FOUNDATION OF ISLAMIC ECONOMICS

(ECON 1710)

TOPIC 1

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 ULTIMATE OBJECTIVE

Education is the instilling and inculcation of

adab in man
it is tadib.
(Syed Muhammad Naquib Al-Attas, 1993)

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 what will we learn?
DEFINITION OF IE
An approach to interpreting and solving
mans economic problems based on the
values, norms, laws and institutions found in,
and derived from, the sources of knowledge
in Islam.
(Mohamed Aslam Haneef, 1997)
Task, Tools, Sources of tools

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 TOPIC 1: ISLAM, WORLDVIEW
AND ECONOMICS

1. Islam, Iman & Ihsan

2.Why Islamic Economics?
3. Worldview
4. Islamic Economics
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 1. ISLAM, IMAN & IHSAN

To understand totally the perfectness of

this religion; Islam, Iman and Ihsan
must not be separated.

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 1. ISLAM, IMAN & IHSAN
Meaning of Islam
Word of origin: salam = peace

Definiton:
Islam = submission to the will of Allah

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 ISLAM, IMAN & IHSAN
Islam
Religion revealed to our prophet
Muhammad .

Those accept Islam are referred in the

Quran as mumin i.e. those who have iman
or faith.

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 MEANING OF ISLAM
Definition of Islam
Religion of subservience to Allah, the supreme reality,
from whom all orders of reality issue forth and to whom
everything returns.

implies peace since surrendering oneself to the will of

Allah, one can gain peace in this world and the hereafter.
Muslim = one who accepts the religion of Islam

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 CONCEPTS IN ISLAM
Way of
life

Unity CONCEPTS Universal

Primordial

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 WAY OF LIFE
- all-encompassing; unlike Christianity:
And again I say unto you; it is easier for a camel to go
through the eye of a needle than for a rich man to enter
into the Kingdom of God.
(The New Testament: Matthew, Chapter 19: 24)

- ritual & non-ritual practices; individual & societal

requirements; in solitude or in society obligations.

- Prophet Muhammad (upon whom be peace) = final

prophet = final way of life.
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 UNIVERSAL

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 UNIVERSAL
Pew Forum on Religion & Public Life (2005)
Islam is already the fastest-growing religion in Europe.
Driven by immigration and high birthrates, the number of
Muslims on the continent has tripled in the last 30 years.
Most demographers forecast a similar or even higher rate of
growth in the coming decades.

http://www.foreignpolicy.com/story/cms.php?story_id=3835

The IE challenge (1): Todays world, Our

problems/challenges are Universal in nature. So, Need
universal solutions.
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 UNITY
Tawhid or unity concept offers a unified and coherent
essence. Unlike Christianity:

Whatever the outcome, may be, Christians as a whole do

not deny that their most serious problem is the problem of
God.
(Syed Muhammad Naquib Al-Attas, 1993)

Al-mithaq (the covenant) is our first testimony to tawhid.

Contained in shahadah and so central that Allah will forgive

all sins except shirk.
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 PRIMORDIAL
All the divine religions propagated the
doctrine of tawhid.
Unity of God i.e. the central message of Islam,
has existed throughout the history of human
being.
In Other Words, Islam was there from the very
beginning. Adam was Muslim for he testified to
the Oneness of Allah [la ilaha illallah].
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 PRIMORDIAL
This Oneness was gradually forgotten as it is the nature
of human being to forget.
Allah SWT always sent prophets to renew the message
of the unity of God by bringing man back to the
awareness of the unity of God.
Although all the prophets established religions by
different names but they were Muslims.
That is why the Quran refers to Ibrahim as musliman
hanifan.

