ISLAMIC ECONOMICS ASSIGNMENT

BIBLIOGRAPHY OF MUHAMMAD ABDUL MANNAN

GROUP 9 :
Ayuntavia (7111421107)
Nafia Solikhatun Jamil (7111421165)

DEPARTMENT OF DEVELOPMENT ECONOMICS

FACULTY OF ECONOMICS
SEMARANG STATE UNIVERSITY
 BIBLIOGRAPHY OF MUHAMMAD ABDUL MANNAN
A) PROFILE
Muhammad Abdul Mannan was born on 16 February 1946 di Bangladesh. He is a
Bangladeshi politician and the Minister of Planning of Bangladesh since 2019. Mr Mannan
was a former diplomat and bureaucrat of Bangladesh who served in the Government of
Bangladesh. According of (Fachrodzi, n.d.)Mannan has a wife who holds a master's degree in
political scientist named Nargis Mannan. On 1975, five years before the formation of Islam
Development Bank in Jeddah, Saudi Arabia, actually Mannan is an Islamic economic figure
who has proposals on the creation of the Islamic World Bank or Islamic World Bank.
B) HISTORY OF EDUCATION/SCIENCE
Mr. Mananan received his master's degree in economics from Rajshahi University in 1960. In
1970, Mr. Mannan continued his studies at Michigan State University, United States, and
stayed there for the MA (economics) program. After obtaining his MA degree in 1973, he
took doctoral programs in industry and finance in economics, namely educational economics,
Development Economics, Industrial Relations and Finance at the same University. After
completing his doctoral program, Mr. Mannan became a senior lecturer and actively teaches
at the Papua New Guinea University of Technology. Later he was appointed professor at the
International Center for Research in Islamic Economics, King Abdul Azis University Jeddah.
Mr. Mannan is active as a visiting professor at the Moeslim Institute in London and
Georgetown University in the United States. Through his long academic experience, Mr.
Mannan decided to join the Islamic Development Bank (IDB) and became a Senior Islamic
economist at IDB. In 1984 Mr. Mannan published his books entitled The Making of Islamic
Economic Society and The Frontier Of Islamic Economics. The book was translated into
English in 1986 and has been published 15 times and translated into various languages.

C) CREATION
The e works of Muhammad Abdul Mannan as follows:
• Islamic Economics; Theory and Practice, 386 pages, published by: Sh. Mohammad
Ashraf, Lahore, Pakistan, 1970, (Received the best-book Academic Award from the
Pakistan Writers' Guild, 1970) reprints 1975 and 1980 in Pakistan. Reprint in India,
1980.
• The Making of Islamic Economics Society: Islamic Dimensions in Economic
Analysis; published by the International Association of Islamic Banks, Cairo and the
International Institute of Islamic Banking and Economics, Kibris (Turkish Cyprus)
1984.
• The Frontiers of Islamic Economics, published by Idarath Ada'biyah, Delhi, India,
1984.
• Economic Development in Islamic Framework (Edited/to be published).
• Key Issues and Questions in Islamic Economics, Finance, and Development
(forthcoming).
• Abstracts of Researches in Islamic Economics (edited, KAAU, 1984).
• Islam arid Trends in Modern Banking - Theory and Practice of Interest-free
Banking". Original published in Islamic Review and Arab Affairs, vols 56, Nov/Dec.,
1968, vols 5-10, and vols 57, January 1 London, 1969 , pages 28-33, UK translated
into Turkish by M.T. Guran Ayyildiz Matahassi, Ankara (1969).

D) HIS CONSIDERATION IN THE FIELD OF ECONOMICS

1. FISCAL POLICY
 Islamic principles on fiscal and budgetary policy aims to develop a society which is based
on a balanced distribution of wealth with placing material and spiritual values at the level
of the same one. According to Mannan, to the best of his knowledge, from all the
religious books of the past, the Qur'an is the only one a book that lays down precise
orders on policy state regarding the expenditure of income. This description reflects a
new approach to research the issue of fiscal policy, says Professor R.W. Lindson, "In
making Government expenditures, and in obtaining Government revenue, determining the
type, time and procedures have to be followed.” Of course this .directed to achieve certain
specific goals.

