tag:blogger.com,1999:blog-84811241368340944722024-03-13T17:46:15.949+05:00ISLAMIC ECONOMIC THOUGHTUnknownnoreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8481124136834094472.post-17263922712608039262010-01-09T17:57:00.002+05:002010-04-22T18:16:58.053+05:00SHATIBI'S OBJECTIVES OF SHARI' AH AND SOME IMPLICATIONS FOR CONSUMER THEORY<span style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;"></span><br />
<div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>The Objectives of Shari'ah</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Many jurists have tried to explain the aims and objectives of Shari'ah upon which it is established. Among these the outstanding figures are the Malikite Abu Ishaq al-Shatibi, the Shafite al-'Izz ibn 'Abd aI-Salam, and the Hanbalite Ibn Qayyim al-Jawiziyyah. Shatibi is one of those few jurists who have discussed objectives of Shari'ah in elaborate details. This paper summarizes the main elements of Shatibi's discussion of the objectives of Shari'ah.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Definition of Maqasid AI-Shari'ah</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Maqasid al-Shari'ah that is, the objectives of Shari'ah can be defined as below:</span></div><ul><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Maqasid al-Shari'ah comprises those benefits/welfare/advantages for which Allah has revealed His Shari'ah.</div><br />
</li>
<li><br />
<br />
<div align="justify">Maqasid al-Shari'ah aims at the attainment of good, welfare, advantage, benefits, etcetera, and warding off evil, injury, loss, etcetera, for the creatures. (All this in Arabic terminology can be stated as Masalih al-'Ibad.)</div><br />
</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah aims at the welfare of the people in this life and in the life hereafter, and for this purpose it has advised the people to adopt such means and measures suggested by it (Shari'ah) as may result in advantage benefit/well-being to them and may ward off evil/injury/loss, etcetera, from them, not only in this world but also in the world hereafter. Same is the philosophy behind His commands and the worships prescribed for His creatures.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 9pt;"><b><u>Classification of Maqasid AI-Shari'ah</u></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Provisions of Shari'ah aim at protecting its objectives. Objectives or Maqasid al-Shari'ah can be classified as under:</span></div><ul><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Daruriyyah</li>
<li>Hajiyyah</li>
<li>Tahsiniyyah</li>
</span></ul><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Daruriyyah (Necessities)</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">These are the objectives which are must and basic for the establishment of welfare in this world and the world hereafter in the sense that if they are f ignored then the coherence and order cannot be established and fasad (chaos and disorder) will prevail in this world and there will be obvious loss (al-khursan al-mubin) in the world hereafter.</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<div align="left"><i>Daruriyyah relates to five things:</i> </div>
<li>Protection of Faith (Din)</li>
<li>Protection of Life (Nafs)</li>
<li>Protection of Posterity (Nasl)</li>
<li>Protection of Property (Mal)</li>
<li>Protection of Reason ('Aql)</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">According to Shatibi, these five protections are daruriyyah for the establishment of welfare in this world as well as in the world hereafter. The protection of the above mentioned elements can be made possible through two types of essential elements.</span></div><ol type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Necessities required for bringing into and maintaining the very existence of the above mentioned elements, that is: din, nafs, nasi, mal, 'aql, etcetera.</div><br />
</li>
<li><br />
<br />
<div align="justify">Necessities required for protecting these elements from their destruction. The worships ('ibadah) for example, aim at maintaining the very existence of faith.</div><br />
</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Iman (attestations in words and intention), salah, zakah, fasting and hajj are the elements that are required for the maintenance of the very existence of faith (din). All such provisions of Shari'ah are said to have the aims that can be labeled as daruriyyah.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Similarly, the permission to benefit from drinkables, clothing, housing, etcetera, is meant to maintain life and hence fulfill the objective of necessities. Such matters and dealings that are required to maintain and protect the existence of property, reason and posterity also promote necessities from the point of view of bringing these into existence.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">On the other hand, such dealings or legal provisions (jinayat), which are required to stop destruction of the above mentioned elements will also be said to aim at daruriyyah from the point of view of the objectives of Shari'ah.</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Hajiyyat (Requirements)</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah aims at facilitating life or removing hardships. All such provisions of Shari'ah which aim at facilitating life, removing hardship, etcetera, are said to fulfill the hajiyyah (requirements). For example, permission of hunting and use of halal goods for food, lodging, and conveyance, etcetera. Besides, the permission for qirad (profit sharing through borrowing), musaqat (profit sharing), bai salam (forward buying of a commodity which does not yet exist), which are apparently illegal interest bearing dealings, are the examples of Shari'ah provisions that aim at facilitating life or removing hardships in the life in this world. The exploitative, usurious and doubtful dealings and contracts have also been forbidden for the same purpose.</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Tahsiniyyat (Beautification)</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah beautifies life and puts comforts into it. There are several provisions of Shari'ah which are meant to ensure better utilization, beautification and simplification of daruriyyah and hajiyyah. For example, permission to use beautiful, comfortable things; to eat delicious food; to have cold drinks and juices; to wear fine clothing and so on.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Relationship between Necessities, Requirements and Amelioratories</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shatibi has identified the relationship between daruriyyah, hajiyyah and tahsiniyyah in the following manner:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Daruriyyah is fundamental to hajiyyah and tahsiniyyah.</li>
<li>Deficiency in daruriyyah brings deficiency to hajiyyah and tahsiniyyah in an immutable manner.</li>
<li>Deficiency in hajiyyah and tahsiniyyah does not necessarily affect daruriyyah.</li>
<li>An absolute deficiency in hajiyyah and tahsiniyyah may bring deficiency in some extent to daruriyyah.</li>
<li>To keep up hajiyyah and tahsiniyyah for the proper maintenance of daruriyyah is desirable.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">A corollary of this Shari'ah norm relating to daruriyyah, hajiyyah, and tahsiniyyah can be indicated thus:</span></div><ol type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Daruriyyah is the basic whilst the other two are in the nature of the complements of daruriyyah.</li>
<li>Demand for daruriyyah creates the demand for the other two, that is, hajiyyah and tahsiniyyah.</li>
<li>Demand for hajiyyah and tahsiniyyah does not create demand for daruriyyah.</li>
<li>Demand for hajiyyah can be set aside for the demand for daruriyyah.</li>
<li>Similarly the demand for tahsiniyyah can be set aside for the demand for hajiyyah.</li>
<li>Hajiyyah and tahsiniyyah are pursued for the sake of daruriyyah, that is, to complement them and not for their own sake.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">To sum up, it can be stated that tahsiniyyah is the complement of hajiyyah and hajiyyah is the complement of daruriyyah.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Nature of Complementarity</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Every complement, as long as it is a complement, is subject to a condition that it will not invalidate or eliminate a darurah. For example bai' (sale) is a darurah and the prohibition of gharar (uncertainty) and jihalah (ignorance) is a hajah. This hajah will not be pursued if its pursuit eliminates bai' (a genuine sale transaction which is a darurah (necessity).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Following the same principle, the jurists have permitted bai' salam (sale of an article that will be produced in future), though normally a bay (sale) contract requires the presence of the mabi' (the good being sold and purchased).</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Shari'ah Approves of Good and Forbids Bad: Appreciates Ease and Shuns Unnecessary Hardships</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Allah has created both "good" and "bad". Good results in goodness of man, and bad yields badness for him. Good leads to Allah's pleasure and bad leads to His anger. Man has been enjoined upon to do good and avoid bad for seeking Allah's pleasure, but he has been advised to adopt ease and shun unnecessary things for this purpose. Allah has not put any obligation upon man which is beyond his scope. Says the Holy Qur'an: Allah does not take a soul beyond his scope.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">"He hath chosen you and hath not laid upon you in religion any hardship. The Holy Qur'an has stated one of the purposes of the prophecy of the Prophet (SAW) in these words: "He will enjoin upon them which are right and forbid them which is wrong. He will make lawful for them all good things and prohibit for them all the bad things; and He will relieve them of their burden and the fetters that they used to wear (7:157)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The Prophet (SAW) says, "Religion is focality. The most beloved religion to Allah is tolerant orthodoxy".</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The same principle is applicable to man's economic activities, and for the maintenance of his economic needs. He has been asked to meet his need by the virtue of his labor, but to adopt such means as are easy and lawful, and not to adopt even such lawful means (for this purpose) that exhaust him. He is obliged to satisfy his hunger with halal meals and not to eat haram ones, (but in idtirar when any halal thing is not available, he is permitted to eat dead body or what is not properly slaughtered) and other unlawful things. This is in accordance with Shari'ah maxim that:</span></div><div align="center"><span style="color: #3c3c40; font-family: arial; font-size: 9pt;">"necessity (darurah) renders prohibited things permissible".