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Islam
gives a comprehensive approach to economic life
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The
relationship between economics and religion has a very solid ground in Islam.
This has reflected positively on Muslim society, which became a distinguished
society in the way it dealt with the economical life of the individual, and
consequently the society as a whole.
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.
The
economic part of human behavior has been mentioned in the Qur’an as a part of
the mission of all prophets and messengers in the past. For example, Allah says
in the Qur’an what means: [And
We made them imams who guided (people) by Our command, and We revealed to them
the doing of good and the keeping up of prayer and the giving of the alms, and
Us (alone) did they serve]
(Al-Anbiyaa’ 21:73). This
verse talks about prophets such as Abraham and the Israelite prophets; it also
mentions the economic system in presenting charity and social justice in the
economic distribution of wealth.
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Each economic system is based on goals, principals, or philosophies which are quite unique to that particular ideology. |
Another
example from the previous prophets is presented in the verse which speaks about
Prophet Shu`aib and how he was teaching his people not to deal in fraud and to
be just and fair in their financial dealings: [And
to Madyan (We sent) their brother Shu`aib. He said: O my people! serve Allah,
you have no god other than Him; clear proof indeed has come to you from your
Lord, therefore give full measure and weight and do not diminish to men their
things, and do not make mischief in the land after its reform; this is better
for you if you are believers]
(Al-A`raf
7:85).
Islam’s
economic system is not merely a matter of broad appeal to voluntary charity;
rather, it gives a more comprehensive approach or view of economic life, which
in turn is based on the basic teaching in the tenants of Islam.
Despite
the universality of the Islamic laws, the economic systems could vary since
there are communist, socialist, capitalist, and Islamic economic systems. Each
is based on goals, principals, or philosophies which are quite unique to that
particular ideology.
Muslim
Economists Before Adam Smith
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Muslim scholars started writing on economics in the eighth century, about a thousand years before Adam Smith. |
Many
economists tend to think that the first systematic way that deals with economics
as a subject goes back to the 18th century and is connected with the name of
Adam Smith—the Scottish economist who wrote the classic book on economics, The
Wealth of Nations. However, there are many Muslim scholars who have
written about economics in a systematic way from an Islamic point of view, and
their writing goes back as far as the 8th century; that is more than
1000 years before Adam Smith.
Among
others, Ibn Khaldun wrote about the economic system in Islam in the 15th
century. Ibn Khaldun, in particular, was described once by the famous British
historian Arnold Toynbee as the greatest sociologist who ever lived. Ibn Khaldun
was both a sociologist and economist because he dealt in a systematic way with
some aspects pertaining to economics. Throughout Islamic history, there have
been numerous jurists and scholars who also wrote about certain aspects of
Islamic economics, but these writings were scattered in a variety of books of
jurisprudents.
There
are numerous individuals who have been contributing to trying to revive an
economic system in Islam which should be very relevant to the Muslim as an
individual in his/her dealings; a call for a return to the foundation, to the
heritage of the Islamic economics to establish a system on the basic guidance of
Islam, and as such provide a possible alternative to the present system.
Difficulty
of Research
Researching
is difficult in the Islamic economic heritage due to the following factors:
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First
of all, Muslim jurists view Islam as a complete way of life; and therefore
when they wrote about economics, most of the discussion of economics was
interspersed with other subjects that they were dealing with. Highlighting
the specific aspects that deal directly with economics, requires a lot of
diligent research in this heritage or literature.
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Another
problem is that most of the references are in Arabic. Although there were a
few attempts to translate some of those works, not all the works are
available in other languages. The reason is that these writings or works
were written at the time when the Arabic language was the language of
civilization and culture.
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Another
difficulty is that any researcher in Islamic economics today would have to
make a clear distinction between the principles enunciated in the primary
sources in Islam (in the Qur’an and Prophetic tradition), and between the
various interpretations or applications that have taken place in different
periods in history. Law principles are binding on all times, but specific
implications of those principles are not necessarily binding on Muslims
today.
Despite
these difficulties, Islamic economics has its own general or basic methodology
and its own distinct ideological foundation. If given enough time and effort,
reconstruction will not be too difficult.
Methodology
of Studying the Islamic Economic System
The
Islamic economic system has its own principles and philosophies, and the only
way to understand them is to refer back to what is called the primary sources of
learning about Islam and its principles. These are mainly the Qur’an, which is
viewed by Muslims as the word of God, and the Prophetic tradition which
explained and elaborated upon how to apply those principles.
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The primary sources of learning about Islam and its principles are the Qur’an and the Prophetic tradition. |
This
means that the contemporary scholar trying to study Islamic economics would have
to learn how to consult these primary sources directly, something that requires
a certain methodology. He also has to learn the basic rules or ways that appear
to be solutions to the new problems which may arise in a certain time or place,
and to make sure that the solution of the contemporary economic problems does
not contradict the text or the spirit of Shari`ah, or Islamic law.
Ideological
Basis and Its Impact on Economic Activities
The
ideological basis in Islam could be summarized into six basic principles:
The
cornerstone is that everything has to start from the belief in Allah or God as
the Creator, Lord, and Sovereign of the universe. This implies willingness to
submit to God’s will, to accept His guidance, and to have complete and
unqualified servitude to Him. This
means that Muslims—individually and collectively—should not imitate or
immolate any other system that differs from their particular principles, for
example, usury or interest.
The
second basic principle is that Islam as a religion is a complete way of life,
something that guides a person’s life in all its aspects: the moral, social,
ethical, economic, political, etc. All of these aspects are based on the
guidance of God. Therefore, it is not a question of the person’s acceptance of
God’s teaching in one matter and the refusal of acceptance in another;
everything has to be within that basic guidance.
A
third principle is that God created human beings on earth as His trustees, which
means that everyone is created to fulfill a certain responsibility on this
earth. God has entrusted human beings to start a civilization which is based on
the moral, ethical values that He Himself provided. In addition, Islam provides
an opportunity in material progress, thereby combining moral, social, and
material progress, all interlinked together in harmony.
The
fourth principle is that God, in order to help humankind to fulfill the
responsibility of trusteeship, has made everything in this universe subservient
to them. There are many verses in the Qur’an that suggest this meaning, such
as: [Allah
is He Who made subservient to you the sea that the ships may run therein by His
command, and that you may seek of His grace, and that you may give thanks]
(Al-Jathiyah 45:12).
There are many other verses that urge humankind to responsibly harness the
various resources that God has made available to them on this earth. This means
that enjoyment of the good things that God has created within the boundaries
that He has given, is not regarded as sinful as long as it follows His path and
does not transgress His limits.
The
fifth principle is the principle of accountability in the Hereafter. God has
given human beings trusteeship and resources. This means that every single
person will be questioned on the Day of Judgment, as to how he or she behaved
enjoying his or her earthly life, which includes, of course, our economic
behavior.
The
sixth principle is that the variation in wealth among people in itself does not
give a person either inferiority or superiority, because God does not look into
a person’s property or face, but rather, He looks into his/her heart.
*
Adapted from a lecture in Dr. Jamal Badawi’s Islamic
Teachings series.
**
Dr.
Jamal Badawi is a professor at Saint Mary’s University in Halifax, Canada where he currently teaches in the areas of Management and Religious Studies. He
is the author of several works on various aspects of Islam.
