Buku 1 : ISLAMIC ECONOMICS

A SHORT HISTORY

BY : AHMED EL-ASKHER AND RODNEY WILSON

ISSN 1389-823X

ISBN-13: 978-90-04-15134-5

LEIDEN - BOSTON 2006

BAB 1

Islamic Economic Renaissance: Islamic Economics in the Twentieth Century

A. Introduction

From the second half of the twentieth century the substantial amount of work on Islamic
economics was beginning to have an impact on economic thinking, especially amongst Muslims.
Siddiqi cited some 700 titles of original and commentary works on Islamic economics; most were
written in the period from the early 1950’s to the late 1970’s (Siddiqi, 1980). The titles cover a
wide range of topics: economic philosophy of Islam, (80 citations), economic system of Islam, (418
titles), Islamic critique of contemporary economics, (over 100 citations), economic analysis in an
Islamic framework, (about 50 citations), history of economic thought in Islam, (40 citations), and
bibliographies. EarlierEarlier surveys were also published such as; “A Guide to Researcher in
Islamic Economics” by Attiyah, (a pioneer in Islamic banking who took Islamic banks to Europe), in
1974, and an, “Annotated Biblio- graphy of Contemporary Economics Thought in Islam and a
Glossary of Economic Terms in Islam” by Khan in 1973, followed by “Islamic Economics: Annotated
Sources in English and Urdu,” vol. 1, 1983 and vol. 2 in 1991. TheThe volume of work is impressive,
including Turkish literature on Islamic economics that also came to prominence. In his
“Contemporary Turkish Literature on Islamic Economics”, Zaim cited over 200 pieces of work by
Turkish authors on Islamic economics during the same two decades or so from 1950’s to late
1970’s. The Turkish authors seemed to have been determined to make their contribution felt. The
tremendous amount of work in the area has generated aproblem of riches for those wishing to
write on the contemporary development of Islamic economics. It has become rather difficult to
single out a name, or a group of names, as the author, or authors, of the century, as we were able
to do so in previous chapters.

Influencing Factors
It was not until 1976 when the First International Conference on Islamic Economics was held
that the subject of Islamic Economics gained recognition nationally and internationally.
Apart from lengthy research papers, monographs, and specialised books, articles were
mainly published in journals and magazines of religious or general social science nature that
were geared towards Islamic studies as a whole rather than a particular discipline,
economics or otherwise. Or as Khan states in his Annotated Sources in Islamic
Economics,“. . . most of the literature on Islamic economics is scattered in journals and
periodicals of a diverse nature. It may be found in religious magazines, periodicals of general
interest and purely academic journals... books on Islamic economics are not classified under
any single specified heading”, (Khan, 1983).
In the absence of an organized institution that would coordinate the work on Islamic
economics literature, several factors served as instigators to the development of the work
on the subject. Five main factors could be said to have helped boost the development of
Islamic
economic literature at that stage: (a) the personal motivation of the writers themselves who
were driven by their own religious zeal to promote Islamic economics, or the Islamic
approach to economics, as a means of promoting the religious cause, (b) sponsoring acade-
mic and non-academic institutions and organisations that had the pro-motion of Islam within
their set of missions, (c) religious societies, (d) Muslim students associations, and (e)
dedicated publishing houses. BelowBelow is a brief evaluation of the influencing role of
these factors.

The Personal Factor

Prior to 1976, particularly up to the late sixties, a great deal of writiing on Islamic economics
was mainly the outcome of individual efforts that were motivated chiefly by a personal and
religious impetus. The personal and academic traits of the early writer on Islamic economics
were of almost a unified nature. Up to the first half of the twentieth century, and well into
the nineteen sixties, early writers on the subject were mainly: (a) educated in Islamic
religious studies, (b) either religious scholars, such as Sharì"ah jurists, or (c) economists by
education and profession, (d) economists with mostly Western economics education either
in their home countries or abroad, (e) all religiously motivated, driven by their zeal to
defend Islam
first, in addition to their inborn academic curiosity, and (f ) all with a persisting urge to prove
to the doubting Muslims and non-Muslims that Islam can still work in the modern twentieth
century, that it has the ingredients to accommodate new changes in modern soci- ety and
that it has the ability to serve as a vehicle to foster eco- nomic development, run
governments and re-establish nations. VariousVarious factors seemed to have ignited the
religious feeling among these writers to develop the work on Islamic economics by the turn
of the second half of the twentieth century. First, the intensive activities of religious groups
that aimed at mobilizing Muslims towards a return to the values of Islam and to the belief in
it as a way of life in the contemporary Muslim society with a view to providing an opposition
to the adopted secular model. When Islamic economics was among the challenging areas,
the call for the revival of Islam helped prompt a call for a revival in the Islamic economics
literature. The Muslim Brothers, jama"at al-ikhwan al-Muslimùn, which was founded in
Egypt in 1928 by Œassan al-Banna (1906–1949) and Society of Islam, jama"at-i-Islami,
founded in Pakistan in 1941 by Abù"l a"ala Maudùdi (1903–1979) who carried the banner of
re-Islamisation in Pakistan in his endeavour to mobilise the masses, are two distinct
examples of these societies. Whether the writers of the mid twentieth century were
affiliated to these organized religious societies or not is difficult to establish, nor is it the
concern of this book, but it can be said that the strong call of these societies for the return to
Islam as a source of values and strength to Muslims and a way of life to Islamic society in
modern time had helped create the urge to write, the expectation to read, and the
willingness to change.

Sponsoring Institutions and Organisations

Of the academic institutions that fostered research on Islamic economics in the early part of
the twentieth century, Al-Azhar University of Cairo stands out, as not only the oldest Islamic
and one of the oldest universities in the world but also as an academic institution that
paid particular attention to Islamic research and researchers. The University has established
the Academy of Islamic Research as anbaffiliated academic body within the University to set
up conferences and conduct research. Research, however, embraced research on Islamic
topics of different nature, including, but not exclusively, Islamic economics. Research on
Islamic economics was welcomed if not encouraged. Furthermore, the Academy would
shoulder the responsibility of publishing the proceedings of the conferences and of the
individual researches to make the benefits of the work widely available. It was only a decade
or so later, when the Islamic economics grew further and expanded wider that a need for a
specialised conference on the subject became obvious. It was then that the first Inter-
national Conference on Islamic Economics of 1976 was convened. To demonstrate the
degree of influence that Al-Azhar Academy has had on the literature of Islamic economics at
that phase of development, the following, which are published by the Academy, and
are all in Arabic, are given as some examples of what Siddiqi has
shown us in his survey of contemporary Islamic economics literature
(Siddiqi, 1980):
Al-Khafif, Shaikh Ali, “Individual Property and its Limit in Islam”,
128 p., First Conference, 1964; Œasan, Abdel Raœmàn, “Financial
resources in Islam”, 64 p., First Conference, 1964; Hussaini, Ishaq
Musa, “Hìsbah in Islam”, 255–277 p., First Conference, 1964; Al-Araby,
Muœammad Abdùllah, “Islamic View Point Regarding the Ways of
Productive Employment of Property”, 124–136, Second Conference, 1965;
Al-Araby, Muœammad Abdullah, “Contemporary Bank Transactions
and Islam’s View”, 79–122, Second Conference, 1965; Abù Zuhra,
Shaikh Muœammad, “Zakàh”, 137–201, Second Conference, 1965;
Proceeds of the Seventh Conference, Sept. 1972, “Economic and Legal
Discourses”, 410 p., Seventh Conference, 1973; Al-Shahawi, Ibràhìm
Dasuqi, “Hìsbah: a Social Function”, 64 p., Seventh Conference, 1973;
and Al-Tahawi, Ibràhìm, “Islamic Economics: a School of Thought
and a System, a Comparative Study”, 2v, 616 and 400 p., 1974.
Last but not least, the World Muslim League may be added to
the list of sponsors of Islamic economics. “Economics of Social Struc-
ture of Islam”, by Muœammad Abdùllah al-Araby, Singapore in 1966,
and, “Social Justice in Islam”, by Ahmad Zaki Yamani, both in
Singapore, 1966, and “Characteristics of Islamic Economics”, by
Mahmùd Muœammad Babulli, in Makkah, 1969, (ibid.) are some exam-
ples of the researches presented to, and supported by, the League.
These were the key institutions that pioneered research on Islamic
economics. But from the late seventies onward, more sponsoring
institutions came to the scene with substantial financial resources and
expertise. Examples of these are mentioned in the previous chapter
on Islamic revivalism in which it was mentioned that the effect of
these institutions on the development of Islamic economics has been tremendous

Religious Societies
The effect of these societies has been of twofold: the effect of religious
teachings on the writers on Islamic economics that has contributed to
enhancing their initiatives, and the public call for Islamic revivalism
in Muslims’ life with a return to the basic ideals of Islam. Religious
societies represented by those mentioned earlier, extended their
influence among the public through lectures, mosque schools and the
weekly regular Friday congregational prayers. The military disaster
that bewildered the Muslim world after the defeat in what became
known as the six-day war, or mildly referred to in the Muslim world
as the setback, made the message of religious bodies for the return
to Islamic ideals more persuasive. Many concluded that the religious
reason for the defeat was that Muslims were not fully commited to
their religion and if they were to achieve any future victory in
battlefield or factory they ought to return to the pure rules of their
religion.

Muslim Students Associations

Despite what could be thought of as minor bodies with no distinc-

tive academic arms, Muslim Student Associations have proved to be
effective in the publication of Islamic writing on Islamic economics.
Either nationally or internationally some associations have been
notably productive. For example, we find the Cultural and Religious
Committee of the Students Muslim Association, Faculty of Engineering
of the University of Cairo producing an interesting research on the
“Property and Ownership in Islam”, 1972, under the Committee’s
name (Siddiqi, 1980). For a student association of a faculty of engi-
neering to produce an Islamic economics research paper, this must
indicate a high religious motivation, as the topic is beyond the cur-
ricula of study. In another association within the same university,
though nearer to the subject of study, we see the Society of Islamic
Studies, Faculty of Commerce, University of Fouad I (the old name
of Cairo University before it was changed after the 1952 Revolution),
producing research on “Economics in the Light of Islam”, 114 p., in
1951, under the patronage of the Society (ibid.). Producing a mono-
graph on economics in Islam, in as early as 1951, reflects an early
interest in Islamic economics in Cairo university circles.
The Topics

The early topics covered were, by implication, of religious-social-

economic nature, but not, by necessity, political. There was a con-
scious intention to avoid any clash with governments, the majority
of which were in favour of secularisation as a way forward to eco-
nomic development. The topics were revolving around social justice
and Islamic social solidarity, two firmly embedded values in Islam.
Zakàh and Ribà, the charge and earning of interest, were a plausi-
ble start and they appeared more than others in the mid twentieth
century writing, as they represent the two basic sacred values in
Islam of justice and solidarity. That remained to be the case at least
up the third quarter of the twentieth century, beyond which the
Islamic economics writing began to spread to topics of a highly tech-
nical nature. Now, the topics are on par with almost all technical
issues in Western economics. The following topics will be explored below as pioneering and
major examples of writing on Islamic economists in the twentieth
century: Zakàh and taxation
Abolition of ribà
Interest-free banking
Monetary policies, fiscal policy and resource allocation
Islamic economics theory, ethics and economics
Consumer behaviour
Insurance
Economic cooperation among Muslim countries
Indexation
Economic development
Zakàh and Taxation

Whenever Zakàh is mentioned in a bibliographical list, or sought as

an entry in the literature, a reference book comes always to mind,
that is “fiqh al-Zakàh” ( jurisprudence of Zakàh) by the jurist Yùsùf
al-Qardawi. The book, which has been translated from Arabic, its
original language, to many other languages including English, has
been republished several times, and is still universally demanded. In
two volumes the book provides an encyclopedia of the third pillar
of Islam. Al-Qardawi seems to have exhausted the coverage of the
subject by looking into it from the perspective of the four main
schools of Islamic thought, concluding with his own opinion. The
purpose of the book was threefold: first, to educate Muslims on their
religious obligations as far as Zakàh is concerned, second, to adapt
the application of Zakàh to the twentieth century’s society given the
complexities of estimating the Zakàh tax base, and third, to stress
the merit of Zakàh as a societal caring tax on the one hand and an
investment incentive levy on the other.

Monetary and Fiscal Policies and Islamic Resource Allocation

The monetary policy became of interest to Islamic economists shortly

after the early waves of the establishment of Islamic banks. In 1978,
the first seminar on the monetary and fiscal economics of Islam was
held in Makkah followed by a second in Islamabad in 1981. The
proceedings of the two seminars, which were co-published by the
Institute of Policy Studies, of Islamabad, and International Centre
for Research in Islamic Economics, of Jeddah, included well focused
research papers. The general theme of the papers was whether a
fiscal policy is possible in an Islamic state and if it is, how it will
be different from other non-Islamic fiscal policies. The common
answer to the first part of the question among the writers is a pos-
itive reply in the sense that, yes, a fiscal policy is possible. Writers,
however, have slight differences in expressing their views on the sec-
ond part of the question as to how and what policies could be fol-
lowed to achieve these Islamic policies. To begin with there is a
general consensus that fiscal policy in an Islamic state should be
Islamic ideological oriented and in contrast to other policies of non-
Islamic policies it cannot be value-neutral (Ahmed et al., 1983).