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 ISLAM, IMAN AND IHSAN
Five pillars of Islam:
1- uttering the shahadatain
2- performance of the daily prayers
3- fasting during the month of Ramadan
4- performance of hajj or pilgrimage
5- paying zakah or alms-giving

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 ARTICLES/PRINCIPLES OF FAITH (IMAN)
ALLAH

HIS PROPHETS

HIS BOOKS

HIS ANGELS

JUDGEMENT DAY

DIVINE DESTINY
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 IHSAN
Means virtue
Muhsin = he who possesses Ihsan
Definition =
worshipping Allah as if one were to see Him or
at least with a deep awareness that Allah sees
man.
implies intensity and perfection of living

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 ISLAM, IMAN AND IHSAN
To conclude, al-Din or Islam comprises:

Five pillars of Islam and principles of iman

(aqidah)

Strict observance of the Divine Law (shariah)

The pursuit of Ihsan (akhlaq).

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 1. ISLAM, IMAN & IHSAN: SUMMARY

ISLAM

AQIDAH SHARIAH AKHLAQ

The IE challenge (2): Incorporate ASA in

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our universal solutions.
 2. WHY ISLAMIC ECONOMICS?

Why not conventional economics?

Why Islamic economics system?

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 Why not Conventional Economics?
CE claims that it is a value free discipline
No human endeavor value free
Schumpeter (1954): Analytic effort is of necessity preceded by a pre-
analytic cognitive act, called vision
Analytic work begins with material provided by our vision of things,
and this vision is ideological almost by definition.

The book published 4 yrs

after his death (1954) and
covers a complete history of
economic theory from
Ancient Greece to the end of
the second world war (1945).
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 Why not Conventional Economics?

Alparslan Acikgenc (1994): Nature of

human mind cannot but perceive a
problem within a scheme of
constructive unity

J. S. Mill (1836): Political economy,

therefore, reasons from assumed
premises
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 These assumed premises stem from one's worldview,
which in our case [Islam] necessarily discusses the
concepts of God, man, nature and religion:
Since economics deals with man's relationship to
nature, other human beings, with valuation in its
broadest sense, and in the spheres of production,
consumption and distribution of goods and services,
the understanding of the Islamic view of man and
nature is fundamental
( Mohamed Aslam Haneef, 1997 p.43)

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 Why not Conventional Economics?

All aspects of human activity are influenced by

ones worldview/vision
Our values are derived from our WORLDVIEW
So, economics are VALUE-LOADED

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ECONOMICS: VALUE FREE?
Choice of topic to be pursued
In training, class time, book and
Stage 1 periodical coverage

Choice of variables and assumptions

Theory adoption leads to variables
Stage 2 classification
ECONOMICS: VALUE FREE?
Choice of methods
Stage 3 Qualitative vs. Quantitative

Choice of Ends and Means

Stage 4 Concepts like efficiency

Choice of Policy Prescription

Stage 5 Classical vs. Keynesian
 Why Islamic Economic System?
Al-sahwah al-Islamiyyah or Islamic revivalism/resurgence in
early 1970s in Muslim countries
Failure of conventional civilization models
Oil boom in 1970s
Muslim countries try to find solutions to own economic problems

Continuous intellectual discourse on economic issues and

related disciplines from Islamic perspectives
Makkah (1976): Birth of Islamic Economics discipline is marked by the First
International Conference on Islamic Economics.
Islamabad (1983)
Kuala Lumpur (1992)
Loughborough (2000)

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 Seri Title of the Year Venue Major Theme/ Agenda of the Conference
es Conference
1 First IC on IE 1976 Makkah, General. No specific theme was fixed for the conference
KSA (M.Iqal, 2008: 75)
2 Second IC on 1983 Islamabad Development, Finance and Distribution in Islamic
IE , Pakistan Perspectives
3 Third IC on IE 1992 KL, Financing Development from Islamic Perspective
Malaysia
4 Fourth IC on 2000 Loughbor Islamic Finance: Challenges and Opportunities in the 21st
IEB ough, UK Century
5 Fifth IC on IEF 2003 Bahrain Sustainable Development and Islamic Finance in Muslim
Countries
6 Sixth IC on 2005 Jakarta, Islamic Economics and Banking in the 21st Century
IEF Indonesia
7 Seventh IC on 2008 Makkah,
IEF KSA
8 Eighth IC on 2011 Doha, Sustainable Growth and Inclusive Economic Development
IEF Qatar from an Islamic Perspective