</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The examples which illustrate the application of this norm are numerous. Leniency with a debtor, who is in financial strait, is an example of this principle. If the inability of a debtor to pay his debt is established, payment by installments may be permitted. "And if the debtor is in straitened circumstances then let there be postponement to the time of ease." (2:280)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">(Although necessity renders prohibited things permissible yet this rule is not absolute but it is limited by the text, by the extent of the necessity and by the time of the necessity.)</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Aims of Shari'ah Unchangeable</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The aims and objectives of Shari'ah are everlasting and unchangeable. They are set by Allah and their application or interpretation is not left to the sweet will of any person or class. These aims relate to both the worldly life and the life hereafter; and to take them only for the worldly benefits at the cost of the hereafter life's benefits is prohibited and condemned. However, Shari'ah is considerate in case of darurah (necessity) and hardships.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah has set priority order for the worldly and religious affairs and the people have been enjoined upon to follow this priority order, and they are not allowed to apply their whims while following either of the two. Shari'ah has prohibited the use of some goods as well as the indulgence in certain economic activities, though sometimes or even always their use or practice may yield economic fruits or progress. Similarly Shari'ah has permitted and sometimes required the use of certain things or the initiative of certain economic activities, though apparently they do not yield such fruits as the prohibited things do. The philosophy behind the permission or prohibition of certain goods or economic activities is known to Allah (SWT). However, some of its parts have been revealed by Him and explained by The Prophet (SAW). In all such commandments, Shari'ah ensures ease and it has permitted the ease of unlawful and prohibited goods and activities in case of necessity (darurah). In this connection, in addition to the verses quoted earlier, the following references are note-worthy: "Allah desireth for you ease; He does not desireth hardship for you." (2:158)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">"Allah would make the burden light for you, for man was created weak." (4:28)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The Prophet (SAW) says: "/ have been sent with easy and practicable Shari'ah."</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The examples of such ease are found in the permission of ijara (leasing and hiring) and salam sale (that is, sale of a commodity which is to be produced in future) and in the permission of qirad (profit sharing through borrowing) and musaqat (fruit sharing).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah never demands its followers to undergo unnecessary hardships and difficulties in performing religious obligations and other noble deeds. However, every difficulty or hardship in Shari'ah yields worldly gains (sooner or later) or the pleasure of Allah.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">A person himself should not intend to undergo unnecessary hardship in performance of any noble deed or economic activity. However, if he is put in the same, or he willingly wants to do so to seek Allah's pleasure, he shall be rewarded.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah has discouraged the observance of rahbaniyyah, monasticism), and has appreciated the lawful earning for the maintenance of oneself and the family, and preventing oneself from begging for a living.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah always stands for following the medium path in observing religious duties and worldly _affairs. Allah (SWT) says, "They ask you what to spend (in way of Allah) say: What is surplus." (2:219)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah permits and appreciates the use of lawful adornments; wearing fine dress; eating good food, etcetera, and discourages their abstinence. Says the Holy Quran: "Who has forbidden the adornment of Allah which He has brought forth for His bondsmen, and the good things of His provisions?" (7:32)</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">However, lust for these goods and consequently the worldly mindedness is condemned by Shari'ah. Says the Holy Qur'an: ((This life of the world is but a pastime and a game". (6:32) Says the Prophet (SAW): ((Love of world (wealth) is root of every evil."</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Human Needs</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">In the light of the objectives of Shari'ah, human needs can be classified into, two categories:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Primary needs and</li>
<li>Secondary needs.</li>
</span></ol><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Primary Needs</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">These are the needs which bring immediate benefits, that is, food (for one's own maintenance and that of his dependants), lodging, clothing, marriage and their related requirements including permission and facilitation of buyu' (sales), ijarah (hiring and leasing), etcetera. These are the needs without which human life is impossible. The fulfillment and continuance of these needs is necessary. Man has been permitted to struggle for the fulfillment of these needs.These needs have been classified further into two categories:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Personal needs.</li>
<li>Needs involving others.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">For the fulfillment of the second category of primary needs, Shari'ah has permitted economic dealings and transactions such as earnings for the welfare of others through ijarah (hiring and leasing), kirayah (renting of land), trade and all forms of manufacturing. For the smooth fulfillment of these needs and for the smooth running of such activities, Shari'ah has prohibited some harmful activities and malpractices such as marketing of wine, institution of riba, devouring the property of the orphans and the weak and theft, etcetera.</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Secondary Needs</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">These needs neither yield immediate benefits nor are they required for immediate worldly benefits. They are meant to yield benefit in the long run or in the world hereafter. Their sub-classification is as follows:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Fard 'ain (personal obligation) which has to be performed individually, that is, religious and fiscal obligation of individuals such as salah (prayer) and zakah, and</div><br />
</li>
<li><br />
<br />
<div align="justify">Fard kifayah (social obligation) which is obligation on the society as a whole such as acceptance of the responsibilities of any state office, propagation of Islamic teachings, etcetera. Fard kifayah has been further classified into three categories:</div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">which neither yields any benefit in this world nor is it performed for enjoining benefits. This category includes services which are performed for the cause of Allah</div><br />
</li>
<li><br />
<br />
<div align="justify">which may yield benefits in this world too through the service to others such as social professions and social services (for which one may seek remuneration such as receiving fee for teaching children),</div><br />
</li>
<li><br />
<br />
<div align="justify">which are between the categories mentioned in (a) and (b) above. They are primarily not meant for enjoyment or benefits in this world and in fact are purely in the cause of Allah (SWT). However, one may seek some permitted benefits of this world in the performance of such social obligations, as for example, the custody of an orphan's property for which one is allowed to receive remuneration if he otherwise cannot afford it.</div><br />
</li>
</span></ul><br />
</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Persons who spare their time and struggle for the benefit of the others are allowed to receive for the noble deeds that they perform, but this is meant to be only a support for their sustenance.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Search of Benefit is Man's Nature</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Man, by nature, is in search of his benefit and welfare. Islam also approves this natural instinct but it has polished it with the provisions of lawfulness, justice and benevolence. Hence, Shari'ah does not regard every effort rendered for the fulfillment of the objectives of Shari'ah as noble deed but also allows acceptance of remuneration for the same. Shari'ah lays down the following principles in this respect.</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">There are some objectives of Shari'ah which are allowed to be carried out through an agent or an employee, and who carries out such objectives of Shari'ah is entitled tor eceive remuneration for the same. No remunerations is allowed for carrying out all other objectives for which agents/employees are not allowed to be appointed.</div><br />
</li>
<li><br />
<br />
<div align="justify">All such objectives which are fulfilled muamalat (dealings), such as sale, hiring services, etcetera, are allowed to be carried out by agents or employees. Agents claim remuneration for carrying out such dealings. All such objectives which are fulfilled through individual ibadat (worship) or the individual's personal involvement are not allowed to be carried out through agents. Such as eating, drinking, offering salah, payment of zakah, performance of hajj, one's own marriage, etcetera. There is no question of remuneration for such activities. Hence, no one can claim any remuneration for eating or for offering one's salah, etcetera.</div><br />
</li>
