Islamic Economics History: 14th Century

Tallest Buildings of the World: Economies of Kilwa and the other Islamic Lands in 14th Century (A.D) Ismail Yurdakok [email protected]

Abstract:

14th century was a recovery for global trade. After Crusade Wars in 11th 12th and 13th centuries and tragical invade of Mongols Baghdad and Central Asian historical centers in the middle of 13th century; the Islamic lands had begun to repair. Mamluks as powerful administration in Egypt and Syria, Mali a welfare state in West africa, Arab and Persian muslim businessmen in Western cities of India; export of raisin and fig from Malaga of Spain to India; lively trade between city-states of Italy and Islamic countries. Also, after long centuries Western World had begun to mint gold coins in 1252 and impacts of this to world trade was seen in 14th century. Italians prepared dictionaries and brochures for their businessmen who go to Islamic countries. Cairo had got a population of 500,000 and Lahejan (silk-city) on the Caspian shore was producing silk. Ceramic industry of Kashan between Isfahan and Tahran was selling ceramics to a lot of countries of the world. Free trade was the main characteristics of Islamic world. In the second part of the paper two famous scholar of 14th century Ibn Qayyim and Ibn Khaldun were studied. Zad-al Maad of Ibn Qayyim was followed and interesting notes about economics were recorded. No doubt Ibn Khaldun is a much studied scholar. But a re-reading on trading passages of Muqaddima was done and, in general not-written subjects were focused and original results were put at the end.

Tallest Buildings of the World: Kilwa and the Other Islamic Lands in the 14th Century 1-Kilwa: Singapore’s of Medieval Ages Kilwa was a sultanate between 10th-18th centuries. Three settlements; a small island Kilwa Kisiwani (capital city) on Indian Ocean near Tanzania (that is seen from main land) and the other two cities on the main land, Kilwa Masoko and Kilwa Kiwinje. Muslim settlements on the east cost Africa was established in the period of the third caliph Uthman R.A beginning the year of 648. Mogadishu (Maqdishu), Sofala, Malindi, Mombasa, Brawa and Zanzibar saw muslim tradesmen in the first century of Islam. A group from Shiraz city of Iran came to Kilwa Kisiwani. The owner of the island was Amuli a black muslim, and there was a small muslim population from Yemen that they had got a small mosque, another group from polytheists. Muriri Wabarey a muslim native of island introduced Ali b. Husayin (head of Shirazi group) to Amuli. Amuli sold the island to Ali b. Husayin. Ali paid the amount giving cloths to Amuli that he had brought from Shiraz and married the doughter of Amuli. First; Defence for a Powerful Economy Ali b. Husayin and his men settled the north of island and dig the canal deeper between main land and island because when the sea-water is pulled, it used to become low and men used to walk to island that’s why sometimes neighbour city-

states used to attack the island. Ali b. Husayin’s son Ali b. Husayin established Kilwa Kisiwani as one the most powerful cities and transformed it to the greatest port of Indian Ocean trading-net. He evolved good realtions with the other islands like Zanzibar and went to Zanzibar and collected men from Zanzibar and returned to Kilwa as a very powerful man against to polytheists of island. In the 12th century, Sultan Dawud b. Sulayman (his reign 1130-70) took Sofala city (Nova Sofala, now in the south of Mozambik) that there was a gold-trading between Mogadishu and Sofala and then Kilwa met abundance and wealth. Because 10 tons gold was being produced a year in Zimbabve and this production had brought a high income to the peoples of the region. Kilwa Sultanate had established good trading relations with the indian tribes of inner regions of South Africa, surroundings of Lake Malawi and today’s Zimbabve. We have to notice that ‘good trading relations’ and especially ‘trading’, not ‘exploitation’ of future centuries of imperialist powers. Kilwa was selling cloths and taking gold. Ivory and slave was coming from inner regions of today’s Tanzania and Malavi. Kilwa was buying kitchen tools from Arabian peninsula, ceramics from India, porcelains from China and selling gold, ivory and slaves. “Abu’l Mawahib” Approximately one century after Ali b. Husayin, the boundaries of Kilwa Sultanate reached Pemba Island in north, Sofala in south. Kilwa was the most powerful state of thirty-five city-states on the shores of Indian Ocean, and in the period of Sulayman b. Ali except Mogadishu all of these cities had been provinces of Kilwa Sultanate. Especially in 14th and 15th centuries Kilwa reached the highest welfare level. The greatest buildings on the south of equator before British colony period were seen on this island. In general wooden buildings were being preferred. But great buildings were being built from stones. Some 14th century’s Chineese sources mentione buildings of four and five storeys in the island. Ibn Battuta visited Kilwa Kisiwani in 1331 and writes that the island is one of the most beautiful and rendered prosperous cities of the world. Wooden houses, much raining and powerful army were taken attention of Ibn Battuta. The Sultan Abu’l Muzaffar Hasan b. Talut was entertaining the guests from Iraq, Hijaz, Yeman and the other regions of the world, in his palace. And he was a generous and courteous man that used to help poors and show kindness to scholars that’s why the nation named him “Abu’l Mawahib.” (the father of the gifts) Tragical

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Portuguese visitors, first, came to Kilwa. Vasco de Gama in 1498 and 1502 and Pedro Alvares Cabral visited the region. After their returning to Portugal and telling the high income level of the region to Portugal administrators, regent of Portugal Francisco d’Almeyda appeared in the island with 500 soldiers in 1505. Kilwa was invaded. Portugal’s power destroyed the island completely in eight years. Kilwa was a ruin in 1513. Ambition and envy of Portugueses depleted, put the end of the greatest and liveliest trading center of the world in 8 years. This was not the end of only Kilwa but the end of active trading life of East, West and South Africas. The sovereignty of Portuguese on Indian Ocean lasted approximately two centuries. This period passed with the revolts of the peoples of Kilwa and other city-states to Porgutal administration. At the end of this tragical period all of the important centers were destroyed and burned and the region and especially trading life lost old lively activities. In 1886 Germans invaded Kilwa and in 1916 Kilwa became a British colony. In 1981 Unesco declared Kilwa as world heritage site. In 14th century’s Kilwa was a country that the cargos was being carried with the ships their tonnages were 50 tons. Do 5,000 population of today’s Kilwa know that

once upon a time their island had got the highest per capita of the world ? Ibn Battuta as a Bridegroom and Judge of Maldives Maldives are in a distance of 650 km of south-west of Sri Lanka in Indian Ocean a group of 2,000 islands. Also was a place like Kilwa that muslim tradesmen and seamen came to Maldives in the first century of Islam. Qadi (judge) Hasan Tajuddin (d. 1139 A.H./1727 A.D) wrote a book about Maldives that in 548/1153 King of Maldives became muslim.(2) Ibn Battuta visited Maldives in 1343-44 and 1346. He stayed here 1,5 years and married and was appointed as qadi (Islamic judge). He mentiones the trading traditions of the islands. (3) Famous Arab seaman of 15th century Ibn Majid and after him Sulayman b. Ahmad al Mahri also mention Maldives in their studies and they give useful knowledges especially for seamen. Portugal also invaded Maldives between 1558-73 but at the end of a strong resistance of people, they were dismissed from the islands.(2) High Trading Ethics of Malabar Muslims. Ibn Battuta also visited Malabar lands in the first part of 14th century. He writes there were native muslims in every cities of Malabar. And in some cities the population of these Arab and Persian muslims were more than one or two thousands.(3) Arabs and Persian sailors used to name Malabar the south-west shores of India. Even in the pre-Islamic period Arabs had got much trading relations with this region. After hegira (622) muslims began to come to Malabar cities. These first groups were nucleus of Mappilla (Mopla) muslim community of India. They had not got any political or military support (like future centuries of North India) but Islam spread the region very easily. This achievement was the result of high trading ethics of muslims. How Malwa Developed?