Islamic Economics Theory, Ethics and Economics

The first international conference on Islamic economics demonstrated
a variety of interest among researchers and participants. The first
was an interest in laying down the conceptual and theoretical frame-
work of Islamic economics—a conceivable start in a first conference
of its kind. With different emphasis on the economic activities of the
individual and the state, Islamic economists are, as expected, unanimous
that their subject draws its concepts and principles from the Sharì"ah,
the Divine Law. Consequently, ethics as emanating from Islam, are
the paramount foundation of Islamic economics. In theorizing on
Islamic economics, the issues of Zakàh and banking without inter-
est are, inevitably, in a prominent position.
Having started by defining economics as a science, Sakr proceeded
to look into Western economics theories with a view to providing
what seems to be a common ground between Islamic and Western
economics. The conclusions appear to be: as there are already embed-
ded ethical values in Western economics, manifested in normative
economics and advocated by altruist economists, there are also eth-
ical values in Islamic economics that is based on Islamic norms and
religious ideals, which would, or should, make Islamic economics
per se more readily acceptable to Western economists as an indepen-
dent branch of economics, (Sakr, 1981). On the role of the state in
the economy, he proceeded further, outlining the role of the Islamic
state in managing the economy.
In contributing to the theorization of Islamic economics, al-Fangari,
whom we have cited before in the writing on Zakàh, expresses his
concern over what he sees as: a lack of understanding of Sharì"ah
subjects by Muslim economists, and lack of understanding of eco-
nomics by Sharì"ah scholars. The result is that, “Many of those who
write on Islamic economics confine their writing to specific topics
revolving in particular around Zakàh and the prohibition of Ribà,
as if Islamic economics were only concerned with Zakàh and Ribà”,
(Al-Fangari, 1981). He recommends that Muslim economists, in addi-
tion to being technically competent in contemporary economics,
should be thoroughly educated in Sharì"ah. In reconciling Islamic
economics with its fourteenth century history with contemporary eco-
nomics, al-Fangary ascertains two important points:, first, concepts
and principles of Islamic economics are to be taken from the pri-
mary sources of the religion, the Qur"àn and Sunnah that are not
subject to change, and second, the application of these concepts and
principles may vary from time to time and from one situation to
another as the contemporary circumstances may demand (ibid.).
Consequently, Islamic economics according to al-Fangary can be
divided into two main dimensions: first, “the Islamic Economic
Approach”, which cannot be changed as it is based on Qur"àn and
Sunnah, and the “Islamic Economic System(s)”, which can be adapt-
able to changes in society. What is particularly interesting in al-
Fangari’s thinking is that he is in favour of “ijtihàd”, which is the
exertion of self to reach a rule in a situation that either did not exist
in the past or existed but not at the same dimension and regards
“the closure of the gate of ijtihàd ” as harmful to Islam (ibid.). This is
in contrast to fundamental jurists who advocate that ijtihàd in religion
is an invention, and every religious invention is misguiding, and every
misguidance is in Hell fire. Turning our attention to the ethical values in Islamic economics,
we find that Islamic economists stress that in contrast to other eco-
nomic systems, ethical values are embedded in Islamic economics.
These values are rooted in Islamic philosophy on which Islamic eco-
nomics is based, in such a way that makes it impossible to build an
Islamic economic model, or to envisage Islamic economics, on a
value-neutral premise. Islamic economists and Sharì"ah scholars agree
on this with no exception.
Naqvi is among those Islamic economists who took the point fur-
ther with a focused deliberation. In his “Ethics and Economics: an
Islamic Synthesis”, having stated that the key to a thorough under-
standing of the originality of Islamic economics lies in its ethical value
system, he elaborates on the issue by reiterating that Islamic ethical
philosophy is based on four main axioms: Unity, Equilibrium, Free
Will and Responsibility (Naqvi, 1981). Unity, which in an absolute
concept refers to the unity of God, reflects that man’s life on earth
is, or is perceived to be, well integrated in its entirety in a complete
coordination between the universe, life on earth and man as being
amalgamated in one unit. Equilibrium, which is inferred as justice
or al"Adl, requires that within its homogenous whole which life is in
an Islamic perspective, its various elements must be equilibrated to
produce the best social order.

Economic Development
Economic development is a central and crucial issue for the major-
ity of Islamic economists. This is for two particular reasons, the abo-
lition of interest from the Islamic economy and the effect of Zakàh.
With the abolition of interest there is more focus on the development
of resources and production, and the implications for land, capital
and labour. Zakàh is concerned with the distribution of output
or income and with the consequences for wealth, with a view to
achieving a just allocation of resources. Therefore, by necessity and
explicitly or by implication, economic development is a topic that is
well embedded in Islamic economics. And if we add to that other
reasons, such as the distinction of Islamic economics from other eco-
nomic systems in philosophy, mechanisms and objectives, Islamic
economists would feel the urge, because of the nature of the sub-
ject, to write on economic development from an Islamic perspective.
To begin with, all Islamic economists, both those who have writ-
ten on the subject and others who have not, but still express their
opinion in a different form, agree that Islamic economics is value
based and as such economic development in Islam will be characterised
by the same prerequisite. The differences among the writers are
differences of opinion on details, differences of the degree of empha-
sis, and their perspective for the examination of development issues.
Khurshid Ahmad’s contribution seems to be among the most
quoted and his “Economic Development in an Islamic Framework”
is frequently cited and deserves a due attention. Ahmad enthusias-
tically calls for innovation and a full departure from imported ideas
either from the West in the form of Western capitalism or the Eastern
bloc in the form of socialism. Neither system can provide the Muslim
nations with a model for economic development, nor would either
be suitable to adapt to fit in a framework of Islamic economics
(Ahmed, 1980). The major thrust of Islamic economic development
is, or ought to be, directed at human life with the objective of mak-
ing it purposeful and value oriented. Islamic economic development
as such will be based on two main premises: first, development in
an Islamic framework and Islamic development economics as rooted
in the value-pattern embodied in the Qur"àn and the Sunnah, and
second, this approach rules out imitativeness (ibid.).
If we concentrate on the third section, Islamic economics, we find
that in dealing with the main outlines of the Islamic economics al-
Sadr has divided the subject into six main sections, as follows:
1. The general structure of Islamic economics,
2. Islamic economics as part of a whole system,
3. The general framework of Islamic economics,
4. Islamic economics is not a branch of science,
5. Distribution as separate from the form of production,
6. Economic problems from an Islamic point of view and their
solutions.
In explaining the general framework of Islamic economics al-Sadr
states that it is based on three basic foundations: the principle of
dual ownership, the principle of conditional economic freedom, and
the principle of social justice.
On ownership, we find al-Sadr advocating that ownership is of
three types, private ownership, public ownership, and state ownership.
The mixed forms of ownership, he warns, do not imply that an Islamic
economic system is a mixed economy which allows both forms of
private and public ownership. It cannot be described as such, in his
views, as Islamic economics has a different ideology from that of the
mixed economic system. The mixed economic system is a capitalist
system that allows for public ownership, or a Marxist system that
permits private ownership. The Islamic economic system is neither as
it has its own values that are neither capitalist not communist.

BUKU 2
AN
INTRODUCTION TO
ISLAMIC ECONOMICS
Muhammad Akram Khan
International Institute of Islamic Thought
and
Institute of Policy Studies
Khan, Muhanunad Akram, 1945-
An Introduction to Islamic Economics.
(lslamization of Knowledge - 15)
Bibliography: pp. I 35-44
Includes index
ISBN 1-56564-079-9 HC
ISBN 1-56564-080-2 PB

