend it3
V- 1is age how he spend it3K. 1is wealth how he acquires it3 /J. 1ow he spends it3
8bG 7 Z8 >;ZL [ YZ [ 6 :g :g hH7 J L jk :; >: L B L pqG Y\ F:;7 6G L :Fg
>tq\ G F >7:F L8 j: :; j]L L8
Cont. Acquiring Wealth in Islam
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WOR$xIEW AN$ E+ONOMI+S
Q y# .ow can Islamic economics (ee1'lained wi%&in %&e con%e1% of Islamicworldview#
Q z{# $iscuss %&e conce'% of 4&alifa& in %&e'roduc%ion0 alloca%ion and dis%ri(u%ion ofresources from %&e Islamic 'ers'ec%ive#
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&orldview e'plain how man perceives this world. +tdenotes “a set of implicit or e'plicit assumptionsabout the origin of the universe and the natureof human life”.
WORLDVIEW
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SE+UAR WOR$xIEW
Every community or system is controlledor influenced by its own worldview. hedifferent worldviews among communitiesor among system lead to dissimilar end
means of human life.
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- separation between religion and otheraspects of life#
- materialistic#- individualistic#- less socio economic Wustice
- less public relations#- less concern with the hereafter life
SE+UAR WOR$xIEW*Man’s Way of Life)
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- belief in a dual worldviews, this world / thehereafter
- religion is part of his2her daily life- maslahah of the ummah 0public benefit)#- accountability#
- trustworthiness#- transparency etc.
ISAMI+ WOR$xIEW*Man’s Way of Life)
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Islamic WOR$xIEW
To understand the Islamic orldvielet us 'rst de'ne the folloin#s(
%" Islam) Iman, A’mal, Ihsan.*" +elationshi! beteen $llah) man)
nature) reli#ion"3" The nature and characteristics of
man, man-s role as ‘abd and khalifah
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Lan as a Xhalifah./ice#erent and 0lave1
Y Lan is the khalifah of "llah or vicegerenton earth and the resources at his disposalare a trust 0 Amanah).
Y 1e must utili!e them according to the willof the reator and he will be held
accountable for any misuse of %&eseresources. +t thus# follows that theseresources are means to attain falah.
d l h ( i
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‘ Adalah (Justice
Everyone is a khalifah) unity and brotherhood ofman2ind" This brotherhood ould remain ahollo conce!t devoid of all substance if it is notaccom!anied by ‘adalah .ustice1"
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Zature
Zature is the creation of "llah for man. "ll resources in nature are means for man to
attain his falah 0happiness) in this world and in
the hereafter.
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Lan’s aim in life
Lan’s aim in life is to achieve happiness not
in this world alone but in the hereafter too# i.e.to achieve falah 0success2prosperity).
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ont. he +slamic &orldview
1ence the +slamic worldview can bedescribed as a dual worldview# comprisingboth %&is world and %&e .ereaf%er .
he +slamic worldview is based on +slam. "ll worldviews must include concepts on "llah2Tawhid, Lan2Khilafah, Zature# Lan’saim in life# [ Adalah
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Luslim believe that this world is atemporary place for them to be
tested in order to determine whetherthey will get the reward orpunishment in the 1ereafter.
ont. he +slamic &orldview
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Q |# $ifferen%ia%e (e%ween secular and Islamicsources of 4nowled!e in rela%ion %o economics#
SOUR+E O} NWOE$~E
IMPORTAN+E O} NOWE$~E IN
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Y o see% %nowledge is a holy duty\ it is
obligatory on every Luslim# male andfemale.
Y he first revealed word in the 4ur’an was]IQRA] (E"* i.e. it encourages man tosee% %nowledge# to be educated.
IMPORTAN+E O} NOWE$~E INISAM
SOUR+ES O} NOWE$~E IN
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SOUR+ES O} NOWE$~E INISAM
Xnowledge can be classified into two%inds with respect to the sources of%nowledge\
H. (evealed Xnowledge and
V. "cquired Xnowledge
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WESTERN SOUR+E O}NOWE$~E
&estern source of based upon acquired%nowledge# i.e. upon cultural tradition reinforcedby strictly philosophical premises based uponspeculations.
here can be no certainty in philosophicalspeculations in the sense of religious certaintybased on revealed %nowledge understood ande'perienced in +slam.