Internal Peace Means Economic Growth

As a region in central India, Malwa entered muslims’ sovereignty in 1305. The capital city was Dahr and the region saw a rapidly muslim immigration to the region. But Khalaji and Tugluk Dynasties did not interfere to the Indian tribes. Indian rajas and chieftains got bored civil wars of perivious periods. They were now at ease under muslim governments. That’s why Malwa became quietest region of Delhi Sultanate in a long time and this situation contributed for development of Malwa. Dhar, Ujjayn and Chandari regions saw a great increasing in population and progress in cultural life; Abu’l Fadl says, there were 14,000 houses, 384 market place and 360 caravanserai (free hotels for tradesmen and visitors) and a huge castle in Chandari.(4) On the other part of Indian Ocean, in Africa, Mogadishu was also in a lively trading life. Ibn Battuta was there in 1331 and says under the administration of Sultan Abu Bekir b. Umar, the city showed a great performance in business life and as a transit center in the middle of North and South Africa had got powerful commercial relations with Egypt and Arabian peninsula.(5) A Learned Savant King Yemen saw scholar-kings in 14th century. Abbas al-Rasuli (his reign 1363-77) and his grandfather Sultan Ashraf Umar were great scholars. Sultan Abbas al-Rasuli governed Zabid and Ta’iz regions. As a good administrator he was busy with Islamic law, language, literature, knowledge of genealogy and history. Scholars of history of science are interested in his bok Bugyatu-l Fallahiyn fi-l Ashjar-al Muthmira wa-l Rayahin. The book has got 17 parts and the author emphasizes soil, water reclamation, seasons, seeds, vegetables and fruits and protect the crops from damages. Abbas al-Rasuli quoted some pasages from the sources of Greek and

Nabatians and his grandfather Sultan Ashraf Umar’s book Ma’rifati- al- Filaha. (6)

Milh al-Malaha fi

Iran in 14th Century Kashan is a historical city on the Iran plateou, 945 mt. high from the sea-level and had been established on the Isfahan-Tahran historical road. Historian Hamdullah al-Mustawfi records that Harun al-Rashi’s (famous philanthropist) wife Zubayda built the city.(7) But we have to understand that Zubayda re-established the city (because in the southwest of the city there is Tepe Siyalk ancient center that its history goes to 5.000 B.C) After the beginning years of Salchuk Empire, Kashan’s importance increased. A lot of Kashanians was appointed as statesmen in the Salchuk administration. Geographer Yaqut al-Hamavi says, in 13th century (7th A.H) Kashan was famous for its green bowls sold to the other countries.(8) But the city lost its active trading life in the second part of this century because of Mongol attacks. After a short time the city gained former importance again in the İlhanians’ period. Al-Mustavfi mentiones cisterns and canals of the city in the 14th century. Kashan was a handiwork center in all periods of history. Today it is also especially one of the most important centers of Iran, in carpet, velvet, silk cloths, jewellery and coppersmith industries.The most famous craft of Kashan, known by world, was ceramic industry but now dead. This craft was very famous between 12th-19th centuries and was at the peak in 14th century. This craft as “Kashi” was being named and in ceramics generally turquoise, sky blue, green and rarely red, yellow colours were dominant and (especially green) pots in different forms; they were being carried to markets of the world with caravans. (9) Lahijan, in the north of Iran and very near to Caspian Sea was a middle size city in 14th century. But its importance was coming from silk. ‘Lah’ was ‘silk’ in old Persian, and ‘jan’ (gan) (points place) that meaning of Lahijan was ‘Silk-city.’ Producing silk and selling to the world was the main job in the city. (10) If we go on from cold-north of Iran to hot-south Iran, Laristan had got sub-tropical climate. A Turkuman dynasty was reigning when Ibn Battuta visited this state in 1347. Inner parts of Laristan was hot and arid, and shores hot and humid. There was a great market place in the city-center. But the most important characteristic of Laristan that it had got a steady currency unit in medieval ages.(11) Approximately successive 15 sultans had tried for steadiness of sikke (coin) of Laristan. That’s why sikkes of Laristan were reliable coins in every ports of Indian Ocean in four centuries of 13th-16th. And last point Lur-i Buzurg was an emirate in south-west of Iran; a regional emirate between 12th and 15th centuries. In general, emirs preferred to be as a depending state to Ilhan (Mongol) Dynasty and sent their taxes to Ilhanian Khans. Emir Nusrat al-Din Ahmad (his reign 12961339) after sending the share of Ilhans, he used to divide the taxes to three: one part to religious institutions, one part to army and last part to his family and servants. (12) The Richest Trading Centers of the World: in Africa and Middle East It is obvious that 14th century (and also 15th) is the brilliant century of Africa in business life. Mamluks gave importance to the international trade that they were aware of its useful in general incomes (for nation) and revenues (for the state budget.) They encouraged trade with Europe and especially city-states of Italy and South France.The consequence of this, trade points of Europeans appeared in some ports and cities of Mamluks especially in Damascus, Beirut and Alexandria. Mamluks also encouraged India and Far-East trade.And Egypt became the center of this active world-economy. The great part of this trade was on the way of Red-Sea. And ports on Red-Sea, and Yemen and Umman gained great incomes from this trade.

At the end, in 14th century, trade increased in Egypt and Syria; and cities like Alexandria, Damascus and Aleppo entered the richest commercial centers of the world. (13) Another important factor that increased the international trade in Middle East is the return of international Spice-road to Syria and Egypt that Mongols had prevented the working of this way from Syria and Egypt and they had encouraged another route from East-Iran to Armenia and Asia Minor (Turkey) to Mediterranean Sea. At the beginning years of 14th century, Sultan of Mamluks Muhammad b Qalawun built the Boulaq harbor at the north-west of Cairo and this harbor played an important role in the economic life of Cairo to the beginning of 15th century. In the middle of the 14th century Fustat and Cairo became united and as a great metropol (with Qal’at al-Jabal) great Cairo’s population reached 500-600,000.(14) But in the second part of the century city saw two plagues in 1348 and 1374 and a lot of men had died. Another great richness in this century in Africa was seen in Mali in the west part of the continent. Mali lived one of most brilliant periods under the administration of sultan Mense Kanku Musa (his reign 1312-37) and the boundaries of sultanate from the forests of Guinea to Saharan Desert, from Atlantic Ocean to the country of Hawzas (in the today’s Nigaria). Sultan Mense Musa’s hajj (pilgirimage) visit to Mecca in 1323-25 began with 60,000 men, but majority of this group stayed Tuwat city in the south of Algeria and sultan went on with a smaller crowd his way to Mecca. Sultan Musa gave 20,000 gold coin to the poors in the Holy Lands. Sultan’s prestige was very high in Egypt and Hijaz and he became a renowned man in all of the Islamic lands. After death of Sultan Musa; in the reign of another sultan Mense Sulayman (1341-60) Sultanate of Mali protected its power, and level of welfare became higher and there was a full security in all over the country. Ibn Battuta visited Mali 1352-53. He mentiones that sultan was a pious man and he was striving to apply the rules of Islam. The boundaries of the country expanded and reached to Niamey today’s capital city of Niger to Valata-Aravan and Atlantic Ocean, and in the north from Tishid, Tadmakka and Takadda to the equator forests in the south. After reading of Ibn Battuta’s Rihla, a lot of merchants from North Africa and Egypt went and settled Mali and they went on their busines in this rich country. This shows that there was a highly active communication in Africa and world trade in that days.(15) Europe-Islamic World Trade Relations in 14th Century Europeans had named as Levant Eastren part of Mediterranean from the 10th century. In the course of the time political conditions changed but general commodities of international trade between Europe and Islamic world did not change. In 10th-16th centuries, Islamic world exported to Europe as transit commodities spices, crude silk, and fur. And Europe bring to Levant ports a lot of kind woven tissues, silk thread, soap, glass, crystal,mirror and paper. There was a “muda” system that to protect and for security of the sea-trade, all of the ships used to go to Levant all together one or two times in a year, like caravans in the deserts. Especially the profit of Venice is very high that in 1423, this country’s sales had reached 10 million ducat (gold coins) and 4 million of this was profit.(16) Italians had prepared dictionaries and books for their merchants who went to Levant. Codex Cumanicus was prepared in Sugdak in 1303. There were 2,500 Kumanish words used in commerce in this Latin-Persian-Kumanish Dictionary. After Ottomans came to the region, this time Turkish-Italian dictionaries were prepared. And Venice did not see sufficient this studies, they began to teach their youth Turkish. These Turkish-speaking youngs were named “language-boys.” Apart from dictionaries, different books were written about the measurements, coins and export-import commodities of East Mediterranean cities. Most famous of them F.

