What is Islamic Economics? – QuranMualim

Abul A’la Makwdudi laid the foundations of contemporary Islamic economics. Drawing inspiration from Islamic literature and the Islamic tradition, Mawdudi introduced a innovative method of economic analysis and economic policy, one in which economic activity is conducted within a context of moral guidelines and are focused on the achievement of personal and social objectives. 

One of the most important aspects to this philosophy lies in the idea of an interest-free system of economics that seeks to make the efficiency and equity inseparable and interdependent. The process of generating and distributing wealth is vital to improving the quality of life of the people of society as well as opening the way to growth, social justice as well as the well-being of human beings. The complete collection contains the bulk of his works and includes a biography and an essential introduction on Islamic economics.

Abul Mawdudi(1903-1979) was a well-known Muslim scholar and was the main creator for the Islamic revival in the early 20th century. He was the founder of 1941. founded Jama’at-i-Islami a political party that was located in Pakistan that he led from 1971 until 1972. He composed more than 100 works on Islam and Islam that are both academic and popular and his writings are translated in over forty languages.

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What does it mean to be Islamic economics?

The well-being of the entire population as well as the growth of companies are dependent on the performance of individuals and their efforts to pursue their own goals and profit.If individuals stop working to make money, and cease any lucrative activity, the economic system of civilization is slowed down, and everything gets . ” [Ibn Khaldun (744-820Hijrah 1332-1406AD)

Islam has yet to establish the concept of political or moral economics in the same way as economics and analysis has developed throughout western civilization. There are few thinkers who hail from Islam who have considered economics as a separate field. It is true that the Western literature about economics, from Adam Smith to Malthus, Ricardo, Mill and into the present and beyond, is not appropriate within the framework of Islam.

 Islamic economics is part of the larger framework of transactional jurisprudence, as well as the scholasticism that is characteristic of the moral philosophers and theologians of Islam. The fundamental concepts of economic thought — such as market efficiency and value efficiency and productivity efficiency, as well as growth, to mention just a few examples is interpreted with the same meaning , or even the same definition.

 It is obvious that Sharia did not leave any place for economics. Every time the question of the health of the community or the well-being of the ordinary man was discussed, it fell under the tradition of written works that advised the ruler to consider the importance of having a solid currency, fairness and stability in transactions , as well as the danger of taxation which was harsh. 

There was also a belief that people were required to conduct business and transactions within the boundaries which were set by Sharia and its rules on what was permissible and legal in business practices and conduct. [p.209 209 in the book The Crisis of Islamic Civilization by Ali A Allawi, Yale University Press 2009It is a book by Ali A. Allawi published by Yale University Press in 2009.

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  • Islamic Economics
  • The Value of Money
  • Islamic Economic System
  • Money and Monetary Policy
  • Division of Labour
  • Utility This is Islamic Backbone of Islamic Economics
  • The Role of the Market and its Limits
  • Islamic Governing Principles (Shari’ah)
  • Human Beings acting as God’s Viceregent on Earth
  • The Prohibition on Interest
  • Gharar (risk), Maysir (gambling)
  • Zakat, Zakah
  • Contracts between Parties
  • Waqf is a institution for Social-economic Wellbeing
  • Shari’ah The fundamentals in the Islamic Economic Order
  • the Prospects for an Islamic Economic Order
Islamic Economics

It is difficult to comprehend and comprehend Islamic economics as well as the structure of it Islamic financial system in its own right and, in contrast to Western economies which is possible to do it with ease. Islamic Economics differs fundamentally from human-made laws and practices in how they approach economic issues.

While Islam is one of the main religions, but it’s an integrated method of livingin which various principles are interconnected . A law that applies to one aspect e.g. family could also be applicable to another e.g. jurisprudence. It can be stated the following: Islamic economy is founded on the socioeconomic notion. This is why Islam is thought of as an ethics-based system.

One of the most important aspects to understand Islam and Islamic financials, is how it it is thought to be the principal topic in 5:120 the Qur’an which states it is the absolute power of the universe is the right that belongs to God (Allah) meaning that our role is that of Vice-Regents (or trustees) of this dominion regardless of whether we appear to have a piece of it together or in some other way. So, any financial and financial decisions that influence and control our lives must follow this fundamental concept.

There are numerous documents that establish the principles of economics and finance for humans, either individually or as a nation. These are the principles that form the Islamic law, which is also known as Shari’ah (the set of Islamic law built on Divine guidance as found by the Quran and Sunnah). The Quran as well as Sunnah). Sunnah).

The framework of Ibn Khaldun’s (15th century’s) framework is a brief outline of the inter-disciplinary dynamic model, which was created by Ibn Khaldun during the early 15th century. Islamic socio-economic system:

“The power which is the power of the sovereign (al-mulk) isn’t exhausted until it’s implemented through the Shari’ah.
Shari’ah cannot be applied only if it’s in the hands of the one who is sovereign (al-mulk);
The sovereign isn’t capable of gaining strength only with the help of its population (al-rijal);
The human race can’t be supported unless they’ve got the ability to accumulate money (al-mal);
Wealth isn’t attainable through anything other than developing (al-‘imaran);

The development process isn’t feasible in the absence of the justice system (al-‘adl);
“Justice” is the most important test (al-mizan) which states that God will decide on the fate of mankind. the sovereign is charged with the responsibility of implementing justice” (Chapra, 2000: 147-8).

Product details

  • Publisher: The Islamic Foundation
  • Publication date : May 23, 2013
  • Language : English
  • File size:3603 KB
  • Text-to-Speech : Enabled
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  • Print length : 405 pages

Syed Abul Ala Mamdoodi

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