9 Ninth IC on 2013 Istanbul, Growth, Equity and Stability: An Islamic Perspective

IEF Turkey
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 WV
1. The overall perspective from which one sees and interprets
the world.
2. A collection of beliefs about life and the universe held by
an individual or a group.
(http://www.thefreedictionary.com/worldview)
3. Came from German word : Weltanschauung
4. Weltanschauung coined by Kant (1724-1804)
5. Welt = world and anschauung= View
a comprehensive conception or image of the universe and
of humanity's relation to it.

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 Worldview in German Philosophy
. worldview expresses a set of beliefs that are foundational
and formative for human thinking and life.

A worldview is a commitment, a fundamental orientation of the

heart, that can be expressed as a story or in a set of
presuppositions (assumptions which may be true, partially true or
entirely false) which we hold (consciously or subconsciously,
consistently or inconsistently) about the basic constitution of
reality, and that provides the foundation on which we live and
move and have our being. (James Sires Revised Definition of
Worldview)

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 Various WORLDVIEWS

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 3. Worldview

Vision of reality and truth that appears before ones mind,

revealing what existence is all about
Governs the way people interpret the world
No science can be more secure than the unconscious
metaphysics which it tacitly presupposes. (Whitehead in
Chapra, 2000)

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 3. The ring of worldview
Religion

Aim in
God
life
WORLDVIEW

Nature Man

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 Islamic Worldview
Centered on the principle of Tawhid or unity of God
Unity of creation and purpose
Unity of sources of knowledge and action

Al-Attas: Ruyat al-Islam Lilwujud or The view of Islam about

existence
Man, his aim in life, the universe, the way he interacts are all
inter-related
Mans behavior governed is by rules of Quran and Sunnah

Pursue material gain with a view that existence in this world and
hereafter is important
 ISLAMIC VS WESTERN WORLDVIEW
Is Islamic worldview different from conventional worldview?
Since factors affecting worldviews differ, it is natural to also have different
worldviews, thus different theories to explain human behaviour

Islamic worldview is based on Islam and its sources of knowledge

A complete worldview at the time of revelation-fundamental concepts in the
Quran are not open for changes in meaning
Islamic: based on revelation; flexible but not replaceable
Western: scientific worldview
 1. ISLAMIC VIEWS ON RELIGION
Not equivalent to religion as understood by the west
Religion is a private matter between Individual and God
No role to play in determining public affairs and policies
Science has replaced religion as authority
Religion is for infantile man vs. science is for modern/mature man

Watt (1979) on religion to the west:

means a way of spending an hour or so on Sundays in practices which give him

some support and strength in dealing with the problem of daily life; it has little or
nothing to do with commerce or economics or politics or industrial relationships..
 1. ISLAMIC VIEWS ON RELIGION
West vs. Islam:
To understand position of religion and its implications on
economic discipline and activity, need to analyze the following
three aspects because:
they have been shaping the body of western knowledge through the
specific historical experience of the West.
to ignore them is an act of naivety and a lost of opportunity to be
wise.
What are the three aspects?
 Points of analysis

Secular

Secularization

Secularism
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 SECULAR
Secular as a word: From Latin saeculum=time and
location= now + world=> events in this world
Secular activities: deal with the here and now or
activities on this world in our lives
Secular concept = the condition of the world at
this particular time => (historical connotation)
spatio-temporal notion in relativity of human
values.
Secular worldview concerns with worldly life ONLY.
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 Islamic Worldview
Islamic worldview encompasses this life & hereafter
Not anti-this world.
Islam has clear guidelines to undertake life in this world:

But seek, with that (wealth ) which Allah has bestowed on you, the
home of the Hereafter, and forget not your portion of legal
enjoyment in this world, and do good as Allah has been good to you,
and seek not mischief in the land. Verily, Allah likes not the
Mufsidun (those who commit great crimes and sins, oppressors,
tyrants, mischief-makers, corrupts).
(Al-Qasas: 77)
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 SECULARIZATION
= The process of rescuing mans reason and language; first
from religious and then from metaphysical control.