Balducci Pegolatti’s book La Pratica della Mercatura was written in 1324 that Pegolatti had been sent to Levant by Bardi Company.(17) Rise of Venice 14th century witnessed the rise of Venice in Levant commerce. Anatolia (Turkey) Salchuk State now had collapsed. Different small-states (principalities) were sovereign in their regions. In the beginning years of the century, Venetians obtained a decree that gave vast trade rights for them in Egypt (and probably Syria) from the biggest power of the region (Mamluks) in 1302. Venice also made a commercial agreement with Ilhans (Mongols that (they became muslims gradually from 1295 and they were governing Anatolia) in 1320 and trade agreements with Aydinogullari and Menteseogullari (two principalities in the west of the region on Aegean Sea). In the last quarter of the century, Ottoman Empire began to expand and Genoeses signed a friendship and trade agreement with Murad I (Ottoman Sultan) and obtained the right of trade in Ottoman lands; after three years Venetians reached similar result with a decree of Ottoman Sultan Yildirim Bayazid. Genoeses were expelled from Trabzon (the biggest south port of Black Sea, now in Turkey) in 1306 by Trabzon Greek King, and they were obliged to leave Kefe (portcity on the north of Black Sea, now in Crimea, Ukraine); but they went on their commerce activities partly in Black Sea.Venice evolved the relations with Turkman principalities (that they were dominant on the shores of Black Sea) and began to settle Black Sea ports. Rivalry of Venice-Genoese lasted in the region and Ottomans reached south ports of Black Sea at the end of the century.(18 Commerce and Industry

3,000 Years Ago

In the other part of Mediterranean Sea, Malaka was under the administration of Nasris dynasty. In the southern Iberian peninsula, today’s Malaga was under muslem rulers in eight centuries. But more interesting, ten centuries before Christ, Phoenicians had come from Lebanon to Malaga and built a salted-fish plant, and established a commerce-point there.Romans developed Malaga and it became an important port and commerce center. Malaga was a city under the different Islamic states between 711-1487. Banu Ahmar dynasty governed the city aproximately 250 years, from 1230 to 1487. Malaga worked as a second capital city in Benu Ahmar Emitare (Nasris) and as economic and commerce center of the region.The city was also the main base of Nasris Navy; and sea traffic in the port had highly increased with the efforts of Genoeses. All of the history and geography authors of Mediavel Ages mentione Malaga with admirations. Idrisi, Ibn Galib, Ibn Said alMagribi, Ibn Abd al-Mun’in al Himyari, Yaqut al-Hamawi, Makkari, Ibn Izari, Ibn Battuta and Lisan al-Din Ibn al Khatib are who take the lead. Abundants of fruits around the city especially takes attention in all of the books. Dried fruits especially raisins, dried fig and almond were being sent to Egypt, Syria, Iraq even India. Ibn al-Khatib notes Malaga was also rich in sea-prpducts. The city had seen big progress in textile after 11th century. In different colours of silk production with golden tasseled was very famous in the world that Europeans used to name it “alguexi, albeci, alveici, oxi.” In addition, leather, iron, ceramic and precious stone industries had developed in Malaga. (19 ) Asia Minor (Turkey) in 14th Century The biggest principality in Asia minor was Karamanogullari (sons of Karaman) that this dynasty continued its sovereignty in central Turkey from 1256 to 1474, in the provinces of Karaman, Nigde, Konya, Ic-Il, Tash Eli and Alanya (Alaiya). In 1341, the envoy of Karamanoglu Ibrahim Bey was returning from Cairo with flags of sultan (of Mamluks) and caliph and casting-mold for minting gold and silver coins. The name of Mamluk Sultan would be carved in the coins of Karamans. Ibrahim Bey had

wanted it. Alauddin Bey was on the throne of Karaman in 1361 and silver coins minted in this period are exhibited today in the Istanbul Archaeology Museum (Tasheyr No. 1345) Farming in the vast plain of Karamans was the main activity and wheat, barley, oats and cotton were being planted. Sheep and horses were being growed. Egyptian historian Ibn Fadlullah had praised these horses. Karaman carpets and velvets were being weaving. Arabs used to say ‘Turk velvet’ for this kind of velvet and the other kind (of Europe) was ‘Franc velvet.’ Bertrandon de la Broquiére says “this country is rich, developed and fine” and mentiones big cities of Karamans: Konya and Larende that they were important commerce centers. Karaman principality used to export wheat, wool, leather, carpet and horse to Kingdom of Cyprus, Venice and Genoes. (20) Another proof that there was a very active commerce life in the central Asia Minor is Kirsehir’s economic life. Kirsehir is 990 mt from sea level was under the Ilhans (Mongol) invade in the first half of the 14th century. Hamdullah Mustawfi notes that there were great imarats (soup-kitchen for the poor) and in 1336 Kirsehir had sent 57,000 dinar (gold coin) to capital city of Ilhans (Tabriz) as annually tax. (21) Kirsehir’r mint was working continuous.(22) And the other region, western part of Turkey; Kutahya (city) was on the crossroads and a center of high trading activity. ‘Kutahya alum’, horses and rice were the export products in the period of Germiyanogullari principality. Another source of richness of the city was silver production from silver mines around the city. Commodities from Central Turkey and Aegean Sea were passing Kutahya and going to Bursa (city, in that period Bursa was the (first) capital city of Ottomans) that there was a big trading activity between these two cities. Characteristic of a commerce center lasted under the Ottomans rule and one of the two bedestan (vaulted covered market) of Kutahya was built in this century as a building of Timurtash Pasha Foundation. (23) Industry Brings Wealth. Mardin (city, in the soth-east of Turkey) is on a hill at an elevation of 1,000 mt. It joined Islamic lands in the period of caliph Umar in 640, with a way of peace, without any war. In long Islamic centuries Mardin has been on the highway of comes from Iran and Azarbaijan and goes to Syria and alJazira.Three centuries, the city was under the admistration of Artuks in 12th, 13th, and 14th (from 1106 to 1409. Mardin became the political, social and economic center of Diyarbakir province in 12th century and it protected its position in 13th and 14th centuries. In this period the city lived the most brilliant term of its history with its khans (large commercial buildings), market places, bazaars, shopping districts. Although the city was attacked by neighbour states and even Mongols but its great castles 800 mt. lies from east to west prevented these attacks. Ibn Sa’id al-Magribi records high quality of weaving industry. Ibn Battuta also mentiones the bazaars of Mardin and different workshops of weaving.The other author of this period Mustawfi notes that Mardin was highest tax payer in the cities of Diyarbakir province. (24) Some parts of Bulgaria and Greece were joined to Ottoman lands in 14th century and Lala Sahin Pasha the first governor-general of Ottomans started rice growing in Plovdiv (central Bulgaria.)(25) Another western principality was Karesiogulari, silk and resin cistus plants (labdanium) was being produced in capital city Balikesir and its around and was being sent to European markets. Cloths of Istanbul (Byzantium Empire) was being weaving from Balikesir silk. Silver and copper coins minted in the first half of 14th century of this principality are now in exhibition in the museums. (26) Futuwwat and Akhi Organizations Though the history of Futuwwat organizations goes to 9th century but Abbasid Caliph Nasir Li Dinillah systemized them in the first quarter of 13th century.