</span></ol><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Actions with Intention</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Both the ibadat (worship) and mu'amalat (worldly affairs) can be performed with or without the intention to seek Allah's pleasure. If the same are rendered for Allah's sake they are turned into worship. For example, one can maintain his parents; his family members; the poor and the needy or can pay zakah without the intention of doing it for the sake of Allah. In that case he will not earn any thawab (Allah's reward) and if he does the same for Allah's sake then it will be as worthy as worship and will have a reward in this world and in the world hereafter.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">In worldly affairs, any unintentional transgression will also be compensated; however, the defaulter will not be punished for the same on the Day of Reckoning. If the results or the outputs are opposite to the intention, then, in worldly affairs the reward or punishment will be accordingly to the result. Muslims are under obligation to pursue the objectives of Shari'ah in all their religious and worldly actions with the intention of seeking Allah's (SWT) pleasure.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Shari'ah Rules are General and Not Specific</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah roles and principles pertaining to conduct its objectives are general and not specific, if it is not othrwise stated. This is because the Islamic Shari'ah is for all human beings and not for a particular group of persons or region. The Prophet (SAW) is prophet for all, and for all periods and places. In this context, the Holy Qur'an enjoins that the Shari'ah maqasid and obligations are for all human beings, except wherever Allah (SWT) or the Prophet (SAW) has declared so.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b><i>Masalih</i> are not equal</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">All masalih (benefits) are not equal. Some are more important and some are less important. Similarly all mafasid (disorders/losses) are not equal. Islamic jurists have classified each of the masalih and mafasid into two categories:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Primary masalih and Primary mafasid.</li>
<li>Secondary masalih and Secondary mafasid.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: x-small;">Primary masalih are those benefits which directly relate to the safety of the five elements of life in this world viz: (din, nafs, mal, 'aql and nasi). Similarly primary mafasid are those losses which directly relate to the loss of the five elements.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Secondary benefits are those which assist in the safety of the five elements, and the secondary mafasid are those which assist in the destruction or loss of the five elements. Achievement of primary masalih has priority over achievement of secondary masalih. Similarly, abstinence from primary mafasid has priority over abstinence from secondary mafasid. In the same way there is gradation within primary masalih (as well as within primary mafasid) and a gradation within secondary masalih (and within secondary mafasid). For example, protection of din has top priority within primary masalih. Another example is that all sorts of bai' gharar (uncertain sale) are not equal in terms to their mafasid (losses). So the pursuit of masalih is desired to follow the priorities. More important masalih is required to be achieved. Similarly, if one has to face or to commit, one of the two or more mafasid, one should choose the one which is lighter or less severe in causing fasad (that is, in harm or loss). The Prophet (SAW) has set precedence in this regard. 'Ayesha (RA) reports: "When the Prophet (SAW) had to face one of the two harms or difficulties, he used to choose the easier and lighter one in disobedience".</span></div><div align="left"><span style="color: #262728; font-family: verdana; font-size: x-small;"><b>Another Classification of <i>Masalih</i> and <i>Mafasid</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Broadly, masalih and mafasid can again be divided into the following two categories:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Masalih and maqasid of this life.</li>
<li>Masalih and mafasid of the life hereafter.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">So far, we have discussed the first category of masalih and maqasid. Now, we shall shed light on the second category. Islamic jurists have subdivided this category into two kinds.</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Masalih and maqasid purely for the life hereafter, that is, the blessings of the paradise or the punishments of the hell.</div><br />
</li>
<li><br />
<br />
<div align="justify">Masalih and maqasid which also involve the affairs of worldly life.</div><br />
</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Similarly, the struggle made for the achievement of these two categories of masalih and maqasid can also be divided into (1) struggle for the worldly masalih and maqasid (2) struggle for the masalih and mafasid of the world hereafter.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Shari'ah in Ibadat and in Worldly Affairs</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">In performance of ibadat, the application of reasoning is not allowed whereas in worldly affairs the use of analogy and their analysis is permitted. As a matter of fact, performance of these affairs revolves around maslahah (welfare) of the human being. Sometimes an act becomes illegal because of its harmful effects, while at some other occasions the use of the same thing becomes lawful because of its advantages. For example, the exchange of a coin with a coin of similar specie is prohibited because it involves the exploitation of the needy by the capitalist, while it is permitted in qard (loan/debt of money) because it is done to help a needy for the pleasure of Allah. Similarly, the exchange of fresh dates in exchange of dried ones is prohibited as it includes the elements of rib a (interest) and gharar (deception), whereas it is permitted in araya for the advantage and ease of the people. Permission or prohibition regarding the economic transactions and dealings is in accordance with the masalih (welfare/advantages) of the people.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Secondly, Shari'ah has permitted the application of analogy and inference of the Shari'ah principles pertaining to worldly affairs only to search ease and welfare of the people, as long as it is in accordance with Shari'ah. The Hanafite jurists have furnished for it the principle of istihsan (appreciation or jurists's equity), and the Malikite jurists have given the principle of masalih mursalah (social reform).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">But in doing such worldly things the text will be strictly adhered to where text exists. For example in determining the nisab of zakah; beneficiaries of zakah, etcetera, one shall have to follow the text relating to it.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">From the above discussion it becomes clear that Shari'ah commandments are of three kinds:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Huquq Allah (rights of Allah), which according to the jurists, are mostly related to faith, worship and success in the life hereafter.</div><br />
</li>
<li><br />
<br />
<div align="justify">Huqul al-Ibad (rights of the people), which are mostly related to the worldly affairs of the people and their welfare in this world.</div><br />
</li>
<li><br />
<br />
<div align="justify">Joint rights of Allah (SWT) and His creatures (the people), in which sometimes Allah's rights may dominate, sometimes the rights of others may dominate.</div><br />
</li>
</span></ol><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Shari'ah Demands That the People Display Allah's Bounty</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah advises and expects from the people that they should display and expose the blessings and bounties of Allah bestowed upon them. The philosophy behind this permission and expectation is multifarious. Firstly, in some verses of the Holy Qur'an this display is taken for substitute of thanking.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Secondly, the exposition of Allah's bounty by the people (particularly the rich), will divert the attention of the poor and the needy (Poor's) needs to them (the rich) for help and fulfillment of their (Poor's) needs. Thirdly, it will strike at the root of monasticism. Fourthly, it would lead the rich to the consumption of wealth which will consequently result in the circulation of wealth in the different parts of the society.</span></div><div align="left"><span style="color: #1e2d3b; font-family: arial; font-size: x-small;"><b>Activities Having Benefits for Oneself</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Seeking of one's benefits/welfare (or warding off losses) can take two forms:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>It does not impose a loss upon anyone else.</li>
<li>It implies a loss for someone else.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The implication of loss for someone else in seeking one's permitted benefits/welfare can be either:</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>intentional, or</li>
<li>Unintentional.</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Unintentional implication of loss has further two categories:</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>It is a public loss.</li>
<li>It is a private or individual loss.</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The implication of private loss may be such that if the person (who is causing this loss) is prevented from performing his activities then,</span></div><span style="color: #2f4965; font-family: arial; font-size: 9pt;"></span><br />
<span style="color: #2f4965; font-family: arial; font-size: 9pt;"></span><br />
<span style="color: #2f4965; font-family: arial; font-size: 9pt;"><ol><span style="color: #2f4965; font-family: arial;">
<li>it may inflict upon himself a loss or injury,</li>
<li>it may not inflict any loss or injury upon himself.</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The last category has further been divided into three categories of losses which are the following:</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">The loss to others is definite and is certain to occur. Suppose a person wants to dig a well in front of a door which remains in darkness. If this person is not prevented from digging this well, it will cause damage to others (who would come to visit him).</div><br />
</li>
<li><br />
<br />
<div align="justify">The loss to others is not definite in the sense that it may occur rarely. In other words the probability of occurrence of the loss is very low. For example, suppose a person wants to dig a well in the desert. If this person is not prevented from this, this may cause loss/injury to some but the probability of this is very small.</div><br />
</li>
<li><br />
<br />
<div align="justify">The loss is substantial (and is quite likely to occur). This may be either (a) very "dominating" loss or (b) "not a dominating" loss. Thus, there are eight kinds of activities in which a person may seek his permitted benefits/welfare. These activities may be restated as below.</div><br />