Experience of Christian/western civilization since 17th century - in the age

of enlightenment as elaborated by Cox (1965) and al-Attas (1978)

Process outcome = gradual decline of religion and its authority

over life; separation between life and religion

Elliade (1987) in Encyclopedia of Religions

Dichotomy between religion and remainder of human life is a western product
and concern
Distinction between sacred & profane, religion & other aspects of human
endeavor is a result of secularization.
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 SECULARIZATION
Having three components:
1. Disenchantment of nature: nature as an object to be
exploited by man. In Islam, nature as a sign of Allahs
existence, to be utilized by man

2. Desacralization of politics: ultimate authority given to man.

In Islam, the ultimate authority and power belongs to Allah

3. Deconsecration of values: all norms, values, laws can be

changed according to mans preferences. In Islam, man
cannot over-rule God
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 SECULARISM
Ideology that says only this world is relevant

When combined with materialism

It denotes that only this world is real
Hence, any reference to the hereafter is irrelevant

Economics should be conducted purely on costs and

benefits of this world
Islam would not accept this ideology
 1. ISLAM VIEWS ON RELIGION
Ideology of secularism and secularization as a philosophical
process is incompatible with Islam and its worldview
Islam cannot accept secularization (dealing with only here
and now): contradictory, incoherent, meaningless
Islam has no problem with involvement of man in worldly pursuits

In Islam, religion is not human creation, but it represents a way of

life - Din

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 ISLAM IS DIN
The term din used to denote religion in the Quran
Comes from root word dana
Mentioned 92 times in the Quran
Meaning debt, obedience, judgement / way / custom; inter-connected to explain
religion

Is not limited to rituals/faith

A way of life
Detailed code of conduct
Willing and conscious submission to Allah in all aspects of life
Economics and its related activities are potentially ibadah or acts of worship
Based on revealed knowledge, man uses his intellect to organize life on
earth: Intention, action according to shariah
 Al-Islam & Al-Shariah
Al-Islam is the Din of all prophets but shariah vary
among prophets

Shariah of Prophet Muhammad S.A.W. is the most

comprehensive and complete

It is guidance in all aspects of the Muslims life,

private and public, individual and social, spiritual and
material, and political and economics.
 2. ISLAMIC VIEWS ON GOD
Belief in unity of God, TAWHID
Oneness of God; Expressed in Kalimah shahadah
Core concept /foundation of Islamic worldview
Other aspects of Islamic worldview are logical extensions

3 aspects of TAWHID
Oneness of the lordship of Allah: to believe that there is only one
lord for entire universe
Oneness in the worship of Allah: to believe that none has right to be
worship but Allah
Oneness of the names and qualities of Allah: none can be qualified
with the Names/qualities of Allah
 2. ISLAMIC VIEWS ON GOD
Thus, as a Muslim (one who submits) is to do as
God has directed and for His sake

Beautiful names of Allah which have

implications for economics
NAMES OF ALLAH
Al-razzaq (the Provider/Sustainer):
Iesa (Jesus), son of Maryam (Mary), said: O Allah, our Lord! Send
us from heaven a table spread (with food) that there may be for us-
for the first and the last of us-a festival and a sign from You: and
provide us sustenance, for You are the Best of sustainers.

(Al-Maidah: 114)
NAMES OF ALLAH
AL-MALIKUL MULK (the eternal owner of sovereignty)
Know you not that it is Allah to Whom belongs the
dominion of the heavens and the earth? And besides Allah
you have neither any Wali (protector or guardian) nor any
helper.

