CHAPTER II

DISCUSSION

1. IBNU KHALDUN’S ‘ASABIYYAH THEORY

Ibn Khaldun is one of the most distinguished names in Islamic scholarship.
His contribution to human knowledge has gone far beyond the land of Islam and
his universal acceptance as a world thinker and father of social scences is
incontrovertible. Literature on Ibn Khaldun’s contribution to human understanding
spans history, sociology, economics, political science, and group relations. Ibnu
Khaldun was not only able to examine human relations and the development of
civilization in historical stages but also to predict future relations brought by
cyclical trends causing the rise and fall of civilization. Interestingly, Ibn Khaldun’s
analytical framrwork of the developmental process of societal transformation
applies to similar circumstances prevailing in our time, reflecting his depth of
understanding of societal change and group relations. His ideas manifest more than
just theoretical concepts, rather they provide a workable framework for promiting
socio – economic development that addresses challenges facing developing
countries including Muslim nation. (Bakar & Ahmad , 2009)
Etymologically ‘ashabiyah comes from the word‘ ashaba which means
binding. Functionally ‘ashabiyah refers to social and cultural ties that can be used
to measure the strength of social groups. In addition, ‘ashabiyah can also be
understood as social solidarity, by emphasizing awareness, cohesiveness and group
unity.
According to Muhammad Mahmud Rabie, 'ashabiyah is a social fabric that
can build the unity of a nation, regardless of whether it is influenced by family ties
or fellowship. In social roles, ‘ashabiyah can give birth to unity which can be
divided into two groups. First, fostering strength solidarity in every group soul.
Second, the existence of ‘ashabiyah can unite various‘ ashabiyah that are
contradictory, so that it becomes a larger and more intact group.
As said by Ibn Khaldun in his book Muqaddimah, that ‘ashabiyah really
determines the victory and survival of a country, dynasty or kingdom. Without
being accompanied by abi ashabiyah, the sustainability and existence of a country
will be difficult to materialize, and vice versa, the country is under threat of
disintegration and destruction.(Ilham, 2016)
Ibn Khaldun divides the term ashabiyah into two kinds of understanding.
First, the definition of ashabiyah has a positive meaning by referring to the concept
of brotherhood . In the history of Islamic civilization this concept forms the social
solidarity of Islamic societies to cooperate with each other, put aside personal
interests , and fulfill obligations to others. This spirit then encourages the creation
of social harmony and becomes a very powerful force in sustaining the rise and
progress of civilization. Second, the definition of ashabiyah means negative, which
is to cause loyalty and blind fanaticism which is not based on the truth aspect. It is
this second context of understanding that is not desired in the Islamic government
system. Because it will obscure the truth values that are carried in religious
principles. (Khoiruddin, 2015)
Later in the formation of the 'ashabiyah, Ibn-Khaldun argued that religion
played an important role in shaping the unity. According to him, the spirit of the
unity of the people formed through the role of religion cannot be matched by the
spirit of unity formed by other factors. It is supported by the religious vision in
eradicating the contradictions and differences of people's vision, so that they have
the same goal, to fight together to uphold their religion. (Ilham, 2016)
The factors leading to the strength of the nations leading to strength and
success are as follows:
1. Asabiyyah factor or social unity. Ibn-Khaldun saw the importance of
social cohesion and social etiquette that tied human relations within a
country in order to be strong.
2. Although it starts with family relationships, it states that asabiyyah
comes only from blood relations or something like that.
3. The concept of asabiyyah used by Ibn Khaldun in discussing the strength
and success of upholding religion. Civilization through this asabiyyah
should be used by Muslims to build strength among themselves and others
together to set a good and useful example through unity among
themselves.(Sofyan, 2012)
Ibn-Khaldun in this context presents his theory of asabiyyah, he explains
that everyone has pride in their relatives and their descendants or blood
relations. Ibn-Khaldun mentions several indications of asabiyyah, such as
the intimacy between members is a natural habit of man. In the asabiyyah
there is a sense of pride in fellow people or relatives associated with various
advantages or disadvantages, which then creates a sense of sympathy and a
sense of responsibility that eventually creates a sense of mutual solidarity.
Asabiyyah is a concept of group solidarity, in which individuals in a group join
a community on the basis of lineage relations. According to Ibn Khaldun asabiyyah
arises due to the factors of blood relationship and a love for one's family and lineage.
This creates a sense of belonging and responsibility and creates cooperation in
various fields. Asabiyyah also gave birth to unity and association among them. With
this asabiyyah the ruler will choose those who have a relationship with the ruler in
his government. Asabiyyah can be interpreted as the forerunner of a mass
organization or political party in the formation of a modern and contemporary era
of politics.(Aly, 2018)
Ibn Khaldun developed the theory of 'asabiyyah which is considered to be the
remnants of the jahiliyah tradition. However Ibn Khaldun quickly framed it within
a religious framework. According to him, no matter how great the spirit ‘asabiyyah,
without a religious frame will backfire for humans. This theory still seems difficult
 to refute right now. Political power that is not supported by a strong group will
certainly experience distortion and shock. (Iqbal & Nasution, 2015)