2. EXPENDITURE POLICY
According to Mannan, activities that increase state spending have a certain impact on the
socio-economic life of the community. Zakat (i.e. the tax given by Muslims) is intended
for the poor (fukara) Muslims,18 poor groups among foreigners who stay (masakin), to
win their hearts, free slaves and prisoners of war, help those who are in debt, those who in
the way of Allah, and for the wayfarers.

The important thing to be stated in this case is that zakat can also be used for the welfare
of non-Muslims. The term "God's way"20 is also a broad term. Spending money to
alleviate the suffering of non-Muslims may be considered an expense in the way of Allah.
This is not only for Muslims but also for non-Muslims.

Thus, in Mannan's perspective, material expenditure is in the form of distributing zakat

and jizyah (a kind of tax from non-Muslims) to those who are entitled to receive it, such
as spending to win hearts. first, those whose hearts are stolen to help the Muslims,
second, those whose hearts are stolen so as not to do things that are detrimental to the
Muslims, third, those whose hearts are stolen to embrace Islam, fourth, they will persuade
their people and tribes embraced Islam together. The spiritual expenditure can be in the
form of spiritual guidance to the Muslims, and conveying messages of da'wah to the
Muslims.

3. INCOME POLICY
Thus in the perspective of Mannan The material income is obtained from the collection of
zakat and alms, but not only include taxes on money cash, but also land receipts and taxes
on animals pets (sheep, goats, camels and oxen), including tax on mining (especially gold
and silver), on treasure hidden treasures found, and so on. Import duty rates which applies
to consumer goods that come from Medina, from ten percent to only five percent. As for
spiritual income, it can be in the form of reports from the Muslims in the form of
successful spiritual development
to the Muslims, and the success of delivering da'wah messages.

4. INCOME POLICY AGAINTS NONN MUSLIM

According to Mannan, in fact an Islamic state tends to treat Muslims and non-Muslims
differently, in terms of income collection. If zakat income is collected from Muslims and
issued for the welfare of Muslims and non-Muslims, it can be considered that an Islamic
state can collect a certain amount from the income of non-Muslims. The collection of
taxes/jizya and kharaj during financial administration in early Islam is a justification for
this. Even in modern times, the issue of different income policies towards non-Muslims
does not seem unenforceable. If only the Muslims were required to pay a certain amount
of taxes thereby liberating non-Muslim citizens, there is a possibility that wealth will pass
from the Muslims to the non-Muslims who may already have prosperous trade and
commerce, to the detriment of the Muslims. Judging from any norms of justice and
equality, this is not in accordance with the general principles of social justice.
 Thus, in Mannan's perspective, material income from non-Muslims is levied on
taxes/jizyah and kharaj, as well. the imposition of a welfare tax on non-Muslims and this
is specifically used for the welfare of poor non-Muslim citizens in an Islamic country.
The spiritual income from non-Muslims can be in the form of the entry of some non-
Muslims into Islam as a result of the struggle for the da'wah of the Muslims.

5. BUDGET POLICY

➢ BUDGET FOR EARLY ISLAMIC ERA

According to Mannan, before making any attempt to formulate a budget policy for a
Islamic countries, let's pay attention to the budget system in early Islam. Balanced
budget concept or surplus is a concept that may be applied practice early Islamic era.
Today it's also one of the old rules what is still valid in finance is the national
budgetwhich must be balanced. A budget is said to be balanced if contest and
government acceptance alike. When acceptance exceeds the contest within a certain
period,the budget becomes a surplus, and the budget deficit, if exceed acceptance.

➢ MODERN BUDGET POLICY

According to Mannan, not only in the Islamic period the beginning, but in these days
too, the scope of the budget very narrow and limited so that when a large number of
budgeted spent, interested officials assume that their task has been completed.
Nowadays stress not only on the act of spending money but, pressure exists in the
relationship between output and fulfillment of plans, because planning and budgets
are considered as complementary operations. Thus "modern budget is a
mixture"complex between plans and projects to be implemented in future with the
dual aim of improving and improve community management in the future, as well as
removing the difficulties and obstacles that exist
on the path of the country's economic growth".