BAB 1

The Nature of Islamic Economics

1. THE RECENT UPSURGE
TWO
Islamic economics is a nascent discipline. It has not yet attracted
much attention of the economic profession although the recent past
. has witnessed a sporadic intellectual activity in some Muslim
countries which promises to make I~lamic economics an
independent branch of knowledge. This is ev(dent from the fact that .
at present at least 30 universities in Muslim countries are offering
undergraduate and post-graduate courses in Islamic economics. Quite
a few Ph.D. theses in Western universities have been written on
various issues relating to Islamic economics. There are three
international research institutions exclusively devoted to the
development and dissemination of knowledge relating to Islamic
economics. Three scholarly research journals publish material on
Islamic economics. Besides, a number of journals on Islam, Middle
East and economics publish articles on Islamic economics. Thanks
to the papers published in these journals and the many books which
have appeared during the last two decades, a respectable body of
serious literature on Islamic economics has accumulated. 1 There now
exists an International Association of Islamic Economics with its
headquarters in Jeddah which has started publishing a journal of its
own.
Islamic economics presents Islam's viewpoint on the human
economic situation. Its roots are in the sacred Islamic texts which
provide broad guidelines for the economic behaviour of human
beings. But a significantly large portion of its literature is the result
of the human endeavour to analyze and to seek solutions to the
economic problems of man in the overall framework of Islam.
Therefore, there is little that is sacrosanct about most of what
IslamiC economists say concerning human economic problems.
Muslim scholars have been discussing economic issues of their
respective times during the last fourteen centuries. Some of these
discussions have been preserved by history. Thus Islamic economics
has a rich heritage of Muslim thinking to draw upon although most
of it may not be precisely applicable to our own times. But it gives
a fertile field for further inquiry, opening gateways to a distinct
epistemology, method of analysis and investigation.
The recent upsurge2 of interest in Islamic economics, after
about two centuries of sluggish intellectual activity among Muslims,
owes its origin to a number of factors. First, there is a great
dissatisfaction with the way in which the ma~nstream economics
seeks to analyze and find solutions to the economic problems of the
world. The present era which boasts of material prosperity has not
been able to do much about some of the endemic problems of the
world. Unemployment combined with inflation, and widespread
poverty in developing countries, misery amidst affluence, regional
disparities, environmental pollution, the dissipation of moral values
under the onslaught of technological innovations, the overwhelming
economic power of global corporations, the waste of precious
resources through reckless consumerism, international exploitation
in the name of economic 'aid' and iniquitous trade structures are too
familiar to be elaborated upon. All this has created an urge to look
for a fresh approach to human problems.
Second, as discussed in chapter one, the mainstream
neoclassical economics has a narrow basis, and has unrealistic
assumptions about human nature and behaviour. Economists have
widely questioned its approach and conclusions by emphasizing the
need to revise its very premises. As we shall see shortly, Islamic
economics has the potential to answer the need to have a more
realistic basis for economic analysis.
Third, during the colonial era capitalism adopted an
insensitive approach to indigenous cultural values, social institutions
and local technology of the colonized nations. It systematically tried
to destroy the traditional societies in the colonies on the plea that the
capitalist system was more efficient and productive. 3 History has
shown the hollowness of such assertions. The colonies became
poorer when the colonial powers left them than when they occupied
them. This has alienated the elite of those countries from the
capitalist way of thinking. Of course, some of them turned to certain
muddled forms of socialism or capitalism. But from among them
some have looked up to the pristine values of Islam and imbibed the
desire to reincarnate their bygone glory. There is no denying the fact
that there is a certain amount of romanticism in the thinking of
several of these people. But the phenomenon seems to be one of the
causes for a growing interest in Islamic economics.
Fourth, the international economic order that has emerged
as a result of the prevalent economic thinking has institutionalized
exploitation of the poor countries by the rich. The disparity between
the two is on the increase despite all the lip service to justice and
fairplay. The terms of trade have systematically turned against the
primary producers. The global economic mechanism has been
designed to perpetuate the hegemony of the industrially advanced
countries. It is now being widely realized that such an economic
arrangement carries its own seeds·of destruction. 4 There is, thus, a
felt need for a fresh look at this economic order. We shall argue
later in chapter five that Islamic economics holds this promise.
The dramatic changes in Eastern Europe since 1989 and the
break up of USSR have also expedited the search for a better
economic doctrine. It is clear that socialism as an economic system
that would procure justice and prosperity for mankind has been
finally defeated and people in the socialist countries are looking up
to capitalism as a saviour and ancho( of the last resort. Their
disillusionment with socialism has shown them an easy route which
leads to the same capitalism which they had abandoned less than half
a century ago. After the dust settles down, those very countries
would be obliged to re-think their strategy to achieve a sustained
development and a more just and civilized society. It will be at that
juncture that they are likely to have a serious look at what Islam has
to offer as an alternative to both capitalism and socialism. Islamic
economics brings a fresh approach to the human economic problems.
It has the potential of ushering in a just and more humane
civilization.
The theoretical work in the field of Islamic economics,
however, remains scanty for several reasons. First, the Muslims
who should have pioneered the development of this subject have
suffered from an intellectual trauma. It came with the political
domination of the West which not only destroyed the Muslim
educational institutions but also damaged the spirit of inquiry in the
Muslim lands. This has prevented the Muslims from developing
knowledge from their own perspective and to the extent that the West
has done. Second, the problem of intellectual space has also
contributed to this phenomenon. The West is fully dominant on all
seats of learning, and on publication and distribution of most of the
serious literature in all disciplines. It documents, classifies and
disseminates information on various disciplines throughout the world.
Whatever efforts have been made by the scholars in Islamic
economics have not been adequately taken note of in the West.
Moreover, the scholarly journals published from the West do not
easily accept the work of Muslim economists mainly because there
is a strong aversion against all academic writings with a religious
orientation. Third, there does not exist much empirical data to test
or falsify the postulates of Islamic economics. This has posed an
insurmountable problem to the Muslim economists. 5 Fourth, most of
the professional economists are simply not aware of what Muslim
economists are so zealously pleading. A tiny minority of Western
economists, which is attracted towards Islamic economics, holds a
variety of opinions. Some consider the work of Islamic economists
to consist of apologetics. They say that the scholars of Islamic
economics are engaged in grossly adapting Islamic postulates to
Western theories. 6 Still others doubt the possibility of the
development of an economic system capable of accommodating the
contemporary economic reality from a few simple precepts. 7 Fifth,
some of the Muslims are also victims of a romantic confusion about
Islamic economics. Impressed by the apparent size and complexity
of the capitalist and socialist economic systems, they think that the
Islamic economic system must be an amalgam of capitalism,
socialism and a few metaphysical beliefs of Islam. Such simplistic
notions about Islamic economics are also a source of considerable
misunderstanding.
The present chapter seeks to dispel these doubts, fears and
confusions. It is an attempt to define the nature, scope and subject-
matter of Islamic economics. As would be argued later, Islamic
economics is not a denial of contemporary reality, nor does it seek
to stage an about-tum towards the conditions of the seventh century
Arab society. It only visualizes a reorganization of the basic
economic functions. Islam has not provided a strait-jacket of
economic relationships and institutions. Perhaps Islam could not do
so as it would have been a negation of its own claim for universality.
The scheme of the rest of the chapter is as follows: First,
we shall discuss briefly the Islamic worldview and its position on
such issues as human nature, the position of man on the earth, and
the relationship of man with the resources of the earth. Then we
shall introduce Islamic economics as a branch of knowledge by
giving a tentative definition and explaining its key concepts. This
would be followed by a brief mention of the sources of Islamic
economics. This shall be followed by a discussion on the approach
of Islamic economics and the place of the economic system in the
life-scheme of Islam.
2. DEFINITION OF ISLAMIC ECONOMICS
Islamic economics has been variously defined by Muslim economists.
Irrespective of the actual phrasing, all the definitions emphasize the
comprehensive character of the subject, based on the universal moral
values of Islam. In the following discussion, we have attempted a
definition of Islamic economics which captures the gist of the subject
as discernible from the relevant literature on the subject: "Islamic
economics aims at the study of humanfalafl achieved by organizing
the resources of the earth on the basis of cooperation and
participation".The key concepts in the above definition are the following:
a) fala!J;
b) resources; and
c) cooperation and participation.
2.1 Falah
It is difficult to find a single equivalent for this term in the English
language. The termfala!J has been derived from the Arabic rootflfJ,.
Its verbal form afla!J,, yufli!Ju means: to thrive; to become happy; t6
have good luck or success; to be successful. According to Raghib
al-I~fahani, fala!J, is a both-worldly concept. 8 For the life in this
world, it represents three things: baqa' (survival), ghana (freedom
from want) and 'izz (power and honour). In the hereafter, it stands
for: baqa' bila fana' (eternal survival), ghana bila faqr (eternal
prosperity), 'izz bila dhull (everlasting glory) and 'ilm bila jahl
(knowledge free of all ignorance). According to the Qur'an, the
_ultimate goal of human life should be the achievement of fala!J, in the
hereafter. The life in the hereafter is a reality as compared to the life
in this world, which has been declared by the Qur'an to be merely
a play and a passing delight. Although the ultimate object of Islamic
economics is the achievement of fala!J in the life to come, but it
would be a reward for one's deeds during his stay in this world.
Fala!J in this world leads to the fala!J in the hereafter. Conformity to
the Islamic way of life is a means to achieve fala!J, both in this world
and the hereafter. In the following discussion, we shall try to explore
further the implications of fala!J, in this world.
In the context of this worldly life, fala!J is a
multi-dimensional concept. It has implications both for individual
behaviour (micro-level) as well as for collective behaviour
(macro-level). The following table summarizes the meanings ofjala!J
at both the levels
Economic Conditions of Falah
(i) Infaq: Infaq refers to spending on others and on the
social needs of the community merely to seek God's
pleasure. This is something distinct from social alms
which have been prevalent in all civilized societies.
The pre-Islamic Arabs were also aware of charity.
But Islam has broadened the concept of charity in a
number of ~ays. First, it has made obligatory a bare
minimum of social spending (called zaktih) on all
those who have a surplus over and above their
needs. To that extent, it is not voluntary. Second, in
its broader meaning, infaq covers expenditure on
one's own family as well which is not _so in the case
of charity. Third, Islam .recognizes the right of the
poor and the needy to receive a share from the
wealth of the rich. The poor do not owe any
obligation, moral or social, towards those who spend
something on them. Fourth, infaq has to be purely
for the sake of God who has promised reward in the
hereafter. Charity in a secular society is usually done
for winning social approbation rather than to seek
God's pleasure. lnfaq in the Islamic sense is a
mechanism to nourish one's spirituality. This is one
reason why secrecy in infaq is preferred, although
its announcement to induce others to charitable
spending is not prohibited.
The Qur'an has laid down infaq as a
condition to achieve falalJ.. 14 Infaq has to be only a
part of one's ~otal possessions. One is not required
to spend the whole of his wealth. The Qur'an says:
"He does not demand of you (to sacrifice in His
cause all of your possessions for) were He to
demand of you all of them, and urge you, you would niggardly cling (to them) and then He
would
bring out your ill-feeling" (47:37).
The implication is that since man "has been
created weak'.' (4:28) and since he has an inborn
passion for wealth (100:8), he would be
overburdened if asked to sacrifice everything in the
cause of God. Thus the Qur'an illustrates its deep
awareness of human nature. By keeping in.faq as a
part of the total possessions, it has provided human
beings with the incentive to strive and to generate ,a
surplus to be passed on to future generations as/well
as to fulfil one's needs. It attaches a high priority to
personal needs. lnfaq is required from out of the
surplus one has, and which one is required to
devote to righteous purposes. 15 The famous
commentator of the Qur'an, Mal).miid 'AliisI
(d.1270 H.), has expressed the view that infaq of
only a part of ones' possessions is sufficient to attain
falti!J and it is not necessary to spend the whole of
one's wealth. 16 The reason is that such an action
would lead to monasticism. It is in this context that
we should view the fact that the Prophet (peace be
upon him) asked one of his'companions riot to spend
the whole of his wealth in the cause of God. 17
Zakah is part of the broader concept of
infaq. The Qur'an specifically enumerates zaktih as
a condition of falti!J presumably to emphasize its
purifying role. 18. The underlying idea is that zaktih
'purifies' an individual's soul from excessive love
for wealth.
lnftiq implies a number of other traits of
character. For example, infaq is possible for most · ·
people only when they adopt a simple life or else
they would hardly be able to generate a surplus out
of which a part might by transferred to others.
Because human wants multiply fast. No sooner one
satisfies a want than another crops up. It is only simple and contented life which allows one
to spare
something for others. Therefore, the virtues of
contentment, sacrifice, and moderation are natural
corollaries of infaq. Similarly, an ostentatious and
extravagant living is a hindrance to infaq. Whenever
one cultivates the habit of infaq one has to adopt the
overall life-style of Islam.
(ii) Prohibition of Interest: The Qur'an declares
interest on loan capital (riba) as a hindrance to the
achievement of fala}J. 19 Interest on loan capital was
prevalent in the pre-Islamic Arabian society. The
wealthy exploited the poor and the needy. The
custom of paying and receiving interest on
commercial credit was also known to the Quraysh. 20
The Prophet (peace be upon him) declared all forms
of interest as unlawful. He took various preventive
measures as well so as to forestall the infiltration of
interest into the economy in disguised forms.
The literature on Islamic economics
discusses the prohibition of interest more than any
other subject. It would be unnecessary to reproduce
that material here in any detail. The main point that
has been emphasized is that interest is a potent
means for perpetrating exploitation and inequity. The
road to falaJ:z would remain blocked until interest is
completely eliminated from the economy.
(iii) Fulfillment of Covenants and Trusts: Fulfillment
of covenants and trusts is a necessary condition for .
fala}J. 21 In its simple meaning it stands for honouring
personal commitments and promises. But some
,scholars have placed a broader interpretation on the
Qur'anic teaching of fulfilling covenants. According
to them, it involves meeting all one's social and
religious obligations. One is obligated to obey God
and His Messenger. One also has obligations
towards the family, neighbours and the society. From this they argue that polluting the
environment
through industrial waste contravenes one's
obligations towards the society and hence retards the
social pace towards fala!J,. Similarly, the government
has the obligation to ensure welfare of the people.
The society cannot achieve fala!J, until its inhabitants
fulfil these implicit covenants. 22
(iv) Justice: The Qur'an has pleaded for justice at a
number of places. It has linked fala!J with the
observance of justice in all affairs. The Qur'an uses
the term z,ulm (inequity) as an antonym of justice.
The Qur'an repeats that the z,alim (one who
perpetrates z,ulm) wouid not achieve fala!J,. 23 A
society in which one:s lawfully acquired wealth is
appropriated by others without any compensation or
consideration would suffer from wide inequalities,
impaired incentives and social waste. Islamic law has
clearly defined the lawful means of acquiring wealth.
Digression from these means would amount to z,ulm
and would hinder the way to fala!J,.
(v) Enterprise: God speaks of enterprise and struggle
for livelihood as "seeking His bounty". Enterprise
and effort to harness natural resources are an
essential condition to achieve fala!J,. The Qur'an
says: "And when the prayer ends disperse freely
on earth and seek to obtain (something) of God's
bounty, but remember God often, so that you might
attainfala!J," (62: 10).
Although there are a number of other verses
which exhort man to "seek the bounty of God", in
the present verse that exhortation is also suffixed by
the prospect of achieving fala!J,. This ties in quite
appropriately with the Prophet's sta.tements urging
people to work so as to earn their livelihood, his
condemnations of idleness and beggary, his
instructions to develop the land and to use the·natural resources intensively, and his good
tidings
for the merchants and craftsmen. Thus the
productive economic activity contributes to the faliih
of the society as well as of the individual.
SOURCES OF ISLAMIC ECONOMICS
The guiding principles of Islamic economics are derived from
the follow sources:
a) The Qur'an;
b) The Sunnah of the Prophet (peace be upon him);
c) Islamic Law and Jurisprudence;
d) History of the Muslims; and
e) Data Relating to Economic Life.
(a) The Qur'an
The Qur'an is the book of God which has been preserved
since it was revealed. The Qur'an contains general and broad
guidelines for the conduct of human beings. On economic
matters, too, it provides a set of fundamental principles to
guide human conduct. Consistent with these principles, the
superstructure of the economy has to be built, in each age,
according to the particular circumstances of each age. The
injunctions of the Qur'an are immutable and applicable to all
societies and are valid for all times to come. The Qur'an is
thus a primary source of Islamic economics. The Sunnah of the Prophet (peace be upon him)
The sunnah is the speech, action or tacit approval of the
Prophet (peace be on him) as recorded in the books of
· traditions. The compilers of these traditions have analyzed,
classified and interpreted the whole material. The literature
on traditions of the Prophet (peace be upon him) covers the
entire orbit of life, including the economic aspect. Although
most of the traditi?ns are general and applicable for all times
there are some whose relevance is time-bound. Therefore,
the knowledge of the exact status of each tradition is
essential to understand its relevance for the present age.
Knowledge· of the traditions containing injunctions about
economic abivities is an essential part ·of the training of
Muslim economists. 41
(c) Islamic Jurisprudence
There exists a vast legal literature developed by the Muslim
jurists over the last fourteen centuries. It deals with the
formalization of the injunctions of the Qur'an and the
traditions of the Prophet (peace be upon him). A large part
also deals with those questions-which arose subsequent to the
Prophet's time. The jurists have been elaborating arid
deriving inferences about economic questions as well. In
fact some of the early works of jurisprudence deal with
finance and land management. These discussions have a
variety of shades and their perusal opens a wide span of
subjects which have been of interest to jurists of each age.
The different juridical opinions carry an explicit note
illuminating the circumstances in which those opinions were
expressed.
Islamic economics draws heavtly on this rich heritage.
But the opinions of the jurists are not inviolable and can be
modjfied and adjusted according to the changed
circumstances. Islamic economics studies the impact of these
legal opinions on the behaviour of the people. The Muslim
economists try to formulate theories in the light of the vast
body of juridical opinions.
The Muslim economists visualize elaboration,
extension and reconsideration of the earlier legal works. The
questions which the contemporary scene has thrown up have
to be studied to arrive at a competent legal position.
Collaboration of religious scholars with economists is, thus,
a necessity for the development of Islamic economics.
( d) History of the Muslims
The history of the Muslims contains much scattered mate,rial
about the economic life of the people. These parts of the
history serve as useful precedents for the present-day
economy. Although mo'st · of what prevailed then has
undergone a metamorphosis yet the early- precedents lend ·
useful insights for the application of the Islamic economic
system in the contemporary setting. The economic history of
the Muslims has not yet been chronicled except for some
elementary accounts of the early period. We hope that with
the growth of the subject the historical sources will also
develop.
(e) Real Life Data
This is the main area of operation for a Muslim economist.
He studies the real life conditions and behaviour of the
people and uses the available data for analysis and
formulation of policies. The 'real life data' here refers to the
objective conditions prevailing in an economy. None of the
present day economies are Islamic in the real sense. They
have adopted various patterns of capitalism and socialism.
Islamic economics aims at the transformation of the present
day economies, which are full of shortcomings from an
Islamic viewpoint, into truly 'Islamic' economies. For this
purpose it focuses on the development of strategies for
transition. To that extent the study of the actual conditions
of the contemporary times becomes necessary and is in fact
an integral part of Islamic economics. /
The main concern of Islamic economics, however,
remains the achievement and maintenance of falti.IJ. The real
life data as a source of Islamic economics means the study
of the impact of various Islamic injunctions on the behaviour
of various economic variables and the effort to develop ideas
for transforming them in the light of Islamic norms.
4. THE APPROACH OF ISLAMIC ECONOMICS
How does Islamic economics approach its subject-matter? We shall
discuss the methodology of Islamic economics in chapter three. But
for now, we shall confine ourselves to making a brief exposition of
the Islamic approach to economic matters.
The method of Islamic economics presumes a primary and
binding role for the ideological content. The basic premises are
defined by the Islamic law. The Muslims economists develop their
analysis by employing reason and real life data to the divinely
ordained content of Islam. Islamic economics cannot be conceived
outside this basic framework.
Islamic economics conceives human behaviour in its totality.
It treats human life as a compact whole which is composed of
multiple mutually-reinforcing sub-systems. The economic sub-system
is one of these sub-systems. It is not even the central sub-system. It
affects the human behaviour only from the periphery. The hard core
of the system is composed of the basic beliefs in the Unity of God,
in the apostle-hood of Mul:J.ammad (peace be upon him) and in man's
accountability on the Day of Judgement. These beliefs are the
foundation of each sub-system.
The hard core radiates the fundamental principles of behaviour
and moulds human attitude in all the sub-systems. Between
themselves the sub-systems are open and interact. But each
sub-system also has a composition of its own which aims at the
achievement of falti.f!. The economic sub-system consists of legal
foundation of justice ('ad/) and ethical foundation of moderation
(iqti~ti.d) and benevolence (i!Jsti.n). The legal foundation ordains legal and contractual
relationships. Although Islam has a mature and
comprehensive legal system, yet the total area of human behaviour
covered by the legal injunctions is rather small. A very wide area of
human behaviour consists of voluntary acts. The voluntary acts are
influenced by considerations of moderation and benevolence.
Moderation is the mother-norm and governs individual behaviour
towards one's ownself. Benevolence is a cluster of ethical precepts
and influences inter-personal relationships. Second, a very high content of Islamic economics
is
normative. The Muslim economists have the obligation to discharge
the Qur'anic duty of enjoining what is proper and forbidding what
is improper. Therefore, Islamic economics studies and suggests ways
and means for achievingfa/ah. It makes note of the deviations from
the basic Islamic framework in human behaviour and devises policies
for attaining a higher level of conformity. Islamic economics plans
to foretell the possible economic crises that might develop as a result
of aberrant behaviour of the economic actors. It suggests suitable
policy measures to prevent crises before they. actually develop.
Third, despite being highly normative, Islamic economics has
a vast positive content as well. It attempts to study the impact and
reaction of various legal injunctions and ·ethical values on the
economic variables. For example, it may be of interest to study the
effect of prohibition of interest on the level of savings, investment
and employment. Another example may be a study of the effect of
zaktih on the consumption level of the society. The positive findings
of Islamic economics can subsequently be utilized for policy-making.
Fourth, Islamic economics can also make good use of the
tools of analysis developed by modern economics. Mathematics,
statistics, operations research, systems analysis and computer
technology may be utilized with benefit to develop Islamic
economics.
There arises, however, a very vital question: what is the
position of Islamic economics vis-a-vis the mainstream, that is,
neoclassical economics? There is no final answer to it. Reactions
vary from one extreme of complete rejection to the other extreme of
adopting everything that comes from the Occident after simply
changing the labels and using Arabic equivalents of English terms.
We believe that both the extremes represent unbalanced approaches.
A more moderate approach is the one pleaded for by Ism'ail R.
al-FaruqI, under the general rubric of Islamization of knowledge.
According to this approach, the task before Islamic economics would
be to study the mainstream economics critically, identify its
assumptions and values, sift what may be termed as fully established
facts of economic life from the merely tentative hypotheses or theories based on insufficient
evidence, and to synthesize these facts
into the Islamic worldview. Although the general case for this
approach is quite persuasive, the difficulty with the approach is that
it takes the researcher into an endless race of keeping a track of the
knowledge in the West and modifying his own work in its light. It
is a never-ending race in which the Muslim economist always
remains behind the Wes tern secular economist.
A more promising .approach, in our view, is being pleaded
by a group which calls itself the Ijmalis, the group of intellectuals
consisting of such persons as Pervaiz Manzoor, Ziauddin Sardar and
Munawar Ahmad Anees. They visualize the development of Islamic
disciplines in the light of the Islamic worldview without getting into
the business of developing a critique of Western knowledge.
Nevertheless, they would also like to use the real life data in
developing Islamic disciplines.
At this stage we need to mention a trap into which many Muslim
economists have landed themselves. The economic thought developed
by the Occident overpowers their reasoning and they are persuaded
by its 'truth'. Then they try to interpret the texts of the Qur'an and
the Sunnah in such a manner as would accommodate the secular
economic thought of the Occident. They start reading the findings of
the secular economists into these primary sources. While there is no
bar on the interpretation of the Qur'an and the Sunnah in each age,
the danger is that this approach might reduce the entire discipline of
Islamic economics into a sterile intellectual exercise, to a sheer act
of mimicry, or at least to turn Islamic economics into a
sub-discipline of secular economics, thus robbing it of its identity
and uniqueness. If that happens, the original objectives of developing
Islamic economics would be defeated. There is no hard and fast rule
for remaining out of this trap except that the Muslim economists
should widely discuss their ideas. It is only through a process of
self-criticism that they can guard themselves against this trap.
Buku 1: EKONOMI ISLAM