2. STATE FORMATION THEORY

As a pioneer of the study of Sociology, in addition to reviewing the civilization
of humanity from time to time, Ibn Khaldun regularly examined the state and
administration. By setting out the standards of methods for keeping up the presence
of the state, he focused on that the elements and high points and low points of the
state is a need. He at that point detailed this hypothesis as Cycle Theory that is
where a nation experiences rapid at once and later will experience a setback and
even destruction at some other point. Leaving from this, Ibn Khaldun frequently
clarified the significance of supporting components of government.
About how a nation stands the idea of Ibn Khaldun is the same as the past
Muslim political masterminds. With regards to the improvement of the state Ibn
Khaldun underscored that social association (ijtima') is a need for human life and
specialists guarantee that people are social animals. People are in truth a gathering,
impart, and sort out (Aly 2018)
a. Society
Ibn Khaldun argues that people have four basic characteristics that
recognize them from other creature animals, these characters are:
1. Humans are thinking creatures that produce knowledge
2. Humans are political beings who need regulation and control through the
authority of power
3. Humans are economic creatures who need and make a living in various
ways and professions
4. Humans are creatures of civilization (Abdur al-Rahman 2006)
At the point when people can understand social association and human
advancement, they need somebody who is definitive who can forestall and keep
them from being threatening to other people, and that position individual is a
pioneer who has favorable circumstances, somebody who is the most remarkable,
somebody who is enjoyed by his locale with the goal that he can control and manage
the lives of its kin. Two criteria for pioneers as per Ibn Khaldun are having a solid
impact over their networks and having force and authority over them. In the
normative-substantive approach, which was also carried out by the Prophet
Muhammad, the Prophet in leading and providing a sense of security always
prioritizes the interests of the public first because in essence a leader or government
must be able to provide at least two responsibilities namely welfare and security.
besides that in general every Muslim leader must perform the standard functions of
a public ruler with great virtue (Hartono 2012 ).
Whereas discussing the problem of the State of Ibn Khaldun only looked at
it in two spheres, namely the establishment of the State in fact the perfect form of
the ashobiyah (primordial sectoral group) and the relations of the authorities with
the people, the people were merely mere supports. Ibn Khaldun's first thought like
this could have been base forming a country but a plural-shaped country and its
island-island state was very difficult to apply to Ibn Khaldun's concept. The second
thought discusses the relation between the authorities and the people, the people as
the support, the workers, and the slaves, of course such a concept does not seem to
respect the whole human being both socially and religiously.
b. Politics and Government
Human development is indistinguishable from governmental issues which will
likewise rise as a pioneer who controls,manage , issues laws and governs whose
choices are a reference for the network and he partitions these sources into two
classifications, in particular those dependent on descendings from God and based
on the result of thought. Religion is the fundamental factor that is critical to join the
different contrasts in the public eye so it can make a genuine commitment to
political force and the other way around. (Muhammad Iqbal 2015)
Legislative issues shows a component that must be used by human in
achieving the security of the world and the great beyond, people must cooperate to
address fundamental issues and guard themselves from obstruction, cheating and
hostility from outside. According to Ibn Khaldun legislative issues is a need in
individuals' lives without governmental issues life will be chaotic. (sofyan 2012)
Ibn Khaldun states that there are three forms of government which are based
on. According to Ibn Khaldun, the system of government is of three kinds:
1. Al-Mulk : The system of government that brings all people in understanding
with the goals and desires of lust. What he means by natural character is
instincts, or instinctual tendencies and desires that are arranged in one
individual, such as: egoism, the desire to be arrogant or despotic, and try to
realize individual greed based on egoism.
2. Political Government: The system of government that brings people
according to the ratio view in achieving worldly benefit and preventing
harm, this type of government is praised from one side, and denounced on
the other side. On the sidelines of his explanation of these two types of
government, he said, "When the nature of a government is a demand of
axiomatic association of human children, and the peak of its personification
is oppression and submission, both of which are the result of instincts of
anger and animalism, it is not surprising that policy its ruling policy has
deviated from the truth and oppressed those who are under its control. The
first type of government and now as authoritarian, individualist, autocratic,
or unconstitutional government.
3. Islamic government is the representative of Allah as the owner of the Shari'a
in safeguarding religion and governing the world with its teachings. This is
what is called the Khalifah
c. The period of the dissolved country
 For Ibn Khaldun, the dissolved of a country is closely related to sunnatullah
where everything in nature has nothing to last but Allah. He mentioned several signs
and characteristics of a country that were approaching its dissolved period are:
a) Reduced Employment. This is indicated by the economic crisis, the number
of jobs is decreasing. This is due to the reduction in population. According
to Ibn Khaldun, economic life was determined by the population. The
greater the population, the greater the economic value that exists in the
society.
b) The Low Morality Found In Society. This is marked by the decay of morals,
manners and declining morality. All kinds of actions that were once
considered as something shameful, have now been done openly.
c) Despicable Acts Are Scattered Everywhere. Ibn Khaldun argues that
despicable or immoral actions are caused by the lack of parents attention to
their children's education. If children's education is not heeded, then they
will grow into immoral people, because for him character, morality or
morals are very basic things in political and state life. (ilaelfitri 2012)
From the three characteristics, it can be concluded that the collapse of a country
is caused by the destruction of people's morale. The fundamental cause of moral
decay is the distance of society and the low level of education, especially in the
field of religion (far from the Shari'a) until a luxurious lifestyle appears beyond the
limits.