➢ ISLAMIC COUNTRY AND MODERN BUDGET POLICY

According to Mannan, the modern Islamic state must accept the modern budget
concept with key differences in terms of managing the budget deficit. Islamic State
today have to start with absolute expenses needed, and looking for ways and ways to
achieve this, either by rationalizing the tax structure or by taking credit from the
banking system or from outside country. This is based on the following reasons:

- Due to various economic and historical reasons, mostly Islamic countries (except
Islamic countries with a capital surplus) oil wealth), both the least developed or is
developing.
- In many cases foreign capital is needed to take advantage of the resources of
Islamic countries that very wide.

➢ BUDGET DEFICIT AND DEFICIT FINANCING

According to Mannan, if the acceptance is less than expenditure, there is a budget

deficit. But a the government has a budget surplus, if revenue Exceed expenses, and
if current receipts are the same with current expenses, there is a balanced budget. So
if a government increases spending, without raise taxes, the extra expenditure can be
called financed through deficit financing.

➢ DOMESTIC INCOME
 According to Mannan that as far as mobilization of domestic resources, including
loans from the banking system, Islamic countries, master the problem alone. In the
Islamic socio-economic environment, banks must act as business partners in trade,
commerce, industry, and development plans. A merger the fun of the bank's financial
experience and knowledge of investors about investment and business must be carried
out in order to achieve real social justice and human brotherhood in the world.

➢ MODERN TRENDS IN THE BUDGET POLICY PROGRAM CONCEPT AND

BUDGET EXECUTION, AND ISLAMIC COUNTRIES

According to Mannan, in an attempt to help developing countries in the expansion of

capital them, so in recent years it has been developed a number of new methods of
budgeting. According to Mannan, it is true that the Commission Pakistan's Budget
Update has advocated budget formulation on the basis of programs and achievements.
But Mannan felt that Islamic countries in general are not mature enough to formulate
their budgets on the basis of programs and achievements. Although some developing
countries such as The Philippines and several Latin American countries are received
this new budget update, but we did not have convincing evidence to show that this is
a success. Performance based budgeting will require preparation of a work
measurement system and calculation unit costs for each type of government activity.
But work what is done in government departments is so complicated and varied in
nature so that it is very difficult to planning a common measurement for all types
activity. Certain types of work at all cannot be measured by quantitative measures.

➢ FISCAL POLICY BASED ON SPIRITUAL AND MATERIAL VALUES

According to Mannan, the Islamic principle of policy fiscal and expenditure budgets
aim to develop a society based on the distribution of wealth balanced by placing
material values and spiritually on the same level. What is meant by value Material is
a value that is useful for the human body. For example, food, drink, clothing, shelter
or better known as clothing, food, shelter. What is meant by value Spiritual value is a
value that is useful for human spirituality. Score Spiritual values are further divided
into religious values (religion), aesthetic values (beauty, art), ethical values (morals)
and logical values (truth). According to Mannan, to the best of his knowledge, from
all the religious books of the past, the Qur'an is the only one a book that lays down
precise orders on policy state regarding the expenditure of income.(Ansori, 2015)
References

Ansori. (2015). KONSEP PEMIKIRAN M. ABDUL MANNAN TENTANG KEBIJAKAN

FISKAL
A.. Paper Knowledge . Toward a Media History of Documents, 3(April), 49–58.
Fachrodzi, A. Al. (n.d.). Pemikiran Ekonomi Islam Muhammad Abdul Mannan. 1.
Imamudin Yuliadi, Ekonomi Islam Sebuah Pengantar, Yogyakarta:LPPI, 2001
Abdul Mannan, Teori dan Praktek Ekonomi Islam, Yogyakarta:Dana Bakti Prima Yasa,
1997, hlm. 406-411.
Wirdyaningsih (ed), Bank dan Asuransi Islam di Indonesia, Jakarta: Kencana, 2005.
Muhammad Abdul Mannan, Islamic Economics, Theori and Practice, India: Idarah
Adabiyah, 1980, h. 309.
Muhammad Abdul Mannan, Teori dan Praktek Ekonomi Islam,Terj. M. Nastangin,
Yogyakarta: PT Dana Bhakti Wakaf, 1997, h. 230