SEJARAH SINGKAT

OLEH: AHMED EL-ASKHER DAN RODNEY WILSON

ISSN 1389-823X

ISBN-13: 978-90-04-15134-5

LEIDEN - BOSTON 2006

BAB 1

Renaisans Ekonomi Islam: Ekonomi Islam di Abad Kedua Puluh

SEBUAH.      Pendahuluan

Sejak paruh kedua abad ke-20, sejumlah besar pekerjaan tentang ekonomi Islam
mulai berdampak pada pemikiran ekonomi, terutama di kalangan Muslim. Siddiqi
mengutip sekitar 700 judul karya asli dan komentar tentang ekonomi Islam;
kebanyakan ditulis pada periode dari awal 1950-an hingga akhir 1970-an (Siddiqi,
1980). Judul-judul tersebut mencakup berbagai topik: filsafat ekonomi Islam, (80
kutipan), sistem ekonomi Islam, (418 judul), kritik Islam terhadap ekonomi
kontemporer, (lebih dari 100 kutipan), analisis ekonomi dalam kerangka Islam,
(tentang 50 kutipan), sejarah pemikiran ekonomi dalam Islam, (40 kutipan), dan
bibliografi. Survei EarlierEarlier juga diterbitkan seperti; “A Guide to Researcher in
Islamic Economics” oleh Attiyah, (seorang pionir dalam perbankan Islam yang
membawa bank-bank Islam ke Eropa), pada tahun 1974, dan sebuah, “Annotated
Biblio- graphy of Contemporary Economics Thought in Islam and a Glossary of
Economic Terms in Islam "oleh Khan pada tahun 1973, diikuti oleh" Ekonomi Islam:
Sumber Beranotasi dalam Bahasa Inggris dan Urdu, "vol. 1, 1983 dan vol. 2 pada
tahun 1991. Volume karyanya sangat mengesankan, termasuk literatur Turki tentang
ekonomi Islam yang juga menjadi terkenal. Dalam "Sastra Turki Kontemporer tentang
Ekonomi Islam", Zaim mengutip lebih dari 200 karya penulis Turki tentang ekonomi
Islam selama dua dekade yang sama atau lebih dari tahun 1950-an hingga akhir 1970-
an. Para penulis Turki tampaknya bertekad untuk memberikan kontribusi mereka.
Banyaknya pekerjaan di daerah tersebut telah menimbulkan masalah kekayaan bagi
mereka yang ingin menulis tentang perkembangan ekonomi Islam kontemporer.
Menjadi agak sulit untuk memilih satu nama, atau sekelompok nama, sebagai
pengarang, atau pengarang abad ini, seperti yang dapat kita lakukan di bab-bab
sebelumnya.

Faktor-faktor yang Mempengaruhi

Tidak sampai tahun 1976 ketika Konferensi Internasional Pertama Ekonomi Islam diadakan
subjek Ekonomi Islam mendapat pengakuan nasional dan internasional. Terlepas dari
makalah penelitian yang panjang, monograf, dan buku-buku khusus, artikel terutama
diterbitkan di jurnal dan majalah agama atau ilmu sosial umum yang diarahkan pada studi
Islam secara keseluruhan daripada disiplin ilmu tertentu, ekonomi atau sebaliknya. Atau
seperti yang dikatakan Khan dalam Annotated Sources in Islamic Economics, “. . . sebagian
besar literatur tentang ekonomi Islam tersebar di jurnal dan majalah yang beragam. Ini dapat
ditemukan di majalah agama, majalah umum dan jurnal akademis murni ... buku-buku
tentang ekonomi Islam tidak diklasifikasikan dalam satu judul tertentu ”, (Khan, 1983).

Dengan tidak adanya lembaga terorganisir yang akan mengkoordinasikan pekerjaan literatur
ekonomi Islam, beberapa faktor berperan sebagai penggerak pengembangan pekerjaan
pada subjek. Lima faktor utama dapat dikatakan telah membantu mendorong
perkembanganIslam

literatur ekonomipada tahap itu: (a) motivasi pribadi para penulis itu sendiri yang didorong
oleh semangat religiusnya sendiri untuk mempromosikan ekonomi Islam, atau pendekatan
Islam terhadap ekonomi, sebagai sarana untuk mempromosikan tujuan keagamaan, (b)
mensponsori lembaga akademis dan non-akademis dan organisasi yang memiliki gerakan
pro-Islam dalam rangkaian misi mereka, (c) masyarakat religius, (d) asosiasi mahasiswa
Muslim, dan (e) penerbit khusus. Di bawah ini adalah evaluasi singkat tentang pengaruh
faktor-faktor ini.