3. ECONOMIC THEORY
The contemporary circumstances of economic and social development in
Muslim societies reflect group differences, political ineffectiveness, social
intolerance, economic mismanagement and organizational flaws. These forces have
widened the differences between Muslims which created social divisions and
disharmony that weakened the process of 'asabiyah. Economic development
highlights capacity building supported by sound institutional infrastructure and
effectively driven political programs that are able to allocate resources and promote
change. Western success in recent decades has been built by sharing knowledge and
increasing cooperation among member countries. Ibn Khaldun pointed out that
economic development "requires a stable political framework, again a finding that
has clearly been verified in recent times. The administrative structure must be
simple and must concentrate on several important functions such as defense,
diplomacy and public finance. Market surveillance, regular financial transaction
enforcement, and building inspections to protect residents must be part of their basic
tasks. "
In the view of Ibn Khaldun, development must be balanced through the division
of tasks and responsibilities between the public sector and other economic sectors.
His analysis is very close to the current literature on development studies which
consists of factors such as market freedom, incentives, competitiveness and limited
government intervention. Ibnu Khaldun also recognized the role of institutions in
development by recognizing the importance of finance in production through
incentives and making profits. To increase incentives and increase profits, he rejects
the price controls imposed by the government and that low prices make production
unpopular.

Ibn Khaldun's description of the process of promoting development resembled

the same outline of the recipe in the literature on development studies. For example,
Ibn Khladun recognized the importance of specialization in production such as the
acquisition of knowledge and skills requirements in promoting economic
development. He went further to state that without the cooperation of all members
of the community, the desire to achieve higher progress will remain inadequate to
improve the economy. And because Cooperation can increase the ability of the
community to produce more jobs to get skills. The allocation of resources in a
society is also subject to the demand for goods and services produced which
motivates people to learn how to produce these items to create businesses and earn
a living (weiss, 1995).

Ibn Khaldun clearly identified several factors relevant to economic

development including: production and consumption, capital accumulation, the role
of money, public finance, prices, market freedom, political stability and division of
labor. This is something similar to those operating under a free market economy,
which can help Western civilization develop. In contrast. Muslims try different
economic ideas, most borrowing from others but none succeed in achieving
satisfactory levels of economic development. Weiss suggests that a development
approach that can be applied must begin with macroeconomic stabilization,
monetary reform, trade liberalization, deregulation, and tax collection. All of these
are problems discussed by Ibn Khaldun in connection with the rise of civilization.