</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>First kind:</b> Person A seeks his benefits/welfare without causing any loss to anyone</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Second kind:</b> Person A seeks his benefits/welfare causing an intentional loss to someone else.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Third kind:</b> Person A seeks his benefits/welfare having no intention to cause any loss to anyone but his activity may result in a public loss.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Fourth kind:</b> Person A seeks his benefits/welfare having no intention to cause any loss/injury to others such that, if A is prevented from the activity then A will have to suffer a loss, such as eating or drinking, etcetera.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Fifth kind:</b> Person A seeks his benefits/welfare having no intention to cause a loss/injury to anyone else but the activity may result in loss to others such that if he is prevented from this activity it will involve no loss/injury to himself, whereas the activity in itself may imply some definite loss injury to others, For example, digging a well in the darkness in front of the main door of one's house.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Sixth kind:</b> Person A seeks his benefits/welfare with no intention of any loss/injury to others such that if A is prevented from this activity it will involve no loss/injury to him, whereas the activity may result into loss/injury to others. The loss or injury, however, would be less likely to occur, For example, eating food that normally does not harm but at some occasion may cause harm.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Seventh kind:</b> Person A seeks his benefits/welfare having no intention of loss/injury to anyone but the activity may result in a loss to others such that if A is prevented from this activity, it will not impose any loss/injury on himself, whereas the loss/injury to others that may result from the activity is significant and dominating, and is quite likely to occur.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><b>Eighth kind:</b> The situation is the same as in 7 but the loss/injury to, others that may result from the activity is not of a dominating nature more convenient picture of the above possibilities can be seen in Diagram below.</span></div><div class="separator" style="clear: both; text-align: center;"><br />
</div><div style="margin-left: 1em; margin-right: 1em;"><img alt="Path through which a person may seek his welfare." height="323" src="http://www.islamic-world.net/economics/pic/diagram1.gif" width="400" /></div><br />
<br />
<div align="center"></div><span style="font-family: arial; font-size: 9pt;"><b><i>Diagram 1: Path through which a person may seek his welfare.</i></b></span><br />
<br />
<br />
<div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Shari'ah Rules Relating to the Eight Kinds of Activities</b></span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">The first kind is fully permitted. There can be no confusion in understanding this permission and hence there is no need to give arguments in favor of permission for an activity in which a person seeks his benefits, without causing any harm/loss/injury to anyone else.</div><br />
</li>
<li><br />
<br />
<div align="justify">The activity of the second kind his two elements:</div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>There is a search for own benefits/welfare.</li>
<li>There is an intention of loss to others.</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">There can be no doubt that a loss or injury to others has to be prevented. The principle of Islam is: "La darar wa la dirar". That is, "Don't harm nor become a cause of harm".</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">This situation combines together the "search for own welfare" and the "intention of loss to others". If it is possible to separate the two elements, that is if it is possible that person "A" can have the same benefits in another way in which harm is not caused to others, then this person "A" will have to be prevented from causing harm to others and will be asked to seek his benefits in the other way.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">But if his benefits and loss to others is an integral part of his activity then he is allowed to perform the activity, but he will obviously carry the sin of having the intention to cause harm to others. A person has to seek his benefits, but the intention to inflict harm on others is prohibited.</span></div><br />
</li>
<li><br />
<br />
<div align="justify">The activity of the third kind in which a person seeks his benefits by causing an unintentional public loss is prohibited on the Islamic principle that public interest has preference over private interest. One example of this situation is as follows. Suppose a person sells arms to the enemy of Muslims. Obviously he wants to seek a profit for him out of this sale and has no intention to harm anyone. But there is an implicit loss to the Muslim ummah as the arms will be used against Muslims. This sale of arms, therefore, can be prohibited.</div><br />
</li>
<li><br />
<br />
<div align="justify">The activity of the fourth kind in which a person seeks his benefits such that if he is prevented from this activity, then this will cause a loss/injury to him. This activity is fully permitted even if it may imply unintentional loss to others. This may take three forms:</div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Getting satisfaction from the beneficial activity. This includes even such activities as eating dead body in emergency or paying bribe to avoid exploitation or to save one's right.</div><br />
</li>
<li><br />
<br />
<div align="justify">Abandoning one's own enjoyment for a greater cause such as eliminating exploitation or injustice from the society.</div><br />
</li>
<li><br />
<br />
<div align="justify">Sacrificing one's enjoyment for the sake of others such as spending one's resources in the cause of Allah (SWT), that is, abandoning one's enjoyment to provide enjoyment to the others.</div><br />
</li>
</span></ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Sacrificing one's enjoyment for the sake of providing enjoyment to others can take the following two forms:</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Sacrifice of property.</li>
<li>Sacrifice of life:</li>
</span> </ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Sacrifice of life does not necessarily mean dying for the cause of: others, it also includes facing hardship for others. All those activities which fall into the activities of the fourth kind are permitted.</span></div><br />
</li>
<li>The activity of the fifth kind, in which the prevention from the activity does not involve harm to person A himself (if he has prevented from it) but the activity may involve a definite loss for someone else. This has two aspects:</li>
<ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Person A is pursuing an objective of Shari'ah, that is, he is attempting to get items of necessity or complementarily or comfort with no intention of a loss to anyone. This is permitted without any reservations.</div><br />
</li>
<li><br />
<br />
<div align="justify">Person A clearly knows that it will cause a definite harm to someone else. In this case if he performs the activity he will be considered to, have the intention to harm others. He cannot be allowed to do so. But I ' if the person is fulfilling an objective of Shari'ah, he cannot be prohibited from that too. In this situation he may be allowed to perform the activity but he may be required to compensate for the loss that he has inflicted upon others.</div><br />
</li>
</span> </ul>
<li><br />
<br />
<div align="justify">The activity of the sixth kind, in which the activity may cause a loss but is likely to occur rarely, is permitted. This is because when benefit/welfare is predominantly known then slight probability of harm cannot be given, consideration.</div><br />
</li>
<li><br />
<br />
<div align="justify">The activity of the seventh kind, in which the activity will certainly cause some loss which is of dominating nature, may be permitted in principle if it is pursued to fulfill an objective of Shari'ah. However, it is desirable, to be stopped, particularly when the activity is not meant to fulfill any objective of Shari'ah, on the grounds that Shari'ah requires not only the elimination of destruction but also the elimination of the means of destruction.</div><br />
</li>
<li><br />
<br />
<div align="justify">The activity of the eighth kind, where a substantial harm/loss to others is quite likely to occur, though again is permitted in principle whenever it m a matter of fulfilling the objective of Shari'ah. However, it is desirable to be avoided as far as possible as a measure of caution. The principle of caution is a major element of Shari'ah which has been found in several Shari'ah rules. For example, the prohibition for a man to meet a women in isolation or the prohibition to make a mosque on graves, or the prohibition to have in marriage wife and her niece at the same time, etcetera. The principle of caution has been applied in all these cases.</div><br />
</li>
</span></ol><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>A Corollary of the Shari'ah Rules Relating to the Activity of the Third Kind</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Individuals are not allowed to be involved in activities counter to the public interest. Shatibi has also drawn the following implications from this rule. Shatibi opines that the hoarder of the food is criminal and therefore surplus should be snatched from him by force as he is carrying out an action that causes a general loss to society. So, it is the responsibility of the head of the state to protect the society from his (the hoarder's) malpractice. This opinion, according to Shatibi, is based on Shari'ah sources.</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Islamic Shari'ah abhors exploitation and appreciates mutual love and cooperation among the different members of the Muslim society. Shari'ah has laid great emphasis upon the fulfillment of the basic necessities of life. The Prophet (SAW) commended the practice of al-Ashariyyin in this regard. He said: "It comes of Ashariyyin that whenever they set out for Holy war (jihad), or whenever they fall short of provisions while they are at Madina, they pool whatever they have from provision in a cloth and then distribute it equally among themselves with equal measure. Keeping in view of this noble practice they are on my way and I am on their way." As a matter of fact, Islamic concept of the unity of the ummah is so effective and powerful a measure that it has demolished all the barriers of egoism and individualism, and has embodied the Muslims in brotherhood where one's trouble is shared by all.</div><br />
</li>
<li><br />
<br />
<div align="justify">The second base of the above opinion is that Islamic teachings prepare the Muslims to be self-sacrificing and to give priority to the preferences of their Muslim brothers to their own preferences. The Sunnah of the Prophet (SAW) is the true example of this principle.</div><br />