(AL-BAQARAH:107)
 NAMES OF ALLAH
AL-GHANI (the rich)
And your Lord is Rich (Free of all wants), full of Mercy, if He
will, He can destroy you, and in your place make whom He
will as your successors, as He raised you from the seed of
other people

(AL-ANAM: 133)
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 3. ISLAMIC VIEWS ON MAN
Arabic: INSAN from root word NASIYA means he forgot:
and remember when your Lord brought forth from the children of Adam, from their loins, their
seed and made them testify as to themselves (saying): Am I not your Lord? They said:Yes!We
testify, lest you should say on the day of resurrection:verily, we have been unaware of this.

(SURAH AL-ARAF: 172)

 ISLAMIC VIEWS ON MAN
The best of creation, created good,
comprising of body and spirit: verily, we created
man of the best stature (mould) (At-teen: 4)
Laqad Khalaqna al-insana fi ahsani taqwim
Given aql and knowledge: And He taught Adam of
all things (al-Baqarah: 31)
Wa allama Adam al-asmaha kullaha

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 3. ISLAMIC VIEWS ON MAN
Created as vicegerent (KHALIFAH) on earth:
(SURAH AL-BAQARAH: 30): and remember when your Lord said to the angels: I am going to
create a vicegerent on earth

-

Created as abd (worshipper) of God:

(SURAH AD-DHARIYAT: 56):I created not the Jinns and human except to worship Me



Implications of roles:
As khalifah: nature, universe and other creations are entrusted to man for his
utilization, responsibility
As abd: man does not have the ultimate authority other than to follow the will
of God
 3. ISLAMIC VIEWS ON MAN
Cannot be khalifah unless you are first and foremost an abd

Nasr (1990): there is no more dangerous creature on earth than a

khalifah of Allah who no longer considers himself to be an abd Allah.

Mans life = a test on execution of this twin role.

Blessed be He in Whose Hand is the dominion, and He is Able to do all

things. Who has created death and life, that He may test you which of
you is best in deed. And He is the All-Mighty, the Oft-Forgiving.

(Al-Mulk: 1-2)
 4. ISLAMIC VIEW ON NATURE
Nature/universe in the Quran:
Comprise of heavens and earth and all in between

( SURAH
MAIDA; 5:17)

Mention about vegetation and fruits, night and day, heavens and earth, human
being, rain
Another sign to direct man to worship Allah, the Creator
Nature is a bounty from God
Must be utilized in the best way possible, in accordance with Gods will,
remembering that it is part of Gods creation
Man as trustee to manage nature
2 types of nature
Material world (visible)
Unseen world (ghayb or invisible): believe in the existence of God, angels, hell and
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paradise
 5. ISLAMIC VIEWS ON AIM IN LIFE
Primary aim of life for human as described by Islam
To achieve happiness (falah)
Ultimate success and pleasure of Allah

Al-Ghazali describes means through which man can prepare

for happiness in this world and hereafter (saadah)
1. Al-nafsiyyah soul
2. Al-jismiyyah body
3. Al-kharijiyyah external good
4. Al-tawfiqiyyah divine grace
 ATTAINING FALAH

Al-nafsiyyah the goods of the soul

Comprising faith (iman) and good character

Achievable through action (amal)
Iman = Amal : soul can only be improved if man has
knowledge and apply that knowledge
ATTAINING FALAH
Good character comprise of:
Temperance - repression of desire and anger
The strong is not the one who overcomes the people by
his strength, but the strong is the one who controls
himself while in anger. (Sahih Al-Bukhari, Vol. 8, hadith
no. 135)

Justice observing of moderation in all actions

ATTAINING FALAH
Application to economics:
- ethical requirements in business activities
- corporate social responsibility, corporate governance
& corporate accountability

Iman and husn al-khuluq are the most important

means of happiness to public and private firms.
 ATTAINING FALAH
Al-jismiyyah the goods of the body
Second importance
Health + strength = allows perfect performance of
ibadah that requires physical movements
Long life = amplifies no. of performance
Pleasant appearance hadith sahih Muslim:
All of Allahs affairs are beautiful, and He loves things
of beauty.