Another important factor for promoting development is for justice and the rise
of civilization, in order to build centralized authority over social organizations. "In
addition, politics requires that only one person be in control. Whether various
people, can be different from one another, to carry it out, the overall destruction can
occur. "If there are other gods besides Allah in both (heaven and earth) will be
destroyed. But such a leader must also have special talents and good qualities to
give him quality to take authority over the people. A good leader must have a
"strong desire for good and good qualities such as generosity, forgiveness of
mistakes, tolerance of the weak, hospitality to guests, support from dependents,
caring for the poor, patience in bad circumstances, faithful fulfillment of
obligations , freedom with monet to preserve honor, respect religious law and for
scholars. "
 Socio-cultural strength also plays an important role in promoting
socioeconomic development. In Islam, development is not only limited to the
creation of material wealth, as in the case of the western model where the concept
of western development is tainted by colonial history where happiness is a measure
in the production and consumption of material goods. Ibn Khaldun observed that
the slave wanted to imitate his master. Being the subject of western civilization for
several centuries, Muslims argued to pay more attention to their own development.
However, Ibn Khaldun attributed the decline of civilization to the rise of
materialism and the enjoyment of rulers and residents in a sedentary lifestyle or
which was not marked by the consumption of luxury goods. Sedentary life not only
has a negative effect on lifestyle by encouraging luxury consumption, but also leads
to corruption and moral degradation. In other words, a thriving black market can
involve all kinds of unethical transactions made in the community. "Fornication,
wrongdoing and deception, for the purpose of earning a living in an appropriate or
inappropriate manner, is increasing among them. The soul comes to think about
(make a living), study it, and use all the tricks that are possible for its purpose
(making a living). People are now devoted to lying, gambling, cheating, cheating,
theft, perjury and usury.

Economic development is a complex process of structural change that requires

substantial efforts at various levels of the social order. Effective tools for promoting
development underscore the importance of social cohesion and group cooperation.
The process for achieving socio-economic objectives involves the development of
macroeconomic policies and building institutional structures that are able to carry
out these decisions. Development requires macroeconomic stability and social
cohesion to minimize conflict and maintain trust in the transformation process.
Group differences and political disagreements can usually damage a country's
ability to manage its resources effectively. The complex nature of development
arises from the fact that economic transformation is a mixed process of social,
cultural, religious, economic and political forces and therefore, for development to
occur, all these forces must contribute to the stability of the process. Experience
shows that the current economic conditions in most underdeveloped countries are
due to weak social organization damaged by social conflict, group differences,
religious intolerance, class structure, and political struggle. Economic progress
requires an effective organization that is able to build capacity and maintain a high
level of economic stability to generate effective demand and increase economic
productivity. A healthy process of social change requires a balance of national
responsibilities among various groups in society to maintain social harmony and
provide incentives for cooperation. Social organizations supported by strong public
participation are needed for effective approaches because they carry important
agreements that address the needs of the community.
 Production consists of complex processes that cannot be produced in one stage
or by one individual. Ibnu Khaldun argued that cooperation among community
members was necessary if the community wanted to meet its production
requirements. That is, humans alone cannot produce what they need without
cooperation among members of the community encouraging production because of
the efforts of all members to jointly unite their skills, knowledge, and expertise in
economic activities. Ibn Khaldun's theory mimics the process of economies of scale
in contemporary economies where specialization in the production and acquisition
of skills causes the economy to produce more output. It is important to recognize,
however, that the concept of Ibn Khaldun's development consisted of a macro
dimension involving what he called "al-imran" or construction. The comprehensive
nature of this development includes not only the construction of material
infrastructure, handicrafts, manufacturing products, and agricultural products, but
also taking into account population growth, higher income impacts, and total output
growth.

From an Islamic point of view, the scope of economic development is not

limited to the production of material goods but also involves a number of socio-
cultural, environmental, ethical, and human dimensions. The motives for
development in Islam are driven by dynamic processes that involve continuous
effort, good management, efficient administration, ethical policies, and fair
principles. The formation of a just society requires the application of Islamic
principles related to the allocation of resources to increase human happiness.
Equally important are the political authorities needed to maintain market stability,
restore confidence in the economy, increase economic incentives, and provide the
funds needed for investment (Weiss, 1995).