Faktor Pribadi

Sebelum tahun 1976, khususnya hingga akhir tahun enam puluhan, banyak tulisan tentang
ekonomi Islam terutama merupakan hasil dari upaya individu yang terutama dimotivasi oleh
dorongan pribadi dan agama. Ciri-ciri pribadi dan akademis dari penulis awal tentang
ekonomi Islam hampir menyatu. Hingga paruh pertama abad kedua puluh, dan hingga
sembilan belas tahun enam puluhan, para penulis awal tentang subjek tersebut sebagian
besar: (a) dididik dalam studi agama Islam, (b) sarjana agama, seperti ahli hukum Syar'ah,
atau ( c) ekonom berdasarkan pendidikan dan profesinya, (d) ekonom dengan sebagian
besar pendidikan ekonomi Barat baik di negara asalnya atau di luar negeri, (e) semua
termotivasi secara agama, didorong oleh semangat mereka untuk membela Islam

terlebih dahulu, di samping keingintahuan akademis bawaan mereka, dan (f) semua dengan
dorongan yang terus menerus untuk membuktikan kepada Muslim dan non-Muslim yang
meragukan bahwa Islam masih dapat bekerja di abad kedua puluh modern, bahwa Islam
memiliki bahan untuk mengakomodasi perubahan baru dalam masyarakat modern dan
bahwa Islam memiliki kemampuan untuk berfungsi sebagai kendaraan untuk memupuk
pembangunan ekonomi, menjalankan pemerintahan dan membangun kembali
bangsa.Berbagai faktor tampaknya telah menyulut perasaan religius di antara para penulis
ini untuk mengembangkan karya tentang ekonomi Islam pada pergantian paruh kedua abad
ke duapuluh. Pertama, kegiatan intensif kelompok-kelompok agama yang bertujuan untuk
menggerakkan umat Islam kembali pada nilai-nilai Islam dan keimanannya sebagai cara
hidup masyarakat Muslim kontemporer dengan maksud untuk memberikan perlawanan
terhadap model sekuler yang dianut. Ketika ekonomi Islam berada di antara area yang
menantang, seruan untuk kebangkitan Islam membantu mendorong seruan untuk
kebangkitan dalam literatur ekonomi Islam. The Muslim Brothers, jama "at al-ikhwan al-
Muslimùn, yang didirikan di Mesir pada tahun 1928 oleh Œassan al-Banna (1906–1949) dan
Society of Islam, jama" at-i-Islami, didirikan di Pakistan pada tahun 1941 oleh Abù "la" ala
Maudùdi (1903–1979) yang membawa panji re-Islamisasi di Pakistan dalam upayanya untuk
memobilisasi massa, adalah dua contoh berbeda dari masyarakat ini. Apakah para penulis
pada pertengahan abad kedua puluh berafiliasi dengan masyarakat religius yang
terorganisir ini atau tidak sulit untuk dibangun, juga bukan menjadi perhatian buku ini, tetapi
dapat dikatakan bahwa panggilan kuat dari masyarakat ini untuk kembali ke Islam sebagai
sebuah Sumber nilai dan kekuatan bagi umat Islam dan cara hidup masyarakat Islam di
zaman modern telah membantu menciptakan dorongan untuk menulis, harapan untuk
membaca, dan keinginan untuk berubah.

Lembaga dan Organisasi yang Mensponsori Lembaga

akademik yang mendorong penelitian tentang ekonomi Islam di awal abad ke-20,
Universitas Al-Azhar Kairo menonjol, tidak hanya sebagai universitas Islam tertua dan salah
satu universitas tertua di dunia tetapi juga sebagai universitas Islam tertua di dunia. sebuah
institusi akademik yang

memberikan perhatian khusus pada penelitian dan peneliti Islam. Universitas telah
mendirikan Akademi Penelitian Islam sebagai badan akademis yang berafiliasi di dalam
Universitas untuk mengatur konferensi dan melakukan penelitian. Namun, penelitian
mencakup penelitian tentang topik-topik Islam yang berbeda sifatnya, termasuk, tetapi tidak
secara eksklusif, ekonomi Islam. Penelitian tentang ekonomi Islam disambut baik jika tidak
didorong. Selain itu, Akademi akan memikul tanggung jawab untuk mempublikasikan
prosiding konferensi dan penelitian individu untuk membuat manfaat dari pekerjaan tersedia
secara luas. Hanya sekitar satu dekade kemudian, ketika ekonomi Islam tumbuh lebih jauh
dan berkembang lebih luas, kebutuhan akan konferensi khusus tentang subjek menjadi
jelas. Pada saat itulah

Konferensi Internasional Ekonomi Islam tahun 1976 diselenggarakan. Untuk menunjukkan

tingkat pengaruh Akademi Al-Azhar terhadap literatur ekonomi Islam pada fase
perkembangan tersebut, berikut ini, yang diterbitkan oleh Akademi, dan

semuanya dalam bahasa Arab, diberikan sebagai beberapa contoh dari apa yang Siddiqi
miliki

menunjukkan kepada kita dalam survei literatur ekonomi Islam kontemporer

(Siddiqi, 1980):

Al-Khafif, Syaikh Ali, "Kepemilikan Individu dan Batasannya dalam Islam",

128 hal., Konferensi Pertama, 1964; Œasan, Abdel Raœmàn, “keuangan

Sumber dayadalam Islam”, 64 hal., Konferensi Pertama, 1964; Hussaini, Ishaq

Musa, “Hìsbah in Islam”, 255–277 hal., Konferensi Pertama, 1964; Al-Araby,

Muœammad Abdùllah, “Sudut Pandang Islam Mengenai Cara Penggunaan

Produktif pada Properti”, 124–136, Konferensi Kedua, 1965;

Al-Araby, Muœammad Abdullah, “Transaksi Bank Kontemporer

dan Pandangan Islam”, 79–122, Konferensi Kedua, 1965; Abù Zuhra,

Shaikh Muœammad, “Zakàh”, 137–201, Konferensi Kedua, 1965;

Hasil Konferensi Ketujuh, September 1972, “Ekonomi dan Hukum

Wacana”, 410 hal., Konferensi Ketujuh, 1973; Al-Shahawi, Ibràhìm

Dasuqi, "Hìsbah: Fungsi Sosial", 64 hal., Konferensi Ketujuh, 1973;

dan Al-Tahawi, Ibrāhìm, “Ekonomi Islam: Sekolah Pemikiran

dan Sistem, Studi Banding”, 2v, 616 dan 400 hal., 1974.

Last but not least, Liga Muslim Dunia dapat ditambahkan ke

daftar sponsor ekonomi Islam. “Ekonomi Struktur Sosial

Islam”, oleh Muœammad Abdùllah al-Araby, Singapura pada tahun 1966,

dan, “Keadilan Sosial dalam Islam”, oleh Ahmad Zaki Yamani, keduanya di

Singapura, 1966, dan “Karakteristik Ekonomi Islam”, oleh

Mahmùd Muœammad Babulli, di Makkah, 1969, (ibid.) adalah beberapa contoh

penelitian yang disajikan kepada, dan didukung oleh, Liga.

Ini adalah institusi utama yang memelopori penelitian tentangIslam

ekonomi. Tetapi sejak akhir tahun tujuh puluhan dan seterusnya, lebih banyaksponsor

lembagamuncul dengan sumber daya keuangan dansubstansial

keahlian yang. Contoh-contohnya disebutkan pada bab sebelumnya

tentang kebangkitan Islam di mana disebutkan bahwa pengaruh

lembaga-lembaga ini terhadap perkembangan ekonomi Islam sangat besar.

Masyarakat Religius

Pengaruh dari masyarakat ini ada dua: efekagama

ajaranpada para penulis terhadap ekonomi Islam yang telah berkontribusi untuk

meningkatkan inisiatif mereka, dan seruan publik untuk kebangkitan Islam

dalam kehidupan Muslim dengan kembali ke cita-cita dasar Islam.religius yang

Masyarakatdiwakili oleh orang-orang yang disebutkan sebelumnya, memperluasmereka di

pengaruhantara masyarakat melalui ceramah, sekolah masjid dan

sholat Jumat rutin mingguan. Bencana militer

yang membingungkan dunia Muslim setelah kekalahan dalam apa yang

dikenal sebagai perang enam hari, atau secara halus disebut di dunia Muslim

sebagai kemunduran, membuat pesan dari badan-badan agama untuk kembali

ke cita-cita Islam lebih persuasif. Banyak yang menyimpulkan bahwaagama

alasanatas kekalahan tersebut adalah karena Muslim tidak sepenuhnya berkomitmen pada

agama mereka dan jika mereka ingin meraih kemenangan di masa depan di

medan perang atau pabrik, mereka harus kembali ke aturan murnimereka

agama.

Asosiasi Mahasiswa Muslim

Terlepas dari apa yang dapat dianggap sebagai badan kecil tanpakhas

lengan akademis yang, Himpunan Mahasiswa Muslim telah terbukti

efektif dalam publikasi tulisan Islam tentang ekonomi Islam.

Baik secara nasional maupun internasional beberapa asosiasi telah

sangat produktif. Sebagai contoh, kami menemukanBudaya dan Agama

Komitedari Himpunan Mahasiswa Muslim, Fakultas Teknik

Universitas Kairo menghasilkan penelitian yang menarik tentang

"Properti dan Kepemilikan dalam Islam", 1972, dengan nama Komite

(Siddiqi, 1980). Untuk perkumpulan mahasiswa fakultas

teknik untuk menghasilkan makalah penelitian ekonomi Islam, hal ini harus

menunjukkan motivasi beragama yang tinggi, karena topiknya berada di luar kurikulum

studi. Dalam asosiasi lain di dalam universitas yang sama,

meskipun lebih dekat dengan subjek studi, kita melihat Society of Islamic

Studies, Fakultas Perdagangan, Universitas Fouad I (nama lama

Universitas Kairo sebelum diubah setelah Revolusi 1952),

menghasilkan penelitian tentang "Economics in the Light of Islam", 114 hal., pada tahun

1951, di bawah perlindungan Society (ibid.). Memproduksi monograf

tentang ekonomi Islam, pada awal 1951, mencerminkanawal

minatdalam ekonomi Islam di lingkungan universitas Kairo.

Topik

Secara implikasinya, topik-topik awal yang dibahas adalah yang bersifat agama-sosial-

ekonomi, tetapi bukan karena kebutuhan, politik. Ada

niat sadar untuk menghindari benturan dengan pemerintah, yang sebagian

besar mendukung sekularisasi sebagai jalan ke depan untuk

pembangunan ekonomi. Topiknya berkisar seputar keadilan sosial

dan solidaritas sosial Islam, dua nilai yang tertanam kuat dalam Islam.

Zakàh dan Ribà, tuntutan dan perolehan bunga, adalah awal yang masuk akal

dan mereka muncul lebih dari yang lain di pertengahankedua puluh

abadtulisan, karena mereka mewakili dua nilai sakral dasar dalam

Islam yaitu keadilan dan solidaritas. Itu tetap menjadi kasus setidaknya

hingga kuartal ketiga abad kedua puluh, setelah itu

tulisan ekonomi Islam mulai menyebar ke topik-topik yang bersifat sangat

teknis. Sekarang, topiknya setara dengan hampir semuateknis

masalahdi ekonomi Barat. Topik berikut akan dieksplorasi di bawah sebagai perintis dan

contoh utama tulisan tentang ekonom Islam dikedua puluh

abad: Zakàh dan perpajakan

Penghapusan ribà

Perbankan bebas bunga

Kebijakan moneter, kebijakan fiskal dan alokasi sumber daya

Teori ekonomi Islam, etika dan ekonomi

perilaku konsumen

Asuransi
Kerjasama ekonomi antar negara Muslim

Indexation

Economic development

Zakàh dan Perpajakan

Setiap kali Zakāh disebutkan dalam daftar bibliografi, atau dicari sebagai

entri dalam literatur, sebuah buku referensi selalu muncul di benak,

yaitu “fiqh al-Zakāh” (yurisprudensi Zakāh) oleh ahli hukum Yùsùf

al-Qardawi. Buku yang telah diterjemahkan dari bahasa Arab,

bahasa aslinya, ke banyak bahasa lain termasuk bahasa Inggris, telah

beberapa kali diterbitkan ulang, dan masih diminati secara universal. Dalam

dua jilid buku ini menyediakan ensiklopedia rukunketiga

Islam. Al-Qardawi tampaknya telah menghabiskan cakupan

subjek dengan melihatnya dari perspektif empatutama

mazhabpemikiran Islam, menyimpulkan dengan pendapatnya sendiri.

Tujuandari buku ini ada tiga: pertama, untuk mendidik umat Islam mereka

kewajibanagamasejauh zakat yang bersangkutan, kedua, untuk beradaptasi

penerapan zakat kepada masyarakat abad kedua puluh yang diberikan

kompleksitasmemperkirakan basis pajak zakat, dan ketiga, untuk menekankan

manfaat Zakāh sebagai pajak kepedulian masyarakat di satu sisi dan

pajak insentif investasi di sisi lain.

Kebijakan Moneter dan Fiskal dan Alokasi Sumber Daya Islam

Kebijakan moneter menjadi minat para ekonom Islam tak lama

setelah gelombang awal pendirian bank syariah. Pada tahun 1978,

seminar pertama tentang ekonomi moneter dan fiskal Islam

diadakan di Makkah diikuti oleh yang kedua di Islamabad pada tahun 1981.

Prosiding kedua seminar tersebut, yang diterbitkan bersama oleh

Institute of Policy Studies, Islamabad, dan PusatInternasional

Penelitian Ekonomi Islam, Jeddah, memasukkanterfokus dengan baik

makalah penelitian yang. Tema umum makalah ini adalah apakah

kebijakan fiskal dimungkinkan di negara Islam dan jika ya, bagaimana hal itu akan

berbeda dari kebijakan fiskal non-Islam lainnya.umum

Jawabanuntuk bagian pertama dari pertanyaan di antara para penulis adalah

jawaban yang positif dalam arti, ya, kebijakan fiskal itu mungkin., penulis

Akan tetapimemiliki sedikit perbedaan dalam mengungkapkan pandangan mereka pada

pertanyaan bagian

kedua tentang bagaimana dan kebijakan apa yang dapat

diikuti untuk mencapai kebijakan-kebijakan Islam tersebut. Pertama-tama, terdapat

konsensus umum bahwa kebijakan fiskal di negara Islam harus

berorientasi ideologis Islam dan berbeda dengan kebijakan non-

Islam lainnya, kebijakan tersebut tidak boleh netral nilai (Ahmed et al., 1983).