And in 14th century Akhi organizations were completely transformed to guild unions and their economic actions became the dominant aspect of these unions. In the middle of the 14th century, Ibn Battuta was in Turkey and he states akhi unions (trade guilds) were handicraft bodies organized in cities and towns.It was impossible for akhi apprentices to open a shop if they did not learn very well their profession. Number of artisans and shops were limited and the main principal was “production for only needs(no more).” The honest and ‘worthy to respect’ of them and probably oldest of them was their head and he used to be named akhi and these heads were influential persons on the guild’s artisans. And in every guild there was a second man named yigitbashi or server he was responsible for carrying out the regulations of a guild. Every craft branch had got an akhi and there was a chief of these akhis that his title was ‘akhi baba’ means ‘father akhi.’ (27) Some Akhis established a semi-independent state in Ankara between 1290-1354. Great name of Ottoman Empire history in 20th century Yilmaz Oztuna records that “They established Ankara a center and founded an Akhi government as a derwish-artisan state like Italian city-states in the Middle Ages. This government depended to Salchuk State to 1308, Ilhan Dynasty to 1335 and then Eratna principality and Karamanli principality.They joined to Ottomans in 1354. (28) 2-Ibn

Qayyim

In this part, some interesting notes of 14th century’s famous scholar-jurist Ibn Qayyim about economics, will be given. He says trade is difficult and that’s why Islam put a minimum zakat (official-religious tax) on this sector: (Because) “If increasing of poperty requires working of the owner continuously and sometimes going to abroad for selling and sometimes to guard it for protecing..because of these, to pay ‘one in forty’ became an obligatory. Undoubtly difficulty of this (trade sector) is more from fruit (production) and agriculture. And (the other factor is) increasing and multiplying of fruit and agriculture is more than trade. That’s why necessary obligatory (for agriculture and fruit) is more from commerce. (29) Ibn Qayyim also mentiones the changing rate of sadaqa-i fitr in the period of ‘rightly-guided calips’ and explaines that “Hasan al- Basri said that Ibn Abbas gave a sermon in Basra mosque and said: ‘The Prophet (Muhammad) did an obligatory (to all muslims) one sa’ from date and barley and half sa’ from wheat.’ But later, (caliph) Ali came to Basra and saw that prices had become cheaper and he said: “Allah gave you abundantly and that’s why you have to give one sa’ from every thing’ and in a similar sentence with clearer words: ‘..Give from wheat and the other things one sa’ ” ( 30)

When (funeral) undertakers and pharmacist get credits? Although they had not got written datas but (funeral) undertakers and pharmacist used to take into consideration the seasons. This situation was also noticed by Ibn Qayyim as a man of his community in the 14th century and noted that: “strongest and most deadliest illnesses are seen in summers. Spring is healtiest and rate of death is at the least in this season. The tradition of pharmacists and undertakers is borrowing debts in springs and summers and give them in autumns. When the spring comes they are very happy..” (31) He also discusses the using of prohibition of silver pots by the Prophet (Muhammad) and produces thoughts on the aspects of monetary and psychological effects of this prohibition. (32) He also notes the warning of Aesha (wife of the Prophet) to Zayd b. Arkam for a transaction that it was a secret interest (bay’ al-ina) that it is also forbidden (33) Ibn Qayyim

warns the community for the rights of parents. In reality, in long Islamic centuries, the concept of insurance did not evolve. The reason was strong solidarity of Islamic communities. And scholars always used to warn the nation for charity. Ibn Qayyim also does this duty: “Person when he lives in richness, abundance and in vast means but his father works as sweeper in public toilets or as stoker in stokehall of a bath or carries load on donkeys; this behaviour of a son is not appropriate. And it is not true that saying of a son: ‘my father/mother is healthy and able to work, they are not a blind or paralyzed.’ Most astonishing! Did Allah and His Prophet put a condition to help to parents that they would be a blind or paralyzed?” (34) For duties of muhtasib Ibn Qayyim writes these sentences: “the chief of the hisba oragnization prohibits the frauds in industry, and he always inspects foods and artisans who do tools and garments” in the other famous book Turuq al-Hukmiyya (35) Celal Yeniceri says Ibn Qayyim -although in some covered statements- touches the supply-demand law. Yeniceri quotes Ibn Qayyim’s sentences about ‘tas’iyr=to set a fixed price’ on commodities: “It is not lawful to set a fixed price (by government or court) if the owner of the commodity presents his merchandise to the market in a normal way but the customers increase its price.” And he emphasizes this subject in another passage: “If the men offer their merchandises to the market in a way that known by everybody without a cruelty (wrongdoing) but the prices increase because of the merchandises are few or the people is much, this increase is left to Allah (that is interference of state or court is not appropriate), and in this position to oblige the (business)men to sell the same(previous) price is an unjust compelling.” (36) Ibn Khaldun One of the Brilliant

Stars of 14th Century

Islamic history saw great scholars in 13th, 14th and 15th centuries as as a passing of stars. From Nawawi to Ibn Hajar a lot of big names, in this period, produced interdisciplinary magnum opus studies. Ibn Khaldun lived in the middle of this term. Ibn Khaldun opposes economic actions of state. If the state does economic actions this is an attack to the rights of the nation. “He explains his theory with two reasons: If the state is busy with trading and agriculture with its great financial and political power against traders and farmers this is an unfair competition. It is possible that tradesmen and farmers can not carry this unbearable financial burden (competition) and they leave economic arena. This is an aggression the rights of tradesmen and farmers that they improve the lands (of the country). And this act of state cuts (injures) the love of the production and working of the people, and at the end, the economic life of the country comes to an impasse and to collapse. And, the working of state at trading sectors causes the rising of the prices of commodities. And the state loses.Because of decresaing of economic actions in the country causes lost of taxes and this lost is much more than the probable earnings of state. On the other hand an added economic power on the political power of the state causes despotic applications of (more powerful) state and this is a dangerous for the individual rights and freedoms. If the state and administrators begin to do farming; after a period, they prevent (with their political power) the formation of the free prices, they force the nation to buy/sell the foods (and goods) on the prices that they fixed. These applications upset the economic situation of the nation and causes unjustly and cruelty behaviours. At the end, tax revenues decreases.” (37) In the teaching of Ibn Khaldun, the thories of ‘No Fixed Prices’, ‘Free Market’, ‘Reason of Decreasing Taxes’ are very clear. Wicked Capitalists. According to Ibn Khaldun there are two kinds of tradings/tradesmen. One carries the goods from the place of production to the places that the costumers are in need of this goods and this kind of capitalist (tradesman) endures a lot of difficulties, risks and he produces widespread advantage/profit for consumers and producers. Ibn Khaldun

praises this kind of capitalist. But the other kind that they are inclined to speculation, trick and deception, Ibn Khaldun denigrates them and he estimates this kind of trading is a kind of gambling and they seduces the ethics of the other tradesmen...In general ‘trading’ may be defined as ‘to buy property and goods in a cheap price and to sell with a higher price and to gain a profit in this way.’ That’s why tradesman either hides the commodities that he bought and waits raising of prices and sells when he finds a good price for him or he takes away the goods to the places that they are very scarce there and sells. But in the second way the profit is not much and requires great difficulties and risks. But greed of earning much money makes incline (some) men to speculation and that’s why the trading is transformed a defective occupation like a gambling.(38) But we see in the other pages of Muqaddemah that the type of Ibn Khaldun’s tradesman has not got the other characteristics ‘overstruggle’ ‘overcompetition’ and ‘to spend all of his life like a monk with a great greed following the profit.’ (39) Encouragement For Overseas Trade/Business. Ibn Khaldun looks for bravery in tradesmen and it is understood that his purpose is a type of enterprising that indures the risks, he is not-static, not-hesitant, but dynamic and daring. He encourages the tradesmen to go distant cities and countries pointing the importance of bearing risks and law of supply-demand in economic life.(40) Demonstration Effect of Rich Classes. Ibn Khaldun looks at rich classes that they are a group that degenerates the societies in all of the history and impels the nations to the collapse in economics, sociological and political aspects. Doubtless he is not an enemy to the wealth and owners of properties. He reached an opinion for the reason that accumulating of richness in some classes, in the history, and using of this wealth in some ways that exceeds the natural and lawful limits. Ibn Khaldun frequently emphasizes that luxury, prodigality and show off begin first in rich classes and with their influences spread to all of the nation and this causes the collapse of the communities. (41) Apart from his the other contributions, Ibn Khaldun brought a positive and realist comprehend to world of thought. Muqadddamah as a ‘detailed investigation of human society’ (42), Ibn Khaldun is an important critic of his time. Even he criticized famous philosophers of ancient and middle ages for their theories of madina-al fadılah (virtuous city), saying: “ this ‘no need to a judge city’ is only an imaginated and only in the tongues and books of philosophers, but remote in occurence in the world..” (43) City is important for Ibn Khaldun, because he is (also) a historian of city-economics. And historiography of city-economics is a long and tiring struggle. Kasad

