What Is Islamic Economics

WHAT IS ISLAMIC ECONOMICS?

It could be generally thought ‘what Islam has to contribute to the economic aspects of human life?’ Since Islam is a religion, it is thus often thought that it can only admonish people towards a life of ‘worship’ and ‘god-fearing’ activities. In fact, Islam does demand its adherents to be ‘worshiping’ (`aabid) and ‘god-fearing’ (taqwa); not only that, the economic aspects of Islam is indeed a vital part of the `ibadah and taqwa. Islam never advocates towards a life of asceticism, rather it is annulled in the Qur’anic injunctions and the Ahadith of the Prophet (s.a.w.). Allah (swt) did not only urge the Muslims to enjoy the beauties and pure sustenance produced for the servants of Him (Al-Qur’an, 7:32), rather encouraged them to gain mastery over the nature, as the nature and its elements are made as the subject (musakhkhar) and for the service of humanity (Al-Qur’an, 14:32-33, 16:12-14, 22:65, 31:20 and 45:12). Islam considers this quality and capability of mastery over the nature for the benefit of human kind as part of worship (`ibadah) and ‘god-fearing’ (taqwa). In fact, the holy Prophet (s.a.w.) exhorts “There is nothing wrong in wealth for him who fears God” (Bukhari). In other multiple sayings of the Prophet (s.a.w.) and other verses of the Qur’an it is clearly demanded from a Muslim to maintain a balanced life between the worldly and the spiritual lives, let alone neglecting the economic life. Thus, Islamic economic structure can be considered as ‘inclusive in nature’ in terms of the sacred and the profane.

The economic system of Islam is primarily based on the concepts of trusteeship (amanah) of the resources, freedom, justice, cooperation and brotherhood, and most importantly welfare and interest of the society. Unlike other economic thoughts, Islam does not consider man as the owner of the property, but a ‘trust’ (amanah) from Allah (swt) to the human beings, which should be utilized for making a living out of it. Man has to ensure this through his efforts for which he has complete freedom, as long as he does not harm others, and does not go beyond the limits of the Shari`ah. Furthermore, Islam considers everyone to have full right of justice, both social and economical. No one should be deprived of his ‘dues;’ may it be among the classes, or among the employer-employee relationship. And the establishment of justice in Islam fosters the promotion

of brotherhood and cooperation in the society. This, in return, generates an overall ‘welfare’ and works for the greater interest of society. In this manner, the economic system of Islam replicates the true essence of Islam itself: well-being and total good (islah) for humanity.

The main objectives of Islamic economics, though it is ultimately welfare of human beings, yet can be specifically sorted out, though not limited, to the following (Chapra, 1975):

I.

i.

Comfort of living

ii.

Universal unity or brotherhood and establishment of justice

iii.

Equitable distribution of income, and

iv.

Freedom of individual.

Comfort of living:

Islam does not permit anyone to resort to begging while he is capable, rather urges to earn their livelihood from the boundless bounties of the Almighty. In fact, the Prophet (s.a.w.) emphasized on working and maintaining a living for oneself when he (s.a.w.) said: “A man has not earned better income than that which is from his own labour” (Ibn Majah, and An-Nasa’i). Islam, likewise, has always stressed on a better way of living which would give him comfort and economic well-being, provided that he maintains a firm balance between the spiritual and the material aspects of life. II.

Brotherhood and justice Brotherhood in Islam is a fundamental concept, which emphasizes a unity and a social cohesion. It is indeed a universal brotherhood, beyond the parochial identities. This concept reflects mutual cooperation and help in economic activities, beside others, resulting greater outputs and production. To maintain brotherhood, it is thus vital to establish justice (`adl) in the society. It is recommended to maintain justice throughout the class relationship between the rich and the poor, towards bridging the gap, and also between the employer-employee relationships in the

workforce. As the employer has no right to deprive the employee from his ‘just’ wage, likewise, the employee, on the other hand, has no right to deprive his employer from his trustworthiness, commitment and honesty. III.

Equitable distribution of income Nature did never allow its resources to be limited to a fewer hands, rather everyone has a right over the gains from the nature. Islam has nicely emphasized on distribution of wealth among the ‘justifieds;’ either through employment salary, or through ‘zakat’ or through the laws of inheritance.

IV.

Freedom Human beings are born free, according to Islam, and thus none has right to impose any ‘duty’ on them. Human beings are given the choice to do anything, as long as it’s not against the Shari`ah, and against the larger interest of society.

We can conclude that the essence of Islamic economics is greater welfare of the human being, with providing full right to each and every citizen.

Further reading: Al-Qur’an al-Kareem An-Nasa’i Chapra, Umer. (1975). The Objectives of Islamic Economic order. London: Islamic Council of Europe. Ibn Majah Saheeh al-Bukhary