Teori Ekonomi Islam, Etika dan Ekonomi

Konferensi internasional pertama tentang ekonomi Islam menunjukkan

berbagai minat antara peneliti dan peserta. Yang pertama

adalah minat untuk meletakkan kerangkakonseptual dan teoretis

kerjaekonomi Islam — sebuah permulaan yang bisa dibayangkan dalam konferensi pertama

sejenisnya. Dengan penekanan yang berbeda pada kegiatan ekonomi

individudan negara, ekonom Islam, seperti yang diharapkan, sepakat

bahwa subjek mereka menarik konsep-konsep dan prinsip-prinsip dari shari "ah,

Hukum Ilahi. Akibatnya, etika sebagai berasal dari Islam,

adalahfondasi terpenting dari ekonomi Islam. Dalam berteori tentang

ekonomi Islam, isu-isu Zakāh dan perbankan tanpa kepentingan

, tak terelakkan, dalam posisi yang menonjol.

Dimulai dengan mendefinisikan ekonomi sebagai ilmu, Sakr melanjutkan

untuk melihat teori-teori ekonomi Barat dengan pandangan untuk memberikan

apa yang tampaknya menjadi landasan bersama antaraIslam dan Barat

ekonomiKesimpulannya tampaknya: karena sudah adatertanam

nilai-nilai etika yangdalam ekonomi Barat, yang dimanifestasikan dalamnormatif

ekonomidan didukung oleh ekonom altruis, ada juga et-

nilai-nilai ical dalam ekonomi Islam yang didasarkan pada norma-norma Islam dan

cita-cita agama, yang akan, atau seharusnya, membuat ekonomi Islam

per se lebih mudah diterima. le untuk ekonom Barat sebagai

cabang ekonomi independen, (Sakr, 1981). Tentang peran negara dalam

perekonomian, lanjutnya, menguraikan peranIslam

negaradalam mengelola ekonomi.

Dalam kontribusinya pada teori ekonomi Islam, al-Fangari,

yang telah kami kutip sebelumnya dalam tulisan di Zakāh, mengungkapkan

keprihatinannya atas apa yang dia lihat sebagai: kurangnya pemahamanSyar'ah

mata pelajaranoleh para ekonom Muslim, dan kurangnya pemahaman darieco

nomicsoleh Shari "ulama ah. Hasilnya adalah, “Banyak dari mereka yang

menulis tentang ekonomi Islam membatasi tulisan mereka pada topik-topik

tertentu khususnya seputar Zakāh dan larangan Riba,

seolah-olah ekonomi Islam hanya mementingkan Zakāh dan Riba”,

(Al-Fangari, 1981 ). Ia menganjurkan agar para ekonom Muslim, selain

secara teknis kompeten dalam ekonomi kontemporer,

harus dididik secara menyeluruh dalam Syari'ah. Dalam mendamaikanIslam

ekonomidengan sejarah abad keempat belas dengan ekonomi kontemporer

, al-Fangary memastikan dua poin penting: , pertama, konsep

dan prinsip ekonomi Islam harus diambil dari

sumber utama agama, Al-Qur'an dan Sunnah yang tidak

dapat diubah, dan kedua, penerapan konsep dan

prinsip tersebut dapat berbeda dari waktu ke waktu. ke waktu dan dari satu situasi ke situasi

lain seperti yang dituntut oleh keadaan kontemporer (ibid.).

Akibatnya, ekonomi Islam menurut al-Fangary dapat

dibagi menjadi dua dimensi utama: pertama, “Ekonomi Islam

Pendekatan”, yang tidak dapat diubah karena berdasarkan Al-Qur'an dan

Sunnah, dan “Sistem Ekonomi Islam (s). ", Yang dapat beradaptasi

dengan perubahan dalam masyarakat. Yang sangat menarik dalamal-

pemikiranFangari adalah bahwa ia mendukung" ijtihād ", yaitu

pengerahan diri untuk mencapai suatu aturan dalam situasi yang tidak ada

di masa lalu atau ada tetapi tidak pada dimensi yang sama dan menganggap

"penutupan gerbang ijtihād" berbahaya bagi Islam (ibid.). Ini

berbeda dengan ahli hukum fundamental yang menganjurkan bahwa ijtihād dalam agama

adalah ciptaan, dan setiap penemuan agama menyesatkan, dan setiap

kesesatan adalah api neraka. Beralih perhatian kita pada nilai-nilai etika dalam ekonomi
Islam,

kita menemukan bahwa ekonom Islam menekankan bahwa dalam kontras denganeko

sistem nomiclain,nilai-nilai etika yang tertanam dalam ekonomi Islam.

ini nilai adalah berakar pada filosofi Islam yang

menjadi dasar, sedemikian rupa sehingga tidak mungkin untuk membangun

ekonomi Islammodel ekonomi Islam, atau membayangkan ekonomi Islam, pada

premis yang netral nilai. Ekonom Islam dan ulama Syar'ah sepakat

tentang hal ini tanpa terkecuali.

Naqvi termasuk di antara ekonom Islam yang mengambil poin lebih jauh

dengan musyawarah yang terfokus. Dalam bukunya "Etika dan Ekonomi:

Sintesis Islam", setelah menyatakan bahwa kunci untuk pemahaman menyeluruh

tentang orisinalitas ekonomi Islam terletak padanilai etisnya

sistem, ia menguraikan masalah tersebut dengan menegaskan kembali bahwaetika Islam

filsafatdidasarkan pada empat aksioma utama: Persatuan, Kesetimbangan,Bebas

Kehendakdan Tanggung Jawab (Naqvi, 1981). Persatuan, yang dalamabsolut

konsepmengacu pada keesaan Tuhan, mencerminkan bahwa kehidupan manusia di bumi

, atau dianggap, terintegrasi dengan baik secara keseluruhan dalamlengkap

koordinasi yangantara alam semesta, kehidupan di bumi dan manusia sebagai yang

tergabung dalam satu kesatuan Keseimbangan, yang diartikan sebagai keadilan

atau al "Adl, mensyaratkan bahwa dalam keseluruhan homogennya yang hidup dalam

perspektif Islam, berbagai elemennya harus diseimbangkan untuk

menghasilkan tatanan sosial yang terbaik.

Pembangunan Ekonomi Pembangunan

ekonomi merupakan isu sentral dan krusial bagi mayoritas

ekonom Islam. Ini karena dua alasan khusus,

abolisi dari ekonomi Islam dan pengaruh Zakāh.

Dengan penghapusan kepentingan, ada lebih banyak fokus pada pengembangan

sumber daya dan produksi, dan implikasinya terhadap tanah, modal

dan tenaga kerja. Zakàh peduli dengan distribusi keluaran

atau pendapatan dan dengan konsekuensinya bagi kekayaan, dengan tujuan untuk

mencapai alokasi sumber daya yang adil. Oleh karena itu, dengan kebutuhan dan

secara eksplisit atau implikasinya, pembangunan ekonomi merupakan topik yang

tertanam dengan baik dalam ekonomi Islam. Dan jika kita menambahkanlain

alasan, seperti perbedaan ekonomi Islam dari

sistem ekonomi lain dalam filosofi, mekanisme dan tujuan,Islam

ekonomakan merasakan dorongan, karena sifat

subjek, untuk menulis tentang ekonomi. pembangunan dari perspektif Islam.

Pertama-tama, semua ekonom Islam, baik yang telah menulis

tentang subjek maupun yang belum, tetapi masih mengutarakan

pendapatnya dalam bentuk yang berbeda, setuju bahwa ekonomi Islam adalahnilai

berbasisdan dengan demikian perkembangan ekonomi dalam Islam akan menjadi. ditandai

dengan prasyarat yang sama. Perbedaan di antara penulis adalah

perbedaan pendapat tentang detail, perbedaan derajat penekanan

, dan cara pandang mereka untuk mengkaji isu-isu pembangunan.

Kontribusi Khurshid Ahmad tampaknya termasuk yang paling banyak

dikutip dan “Pembangunan Ekonomi dalam Kerangka Islam” -nya

sering dikutip dan patut mendapat perhatian. Ahmad dengan antusias

menyerukan inovasi dan penyimpangan penuh dari ide-ide impor

baik dari Barat dalam bentuk kapitalisme Barat maupunTimur

blokdalam bentuk sosialisme. Tidak ada sistem yang dapat memberikan-Muslim

negaranegaramodel pembangunan ekonomi, juga tidak

cocok untuk menyesuaikan diri dengan kerangka ekonomi Islam

(Ahmed, 1980). Dorongan utama dari perkembangan ekonomi Islam

adalah, atau seharusnya, diarahkan pada kehidupan manusia dengan tujuan

membuatnya memiliki tujuan dan orientasi nilai. Pembangunan ekonomi Islam

dengan demikian akan didasarkan pada dua premis utama: pertama, pembangunan dalam

kerangka Islam dan ekonomi pembangunan Islam yang berakar

pada pola-nilai yang terkandung dalam Al-Qur'an dan Sunnah, danmengesampingkan sikap

kedua, pendekatan inimeniru ( ibid.).

Jika kita berkonsentrasi pada bagian ketiga, ekonomi Islam, kita menemukan

bahwa dalam berurusan dengan garis besar ekonomi Islam al-

Sadr telah membagi mata pelajaran menjadi enam bagian utama, sebagai berikut:

1. Struktur umum Islam ekonomi,

2. ekonomi Islam sebagai bagian dari keseluruhan sistem,

3. kerangka umum ekonomi islam,

4. ekonomi islam bukan merupakan cabang ilmu,

5. distribusi sebagai terpisah dari bentuk produksi,

6. masalah ekonomi dari suatu Sudut pandang Islam dan

solusinya.Dalam

menjelaskan kerangka umum ekonomi Islam, al-Sadr

menyatakan bahwa hal itu didasarkan pada tiga landasan dasar: prinsip

kepemilikan ganda, prinsip kebebasan ekonomi bersyarat, dan

prinsip keadilan sosial.

Mengenai kepemilikan, kami menemukan al-Sadr menganjurkan bahwa kepemilikan terdiri

dari

tiga jenis, kepemilikan pribadi, kepemilikan publik, dan kepemilikan negara.

Bentuk kepemilikan campuran, dia mengingatkan, tidak menyiratkan bahwaIslam

sistem ekonomiadalah ekonomi campuran yang memungkinkan

kepemilikan pribadi dan publik. Hal tersebut tidak dapat dijelaskan demikian, dalam

pandangannya, ekonomi Islam memiliki ideologi yang berbeda dengan

sistem ekonomi campuran. Sistem ekonomi campuran adalah sistem kapitalis

yang memungkinkan kepemilikan publik, atau sistem Marxis yang

mengizinkan kepemilikan pribadi. Sistem ekonomi Islam tidak

memiliki nilai-nilainya sendiri yang bukan kapitalis atau komunis.

BUKU 2

AN

INTRODUCTION TO

ISLAM EKONOMI

Muhammad Akram Khan

Institut Internasional Pemikiran Islam

dan

Institut Kebijakan Studi

Khan, Muhanunad Akram, 1945

Sebuah Pengantar Ekonomi Islam.

(lslamization of Knowledge - 15)

Bibliografi: hlm. I 35-44

Termasuk indeks

ISBN 1-56564-079-9 HC
ISBN 1-56564-080-2 PB

BAB 1

Sifat Ekonomi Islam

1.YANG TERBARU Ekonomi

DUA DUA

Islam adalah disiplin yang baru lahir. Ini belum menarik

banyak perhatian dari profesi ekonomi meskipun baru-baru ini

. telah menyaksikan aktivitas intelektual sporadis di beberapaMuslim

negarayang menjanjikan untuk menjadikan ekonomi Islam sebagai

cabang ilmu yang mandiri. Hal ini terbukti dari fakta bahwa

saat ini sedikitnya 30 universitas di negara-negara Muslim menawarkan

program sarjana dan pascasarjana di bidang ekonomi Islam. Cukup

banyak tesis Ph.D di universitas-universitas Barat yang telah ditulis mengenai

berbagai isu yang berkaitan dengan Ekonomi Islam. Terdapat tiga

lembaga penelitian internasional yang secara eksklusif dikhususkan untuk

pengembangan dan diseminasi ilmu yang berkaitan denganIslam

ekonomi. Tiga jurnal penelitian ilmiah menerbitkan materi tentang

ekonomi Islam. Selain itu, sejumlah jurnal tentang Islam,Tengah

Timurdan ekonomi menerbitkan artikel tentang ekonomi Islam. ekonomi. Berkat

makalah yang diterbitkan dalam jurnal-jurnal ini dan banyak buku yang

telah muncul selama dua dekade terakhir, kumpulanterhormat

literatur serius yangtentang ekonomi Islam telah terkumpul. 1 Sekarang

ada Asosiasi Internasional Ekonomi Islam dengan kantor

pusatnya di Jeddah yang telah mulai menerbitkan jurnal

sendiri

Ekonomi Islam menyajikan vi Islam ewpoint padamanusia

situasi ekonomi. Akarnya ada pada teks-teks suci Islam yang

memberikan pedoman luas bagi perilaku ekonomi manusia

. Tetapi sebagian besar literaturnya merupakan hasil

dari usaha manusia untuk menganalisis dan mencari solusi atas

masalah ekonomi manusia dalam kerangka Islam secara keseluruhan.