And

Fasad

We frequently see the words of kasad and fasad in Muqaddemah. Kasad means ‘stagnant in market trade, stagnation, stagnancy; time of scarcity or unemployment, and ‘kasid’: not in demand, dull (market)’ (44) and fasad: ‘intrique, sedition, disorder, mischief..’; in Muqaddemah: “..ragabat-al nas qaliylun ila eshya wa amwal-al tujjar, wa suq-un kasid wa hal-al baldah fasidun ..” (when the desire (demand) of the people is very few to goods and commodities of tradesmen, (at the end) a dull market and the city is in a disorder position, a not-tranquilly situation” (45) Scarcitiy and abundance were concepts that everybody used to know these in the long precapitalist centuries of the history. Even thousands years ago; in the time of Prophet Joseph, Egyptian people had seen seven scarcity and seven abundance years (Quran,12:43-49) History of humanity saw a lot of cyclic periods before the cyclic theorists put their theories. Adam Mez mentiones an interesting speculatice action of traders of grain in the 9th century (CE) that they earned at first 12 million derhams (silver coin) but at the end a sudden low in prices they

lost 66 million derhams. (46) Economic fluctuations were noticed by Ibn Khaldun that he was drawing a completed table of city civilization with the elements of shocks and depressions in the way of rise-grow and collapse. His studies were historical but also empirical. He wathced, first, the stagnation in the market and dull seasons and beginning of dull years and collapse of cities, he saw ghost towns and ghost cities, before the years of abandoned towns of United States, in the 19th century. Harms of excessive abundant and very cheap prices (hasb and rakha.) (47) Harms of abundant spreads from villager to miller and baker. This situation shocks the position of tradesmen and causes stagnant, and investments are delayed. Stock surplus also in sugar, honey and textile give harms to artisans and businessmen.” We remember in this point a verse in Quran: “..Every thing is in (due) proportion in His (God’s) presence” (13:8) That is God gives every thing to the humanity in a well-calculated, mesaured, planned. The man also have to plan his trading/production according to the needs of market. Ibn Khaldun mentiones an ‘unbroken prosperity (affluence) period’ (first time in the history) and puts necessary conditions of this period. “When the earnings and goods (and foods) circulate rapidly and easily, without any impediment. This is a time and a condition between scarcity and abundant as ‘mutawassit’ (that intervenes, intermediate, middle term)” Thus, he puts two opposite polars (overproduction and under consumption) in economic disequilibrium and separates these two with definite lines. His giving importance especially to ‘overproduction’ before industrial capitalism is (the first in history of economics) and with the sentence of Prof. Sabri Ulgener: “only this topic is enough for Ibn Khaldun to say for him he is the head of theorists of crisis” (48) The Father of City Theorists Saying: “Constructing of buildings and cities is the characteristics of civilizaton that reason of this is affluence and welfare. Great buildings could not be built but only with a big cooperation and help of different sectors to each other.” Ibn Khaldun adds: “When the cities begin to collapse in the arts and crafts (industry), embroiderers, goldsmiths, scribers (professional writer of letters and petitions) disappear from these cities.(49) But some cities go on to live. If the hinterland of these cities is crowded, rich men of this hinterland come these cities and these (new) rich men become civilized citizens of the (old) city. Environment.“City has to be built on a geography has got a convenient climate and good weather, wind for protect the calamities and illness. Because if the weather of the city is heavy and dirty or the city is in the near of a lake or river that its water has got a bad smell the bad impacts spread rapidly to the city and causes to the illness for the all of the creatures of the city. These are the knowledges that are obtained with observations.”(50) Mega-Cities Metropolitans. Muslims are not foreigner the concept of mega-cities from the early days of Islam; because in Quran they saw destroyed cities of ancient nations. Antioch had got a population of one million and three prophets had been sent to this mega city, mentioned in Quran: (36:13-27) Ibn Khaldun mentiones a note from the ‘History of Baghdad’ of Khatib Bagdadi that “In the period of caliph Ma’mun, the numbers of bathes had reached to sixty-five thousands and in that time Baghdad used to include more than forty cities and towns adjacent and near each other. That’s why it was impossible to rampart Baghdad with one city wall. Ibn Khaldun also adds city’s defence is very easy with this wall. A wall is equal a lot of soldiers that without a powerful army a city can defence itself with protecting of this ramparts. The citizens of the city use

this ramparts as a castle.Differences Among Cities. We see ‘empirical method in historiography’ of Ibn Khaldun. It is also ‘to use empirical methods in economics.’ He observes the differences in the beggars of different cities and takes out scientific results from these: “(Differences in the positions of the cities) are observed in the conditions of poors and beggars. For example the condition of a beggar of Morocco is better than a beggar of Telamsan or Wahran. I watched beggars of Morocco were asking money for killing a sacrifice (sheep or goat) in the days of Festival of Sacrifice. And they was asking meat, butter, spices, garments, pots and pans that they may be added luxury; if a beggar wants these in Telamsan or Wahran he/she is rejected even is scolded.” High Income Level of Islamic Countries. We also see these sentences in Muqaddima: “In our era, we hear some news about the richness of Cairo and Egypt that we are astonished at a high degree of the luxury and richness. Even because of listening these news a lot of poors in Morocco they begin to immigrate to Egypt. Ordinary people believe that this high condition of Egypt is from the generosity and charitable of the nation of Egypt and they have got very much wealth. But this is not true. The only reason is ‘umran’ of Cairo is much populated than the cities of Morocco. If the incomes and expenses increase, the inhabitants of the city meet the affluence and welfare and city becomes larger. And the result of the excess in labor and overproduction the aid to the others becomes very easy.”(51) Town and City in the Formation of Prices Philip K. Hitti had said: “...In the Muqaddima he (Ibn Khaldun) discusses social cohesiveness and its basis, climatic and occupational influences on group character, “laws” of social change, economic and religious determinism –all in an original way. No such approach or treatment had been known before; it is almost modern, and he has therefore been called the father of sociology and of the philosophy of history.” (52) ‘City’ is in the center of Ibn Khaldun’s theories. “Chapter Four (of his Muqaddemah) covers on the societies of urban civilization (‘umran hadari), that is of the most developed and sophisticated forms of civilization; and Chapter Five: on industries and economic affairs in general.” (53) When Ibn Khaldun’s name is said, the life of bedouinism is remembered for his theory of ‘asabeyya’ and when the word of ‘asabeyya’ is mentioned even (some) academicians think and suppose that the thesis of Ibn Khaldun are about rural affairs, thinking tribal traditions in Arabic communities, but on the contrary Ibn Khaldun (even) encourages urbanization: “...essentially these settlements are not accepted even a city. The position of these small towns is very bad and who live in these places are nearly in poverty. Their works (labours, strugles) are not enough even for their necessary expenses. It is impossible also fort them to increase in their earnings or to do savings. That’s why except very rare positions, dwellers of these small towns are in poverty and neediness.” (54) We have to remember that Islam is also a city civilization. The Prophet Muhammad was born and began his duty in the most famous city of Arabia. Not only the prophet Muhammad but all of the prophets before him were sent to city centers. (“And your God did not destroy the cities, till He had sent to their mother city a prophet...” (28:59) In the early centuries of Islam ‘friday prayer’s were not performed (in the villages and towns) but only in the cities. We see in the history that muslims began to build great (even mega) cities (even) in the first century of Islam. Ibn Khaldun also is the first who searched and followed price fluctuations and price differences in small and big cities. He says prices of goods and foods and demands and supplies of these goods and foods change according to the bigness and smallness of cities. “If a city becomes rich and prosperous and its population increases; the prices of foods and necessary things like these become cheap; but