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 ATTAINING FALAH
Al-kharijiyyah external good (surrounding)
Useful for happiness
Wealth, influence, family and noble birth (family in which knowledge and piety are
instilled to all members)

Al-tawfiqiyyah divine grace

Essential for happiness
Comprise of divine guidance (hidayah), divine direction, divine leadership and
divine strengthening

Primary means of achieving falah are goods of the soul, that can be
acquired with help of bodily and external goods, if he is given divine
grace.
 HOW TO ATTAIN TAWFIQ?
And Allah increases in guidance (hidayah)those who
walk aright [true believers in the Oneness of Allah-
who fear Allah much (abstain from all kinds of sins
and evil deeds which He has forbidden), and love
Allah much (perform all kinds of good deeds which
He has ordained)]. And the righteous good deeds that
last, are better with your Lord for reward and better for
resort.
(Maryam: 76).

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 HOW TO ATTAIN TAWFIQ?
Make dua (invocation): Allah ask us to do
And when My slaves ask you (O Muhammad SAW)
concerning Me, then (answer them), I am indeed
near (to them by My Knowledge). I respond to the
invocations of the supplicant when he calls on Me
(without any mediator or intercessor). So, let them obey Me and
believe in Me, so that they may be led aright.

(Surah Al-Baqarah: 186)

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 In conclusion,
Islamic Worldview Secular Worldview

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 4. ISLAMIC ECONOMICS

Before talking about/

defining IE,
What is ECONOMICS all
about ?
 Economics: study of human behavior in relation to the
use of scarce resource to fulfill unlimited wants
Economics is a field that deals with management of
scarce resources (production, consumption and
distribution)
Due to scarcity, we have to make choices
Man interacts with other human beings and nature to
make these choices

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 ECONOMICS AND ISLAMIC ECONOMICS

Economics is both an activity and a discipline

How man interact is determined both by natural laws and
social laws/culture in a system, i.e. economic and financial
systems
Social laws/culture based on worldview of people

Systems are products of society

The discipline is derived from ones worldview
 ISLAMIC ECONOMICS
IE is Part of din
Economic activities based on the Islamic worldview
Production, consumption and distribution activities
Make choices
according to Islamic description, analysis, prescription

Approach to and process of interpreting and solving mans economic

problems based on the values, norms, laws and institutions found in
and derived from the sources of Islam (Prof. Dr. Mohamed Aslam Haneef,
1997)
 ISLAMIC ECONOMICS DEFINED
1. Chapra (1996) and Hasan (1996) define Islamic
economics using scarcity perspective.
2. Khurshid Ahmed (1981) = The study of human behaviour
in their attempts to satisfy their needs from the abundant
resources, which Allah has provided, within the context of
the stipulation of Allah with a view of maximizing the
benefit for the self and the whole society both in this world
and the hereafter.

3. Arif (1985) = The study of a Muslim mans behaviour who

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organizes the resources that are a trust to achieve falah.
 ISLAMIC ECONOMICS
Major economic issues
Conventional economics:
Unlimited wants
Limited resources
Achieving the highest utility

Islamic economics:
Economic pursuit must be derived from Islamic worldview
Economic goals do not contradict the shariah
Shariah constraints to be observed in making choices

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 ISLAMIC VIEW ON SCARCITY

SCARCITY

Existence Availability

Factors Choice
Knowledge Consumption
Effort Production
Time Distribution
ABSOLUTE SCARCITY CONCEPT
Unlike western secular economics, Islamic economics
rejects absolute scarcity because:

It denies the concept of God Power underlined by Verily, His

Command, when He intends a thing, is only that He says to it,
Be!- and it is! (Yasin, 36: 82)

Allah has provided resources in abundance-And He gave you of

all that you asked for, and if you count the blessings of Allah,
never will you be able to count them. Verily! Man is indeed an
extreme wrong-doer, - a disbeliever.
(Ibrahim,14: 34)
 RELATIVE SCARCITY CONCEPT
, the inference that scarcity becomes nonexistence for economics, whether
secular or Islamic, is rather eristic, to put it mildly. The catch is in the failure to
realize that the fact of the existence of ample resources for human beings
and others at all points in time and space is one thing, while their availability to
individual or groups at a given hour and location and in the required quantities
is quite another. It is not the existence of resources per se, but the state of their
availability that lends meaning to the idea of scarcity as a cornerstone of
economics. The availability of resources is an increasing function of knowledge-
knowledge of their existence, of the ways to extract or obtain them, of their use
and of their cost.

