Islamic economics

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Islamic economics (Arabic: الاقتصاد الإسلامي) refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings.[1] Islam has a set of specific moral norms and values about individual and social economic behavior. Therefore, it has its own economic system, which is based on its philosophical views and is compatible with the Islamic organization of other aspects of human behavior: social and political systems.[2]

Islamic economics is a broad field, related to the more specific subset of Islamic commercial jurisprudence (Arabic: فقه المعاملات, fiqh al-mu'āmalāt). It is also an ideology of economics similar to the labour theory of value, which is "labour-based exchange and exchange-based labour".[3][4] While there are differences between the two, Islamic economics still tends to be closer to labor theory, than subjective theory.

Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a Shari'a compliant manner,[5] i.e., a manner conforming to Islamic scripture (Quran and sunnah). Islamic jurisprudence (fiqh) has traditionally dealt with determining what is required, prohibited, encouraged, discouraged, or just permissible.[6] according to the revealed word of God (Quran) and the religious practices established by Muhammad (sunnah). This applied to issues like property, money, employment, taxes, loans, along with everything else. The social science of economics,[6] on the other hand, works to describe, analyse and understand production, distribution, and consumption of goods and services,[7] and, studied how to best achieve policy goals, such as full employment, price stability, economic equity and productivity growth.[8]

Early forms of capitalism are thought to have been developed in the Islamic Golden Age[9][10][11] from the 9th century and later became dominant in European Muslim territories like Al-Andalus and the Emirate of Sicily.[12][13] The Islamic economic concepts taken and applied by the gunpowder empires and various Islamic kingdoms and sultanates led to systemic changes in their economy. particularly in the Mughal Empire.[14] its wealthiest region of Bengal, a major trading nation of the medieval world, signaled the period of proto-industrialization,[15][16][17] making direct contribution to the world's first Industrial Revolution after the British conquests.[18][19][20]

In the mid-twentieth century, campaigns began promoting the idea of specifically Islamic patterns of economic thought and behavior.[21] By the 1970s, "Islamic economics" was introduced as an academic discipline in a number of institutions of higher learning throughout the Muslim world and in the West.[5] The central features of an Islamic economy are often summarized as: (1) the "behavioral norms and moral foundations" derived from the Quran and Sunnah; (2) collection of zakat and other Islamic taxes, (3) prohibition of interest (riba) charged on loans.[22][23][24][25]

Advocates of Islamic economics generally describe it as neither socialist nor capitalist, but as a "third way", an ideal mean with none of the drawbacks of the other two systems.[26][27][28] Among the assertions made for an Islamic economic system by Islamic activists and revivalists are that the gap between the rich and the poor will be reduced and prosperity enhanced[29][30] by such means as the discouraging of the hoarding of wealth,[31][32] taxing wealth (through zakat) but not trade, exposing lenders to risk through profit sharing and venture capital,[33][34][35] discouraging of hoarding of food for speculation,[36][37][38] and other activities that Islam regards as sinful such as unlawful confiscation of land.[39][40] Complementing Islamic economics, Islamic entrepreneurship has gained traction, focusing on Muslim entrepreneurs, ventures, and contextual factors at the intersection of Islamic faith and entrepreneurship.[41][42]