the prices of fruits and like these increase. And on the contrary if the ‘umran’ (being cultivated and prosperous) of the city decreases and the population goes down the prices of necessary things for living increase and the prices of ‘second degree needs’ (fruits etc.,) become cheap. The production of necessary things in these small towns is vey few that’s why the people do stocks (hide, bury, accumulate) these things and this action increases the prices. It is difficult to find these necessary things in small towns and this situation increases the prices.”(55) Saying “public bathes are only seen in overpopulated civilized cities because public bathes is a need that required luxury, richness, and to be in comfort. That’s why public bathes are not seen in middle size cities. But sometimes some sultans (kings) and amers (princes, rulers) build these (as their generosity) in the small cities. But if a (necessary) demand for working of these bathes is not found, these bathes are left and ruined. No one wants to rent (run, operate) these places because of very few income”(56), Ibn Khaldun as an Islamic scholar was pointing that ‘(at least some of) economic crisis are not a destiny for humankind and (also some of (may be majority of) economic crisis are preventable.(57) The matter of ‘public bathes in small cities’ is also an example for non-useful investment of state(STO state owned enterprises). We see another example in Muqaddemah that: “You have to know that if labor and working cease to exist with decreasing of umran (state of good or flourishing cultivation, urban civilization) God permits the loss of earnings there. What people says is true: “The places that decrease their umran, sustenance of their cities also lose” Look at some rivers in the deserts. Some rivers disappear when the communities leave around of this river because the waters of these rivers come from the wells. And these wells dry also these rivers dry. This is similar to milk the teats of animals. When we do not milk a milch animal, the teat dries.” (58) This is a good example for the impact of working for getting sustenance that in Quran we see: “And that each (man/woman) can have nothing save what he strives for, And that his/her effort will be seen” (53:39-40) Psychological

And

Sociological

Effects

On

Economics

“Initially, in fact, Ibn Khaldun was preoccupied with epistemology. Then gradually, meditating on the method and the matter of history, he was led, in full consciousness of what he was doing, to create what he refers to as his “new science” (‘ilm mustanbat al-nash’a), which itself turned out to contain more or less implicitly the starting points of several avenues of research leading to the philosophy of history, sociology, economics and yet other disciplines...He considers that the basic causes of historical evolution are in fact to be sought in the economic and social structures...Moreover the explanation he gives is not exclusively a socio-economic one but also psychological.” . M. Talbi writes above sentences and quotes N. Nassar’s sentence: “The Prolegomena (Muqaddemah) do not contain only a general sociology but also a very detailed and subtle social psychology which may be divided into political psychology, economic psychology, ethical psychology and general psychology.” (59) Harms of Demonstration Effect. Let’s go on from Muqaddemah: “...Because the nation follows the state and the ethics of nation is appropriate to the (administrators of) state..(Especially) The notables of the capital city (although they are not the founder fathers of the state but) act in different behaviours with the (establishment of the) state..In densely populated cities the prices are high. Because all of the tradesmen and artisans reflect all of the expenses (that they did for their goods and products) to the prices. That’s why the taxes also are added to the prices. Thus, the expenses of citizens (who live in the cities) reach from the reasonable measures to the degree of prodigality. These luxurious

habits and living conditions of civilized life transform these citizens like slaves of this high societic life. It is impossible to escape from this (new) life. So all of their earnings go to the expenses (and even after a period) they can not pay the expenses and they fall in poverty. Demands for the commodities in the markets decrease, and markets go to stagnation and the position of the city is spoiled.” Psychology of Corruption And Its Sociology and General Ethics and Effect of Demand for Luxury to the Crime “Yes, the thoughts of these men, any more, are intensified that which tricks are useful for their needings and they begin to lie, gamble, to deceive the people, theft, to perjure oneself, to give-take interest and usury that they dare to do every evil. And they know very well the wickednesses and their ways because of their desires that born from their luxury and pomp.” No Heredity Effect. “Because, the men are human kind and resemble each other. Difference among them is only from good ethics. So bad ethics becomes dominant in a man and good ethics are spoiled in him, to be a nobility or aristocracy and to come from a pure and honourable ancestors is no use. We see a lot of men like these they enter the community of disgraced and do every bad actions. If this kind of people increase in a nation, God permits the destroying of this country. This verse indicates this: “When We (God) decree that a city/country should be destroyed, We (first warn and) command those of them that live in comfort, and yet they persist in sin so that the word (of destroy) is proved true against them, and then We destroy them utterly.” (17:16) At the beginning, with the impact of luxury, the position of men are go bad and then city is destroyed.”(60) A Practical Man and Always a Pragmatic. The sentence of big name of 20th century orientalism Albert Hourani indicates that Ibn Khaldun had put the subject (definition) of ‘scarcity’ four centuries ago from western economists: “...once more there was controversy about this among the learned. Ibn Khaldun believed that it was possible to produce gold and silver by sorcery or by a divine miracle, but not by human craft; even if it were possible it would be undesirable, since, if gold and silver were no longer scarce, they could not serve as measures of value. (61) Global Economics Vision’s of Ibn Khaldun Louis Baeck searches Ibn Khaldun’s economic thoughts and says: “Ibn Khaldun is the first Arab author draws a global economics picture.Baeck in his paper: “Global Economics Vision’s of Ibn Khaldun” writes: “Muqaddemah is a ‘socio-economic evolution theory’ of Ibn Khaldun. ‘Asabeyya’ as in the center of Ibn Khaldun’s theory is a ‘group solidarity.’ Production theory according to Ibn Khaldun is an activity of human kind that we see it as sociological and international. Labor is the most important factor in production. But man can not produce his every needings. He is in need of sociological cooperation.And to specialize in different occupations and division of labor occur. But this time overproduction becomes a problem. According to Ibn Khaldun, reserves (of money) is not a measurement for affluence/welfare of a country, but degree of expertise and high degree in division of labour that these give a more production to a country, and at the end a high welfare. Independent Central Banks Louis Baeck mentiones the sensitivity of Ibn Khaldun the values of gold and silver. Ibn Khaldun offers a ‘religious institution’ has got an authority to control of values and weights of (gold and silver) coins. The price of gold and silver should not change. These are measurements of value. But the prices of the

other goods may be fluctuated. It is seen that Ibn Khaldun is supporter of fixed currency and a powerful Central Banks theory. Louis Baeck also mentiones that Ibn Khaldun’s approach to a ‘national accounting concept’ with his theory on dividing. He says a price of a product is formed by three elements: the right of producer, the right of tradesman, the right of authorities (tax). The prices are influenced by ‘supply and demand’ and tax policies of governments. More Population. Baeck sees the population policy of Ibn Khaldun. Ibn Khaldun says more population means high division of labor and high welfare degree. More population stimulates the process of accumulation. But at the end of this process some problems begin. Immigration to big cities causes two bottle-necks. One cities becomes more populated and collapse begins. Two, escape from countryside regions causes the decreasing of agricultural products. The result is famine and illness and decreasing of population. Optimal Point of Taxes. Baeck, at last, estimates the tax policy of Ibn Khaldun. “...At the end the limit of taxes reach a high degree that this tax burden prevent the stimulant of production and consumption. This position decreases the revenues of the state and impacts the power of the state. Ibn Khaldun claims that there is an optimal interest between total capacity of income and level of taxation. If this point is passed with the forced tax takings, the sociological structure breaks down or the community comes treshold of a revolution.” Baeck ends his study saying: “We can say as a result, Ibn Khaldun formulated the useful of division of labor long ago than Adam Smith, he evolved a cyclic population theory than Malthus and formulated opinions on financial economics before supply-side economists.(62) Great Investments of State Tennessee Valley project was a great project in US in 1960s that a lot of dams had been built. Pipelines, high ways, big international airports, great education projects, or great health projects.. and great infrastructure investments are encouraged also by Ibn Khaldun, but he says a ‘determination’ is necessary for this projects: “Sometimes to complete big buildings is necessary a non-stop and a long period and cooperation and energy. So one (stateman) begins to build this building and the second or third goes on. Every one does his duty to complete this project.” He gives an example from the history of ancient times: “Historians say that Dam of Ma’reb was built in a long period. Yashjub began to build the dam and canalized the waters of seven (small) valleys to this dam. But he died before completing and king sog Hemyar completed it.” (63) No Ideological Approaches in Economics. Ibn Khaldun adopts an economics that ‘administrators (governments) should relinquish some projects if these projects cost very much expenses’ and gives two examples that they both show he does not adopt an ideological viewpoint in economics: “Harun Rasheyd wanted to demolish great palace of Chosroes (kings of old Sassanian Empire) and he assigned a lot of workers for this. Great axes were prepared and the great (old) palace was burnt and vinegar was poured on the building for destroying. But the palace could not be destroyed and Harun Rasheyd gave up from this project. Also another Abbasid caliph Ma’mun decided to pull down the pyramids. He collected a lot of men and they began to drill the pyramids and reached the cavity between exterior walls and interior walls. But the work is ended in this point.(64) Supply-Side Economics Theory In the last years of 1970s, Demand-Side Economics met a lot of problems. American economist Prof. Arthur Laffer offered reductions in taxes. This policy would increase total market production and total tax revenues. This policy became famous in academic environments as Laffer Curve and some of the other economists contributed valuable knowledge to this theory and Laffer’s opinions entered to