(Hasan, 1995: 581, cited in Wahb al bari Amir Ahmed. 2009.The concept of scarcity
and its implication on human behaviour: a Quranic perspective. Unpublished IIUM
Master Dissertation.)
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 RELATIVE SCARCITY: Islamic View
Relative scarcity is related to a given present situation regarding the
availability of resources.

Factors that affect the supply side are knowledge, time, and effort
while factors that affect the demand side concerns about the choices
that man makes in consumption, production and distribution
decisions.

This situation where the supply side is lower than the demand side
raises the issue of relative scarcity from the Islamic economics view.

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RELATIVE SCARCITY: How to Resolve?
This problem can be resolved by improving knowledge, time, and
effort on existing resources; and relook at CPD (consumption,
production and distribution activities) with the aim of putting less
pressure on the presently available resources.
For instance, the reducing of consuming impermissible (haram) or
luxurious goods and services would allow the channeling of resources
to the production of permissible and more important types of goods
and services. [ Trade off]
The simple act to prevent wastage would also help in addressing the
relative scarcity problem. [food wastage]
 Waste not, want not

930 tonnes of food being thrown away every day

(see,http://www.thestar.com.my/story/?file=%2F2011%2F6%
2F10%2Fnation%2F8876846)
It generates about 15,000 tonnes of food and kitchen
waste daily enough to fill 7.5 football fields or to feed
7.5 million people a day. [See,
http://www.thestar.com.my/News/Nation/2013/06/05/Waste
ful-ways-of-Malaysian-gluttons-15000-tonnes-of-food-enough-to-
feed-75-million-people-thrown-a/]
Waste not, want not
[http://www.freemalaysiatoday.com/category/business
/2013/01/04/waste-not-want-not/]
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RS: Is The Concept Unislamic?

What do you think?

RS: Is The Concept Unislamic?
The relative scarcity concept is not unIslamic since it does not question:
Allahs power to provide sustenance to mankind
the fact that existing resources are in abundant

It is our action that can solve the problem of relative scarcity-

And if Allah were to enlarge the provision for His slaves, they would surely
rebel in the earth, but He sends down by measure as He wills. Verily! He is in
respect of His slaves, the Well-Aware, the All-Seer (of things that benefit them).
(Ash-Shura, 42:27)

Present global state of relative scarcity

ecological footprint
What is EF?
Ecological Footprint
is a measure of human demand on the Earth's ecosystems
represents an accounting system for biocapacity that tracks
how much biocapacity there is, and how much biocapacity
people use.
For 2007, humanity's total ecological footprint was estimated
at 1.5 planet Earths; that is, humanity uses ecological
services 1.5 times as quickly as Earth can renew them.
 Usefulness of Ecological Footprint
a means of comparing consumption and lifestyles, and checking this against
nature's ability to provide for this consumption.

The tool can inform policy by examining to what extent a nation uses more (or
less) than is available within its territory, or to what extent the nation's lifestyle
would be replicable worldwide.

The footprint can also be a useful tool to educate people about carrying
capacity and over-consumption, with the aim of altering personal behavior.
Ecological footprints may be used to argue that many current lifestyles are not
sustainable.

87
 ISLAMIC FINANCE
To finance the economic activity in an Islamic framework = fuel to the
economic engine of a country
Must have institutions using instrument according to rules and
regulations which are all bound by the shariah
Observe basic prohibitions in business transaction: riba (usury), gharar
(speculation) and maysir (gambling)
Underlying exchange involved must be halal
Profit should come from trading transactions and other permissible contracts.