INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE

Kulliyyah / Institute Department / Centre Programme

Kulliyyah of Economics & Management Sciences Department of Economics Bachelor of Economics / Bachelor of Business Administration / Bachelor of Accounting Foundation of Islamic Economics

Name of Course / Mode ECON 1710 Course Code Name (s) of Academic staff / Instructor(s)

Rationale for the inclusion of the course / module in the programme

This course is expected to develop the capability of students to enter into positions in government, business, and consulting firms, which call for the analysis of economic problems and variables from an Islamic perspective.

Semester and Year Offered Status Level Proposed Start Date Batch of Student to be Affected

Semester I & II Core Undergraduate Semester I, 2010/2011

Face to Face
Consultation Assessments Lecture Others

Total Student Learning Time (SLT)

Total Guided and Independent Learning

42

112

Credit Value (hours)

Pre-requisites (if any) Co-requisites (if any)

Nil Nil This course is expected:

Course Objectives

1. To provide a conceptual introduction to Islamic economics. 2. To enable the understanding of how Islam and its worldview permeate all aspects of economics

At the end of the course, students should be able to: 1. Learning Outcomes 2. 3. Explain why Islamic economics is a legitimate body of knowledge and to understand how it is developed using Islamic sources of knowledge. Identify and explain the general features of an Islamic economic system. Apply Islamic perspective to the main area of economics including production, consumption, distribution and some selected issues in Islamic banking and finance. Recognize the ideal Islamic economics as a viable alternative to the conventional economic system.

4.

Transferable Skills: Teaching-Learning / assessment strategy

Students are required to form groups, undertake and develop a small project, and present in the class. This enables them to develop team work and, communication, presentation, problem solving and analytical skills Class instructions, group discussions and student presentations. This course introduces students to the basic premise that the study of Islamic economics proceeds from the Islamic worldview and has to be developed according to a methodology that is founded upon this worldview. Therefore the `foundations' that need elaboration are the Islamic worldview, Islamic economic methodology and features of an Islamic economic system. Since economics deals with the production, consumption and distribution activities of man, these areas will be addressed in this course. Other more prominent areas of contemporary Islamic economics such as the prohibition of riba and issues in Islamic banking are also discussed. Lecture, Computer Lab, Presentation LO LO 1,2 3,4 All METHOD Mid-term/ Test Group work/assignments (case studies) Final Exam TOTAL Method % % 30 20 50 100

Course Synopsis

Mode of Delivery Assessment Methods and Type/Course Assessement State weightage of each type of assessment.

Mapping of course / module to the Programme Learning Outcomes

Learning Outcome of the course Discuss the Significance of Islamic heritage and its contribution to the progress of mankind Discuss the Islamization of knowledge agenda as an important mission of reviving the glorious position of the Ummah Discuss the Islamic worldview comparatively with the prevalent conventional secular worldview Discuss the position of Islamic epistemology and methodology of economics vis--vis the conventional economic system Discuss the norms of Islamic economic system, its micro and macro objectives and policy variables

01

02

Programme Outcomes 03 04 05 06 07

08

09

1.

2.

3.

Content outline of the course / module and the SLT per topic Weeks 1-3 Topics Islam, its Worldview and Islamic Economics Islam definition of Islam : iman, amal, ihsan; The Islamic Worldview god, man, nature/universe, religion; the nature and characteristics of man; man's role as `abd and khalifah; nature/universe in Islam; the concept of din and its significations to economic activity; Islamic Economics definition of economics; scarcity and choice and the economic problems; definition and scope of Islamic economics; Learning Hours 17 Nasr (1993), Chapra (2009) Arnold (2001) Task/Reading (author/page)

4-5

Methodology of Islamic Economics Methodology Importance of knowledge; epistemology - definition and scope; sources and channels of knowledge in Islam; definition; Shari'ah, - definition, scope, sources and issues; Methodology of Islamic Economics Fiqh, usul al-fiqh and Islamic economics; stages in Islamic economic methodology - issues; comparison with western economic methodology.

12

Haneef (1997) Mahmassani (2000) Abu Saud(1993)

6-7

The Islamic Economic System Economic System - Definition; Components; Classifications/ Characteristics; Islamic Economic System - General Introduction, Philosophical Foundations; Operational Principles and Goals; Property Ownership - Definitions and Types; General Principles and Types of Ownership in Islam and Implications for the Economic System; Motivation/Incentives - Definition, Types and Importance; Relationship between Islamic Worldview and Motivation; Implications for `rational' Behaviour; Organization of Decision Making - Definition and Types; The Concept of Shura and Implications in Economic Decision Making; Coordination Mechanism - Definition and Types; The Importance of Markets and the Importance of Planning;

12

Kahf (1992), Mirakhor (1995) Khan (1992), Gregory/Stuart (1992)

8-10

Allocation of Resources in an Islamic Economic System Importance of Resource Allocation; The Role and Limitations of Markets; Markets Under Islam; Supply and Demand; The Role of the State; The Institution of Al-Hisbah: Functions in an Islamic Economic System. Normative and Technical Aspects of Resource Allocation and their Application in Consumption and Production from an Islamic perspective.

18

Siddiqi, Kahf, Siddiqi, Kahf,All from Sayyid Tahir (1989, eds.) Mconnell and Brue (1992)