literature of economics as Supply-Side Economics or Supply-Side Tax Policy. Prof. Coskun Can Aktan defends this hypothesis (Laffer Effect), declared at first in the history, by Ibn Khaldun. That’s why, Prof. Can Aktan named this theory as ‘Khaldun-Laffer Effect.’ Can Aktan quotes the sentences of Ibn Khaldun: “ At the beginning years of the state, tax bases are low but tax revenues are high. But, in the course of time, state becomes bigger but tax revenues drop. Lower tax rates increases desire of tax payers to do more works. Low tax rates make bigger the cultural enterpreneurship in persons.” In 18th and 19th centuries some economists and philosophers said similar opinions on taxes. David Hume said: “Heavy taxes destroy industry. High taxes increase the prices of products.” (Hume, 1955, IXXX/1) And Adam Smith: “High rate taxes, sometimes decrease (production of) some products and sometimes encourage illegal trading (without giving taxes). The solution is to decrease the rates of taxes.”(Smith, 1976, 414) In 1831, Henry Parnell also defended low rate taxes. (Keleher and Orzechowski, 1982, p,140) But P. Miller and A Struthers said ‘The Uncertainities of Laffer Effect’ and they added “ Mellon tax reductions in 1920s, Kennedy reductions in 1960s and Reagan reductions in the beginning 1980s have been not sufficient.” But the other group of economists replied these claims that “if we do not decrease the expenses of state, the lower rate taxes will not be sufficient.” In Great Britain and (West) Germany, good results were seen with lower tax policies. Buchanan and Lee’s contributions to lower tax policy is important that they said: “Supply-Side Economics is a long period macro economics policy. It is not true to expect an increase in tax revenues with lower tax policy in short periods. And more important instrument that the nation should believe that these lower rate tax policy will not change in a certain period. The main point of the subject is: to change the rates of taxes, is now, in the authority of parliaments. That’s why nation do not trust these policies that may be (even) tomorrow a bill changes the rates. And western economists have gone to a policy (especially) in last twenty years) ‘a constitutional tax policy.’ Some economists in US evolved a ‘Public Choice Theory’ put a new discipline of search as ‘constitutional economics.’ The Nobel Laureate of 1986 James M. Buchanan expressed a ‘Tax Constitution’ and said: “Tax system may only be discussed in ‘Constitutional Perspective.’ (Buchanan, 1978, p, 105) (65) Islamic Tax Policy and..In this point, we have to remember that Ibn Khaldun took out his opinions from vast Islamic culture. And lower tax policy is the main tax policy from the early days of Islam. The Prophet Muhammad took only a tax of 2.5 % in his life, as a zakat (religious tax, and not any other tax.) And Islamic jurists have been sensitive (in long Islamic centuries) the rates of zakat that were put by the Prophet. That is we can say Islamic Tax Policy had got a ‘Constitutional Perspective’ 14 centuries ago. A Divine Aspect of Trading is also seen in the opinions of Ibn Khaldun: “God taught man knowledges and skills about agriculture and basic handicrafts by teachings of prophets... Economic actions are command of God. In Quran: ‘..So seek your provision from God,(Look for your sustenance.)’ (29:17) Economic action is muqaddas (sacred, holy, sanctified) and mubarak (blessed, bountiful, auspicious)”(66) But Ibn Khaldun and other Islamic scholars have not idolazed economic actions.

Last Sentences on Ibn Khaldun And Ajit K. Dasgupta says: “the writings of Ibn Khaldun in the fourteenth century, contain some of the clearest statements, before modern times, of price theory in terms of an interaction of supply and demand curves. Islamic learning in India did not follow that path. Insistence on ortodoxy and aversion to innovation remained

its basic characteristics. Even the highly sophisticated culture of Mughal India,...” (67 39) But Prof. Celal Yeniceri defends opposite opinions that he shows Shah Waleyyulah al Dahlawi (in Hujjatullah al-Baligah) and Ibn Kaldun defend the similar opinions and Dahlawi is under the impact of Ibn Khaldun in a lot of economic subjects.(68) And Ibrahim M. Oweiss writes “Ibn Khaldun’s thoughts were transmitted from one generation to another, from one century to another, from one country to another.” (69 41) Especially in last 50 years, scholars from Japan (Jitsuzo Tamura gives an economist’s view on Ibn Khaldun, in Japanese, in Ajia kazai, September 1963) to France (G. H. Bousquet, Les textes sociologiques et économiques de la Mukaddima (1375-1379), Paris, 1965) have been busy with Ibn Khaldun. The coming years will be the harvesting season of these efforts. Conclusion 14th century is a fruitful period for theorizing of Islamic economics and applied economics of muslim countries and to find useful thoughts for the global economy of 14th century. Absolutely to follow the studies in the western world and Islamic lands will open new doors for us. For example, Adam Sabra’s new study “Poverty and Charity in Medieval Islam: Mamluk Egypt 1250-1517” or studies in French also useful: Robert Mantran(1917-99) as the director of Centre de Recherche sur l’Afrique Méditerranéenne [IREMAM] and editor of Revue l’occident musulman et de la Méditerranée put good studies about Mediterranean Africa and Western Islamic World; Georges Marçais (1876-1962) he studied on economic formation of Islamic countries and nations of North Africa and left a lot of articles and books; famous French orientalist Louis Massignon (1883-1962 studied on financial system of muslim countries of Middle Ages and searched artisan and guild organizations of Islamic society, he looked at akhi and futuwwat organizations as labor sociology that researchers who know French may study on works (of the last hundred years, in books and journals) produced in this language. Hamdullah al Mustawfi, Ibn Battuta, Egyptian historian Fadlullah, geographer Ibn Said al-Magribi and Ibn Khaldun are the living-witnesses of this century and a reading-through study on their texts is necessary to reach a complete study on 14th century. On the other hand this study neglected economic conditions of Arabian peninsula, Far East and some parts of Africa for example, in the North-west of Africa, Masmuda tribe was producing iron, copper and silver in this century and in Sus city of this region there was sugar production and big trading roads were passing on this region that Ibn Khaldun records and gives more knowledge. The other important region is Central Asia. Mawara al-Nahr was also in the highest wealth level in 14th century as Samarkand had reached its greatest heights in this period as the capital of the great empire of Tamerlane that this region also should be searched. Egypt and Syria are lucky regions for deeper studies because of much sources. History of cities of Islamic world that were studied on them in Islamic and western worlds are also a vast source for 14th century. But if we summarize in one sentence ‘Islamic world was highly rich in the 14th century from Samarkand to Mali from muslim Spain to India and a very active business life among intermuslim states and global international commerce was dominant characteristics