In Islam, the ultimate goal of economic development is to build a balance

between material and spiritual needs which implies that humans cannot decide for
themselves how resources are produced and consumed without reference to the
divine principles expressed in sharia. The economic system represents only one
dimension of the Islamic approach to development and, therefore, cannot be
separated from other dimensions, such as social, cultural, political, legal and
spiritual. Thus, economic development in Islam helps people to improve their
welfare, both materially and spiritually, driven by broad guidelines and incentives
to promote unity, brotherhood, justice, equality, cooperation, freedom, ethics and
good governance. For this end. Social organization, unity and cooperation play a
decisive role in promoting such social goals. Speeding up the process also implies
that political authority becomes involved by formulating a vision also implies
ensuring continuity and change. To do this, the state needs public support that can
be defined by Ibn Khaldun's Asabiyah or cooperation to provide the support needed
to implement development policies. e.g. social harmony and group tolerance imply
 that all elements involved in the process must contribute harmoniously to the
transformation of society.

4. ECONOMIC MECHANISM ACCORDING TO IBN KHALDUN

For Ibn Khaldun, the synergy between the work of one human and another
is absolutely necessary given the impossibility of doing some or all of the work
without the intervention of others. In their position, human beings are created to be
weak creatures and become strong by being merged with society. Awareness of
weakness is something that ultimately encourages people to collaborate. The main
factor that makes humans do social interaction is economic cooperation. According
to Ibn Khaldun as explained in the fifth chapter of Al-Muqaddimah, there are three
categories of division of labor (Khaldun, 2000), namely :
1. Agriculture
According to Ibn Khaldun, agriculture is a job that does not require knowledge
and is a livelihood for people who do not have as well as healthy people. Ibn
Khaldun put this job lower than other jobs.
2. Trading
This work was carried out after agriculture. Agricultural products can be
exchanged for other products that they need. Trade is a purchase at a low price
and sales at a high price.
3. Industry
This job is a job that has a higher level than other jobs. industry also only exists
in certain areas where the community has reached a more advanced level of
culture. The specialization of industry is no longer just an individual patterned
name starting to touch the regional style where the industry has a certain region
with expertise in the industry.
Ibn Khaldun completed writing a book called Muqaddimah in the middle of
779 H / 1377 AD, which is only in a period of five months. In the book, Ibn Khaldun
gives a broad discussion of the theory of values, the division of labor and
international trade, the law of demand and supply, consumption, production, money,
trade cycles, public finance, and several other macroeconomic discussions. (P3EI,
2012). Ibn Khaldun has several theories relating to market mechanisms. Market
mechanism is a system that determines the formation of prices, which in its process
can be influenced by various things including demand and supply, distribution,
government policies, workers, money, taxes, and security. In the process of market
mechanism, the principle of morality is required, among others: Fair competition,
fairness, transparency, and justice. (Farida, 2012).
According to Ibn Khaldun there are 4 factors that influence the process of
the market mechanism.
1. Price Theory
 In one of the chapters in his Muqaddimah book, Ibn Khaldun writes "if a
city develops and its population increases, its people will prosper, then this will
cause an increase in demand for goods, and consequently prices rise. . Ibn Khaldun's
analysis of prices was formulated using the law of supply and demand where the
formulation was an extraordinary formula in his day, because it happened long
before conventional economists such as Adam Smith, David Richardo, et al
formulated the theory. In that sentence, Mrs. Khaldun explained that the market is
a place that provides human needs, be it primary, secondary or tertiary needs.
It should be known that all markets cater to the needs of people. Some of
these needs are necessities,foodstuffs,for instance wheat and barley; corresponding
foods, such as beans, chick-peas, peas, and otheredible grains; and whole some
foods such as onions, garlic, etc. Other things are conveniencensor luxuries, such
as seasonings,fruits, and the things that go with them, are high. When the inhabitans
of a city are few and its civilization weak, the opposite is the case.
Ibn Khaldun with his theory of supply and demand can explain how prices
are formed, to how the process of creating levels of human needs. In addition to the
supply and demand factors, Ibn Khaldun also explained about other factors that
could shape and influence the price of a commodity or item, namely taxes. It was
explained that due to the existence of levies and taxes on the import duty of goods
to the city, the price of goods in the city became more expensive than in the village.
From there explained by Ibn Khaldun the effect of taxes on prices. (Hidayatullah,
2017).
2. Value Theory
According to Ibn Khaldun, labor became an invaluable resource. Labor is
important for all capital accumulation and income. Even if income is generated
from something other than expertise, the values of generating profits and capital
must include the value of labor. Without labor it has not been obtained. In The
Muqaddimah: An Introduction to History Ibn Khaldun states:
“A Large civilization yields large profits because of the large amount of
(available) labour. Which is tha cause of (profit).”
It will become clear in the fifth chapter, which deals with profit and
sustenance, that profit is the value relized frim labor. Whene there is more labor,the
value realized from increase among the (people). Thus, their profit of necessity
increases. The prosperity and wealth they enjoy leads them to luxury and the things
that go with it, such as splendid houses and clothes fine vessels and utensils. And
the use of servants and mounts. All the (things) involve activities that require their
price and skillful people must be chosen to do them and be incharge of them. As a
consequence, industry and the crafts thrive. The income and the expenditure of the
city increase. Affluence comes to those who work and produce these things by their
labor. (Rozenthal, 1958).
3. Work Specialization
Human nature is as individuals who need each other (zoon politicon). In another
sense it can be understood that humans are weak creatures and need help from
others. It is a fact that God created humans to be able to survive only with food. He
also guides people to get their natural desires and instill in humans the strength that
will enable them to obtain food. (Rozenthal, 1958). From the description above, it
can be seen that an individual will not be able to fulfill all his economic needs alone
but there must be a collaborative process. Therefore, according to Ibn Khaldun, a
division of labor is needed.
The entire dynamic model that Ibn Khaldun advised the kings was as
follows:
a. The power of sovereignty (al-Mulk) cannot be maintained except by
implementing shari'ah.
b. Sharia cannot be implemented except by a sovereignty (al-Mulk).
c. Sovereignty will not gain power unless it is supported by human resources
(ar-rijal)
d. Human resources cannot be maintained except with property (al-Mal)
e. Property cannot be obtained except by construction (al-mImarah)
f. Development cannot be achieved except with justice (al-‘Adl)
g. Justice is a benchmark (al-Mizan) used by God to evaluate humans and;
h. Sovereignty contains the responsibility to uphold justice (al-‘Adl).
Ibn Khaldun explained in detail that a reasonable profit would encourage
the growth of trade, while a very low profit would make trading decrease because
traders lose motivation. Conversely, if the trader takes a very high profit, it will also
make the trade sluggish due to weak consumer demand. Ibn Khaldun also defines
two main functions of trade, which is the translation of the time and place of a
product:
"Efforts to make such a profit can be done by storing goods and holding it
until the market has fluctuated from a low price to a high price, or the trader can
move the goods to another country where demand in the place is more than the
hometown." (Fauzia & Riyadi, 2014).
The theory of Supply and demand is the forerunner of the occurrence of
international trade. Demand and supply are created due to a sense of dependence to
meet domestic needs by cooperating with other countries. The reason that underlies
international trade is the benefits to be gained by each country which in its final
goal is to maximize the welfare of the country. Countries that carry out trade want
to achieve economic of scale in the production process, for that each country only
produces a certain number of goods on a large scale so that it is more efficient than
if each country produces all types of goods.
 CHAPTER III
CONCLUSION