Oleh karena itu, hanya sedikit yang keramat dari sebagian besar apa yang

dikatakan ekonom IslamiC tentang masalah ekonomi manusia.

Cendekiawan Muslim telah mendiskusikan masalah ekonomi dimereka-

zamanmasingmasing selama empat belas abad terakhir. Beberapa dari

diskusi ini telah dilestarikan oleh sejarah. Dengan demikian ekonomi Islam

memiliki warisan pemikiran Muslim yang kaya untuk digunakan meskipun sebagian

besar mungkin tidak dapat diterapkan secara tepat untuk zaman kita sekarang. Tapi itu
memberikan

bidang subur untuk penyelidikan lebih lanjut, membuka pintu gerbang keberbeda

epistemologi yang, metode analisis dan penyelidikan.

Meningkatnya minat2 pada ekonomi Islam baru-baru ini, setelah

sekitar dua abad aktivitas intelektual yang lamban di kalangan Muslim,

berasal dari sejumlah faktor. Pertama, adabesar

ketidakpuasan yangdengan cara para ahli ekonomi arus

berusaha untuk menganalisis dan menemukan solusi bagi masalah ekonomi

dunia. Era sekarang yang membanggakan kemakmuran materi belum

mampu berbuat banyak untuk mengatasi beberapa masalah endemik

dunia. Pengangguran dikombinasikan dengan inflasi, danmeluas

kemiskinan yangdi negara-negara berkembang, kesengsaraan di tengah

kemakmuran,regional

disparitas, pencemaran lingkungan, hilangnya nilai-nilai moral di

bawah gempuran inovasi teknologi,luar biasa

kekuatan ekonomi yangdari perusahaan global, pemborosanberharga

sumber daya yangmelalui konsumerisme yang sembrono , eksploitasi internasional

atas nama 'bantuan' ekonomi dan struktur perdagangan yang curang terlalu

familiar untuk dielaborasi. Semua ini telah menciptakan dorongan untuk mencari

pendekatan baru terhadap masalah manusia.

Kedua, sebagaimana dibahas dalam bab satu,arus utama

ekonomi neoklasikmemiliki dasar yang sempit, dan memilikitidak realistis

asumsi yangtentang sifat dan perilaku manusia. Para ekonom telah

mempertanyakan pendekatan dan kesimpulannya secara luas dengan menekankan

perlunya merevisi premisnya sendiri. Sebagaimana akan kita lihat sebentar lagi,Islam

ekonomimemiliki potensi untuk menjawab kebutuhan akanlebih

dasar analisis ekonomi yangrealistis.

Ketiga, selama era kolonial kapitalisme mengadopsi

pendekatan yang tidak sensitif terhadap nilai-nilai budaya asli, institusi sosial

dan teknologi lokal dari negara-negara terjajah. Ia secara sistematis mencoba

menghancurkan masyarakat tradisional di koloni dengan alasan agar

sistem kapitalis lebih efisien dan produktif. 3 Sejarah telah

menunjukkan betapa hampanya pernyataan tersebut. Koloni menjadi

lebih miskin ketika kekuatan kolonial meninggalkan mereka daripada ketika mereka
menduduki

mereka. Ini telah mengasingkan elit negara-negara tersebut dari

cara berpikir kapitalis. Tentu saja, beberapa dari mereka beralih ke

bentuk-bentuk sosialisme atau kapitalisme yang kacau balau. Tapi di antara mereka,

beberapa orang memandang nilai-nilai murni Islam dan menyerap

keinginan untuk menjelma kembali kejayaan masa lampau mereka. Tidak dapat disangkal
fakta

bahwa ada sejumlah romantisme dalam pemikiran

beberapa orang ini. Namun fenomena tersebut tampaknya menjadi salah satu

penyebab tumbuhnya minat terhadap ekonomi Islam.

Keempat, tatanan ekonomi internasional yang muncul

sebagai hasil dari pemikiran ekonomi yang lazim telah melembagakan

eksploitasi negara-negara miskin oleh orang kaya. Perbedaan antara

keduanya semakin meningkat meskipun hanya lip service untuk keadilan dan

permainan yang adil. Ketentuan perdagangan secara sistematis berbalik melawan

produsen utama. Mekanisme ekonomi global telah

dirancang untuk melanggengkan hegemoni-industri maju

negaranegara. Sekarang disadari secara luas bahwaekonomi seperti

pengaturanitu membawa benih kehancurannya sendiri. 4 Dengan demikian, ada

kebutuhan yang dirasakan untuk melihat kembali tatanan ekonomi ini. Kita akan berdebat

nanti di bab lima bahwa ekonomi Islam memegang janji ini.

Perubahan dramatis di Eropa Timur sejak 1989 dan

pecahnya Uni Soviet juga mempercepat pencarianlebih baik

doktrin ekonomi yang. Jelas bahwa sosialisme sebagai sistem ekonomi

yang akan memberikan keadilan dan kemakmuran bagi umat manusiatelah

akhirnyadikalahkan dan orang-orang di negara-negara sosialis memandang

kapitalisme sebagai penyelamat dan ancho (pilihan terakhir.mereka

Kekecewaanterhadap sosialisme telah menunjukkan kepada mereka) an easy route which

leads to the same capitalism which they had abandoned less than half

a century ago. After the dust settles down, those very countries

would be obliged to re-think their strategy to achieve a sustained

development and a more just and civilized society . It will be at that

juncture that they are likely to have a serious look at what Islam has

to offer as an alternative to both capitalism and socialism. Islamic

economics brings a fresh approach to the human economic problems.

It has the potential of ushering in a just and more humane

civilization.

The theoretical work in the field of Islamic economics,

however, remains scanty for several reasons. First, the Muslims

who should have pi oneered the development of this subject have

suffered from an intellectual trauma. It came with the political

domination of the West which not only destroyed the Muslim

educational institutions but also damaged the spirit of inquiry in the

Muslim lands. This has prevented the Muslims from developing

knowledge from their own perspective and to the extent that the West

has done. Second, the problem of intellectual space has also

contributed to this phenomenon. The West is fully dominant on all

seats of learning, and on publication and distribution of most of the

serious literature in all disciplines. It documents, classifies and

disseminates information on various disciplines throughout the world.

Whatever efforts have been made by the scholars in Islamic

economics have not been adequately taken note of in the West.

Moreover, the scholarly journals published from the West do not

easily accept the work of Muslim economists mainly because there

is a strong aversion against all academic writings with a religious

orientation. Third, there does not exist much empirical data to test

or falsify the postulates of Islamic economics. This has posed an

insurmountable problem to the Muslim economists. 5 Fourth, most of

the professional economists are simply not aware of what Muslim

economists are so zealously pleading. A tiny minority of Western

economists, which is attracted towards Islamic economics, holds a

variety of opinions. Some consider the work of Islamic economists

to consist of apologetics. They say that the scholars of Islamic

economics are engaged in grossly adapting Islamic postulates to

Western theories. 6 Still others doubt the possibility of the

development of an economic system capable of accommodating the

contemporary economic reality from a few simple precepts. 7 Fifth,

some of the Muslims are also victims of a romantic confusion about

Islamic economics. Impressed by the apparent size and complexity

of the capitalist and socialist economic systems, they think that the

Islamic economic system must be an amalgam of capitalism,

socialism and a few metaphysical beliefs of Islam. Such simplistic

notions about Islamic economics are also a source of considerable

misunderstanding.

The present chapter seeks to dispel these doubts, fears and

confusions. It is an attempt to define the nature, scope and subject-

matter of Islamic economics. As would be argued later, Islamic

economics is not a denial of contemporary reality, nor does it seek

to stage an about-tum towards the conditions of the seventh century

Arab society. It only visualizes a reorganization of the basic

economic functions. Islam has not provided a strait-jacket of

economic relationships and institutions. Perhaps Islam could not do

so as it would have been a negation of its own claim for universality.

The scheme of the rest of the chapter is as follows: First,

we shall discuss briefly the Islamic worldview and its position on

such issues as human nature, the position of man on the earth, and

the relationship of man with the resources of the earth. Then we

shall introduce Islamic economics as a branch of knowledge by

giving a tentative definition and explaining its key concepts. This

would be followed by a brief mention of the sources of Islamic

economics. This shall be followed by a discussion on the approach

of Islamic economics and the place of the economic system in the

life-scheme of Islam.

2. DEFINITION OF ISLAMIC ECONOMICS

Islamic economics has been variously defined by Muslim economists.

Irrespective of the actual phrasing, all the definitions emphasize the

comprehensive character of the subject, based on the universal moral

values of Islam. In the following discussion, we have attempted a

definition of Islamic economics which captures the gist of the subject

as discernible from the relevant literature on the subject: "Islamic

economics aims at the study of humanfalafl achieved by organizing

the resources of the earth on the basis of cooperation and

participation".The key concepts in the above definition are the following:

a) fala!J;

b) resources; and

c) cooperation and participation.

2.1 Falah

It is difficult to find a single equivalent for this term in the English

language. The termfala!J has been derived from the Arabic rootflfJ,.

Its verbal form afla!J,, yufli!Ju means: to thrive; to become happy; t6

have good luck or success; to be successful. According to Raghib

al-I~fahani, fala!J, is a both-worldly concept. 8 For the life in this

world, it represents three things: baqa' (survival), ghana (freedom

from want) and 'izz (power and honour). In the hereafter, it stands

for: baqa' bila fana' (eternal survival), ghana bila faqr (eternal

prosperity), 'izz bila dhull (everlasting glory) and 'ilm bila jahl

(knowledge free of all ignorance). According to the Qur'an, the

_ultimate goal of human life should be the achievement of fala!J, in the

hereafter. The life in the hereafter is a reality as compared to the life

in this world, which has been declared by the Qur'an to be merely

a play and a passing delight. Although the ultimate object of Islamic

economics is the achievement of fala!J in the life to come, but it

would be a reward for one's deeds during his stay in this world.

Fala!J in this world leads to the fala!J in the hereafter. Conformity to

the Islamic way of life is a means to achieve fala!J, both in this world

and the hereafter. In the following discussion, we shall try to explore

further the implications of fala!J, in this world.

In the context of this worldly life, fala!J is a

multi-dimensional concept. It has implications both for individual

behaviour (micro-level) as well as for collective behaviour

(macro-level). The following table summarizes the meanings ofjala!J

at both the levels

Economic Conditions of Falah

(i) Infaq: Infaq refers to spending on others and on the

social needs of the community merely to seek God's

pleasure. This is something distinct from social alms

which have been prevalent in all civilized societies.

The pre-Islamic Arabs were also aware of charity.

But Islam has broadened the concept of charity in a

number of ~ays. First, it has made obligatory a bare

minimum of social spending (called zaktih) on all

those who have a surplus over and above their

needs. To that extent, it is not voluntary. Second, in

its broader meaning, infaq covers expenditure on

one's own family as well which is not _so in the case

of charity. Third, Islam .recognizes the right of the

poor and the needy to receive a share from the

wealth of the rich. The poor do not owe any

obligation, moral or social, towards those who spend

something on them. Fourth, infaq has to be purely

for the sake of God who has promised reward in the

hereafter. Charity in a secular society is usually done

for winning social approbation rather than to seek

God's pleasure. lnfaq in the Islamic sense is a

mechanism to nourish one's spirituality. This is one

reason why secrecy in infaq is preferred, although

its announcement to induce others to charitable

spending is not prohibited.

The Qur'an has laid down infaq as a

condition to achieve falalJ.. 14 Infaq has to be only a

part of one's ~otal possessions. One is not required

to spend the whole of his wealth. The Qur'an says:

"He does not demand of you (to sacrifice in His

cause all of your possessions for) were He to

demand of you all of them, and urge you, you would niggardly cling (to them) and then He
would

bring out your ill-feeling" (47:37).

The implication is that since man "has been

created weak'.' (4:28) and since he has an inborn

passion for wealth (100:8), he would be

overburdened if asked to sacrifice everything in the

cause of God. Thus the Qur'an illustrates its deep

awareness of human nature. By keeping in.faq as a

part of the total possessions, it has provided human

beings with the incentive to strive and to generate ,a

surplus to be passed on to future generations as/well

as to fulfil one's needs. It attaches a high priority to

personal needs. lnfaq is required from out of the

surplus one has, and which one is required to

devote to righteous purposes. 15 The famous

commentator of the Qur'an, Mal).miid 'AliisI

(d.1270 H.), has expressed the view that infaq of

only a part of ones' possessions is sufficient to attain

falti!J and it is not necessary to spend the whole of

one's wealth. 16 The reason is that such an action

would lead to monasticism. It is in this context that

we should view the fact that the Prophet (peace be

upon him) asked one of his'companions riot to spend

the whole of his wealth in the cause of God. 17

Zakah is part of the broader concept of

infaq. The Qur'an specifically enumerates zaktih as

a condition of falti!J presumably to emphasize its

purifying role. 18. The underlying idea is that zaktih

'purifies' an individual's soul from excessive love

for wealth.

lnftiq implies a number of other traits of

character. For example, infaq is possible for most · ·

people only when they adopt a simple life or else

they would hardly be able to generate a surplus out

of which a part might by transferred to others.