</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">In this occasion Umar (RA) said to him, "0 Allah's messenger (SAW), why do you accept such responsibility as it is beyond your scope?" The companions of the Prophet (SAW) followed his model or self-sacrifice.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Once 90,000 dirham was brought to the Prophet (SAW). He distributed them all amongst the needy and the poor and did not save even a single dirham for his own use. Meanwhile, a needy person came to ask his share in it. He said to the needy, "Now I have nothing with me; however you come again, and whenever I have anything, I would give it to you".</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Looking After the Affairs of Others</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">If anybody cannot look after his benefits/welfare, the other Muslims, whether or not his relatives, are advised to look after the same on his behalf, provided the performance of this noble deed does not result in any harm/loss to himself. The example of this principle is the collection and disbursement of zakah by the collector; investment of the shareholder's money by the floater of mudarabah for profit; custody of the property of orphans or insane by their guardians, etcetera. However, whosoever acts on behalf of the other can claim for himself a remuneration or reward.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Role of the State</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Imam Shatibi assigns the state the role of intervening in the economic activities of the individuals, whenever it feels that they are playing counter to economic interests of the society. He permits the head of the state to stop forcibly all sorts of economic exploitation from the society and establish such economic system which takes away all hindrance that abstain the society from the attainment of their basic necessities of life. Shatibi has, particularly, mentioned the case of foodstuff. He opines that the monopolist of foodstuff is criminal because he commits the crime of hoarding the food and thus creates its artificial scarcity, which results in exorbitant rise in its price. This is economic exploitation that causes loss/injury to the masses. So, it is the responsibility of the head of the state to ward the public of his (the monopolist's) anti-social economic activities.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Allah's Right without Right of Option</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Man is obligated to fulfil Allah's all rights and he has no right of option in this regard. The payment of zakah, sadaqah wajibah (obligatory charities), etcetera, are the compulsory acknowledged rights of Allah for the maintenance of the poor and the needy (in the wealth of those who are under obligation to pay zakah, etcetera). Such obligatory are to be paid compulsorily and there is no option in their payment.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Same is the case of the use of those goods/articles, and of those dealings, which Allah (SWT) has declared haram such as eating of dead or eating of the food earned by unlawful means, for example, riba, gambling, invalid sales or devouring the property of the other in vanity. As a matter of fact, all these articles and transactions have been prohibited by Allah, and all the prohibitions are to be followed as Allah's right, in which man has no right of option. The Holy Qur'an has furnished a guiding principle in this regard. "And eat not up your property among yourselves in vanity". (2:188).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">However, man enjoys the right of option for his own rights and benefits. For example, an individual has the right of option to recover, or to postpone or even to forgive his loan due from other individuals. Says the Holy Qur'an: "And if debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that you remit the debt as alms giving would be better for you if you did but know". (2:180)</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: x-small;"><b><i>Some Implications of Maqasid AI-Shari'ah for the Theory of Consumer Behavior</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shari'ah determines the dimensions of all aspects of human behavior. Economic aspect is only one aspect of the entire human behavior. A discussion of objectives of Shari'ah in the previous pages must have implications for the economic behavior of human beings. Islamic economists should keep in mind these implications while doing economic analysis in Islamic framework.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Drawing implications for the economic theory from objectives of Shari'ah is as huge a task as explaining objectives of Shari'ah. We find ourselves totally incapable of doing the entire task. In fact, this should be a continuous exercise to be caiTied out by several economists interested in the discipline of Islamic economics. Such exercises can provide solid bases for the growth of Islamic economic theories.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">This part of the paper intends to provide only a starting point to the process of drawing fundamental implications for economic theory. The few implications drawn in this paper, which in particular refer to the theory of consumer behaviour, are neither final nor exhaustive. These have been drawn, here, only to initiate the process.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Economic Problem of Man</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Economic problem is recognized to have three dimensions. What to produce, how to produce and for whom to produce? It is believed that these problems will not arise if resources were unlimited relative to wants to be satisfied or wants were limited relative to resources available to satisfy them.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The following issues arise in defining economic problem this way. The first, and rather basic question, is why produce at all. In this respect the question, for example, is should I work or should I not? Should I till my land or should I continue expecting my parents, neighbors and children to feed me? The second question determines how this objective is achieved.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The three questions, what .to produce, how to produce and for whom to produce, can be answered only as a corollary of the second question. In fact, appropriate answers to these two questions should also automatically answer the three questions mentioned above. The entire conventional economic theory, however, does not specifically answer these two questions to define the economic problem of man.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Economic theory takes the answer to the first question as given. Human beings instinctively want to satisfy their wants. The theory, therefore, concentrates on the second question. Thus, in fact, economic problem is defined by the conventional economic theory as: how to maximize the satisfaction of wants from the available resources which are limited relative to wants.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">As will be explained below, the objectives of Shari'ah provide us with a different answer to the question of "why produce at all". The approach to the "economic problem" is, therefore, automatically changed. The second issue in defining economic problem is its consistency. The problem is assumed to arise because of the scarcity of resources. Suppose the scarcity of resources is removed, would the problem be solved? Most probably not. This is because of the inherent inability of material resources to satisfy all human wants.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Their satisfaction, thus, remains vague and economic problem defined in such terms too remains vague. Some secular economists (like Galbraith) too expressed their dissatisfaction on describing objective in terms of wants. According to Galbraith: How can production be defended as want-satisfying if that production itself creates wants?</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The satisfaction of human wants is not merely a theoretical assumption to define the economic problem. A capitalistic ideology in a secular framework practically leads the individual to pursue this objective irrespective of how vague or unattainable it is. Objectives of Shari'ah, on the other hand, provides an. entirely different dimension to the economic problem of an individual.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Objective of Individual Economic Activities</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The question of why to produce or why to get involved in economic activities in the first place, is that Shari'ah wants individuals to look after their welfare. Shatibi has used the maslahah (welfare-benefit) to describe this objective of Shari'ah. Human beings have been required by Shari'ah to seek maslahah. Economic activities of production, consumption and exchange that involve maslahah (welfare) as defined by Shari'ah have to be pursued as a religious duty to earn one's betterment not only in this world but in the world hereafter. Also all such activities that have maslahah for human beings are called needs. These needs have to be fulfilled.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">"Fulfilling needs" rather than "satisfying wants" is the objective of economic activities, and the pursuit of this objective is a religious duty. Man is, therefore, obligated to solve his economic problems.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The approach that unlimited wants relative to scarce resources defines the economic problem of man may be explaining the economic behavior of a capitalistic society, but it certainly fails to explain the behavior of several traditional societies of the world. The members of traditional societies do not feel motivated to maximize the satisfaction of their wants with the resources available with them, because they find their needs adequately fulfilled and they do not feel obliged to look for the satisfaction of wants beyond their needs defined by themselves or by their environment. All development strategies thus fail to bring development in such societies because of the lack of motivation to earn more or to expand resources at one's disposal.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Islamic economic theory, on the other hand, is on more sound footing. It defines economic problem in the light of the objective that Islam assigns to human activities. The fulfillment of this objective is made a religious duty. Islam, thus, becomes a force of economic development even for such traditional societies that are not motivated by the materialistic approach, to maximize the satisfaction of wants. The economic problem of human beings is, therefore, to "fulfill needs" with the available resources which most of the time may turn out to be scarce relative to needs. The inconsistency that was pointed out in the concept of "satisfying human wants" is not present in the concept of "fulfilling human needs". If the resource constraint is relaxed, the human needs can be fulfilled as they are objectively defined (further details are in the next section).</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Efficiency</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The prime concern of conventional economics is efficiency. This concern emerges directly from their definition of economic problem. If wants are unlimited and resources are scarce then the only solution to the problem is to "economize". This is what is called efficiency that is, "doing the best with what we have". If our wants are virtually unlimited and our resources are scarce, we cannot conceivably satisfy all society's material wants. The next best thing is to achieve the greatest possible satisfaction of these wants.