In the elaboration of Ibn Khaldun's thoughts about the state, ‘ashabiyah had
a very significant influence on the achievement of power and political survival.
Starting from the beginning of the movement to build strength, then continue to
achieve victory, even to the stage of maintaining the social stability of the country.
Conversely, the waning of ‘ashabiyah ties will potentially weaken the country's
resilience from the onslaught of the enemy as well as from internal turmoil, and the
changing times that are increasingly developing also play a role in testing and
providing very heavy resistance as well. Thus, it can be concluded that the main
key in maintaining stability, continuity, and survival of a country lies in the
elements of the nation, especially its leaders in maintaining the continuity of the abi
ashabiyah attachment.
It can be understood that Ibn Khaldun's thoughts on economics are actually
very brilliant which includes various economic problems, both micro and macro,
especially when he was put forward in the 14th century when Europe was still
backward. Ibn Khaldun has conducted an empirical study of Islamic economics,
because he explained the economic phenomena that occur in society and the state.
From this study it can be concluded that historically, Ibn Khaldun's thoughts on
economics far preceded modern Western scholars. Therefore, who deserves to be
called the father of economics is Ibn Khaldun, not Adam Smith. In addition to his
brilliant thinking about the cycle of civilization, his thoughts on economics in
various fields also need to be considered in the present context, such as his thoughts
on taxes, international trade, monetary, and others. All Ibn Khaldun's thoughts on
economics are very urgent to be considered in the present context in order to create
a prosperous society and country.
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