  1. ^ صدر، اقتصادنا، ۱۴۲۴ق، ص۴۲۱.
  2. ^ Monzer, Al Iqtisad al Islami [The Islamic Economy], pp 90 - 28 , 1981 ,.
  3. ^ Roy 1994, p. 133.
  4. ^ Philipp, Thomas (1990). "The Idea of Islamic Economics". Die Welt des Islams. 30 (1/4): 117–139. doi:10.2307/1571048. JSTOR 1571048.
  5. ^ a b Mat, Ismail; Ismail, Yusof. "A Review of Fiqh al-Mua'malat Subjects in Economics and Related Programs at International Islamic University Malaysia and University of Brunei Darussalam" (PDF). kantakji.com. p. 1. Archived from the original (PDF) on 23 January 2015. Retrieved 22 January 2015.
  6. ^ a b Saleem, Muhammad Yusuf (n.d.). "Methods and Methodologies in Fiqh and Islamic Economics" (PDF). kantakji.com. p. 1. Archived from the original (PDF) on 22 January 2015. Retrieved 22 January 2015. The paper argues that the methods used in Fiqh are mainly designed to find out whether or not a certain act is permissible or prohibited. Islamic economics, on the other hand, is a social science. Like any other social science its proper unit of analysis is the society itself.
  7. ^ "Definition of ECONOMICS". Merriam-Webster. Retrieved 28 March 2018.
  8. ^ "ECONOMIC GOALS". amosweb.com/. Retrieved 22 January 2015.
  9. ^ Banaji, Jairus (2007). "Islam, the Mediterranean and the Rise of Capitalism" (PDF). Historical Materialism. 15 (1): 47–74. doi:10.1163/156920607X171591.
  10. ^ Maya Shatzmiller (1994), Labor in the Medieval Islamic World, pp. 402–03, Brill Publishers, ISBN 90-04-09896-8.
  11. ^ Labib, Subhi Y. (1969). "Capitalism in Medieval Islam". The Journal of Economic History. 29 (1): 79–96. doi:10.1017/S0022050700097837. S2CID 153962294.
  12. ^ Arrighi, Giovanni (2010). The Long Twentieth Century. Verso. p. 120. ISBN 978-1-84467-304-9.
  13. ^ Ruggles, D. Fairchild (2008). Islamic Gardens and Landscapes. University of Pennsylvania Press. pp. 15–36. ISBN 978-0812240252.
  14. ^ Chapra, M. Umar (2014). Morality and Justice in Islamic Economics and Finance. Edward Elgar Publishing. pp. 62–63. ISBN 9781783475728.
  15. ^ Sanjay Subrahmanyam (1998). Money and the Market in India, 1100–1700. Oxford University Press. ISBN 9780521257589.
  16. ^ Giorgio Riello, Tirthankar Roy (2009). How India Clothed the World: The World of South Asian Textiles, 1500-1850. Brill Publishers. p. 174. ISBN 9789047429975.
  17. ^ Abhay Kumar Singh (2006). Modern World System and Indian Proto-industrialization: Bengal 1650-1800, (Volume 1). Northern Book Centre. ISBN 9788172112011.
  18. ^ Junie T. Tong (2016). Finance and Society in 21st Century China: Chinese Culture Versus Western Markets. CRC Press. p. 151. ISBN 978-1-317-13522-7.
  19. ^ John L. Esposito, ed. (2004). The Islamic World: Past and Present. Volume 1: Abba - Hist. Oxford University Press. p. 174. ISBN 978-0-19-516520-3.
  20. ^ Indrajit Ray (2011). Bengal Industries and the British Industrial Revolution (1757-1857). Routledge. pp. 7–10. ISBN 978-1-136-82552-1.
  21. ^ Kuran 2004, p. x.
  22. ^ Kuran, Timur (1986). "The Economic System in Contemporary Islamic Thought: Interpretation and Assessment". International Journal of Middle East Studies. 18 (2): 135–164. doi:10.1017/S0020743800029767. hdl:10161/2561. S2CID 162278555.
  23. ^ Quran (Al-Baqarah 2:275), (Al-Baqarah 2:276–80), (Al-'Imran 3:130), (Al-Nisa 4:161), (Ar-Rum 30:39)
  24. ^ Karim, Shafiel A. (2010). The Islamic Moral Economy: A Study of Islamic Money and Financial Instruments. Boca Raton, FL: Brown Walker Press. ISBN 978-1-59942-539-9.
  25. ^ Financial Regulation in Crisis?: The Role of Law and the Failure of Northern Rock By Joanna Gray, Orkun Akseli p. 97
  26. ^ "Islam and Economic Justice: A 'Third Way' Between Capitalism and Socialism?". Archived from the original on January 7, 2008.
  27. ^ "Muhammad Qutb and his book Islam : the Misunderstood Religion". gemsofislamism.tripod.com. Archived from the original on May 3, 2016.
  28. ^ Ishaque, Khalid M. (1983). "Islamic Approach to Economic Development". In Esposito, John L. (ed.). Voices of Resurgent Islam. New York : Oxford University Press. pp. 268–276. the two models projected by the First and the Second Worlds. Both are basically materialistic, have priorities ... which permit wholesale exploitation. In the West it is the big corporations and cartels and in the Socialist countries it is state capitalism and bureaucracy.
  29. ^ Quran 4:29
  30. ^ International Business Success in a Strange Cultural Environment By Mamarinta P. Mababaya p. 203
  31. ^ Quran 9:35
  32. ^ Al-Bukhari Vol 2 Hadith 514
  33. ^ Ibn Majah Vol 3 Hadith 2289
  34. ^ International Business Success in a Strange Cultural Environment By Mamarinta P. Mababaya p. 202
  35. ^ Islamic Capital Markets: Theory and Practice By Noureddine Krichene p. 119
  36. ^ Abu Daud Hadith 2015
  37. ^ Ibn Majah Vold 3 Hadith 2154
  38. ^ The Stability of Islamic Finance: Creating a Resilient Financial Environment By Zamir Iqbal, Abbas Mirakhor, Noureddine Krichenne, Hossein Askari p. 75
  39. ^ Al-Bukhari Vol 3 Hadith 632; Vol 4 Hadith 419
  40. ^ Al-Bukhari Vol 3 Hadith 634; Vol 4 Hadith 418
  41. ^ Gümüsay, Ali Aslan (2015-08-01). "Entrepreneurship from an Islamic Perspective". Journal of Business Ethics. 130 (1): 199–208. doi:10.1007/s10551-014-2223-7. ISSN 1573-0697. S2CID 140869670.
  42. ^ Ramadani, Veland; Dana, Léo-Paul; Gërguri-Rashiti, Shqipe; Ratten, Vanessa, eds. (2017). Entrepreneurship and Management in an Islamic Context. Cham: Springer. doi:10.1007/978-3-319-39679-8. ISBN 978-3-319-39677-4.