Because human wants multiply fast. No sooner one

satisfies a want than another crops up. It is only simple and contented life which allows one
to spare

something for others. Therefore, the virtues of

contentment, sacrifice, and moderation are natural

corollaries of infaq. Similarly, an ostentatious and

extravagant living is a hindrance to infaq. Whenever

one cultivates the habit of infaq one has to adopt the

overall life-style of Islam.

(ii) Prohibition of Interest: The Qur'an declares

interest on loan capital (riba) as a hindrance to the

achievement of fala}J. 19 Interest on loan capital was

prevalent in the pre-Islamic Arabian society. The

wealthy exploited the poor and the needy. The

custom of paying and receiving interest on

commercial credit was also known to the Quraysh. 20

The Prophet (peace be upon him) declared all forms

of interest as unlawful. He took various preventive

measures as well so as to forestall the infiltration of

interest into the economy in disguised forms.

The literature on Islamic economics

discusses the prohibition of interest more than any

other subject. It would be unnecessary to reproduce

that material here in any detail. The main point that

has been emphasized is that interest is a potent

means for perpetrating exploitation and inequity. The

road to falaJ:z would remain blocked until interest is

completely eliminated from the economy.

(iii) Fulfillment of Covenants and Trusts: Fulfillment

of covenants and trusts is a necessary condition for .

fala}J. 21 In its simple meaning it stands for honouring

personal commitments and promises. But some

,scholars have placed a broader interpretation on the

Qur'anic teaching of fulfilling covenants. According

to them, it involves meeting all one's social and

religious obligations. One is obligated to obey God

and His Messenger. One also has obligations

towards the family, neighbours and the society. From this they argue that polluting the
environment
through industrial waste contravenes one's

obligations towards the society and hence retards the

social pace towards fala!J,. Similarly, the government

has the obligation to ensure welfare of the people.

The society cannot achieve fala!J, until its inhabitants

fulfil these implicit covenants. 22

(iv) Justice: The Qur'an has pleaded for justice at a

number of places. It has linked fala!J with the

observance of justice in all affairs. The Qur'an uses

the term z,ulm (inequity) as an antonym of justice.

The Qur'an repeats that the z,alim (one who

perpetrates z,ulm) wouid not achieve fala!J,. 23 A

society in which one:s lawfully acquired wealth is

appropriated by others without any compensation or

consideration would suffer from wide inequalities,

impaired incentives and social waste. Islamic law has

clearly defined the lawful means of acquiring wealth.

Digression from these means would amount to z,ulm

and would hinder the way to fala!J,.

(v) Enterprise: God speaks of enterprise and struggle

for livelihood as "seeking His bounty". Enterprise

and effort to harness natural resources are an

essential condition to achieve fala!J,. The Qur'an

says: "And when the prayer ends disperse freely

on earth and seek to obtain (something) of God's

bounty, but remember God often, so that you might

attainfala!J," (62: 10).

Although there are a number of other verses

which exhort man to "seek the bounty of God", in

the present verse that exhortation is also suffixed by

the prospect of achieving fala!J,. This ties in quite

appropriately with the Prophet's sta.tements urging

people to work so as to earn their livelihood, his

condemnations of idleness and beggary, his

instructions to develop the land and to use the·natural resources intensively, and his good
tidings

for the merchants and craftsmen. Thus the

productive economic activity contributes to the faliih

of the society as well as of the individual.

SOURCES OF ISLAMIC ECONOMICS

The guiding principles of Islamic economics are derived from

the follow sources:

a) The Qur'an;

b) The Sunnah of the Prophet (peace be upon him);

c) Islamic Law and Jurisprudence;

d) History of the Muslims; and

e) Data Relating to Economic Life.

(a) The Qur'an

The Qur'an is the book of God which has been preserved

since it was revealed. The Qur'an contains general and broad

guidelines for the conduct of human beings. On economic

matters, too, it provides a set of fundamental principles to

guide human conduct. Consistent with these principles, the

superstructure of the economy has to be built, in each age,

according to the particular circumstances of each age. The

injunctions of the Qur'an are immutable and applicable to all

societies and are valid for all times to come. The Qur'an is
thus a primary source of Islamic economics. The Sunnah of the Prophet (peace be upon
him)

The sunnah is the speech, action or tacit approval of the

Prophet (peace be on him) as recorded in the books of

· traditions. The compilers of these traditions have analyzed,

classified and interpreted the whole material. The literature

on traditions of the Prophet (peace be upon him) covers the

entire orbit of life, including the economic aspect. Although

most of the traditi?ns are general and applicable for all times

there are some whose relevance is time-bound. Therefore,

the knowledge of the exact status of each tradition is

essential to understand its relevance for the present age.

Knowledge· of the traditions containing injunctions about

economic abivities is an essential part ·of the training of

Muslim economists. 41

(c) Islamic Jurisprudence

There exists a vast legal literature developed by the Muslim

jurists over the last fourteen centuries. It deals with the

formalization of the injunctions of the Qur'an and the

traditions of the Prophet (peace be upon him). A large part

also deals with those questions-which arose subsequent to the

Prophet's time. The jurists have been elaborating arid

deriving inferences about economic questions as well. In

fact some of the early works of jurisprudence deal with

finance and land management. These discussions have a

variety of shades and their perusal opens a wide span of

subjects which have been of interest to jurists of each age.

The different juridical opinions carry an explicit note

illuminating the circumstances in which those opinions were

expressed.

Islamic economics draws heavtly on this rich heritage.

But the opinions of the jurists are not inviolable and can be

modjfied and adjusted according to the changed

circumstances. Islamic economics studies the impact of these

legal opinions on the behaviour of the people. The Muslim

economists try to formulate theories in the light of the vast

body of juridical opinions.

The Muslim economists visualize elaboration,

extension and reconsideration of the earlier legal works. The

questions which the contemporary scene has thrown up have

to be studied to arrive at a competent legal position.

Collaboration of religious scholars with economists is, thus,

a necessity for the development of Islamic economics.

( d) History of the Muslims

The history of the Muslims contains much scattered mate,rial

about the economic life of the people. These parts of the

history serve as useful precedents for the present-day

economy. Although mo'st · of what prevailed then has

undergone a metamorphosis yet the early- precedents lend ·

useful insights for the application of the Islamic economic

system in the contemporary setting. The economic history of

the Muslims has not yet been chronicled except for some

elementary accounts of the early period. We hope that with

the growth of the subject the historical sources will also

develop.

(e) Real Life Data

This is the main area of operation for a Muslim economist.

He studies the real life conditions and behaviour of the

people and uses the available data for analysis and

formulation of policies. The 'real life data' here refers to the

objective conditions prevailing in an economy. None of the

present day economies are Islamic in the real sense. They

have adopted various patterns of capitalism and socialism.

Islamic economics aims at the transformation of the present

day economies, which are full of shortcomings from an

Islamic viewpoint, into truly 'Islamic' economies. For this

purpose it focuses on the development of strategies for

transition. To that extent the study of the actual conditions

of the contemporary times becomes necessary and is in fact

an integral part of Islamic economics. /

The main concern of Islamic economics, however,

remains the achievement and maintenance of falti.IJ. The real

life data as a source of Islamic economics means the study

of the impact of various Islamic injunctions on the behaviour

of various economic variables and the effort to develop ideas

for transforming them in the light of Islamic norms.

4. THE APPROACH OF ISLAMIC ECONOMICS

How does Islamic economics approach its subject-matter? We shall

discuss the methodology of Islamic economics in chapter three. But

for now, we shall confine ourselves to making a brief exposition of

the Islamic approach to economic matters.

The method of Islamic economics presumes a primary and

binding role for the ideological content. The basic premises are

defined by the Islamic law. The Muslims economists develop their

analysis by employing reason and real life data to the divinely

ordained content of Islam. Islamic economics cannot be conceived

outside this basic framework.

Islamic economics conceives human behaviour in its totality.

It treats human life as a compact whole which is composed of

multiple mutually-reinforcing sub-systems. The economic sub-system

is one of these sub-systems. It is not even the central sub-system. It

affects the human behaviour only from the periphery. The hard core

of the system is composed of the basic beliefs in the Unity of God,

in the apostle-hood of Mul:J.ammad (peace be upon him) and in man's

accountability on the Day of Judgement. These beliefs are the

foundation of each sub-system.

The hard core radiates the fundamental principles of behaviour

and moulds human attitude in all the sub-systems. Between

themselves the sub-systems are open and interact. But each

sub-system also has a composition of its own which aims at the

achievement of falti.f!. The economic sub-system consists of legal

foundation of justice ('ad/) and ethical foundation of moderation

(iqti~ti.d) and benevolence (i!Jsti.n). The legal foundation ordains legal and contractual
relationships. Although Islam has a mature and

comprehensive legal system, yet the total area of human behaviour

covered by the legal injunctions is rather small. A very wide area of

human behaviour consists of voluntary acts. The voluntary acts are

influenced by considerations of moderation and benevolence.

Moderation is the mother-norm and governs individual behaviour

towards one's ownself. Benevolence is a cluster of ethical precepts

and influences inter-personal relationships. Second, a very high content of Islamic

economics is

normative. The Muslim economists have the obligation to discharge

the Qur'anic duty of enjoining what is proper and forbidding what

is improper. Therefore, Islamic economics studies and suggests ways

and means for achievingfa/ah. It makes note of the deviations from

the basic Islamic framework in human behaviour and devises policies

for attaining a higher level of conformity. Islamic economics plans

to foretell the possible economic crises that might develop as a result

of aberrant behaviour of the economic actors. It suggests suitable

policy measures to prevent crises before they. actually develop.

Third, despite being highly normative, Islamic economics has

a vast positive content as well. It attempts to study the impact and

reaction of various legal injunctions and ·ethical values on the

economic variables. For example, it may be of interest to study the

effect of prohibition of interest on the level of savings, investment

and employment. Another example may be a study of the effect of

zaktih on the consumption level of the society. The positive findings

of Islamic economics can subsequently be utilized for policy-making.

Fourth, Islamic economics can also make good use of the

tools of analysis developed by modern economics. Mathematics,

statistics, operations research, systems analysis and computer

technology may be utilized with benefit to develop Islamic

economics.

There arises, however, a very vital question: what is the

position of Islamic economics vis-a-vis the mainstream, that is,

neoclassical economics? There is no final answer to it. Reactions

vary from one extreme of complete rejection to the other extreme of

adopting everything that comes from the Occident after simply

changing the labels and using Arabic equivalents of English terms.

We believe that both the extremes represent unbalanced approaches.

A more moderate approach is the one pleaded for by Ism'ail R.

al-FaruqI, under the general rubric of Islamization of knowledge.

According to this approach, the task before Islamic economics would

be to study the mainstream economics critically, identify its

assumptions and values, sift what may be termed as fully established

facts of economic life from the merely tentative hypotheses or theories based on insufficient
evidence, and to synthesize these facts

into the Islamic worldview. Although the general case for this

approach is quite persuasive, the difficulty with the approach is that

it takes the researcher into an endless race of keeping a track of the

knowledge in the West and modifying his own work in its light. It

is a never-ending race in which the Muslim economist always

remains behind the Wes tern secular economist.

A more promising .approach, in our view, is being pleaded

by a group which calls itself the Ijmalis, the group of intellectuals

consisting of such persons as Pervaiz Manzoor, Ziauddin Sardar and

Munawar Ahmad Anees. They visualize the development of Islamic

disciplines in the light of the Islamic worldview without getting into

the business of developing a critique of Western knowledge.

Nevertheless, they would also like to use the real life data in

developing Islamic disciplines.

At this stage we need to mention a trap into which many Muslim

economists have landed themselves. The economic thought developed

by the Occident overpowers their reasoning and they are persuaded

by its 'truth'. Then they try to interpret the texts of the Qur'an and

the Sunnah in such a manner as would accommodate the secular

economic thought of the Occident. They start reading the findings of

the secular economists into these primary sources. While there is no

bar on the interpretation of the Qur'an and the Sunnah in each age,

the danger is that this approach might reduce the entire discipline of
Islamic economics into a sterile intellectual exercise, to a sheer act

of mimicry, or at least to turn Islamic economics into a

sub-discipline of secular economics, thus robbing it of its identity

and uniqueness. If that happens, the original objectives of developing

Islamic economics would be defeated. There is no hard and fast rule

for remaining out of this trap except that the Muslim economists

should widely discuss their ideas. It is only through a process of

self-criticism that they can guard themselves against this trap.