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Compared to this, in the context of Islamic economics, efficiency may not be as much a prime concern. As has been mentioned earlier, desirability is as important a concern as efficiency, the desirability being determined by maslahah.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Fulfilling needs is desirable. It is desirable that necessities be fulfilled on top priority basis. All resources get devoted to the fulfillment of necessities. Necessities are limited, and resources cannot be scarce to meet the necessities. This is against the promise of Allah and against the reality as we see around. There is again no question on economizing on necessities. Once necessities are met, complimentary and ameliorator is to be fulfilled. Complementary and ameliorator get fulfilled as resources become available. Efficiency and desirability are simultaneously required in fulfilling complimentary and ameliorator. Hence efficiency and desirability together are the prime concern of Islamic economics. Where there is conflict, desirability will get preference over efficiency. Desirability is determined by maslahah which has been defined earlier.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Wants Versus Needs</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Wants, the focal point of conventional economic theory, emerge from instinctive desires of human beings. Thus, the concept of "wants" is a value-free concept. On the other hand, Islam emphasizes needs and reemphasizes wants. Shari'ah discourages human beings to pursue their wants and desires, and instead encourages them to fulfil their needs as defined in Shari'ah. Needs also emerge from instinctive desires, But in Islamic framework, all desires are not allowed to become needs. Only those desires which have maslahah, that is, the defined benefit in this world or the world hereafter, are allowed to become needs.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Again it is possible that social wants may conflict with private wants. But social needs, in Islamic framework, do not conflict with private needs as both pursue the same maslahah. Following the lines of Shatibi, the Islamic jurists and Islamic economists in the contemporary world are required to work together to determine in detail the determinants of human life. For example, freedom may be the sixth element which may be required to be promoted along with the promotion of the five elements described by Shatibi. On the other hand, it also requires identifying different dimensions of the three levels of promotion (protection, improvement and amelioration) of each of the basic elements.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b><i>Maslahah</i> Versus Utility</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Conventional economic theory describes utility as the property of good/services to satisfy a human want. "Satisfaction" is subjectively determined. Everyone has to determine the presence of satisfaction according to his own criterion. Economic activity to acquire or produce something is motivated by the utility in that thing. If a thing can satisfy any want, the human being will be willing to make effort to acquire, produce and/or consume that thing.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Maslahah, according to Shatibi, is the property or power of good/services to promote the basic elements and objectives of life of human beings in this world. Shatibi has described basic elements of existence in this world.</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Life (al-nafs)</li>
<li>Property (al-mal)</li>
<li>Faith (al-din)</li>
<li>Intellect (al-aql)</li>
<li>Posterity (al-nasl)</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">All such goods or services that have the power to promote these five elements are said to be having maslahah for human beings. According to Shatibi, these basic elements can be promoted at three levels:</span></div><ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>by barely protecting these elements,</li>
<li>by ameliorating these elements.</li>
</span> </ul><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">All such goods and services that have the power or quality to promote (in any of the above mentioned way, that is, to protect, improve or ameliorate) the five elements described above will be said to have maslahah. A Muslim is religiously motivated to acquire or produce all such goods and services which have maslahah. Some goods and services will have more maslahah and some will have less maslahah, depending on the level at which the goods/services concerned are promoting the basic elements. Goods/services that protect these elements will have more maslahah than the goods/services that are merely for amelioration of the basic elements.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">It may be mentioned that the list of basic elements given by Shatibi may not be an exhaustive list. For example, one element that seems to be missing from the list is freedom. Islam has given great importance to freedom at the individual level as well as at the society level. To make a free person a slave is extremely disliked in Islam. Freedom from the dominance of non-Muslim rule is extremely important. Thus all such activities that promote freedom (at any of the three levels mentioned earlier) will be treated to be having maslahah. For the Islamic economists, therefore, maslahah is a more objective concept than the concept of utility to analyze the behavior of economic agents. Analytically, the concept of maslahah can more easily be manipulated than the concept of utility.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Though maslahah will remain to be subjective a concept like utility, yet its subjectivity does not make it as vague as the subjectivity of utility. Some of the superiorities of the concept of maslahah are highlighted below:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Maslahah is subjective in the sense that an individual will himself be the best judge to determine whether goods/service has a maslahah for him. But the criterion to determine maslahah is not left to subjective whims as it is in case of utility. For example, whether alcohol has a utility or not, will be decided by different individuals on the basis of different criterion. Similarly whether a Mercedes car has utility can be decided on the bases of different criteria. For example, it is comfortable, therefore, it has utility. Or it is good to show off and one feels proud to have it and therefore it has utility. Or it is manufactured in one's own country or by the country that one likes and, therefore, has utility, etcetera. There can be innumerable criteria on the bases of which one may decide whether something has a utility for him. This is not so in the case of maslahah. The criterion is fixed for everyone and the decision has to be made on the bases of the criterion. This property of maslahah vis-a-vis utility is capable of increasing the predictability and validity of economic policies because criteria available to the individuals for decision making are known.</div><br />
</li>
<li><br />
<br />
<div align="justify">The individual maslahah will be consistent with social maslahah unlike individual utility which will often be in conflict with social utility. This is again because of the absence of a common criterion for the determination of utility. The promotion of the five basic elements is desirable not only for the individual but also for the society, whereas, individual satisfaction of a certain want may not be desirable for the society. Alcohol may have utility for several people because they like to drink it but it may not have social utility.</div><br />
</li>
<li><br />
<br />
<div align="justify">The concept of maslahah underlies all economic activities in a society. Thus it is the objective underlying consumption as well as production and exchange, unlike conventional theory, where utility is the objective of consumption and profit is the objective of production whether economic activities are being performed at individual level or state level.</div><br />
</li>
</span></ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">It is not possible to compare the utility of person A from consuming goods (say, one apple), with the utility of person B from consuming the same good in same quantity. This is because how much satisfaction A or B enjoys by this consumption is not objectively describable. Comparison of maslahah in several instances, however, may be possible. It is at least possible to compare different levels of maslahah. For example, it can be compared whether person A and B both are protecting their life by eating an apple or will B be improving his health. In the former case, maslahah is the same for both, whereas in the latter case maslahah of A is more than maslahah of B.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Type-I <i>Maslahah</i>; Type-II <i>Maslahah</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The five basic elements listed earlier can be divided into two categories:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Elements whose promotion means maslahah in this world as well as maslahah in the world hereafter.</div><br />
</li>
<li><br />
<br />
<div align="justify">Elements where promotion means maslahah only in the world hereafter. Thus an Islamic consumer has to make two types of choices:</div><br />
</li>
<ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>How much of his income to allocate between the first basket and the second basket.</li>
<li>How to choose from different items in the first basket while remaining within the income allocated for this basket.</li>
</span></ul></span> </ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">A secular consumer does not make the first choice as he faces only one' basket. It is true that a secular consumer also has altruistic consideration and may like to spend a part of his income on charities, but such charities are part of the first basket as the consumer finds utility in such charities in the same way as he finds utility in other items of the basket.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Identification of the determinants of first choice can help in various policy and planning matters particularly those relating to social insurance, income distribution, employment, etcetera. The protection of life thus may not simply mean the access to some amount of food, clothing and shelter; it may also mean access to health facilities, clean water, appropriate sanitation, etcetera. Similarly, protection of freedom at social level may require scientific research and development in the society, import controls and import substitution, etcetera. Such detailed identification of the dimension of human needs in an Islamic society are required to be worked out for the purpose of increasing the policy and prediction power of Islamic economic theory.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Size of "First Consumption Basket"</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">It has been argued above that an Islamic consumer faces two consumption baskets. "First Consumption Basket" contains goods of type-I maslahah, that the goods which primarily are meant to derive directly worldly maslahah. Apparently this basket may look similar to the basket of a secular consumer as both contains goods of world benefit and the basis of choice within the basket is more or less the same, except that one uses the concept of maslahah and the other uses the' concept of utility for making the choice. There are two distinguishing features of this basket:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Size of the basket.</li>