1-Ibn Battuta, Seyahatname, I, 280-83; Arthur Serong; “The History of Kilwa”, JRAS[April 1895],p, 405-30, its translation by Ministry of Culture Of Oman, al Salwa fi Akhbari Kilwa (pub. M.Ali al-Salibi), Matrah 1985; Ahmet Kavas-Mustafa L. Bilge, “Kilve”, Türkiye Diyanet Vakfi İslam Ansiklopedisi (DIA), v, 26, p, 2425 2-Ibn Battuta, al-Rihla, IV, 53-57; Casim Avci, “Maldivler”, DIA, v, 27, p,484-85; 3-S. Sulaiman Nadwi, “The Muslim Colonies in India Before the Muslim Conquests”, IC,VIII, p, 478-87; Muhammad Nainar, Arab Geographers’ Knowledge of Southern

India, p, 19; Azmi Ozcan, “Malabar”, DIA, v, 27, p, 465-66 4-Iqtidar Husain Siddiqui, Malva, DIA, v, 27, p, 547-48; U.N. Day, “The Independent Kingdoms of Malwa”, A Comprehensive History of India, (ed. M.HabibK.A.Nizami, p, 898-937 5-Ibn Battuta, al-Rihla, p, 253-57 6-Mustafa Fayda, “Abbas er-Rasuli”, DIA, v, 1,p, 117 7-Hamdulah al-Mustawfi, Nuzhat-al Qulub, p, 72 8-Yaqut al Hamawi, Mu’jam al-Buldan, v, IV, p,336 9-Riza Kurtulus, “Kasan”, DIA, 25, p, 3-4 10-Hamdullah al-Mustawfi, Nuzhat al-Qulub, p, 162; Riza Kurtulus, “Lahican”, DIA, v, 27, p, 51-52 11-Ibn Battuta, Travels in Asia and Africa, tr. H.A.R. Gibb, London 1953, p, 12021; Riza Kurtulus, DIA, “Laristan”, DIA, v, 27, p, 104-5 12- Erdogan Mercil, Fars Atabegleri, Ankara 1975, p, 36-37; Riza Kurtulus, “Lur-i Buzurg”, DIA, v, 27, p, 225-26 13- Abdulaziz al Duri, Muqaddima fi al-Tarikh- al-Iqtisad al-Arabi (tr. Sabri Orman), p, 147 14-Maqrizi, al-Khitat, v, I, p, 365; 339; Ayman Fuad Sayyid, “Kahire”, DIA, v, 24, 173-75 15- Ibn Battuta, al-Rihla, p, 691-98; Ahmad al Shukru, al-Islam wa’l Mujtama’ alSudani Imbaraturiyatu Mali, 1230-1430, Abuzabi, 1999; Ahmet Kavas, DIA, v, 27, p, 493-504 16-J. Sottas, Les messageries maritimes de Venise, Paris 1938, p, 36-51; Serafettin Turan, DIA, v, 27, p, 145-47 17-for advanced searches: M. Cortelazzo, “La Conoscenza della Lingua Turca in Italia nel 500”, Il Veltro, XIII/2-4, Rome 1948, p, 133-41; F. Balducci Pegolatti, La Pratica della Mercatura, (ed. A. Evans, Cambridge 1936); F. Braduel, La Méditerranée et le monde méditerranéen a l’époque de Philippe II, Paris 1966, III; E.A. Zachariadou, Trade and Crusade, Venice 1983 18- Serafettin Turan, “Italya” DIA, v, 24, p, 448-52; (19) Yaqut al-Hamawi, Mu’jam al-Buldan, V, 52; Isabel Calero-Secall, “Maleka”, DIA, v, 27, p, 485-86 (20) Ismail Hakki Uzuncarsili, Anadolu Beylikleri, p, 10 21- Mustawfi, Nuzhat al-Qulub, p,99 22-Ilhan Sahin, “Kirsehir”, DIA, v, 25, p, 481-85; 23-Mustafa Cetin Varlik, Germiyanogullari, p, 24, Ankara 1974 24-Ibn Battuta, al-Rihla, p, 238-39; Mustawfi, Nuzhat al-Qulub, 105; Mehmet Tastemir, “Mardin” DIA, v, 28, p, 43-48 25-Abdulkadir Ozcan, “Lala Sahin Pasa”, DIA, v, 27, p, 77 26-Zerrin Gunal Oden, “Karesiogullari”, DIA, v, 24, p, 488 27- Ziya Kazici, “Ahilik” , DIA, v, 1, p, 540-41 28-Yilmaz Oztuna, Buyuk Turkiye Tarihi, v, 2, p, 50 29-Ibn Qayyim, Zad al-Maad, v, 2, p, 7 30- ibid, v, 2, p, 20 31-ibid, v, 4, p, 41 32-ibid, v, 4, p, 352 33-ibid, v, 3, p, 424 34-ibid, v, 5, p, 551 35-Turuq al-Hukmiyya, p, 219 36- Celal Yeniceri, Islam Iktisadinin Esaslari, p, 345 37-Ibrahim E. Kozak, Insan Toplum Iktisad, p, 249-50 (from Muqaddima, Ugan’s translation, v, 2, p, 63-7, 74, 126-8, 289-91, 376; Rosenthal’s translation, v, 2, p, 93-6) 38- Muqaddima, Ugan’s translation, v, 1, p, 368; v, 2, p, 354, 359, 364-6 39-Ibrahim E. Kozak, “Ibn Khaldun”, DIA, v, 23, s, 313 40- Muqaddima, Ugan’s tarnslation, v, 1, p, 368; v, 2, p, 354, 359, 364-6 41-ibid, v, 1, p, 366, 511, 427, 530;v, 2, p, 300

42-Grolier Encyclopaedia, v, 5, p, 338 43- Muqaddima, Pirizada’s translation, v, 2, p, 174 44- Redhouse Dictionary 45-Muqaddima, Pirizada, v,2, p, 277 46-Adam Mez, The Renaissance of Islam (Die Renaissance des Islams , p, 454, 1922) 47- Muqaddima, Pirizada, v, 2, p, 311 48-Sabri Ulgener, Tarihte Darlik Buhranlari ve Iktisadi Dengesizlik Meselesi (Crisis of Scarcity in the History and the Problem of Economic Disequilibrium), p, 57 49-Muqaddima (Halil Kendir’s translation, part 4, fasl, 20) 50-ibid, part 4, fasl, 5 51-ibid, part, 4, fasl, 10 52-Philip K. Hitti’s entry in the Encyclopedia Americana 1989, Danbury, Connecticut, 53- M. Talbi’s entry in Encyclopedia of Islam 1986, New Edition, E. J. Brill, Leiden 54-Muqaddima (Kendir’s translation, part 4, fasl, 10) 55-C. Yeniceri, p, 302(from Muqaddima, v, 2 , p, 275-77) 56-Muqaddima (Kendir’s translation, part, 4, fasl, 1) 57-Ahmet Guner Sayar, (Biography of) Sabri Ulgener, p, 354-57 58-Muqaddima, (Kendir, part, 5, fasl,1) 59-Encyclopaedia of Islam, “Ibn Khaldun” 60-Muqaddima, (Kendir, part, 4, fasl, 19) 61-Albert Hourani, A History of Arab Peoples, p, 204 62-Louis Baeck, Economic Thought of Classical Islamic Era, (ed. Mustafa Ozel), p, 77-103 63-Muqaddima (Kendir, part 4, fasl, 4) 64-ibid, (part, 4, fasl, 4) 65-detailed knowledge:Prof. Coskun Can Aktan’s web pages: www.canaktan.org 66-Ibrahim E. Kozak, (from Muqaddima, v, 2 , p, 322-27) 67-Ajit K. Dasgupta , A History of Indian Economic Thought, p, 175 68-C. Yeniceri, p, 158 69-www.georgetown.edu/oweiss/ibn.htm :(the father of economists)

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