<li>Criterion of choice from within the basket.</li>
</span> </ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Size of the "First Consumption Basket" of an Islamic consumer has to be smaller than the consumption basket of a secular consumer in exactly similar conditions.43 The limiting factor for an Islamic consumer will be the concept of maslahah which is only a subset of the utility in secular concept. All goods that have maslahah for the individual have utility too but all goods that have utility may not have maslahah. This is because maslahah refers to fulfillment of needs whereas utility refers to a state of mind. Satisfaction is a broader concept than fulfillment of needs. For example, one may feel satisfied by showing off a huge house. This may not be needed by him if he was an Islamic person and considered his housing requirement according to his needs. The recognition of beautification, tahsiniyyah, as a need gives a wide flexibility to the Islamic consumer to include a wide range of goods and services in his consumption basket. But according to Shatibi "beautification" cannot be allowed without being complementary to any daruriyyah needs. For example, I may like to have colorful illuminating lights in the garden of my house because the colors in the light look beautiful. But this will be permitted only if there is a need for a light in the garden. If there is already enough light in the garden and colorful lights are added to the garden just to beautify it, then this is not allowed. Beautification cannot be pursued on its own. It can be pursued only for the sake of necessities and not in their own sake.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">This principle can exclude several consumable goods from one's basket. Notable of such excluded goods would be the set all conspicuous consumption which presently occupies a major part of the household budget of most of the consumers in an economy.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Criterion of Choice from Within the "First Consumption Basket"</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The criterion of choice in secular context is simple. The marginal utility of all goods to be consumed are to be equated. The choice criterion for an Islamic consumer too is simple as far as daruriyyah (necessities) are concerned. He has to equate maslahah (of course, at the margin) for halal daruriyyah. But this principle does not apply to hajiyyah or tahsiniyyah as they do not have any maslahah of their own. Their maslahah depends on the maslahah of daruriyyah (necessities) with which they are attached. Even within daruriyyah (necessities), the choice criterion of equating maslahah for all daruriyyah is to be qualified with the following:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">The consumer will follow a lexicographic ordering within daruriyyah. Daruriyyah means to have protection of the five basic needs described earlier (nafs, din, 'aql, nasI and mal). A consumer will order these five needs and then start protecting them from the top. After the top need, say, life, has been protected, he will go to protect the next need (say, faith). He cannot go for hajiyyah needs. Within hajiyyah, the lexicographic order will then follow the ordering of the needs. Hajiyyah for the protecting life will get top priority if life is at the top of the list of the consumer. He cannot go for tahsiniyyah without providing the hajiyyah for all the basic needs. After hajiyyah of all the basic needs have been fulfilled, tahsiniyyah will be pursued in order of the needs with which they are associated.</div><br />
</li>
<li><br />
<br />
<div align="justify">The consumer will avoid israf (prodigality). Equality of maslahah at consumer's own level will be pursued as long as it does not cross the level of israf which is to be defined in terms of relative maslahah. A consumer may go on fulfilling his needs beyond daruriyyah as long as no one in his neighborhood has his daruriyyah unfulfilled. For example, if a consumer is fulfilling tahsiniyyah relating to his nafs (life) while a person in his neighborhood is dying of starvation, the fulfillment tahsiniyyah will fall into the category of israf which he is not allowed to indulge in. This principle of equating individual maslahah (at the margin) for the fulfillment of all basic needs may not be an ideal Islamic behavior under gross inequalities in the society with respect to the fulfillment of the basic needs. For an ideal Islamic economy, the maslahah will be equated across all basic needs for all members of the society.</div><br />
</li>
</span></ol><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>Institutional Framework</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">What institutional framework will force the Islamic consumer to behave in the manner outlined above? The secular framework provides market as an institution for the consumers to pursue their objectives in a capitalistic economy. The capitalistic economics also have special institutional to meet some specific needs of individuals who are unable to exploit the institution of market to satisfy their wants. All these institutions are required to guide the consumer behavior in an Islamic economy too. There will, however, be some additional institutions to guide and monitor some peculiar aspects of the consumer behavior. Mainly, the following aspects would require special institutions in an Islamic economy:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li>Abstinence from israf (prodigality).</li>
<li>Consistency in the fulfillment of needs at the three levels (daruriyyah, hajiyyah and tahsiniyyah).</li>
<li>Abstinence from gross deviations from Islamic principles.</li>
</span> </ol><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Instinctively consumers will be inclined to pursue their own maslahah and hence inclined to indulge in israf. For example, consumers may like to eat to their fill while their neighbors are starving, or they may like to earn more income by hoarding the goods, hence causing harm to others and so on. A consumer may continue fulfilling daruriyyah, hajiyyah and tahsiniyyah relating to his nafs (life) or mal (property) and may pay no attention to even the daruriyyah of din (faith) or 'aql (reason) or nasi (posterity). What institutional framework does the Shari'ah provide in such cares so that the individuals and society do not deviate from the objectives of Shari'ah? The same question arises in relation to the fulfillment of social needs which individuals on their own may not be inclined to fulfill. Education, health, research, defense, etcetera are the examples.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Also the individuals may not strictly be following Islamic principles of consumer behavior and may pretend to be doing so. For example, individuals may get involved in conspicuous consumption on the pretension that this is being done on the grounds of pursuing tahsiniyyah. The objectives of Shari'ah described in Part 1 have implications of a need for the following institutions:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Voluntary institutions developed through adequate education and training of the masses in Shari'ah. Shari'ah basically provides complete freedom and autonomy to the individual, to make his own decisions and to be responsible to Allah on the Day of Judgment. For an incomplete behavior, what is therefore required is only adequate education and training in Shari'ah. The massive education in Shari'ah will not only induce the individual to exercise self-restraint not to deviate from the Islamic principles, but will also develop voluntary social institutions to monitor (and control, where necessary individual behavior. Besides this, Shari'ah promotes social institutions to fulfill social obligations (fard kifayah).</div><br />
</li>
<li><br />
<br />
<div align="justify">Enforcement Institutions to ensure that individuals refrain from activities which create social or economic disorder in the society. The individual freedom ensured in an Islamic framework does not extend to disturbing the peace and order of the society. Such institutions will mainly be state institutions. These institutions, thus, can intervene in the following activities of the consumer in an Islamic society:</div><br />
</li>
<ul type="a"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">Consumption of prohibited goods openly, as it amounts to violating the law and order of economic society.</div><br />
</li>
<li><br />
<br />
<div align="justify">Conspicuous consumption activities to the extent that they create a state of unrest, jealousy and depravity in the society.</div><br />
</li>
<li><br />
<br />
<div align="justify">Israf(prodigality) or excessive propensity to consume on hajiyyah and tahsiniyyah when the daruriyyah of a major part of the society are not being met.</div><br />
</li>
<li><br />
<br />
<div align="justify">Gross deviant or inconsistent behavior from the point of view of Islamic principles, such as spending the bulk of the budget on tahsiniyyah and ignoring daruriyyah. Non-market institutions, thus, will have to play an important role along; with market institutions in an Islamic economy.</div><br />
</li>
</span></ul></span> </ol><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: x-small;"><b>So What?</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The brief discussion of the implication of objectives of Shari'ah for consumer behavior in this paper will obviously lead to a very logical question: "So what?" What does it all imply for the consumer theory? Will the consumer now prefer to buy more when prices rise or will the consumer prefer to buy less when their income goes up, etcetera? If not, then what is the significance of the discussion so far? In order to conclude this paper the "so what" question has to be answered. The discussion, so far, implies the following for consumer theory:</span></div><ol><span style="color: #2f4965; font-family: arial; font-size: 9pt;">
<li><br />
<br />
<div align="justify">In an Islamic economy, consumers have to first allocate their income between two types of baskets described earlier. In other words, they have to decide how much should be spent in the cause of Allah (SWT) with no explicit direct worldly benefits and how much to spend for gaining direct worldly benefits. How much of the household income is spent in the cause of Allah (SWT) has several implications for macroeconomic policies in the context of savings, investments, growth, income-distribution, employment, inflation, etcetera.44 The estimation of this parameter is, therefore, important for economic planners and policy-makers. The estimation requires establishing a proper theory regarding what determines the value of this parameter, particularly the role of Islamic institutions. Secular economics cannot provide us this theory.</div><br />
</li>
<li><br />
<br />
<div align="justify">Within the "first basket", it is no more a question of allocation of income among different commodities having different utilities. There is a different basis of ordering involved and hence different formula will have to be derived to explain the consumer behavior in such a situation. Tools of analysis might also have to be changed. Indifference curve analysis, for example, may not be very relevant in explaining a somewhat lexicographic type of behavior.</div><br />
</li>
<li><br />
<br />
<div align="justify">Unlike capitalistic economics, market institutions are not the only institutions determining consumer behavior. Several institutions, voluntary or state, will have to be developed to promote Islamic consumer behavior. What type of practical non-market institutions can possibly be developed to force the consumers to follow economic principles and hence to achieve objectives of economic theory is an important topic for the Islamic consumer theory that the researchers in this area should attend to.</div><br />
</li>
</span></ol></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-2781038686459954192009-11-09T13:35:00.001+05:002009-11-09T13:36:45.227+05:00Delegation met Finance Minister to discuss Islamic Banking in India<div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="color: #383838; font-family: Tahoma, sans-serif; font-size: small;"><span class="Apple-style-span" style="font-size: 11px;"><br />
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</div><div class="separator" style="clear: both; text-align: center;"><span style="color: #383838; font-family: Tahoma, sans-serif; font-size: 11px; line-height: 12px;"> </span><a href="http://3.bp.blogspot.com/_SQ6jle25YAU/SvfTlO2tfiI/AAAAAAAAAHA/ArNBwArK4Q4/s1600-h/untitled+1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://3.bp.blogspot.com/_SQ6jle25YAU/SvfTlO2tfiI/AAAAAAAAAHA/ArNBwArK4Q4/s640/untitled+1.JPG" /></a><br />
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</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Tahoma, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">New Delhi: In a major development today in efforts to start Islamic Banking system in India, Union Finance Minister Pranab Mukherjee assured a delegation of Indian Centre for Islamic Finance that he would soon discuss the feasibility of interest-free Islamic banking system in India with Reserve Bank of India Governor.<o:p></o:p></span></span><br />
</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Tahoma, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">To discuss about the feasibility of interest-free Islamic banking in India, a delegation headed by H Abdur Raqeeb, General Secretary, Indian Centre for Islamic Finance (ICIF), New Delhi, met Pranab Mukerjee today at his home in Kolkata, and submitted a memorandum to him.<o:p></o:p></span></span><br />
</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">After meeting with Mukherjee, Abdur Raqeeb told “The Finance Minister went through the 3-page memorandum and keenly read the recommendations of Raghuram Rajan committee on Financial Sector Reforms - CFSR recommendations on Interest-free banking which says: the Committee recommends that measures be taken to permit the delivery of interest-free finance on a larger scale, including through the banking system. This is in consonance with the objectives of inclusion and growth through innovation. The Committee believes that it would be possible, through appropriate measures, to create a framework for such products without any adverse systemic risk impact.”</span></span><span style="font-family: Tahoma, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;"><o:p></o:p></span></span><br />
</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">He noted down that Interest-free Banking is not only for Muslims but for all. In Malaysia 40% customers are Chinese, who are Non-Muslim and In Britain 20% of customers are Non-Muslims. He also noted Vatican has recommended Islamic finance to western Banks for its emphasis on ethical investments and being socially responsible investment and an alternative to the conventional banking.</span></span><span style="font-family: Tahoma, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;"><o:p></o:p></span></span><br />
</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">Finance Minister was informed about the decision of the Government of Kerala which had launched an Islamic investment company with Rs.1000 crore after the feasibility report of Ernst & Young and has plan to turn it to a Global Islamic bank after prevailing upon RBI to amend its Banking regulations.<br />
Among the five options provided in the memorandum (Options of GOI) issuing directions and administrative guidelines, creating a subsidiary and going for an Act of Parliament also attracted his attention and he took note of it.</span></span><span style="font-family: Tahoma, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;"><o:p></o:p></span></span><br />
</div><div class="MsoNormal" style="line-height: 12.0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;"><span style="font-family: Verdana, sans-serif; font-size: 8.5pt;"><span style="color: #274e13;">“FM said that he is going to meet RBI governor next week and will discuss with him on this issue. He also said that he will be visiting Saudi Arabia and will be available in the second week of November and then a meeting can be arranged with the secretaries and officials of Banking Department of Finance Ministry to interact with ICIF,” Abdur Raqeeb said.</span></span><span style="color: #383838; font-family: Tahoma, sans-serif; font-size: 8.5pt;"><o:p></o:p></span><br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-56967033906785984822009-09-26T13:15:00.003+06:002010-04-22T18:12:30.134+05:00ECONOMIC THOUGHT OF IBN HAZM<span style="font-family: Arial; font-size: small;"><span class="Apple-style-span" style="font-size: 13px;"><br />
</span></span> <br />
<div class="MsoNormal"><o:p>Brief Life History</o:p></div><div class="MsoNormal"><o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Abu Muhammad' Ali Ibn Abu 'U mar Ahmad Ibn Said Ibn Hazm al-Qurtubi al-Andalusi, or more commonly referred to as Ibn Hazm, was born on the last day of Ramadan 384 AH / Nov. 994 AD in Cordoba (Qurtabah), Spain or Andalus at that time. His family's origins are quite obscure in terms of confirmed records. But it is widely accepted that his family originated from the <st1:place w:st="on"><st1:placetype w:st="on">village</st1:placetype> of <st1:placename w:st="on">Manta Lisham</st1:placename></st1:place> in the district of Niebla.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">lbn Hazm's family was of notable status and wealthy position. The family claimed decadency from a Persian client of Yazid, the brother of Muawiyah, the first of the Umayyad dynasty rulers in Syria.lbn Hazm's father, Abu 'Umar Ahmad attained a high position in the administrative hierarchy, holding the rank of a wazir for aI-Mansur and his son aI-Muzaffar, a father and son who ruled efficiently in the name of the Caliph Hisham II.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">However, the period during which Ibn Hazm lived was a period of decisive crises for IsIam in <st1:place w:st="on">Andalusia</st1:place>. Among others, political conflicts against the Slavs caused negative effects for the family of Ibn Hazm. Ibn Hazm himself faced several political and military escapades.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Despite the fluctuations in the political stability, Ibn Hazm was to follow his father's footsteps as a wazir for three different occasions. Firstly, he became a wazir to 'Abd aI-Rahman IV al-Murtada, an Umayyad claimant to the throne. He also became a wazir to 'Abd aI-Rahman V al-Mustazhir and finally, he became a wazir again under Hisham al-Mu'tad.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm was not involved in state administration throughout his life. A point came when he entered a semi-retirement situation, hence devoting his efforts towards intellectual work, teaching and writing various works. In 456 AH, he died in his village in Manta Lisham, near <st1:city w:st="on"><st1:place w:st="on">Seville</st1:place></st1:city>.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">As a personality of his times, Ibn Hazm attained respect as one of the greatest thinkers in the Arab-Muslim civilization. He proved to be a forceful litterateur, historian, philologist, rhetoricist, jurist, philosopher and theologian. The highly educative and exposing environment that accompanied the family stature gave him a thorough education. As a result, he was well-informed on all the main currents of thought, and productivity, breadth of learning and sound mastery of the Arabic language and fundamental tools of scholarship.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Several factors may be listed as to how and why Ibn Hazm could elevate to a high degree of scholarship and leadership, leading him to be endowed with the position of al-Imamah:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Possessing personal traits that are essential for the molding of a great scholar: strength and rigour of memory, sharpness in thought and words, and highly commendable powers of observation and analysis.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Having the benefit of undergoing a thorough education coupled with his personal enthusiasm to learn and indulge in current concerns, hence widening his breadth and depth of knowledge, His teachers comprised Abu'I-Qasim 'Abd aI-Rahman Ibn Abi Yazid al-Azdi al-Misri (for traditions, grammar, lexicography, rhetoric, dialectic and theology),Abu:I-Khiyar al-Lughawi (for fiqh), Ahmad Ibn Muhammad Ibn al-Jasur (for Hadith), Abu' Abd Allah Muhammad Ibn al-Madhhiji (for philosophy) and Abu Said al-Fata' al-Ja'fari (for poetry).<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Command over various foreign languages.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Benefiting from a conducive environment (which accompanied Ibn Hazm's notable family), that promoted and nurtured his scholarly development.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Active participation as a wazir in public affairs and administration and, military and political concerns, while subsequently undergoing the hardened aspects of such experiences. Ibn Hazm thus spoke with soundness of thought and richness of experience.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Positively reacting to his opposition by bearing upon himself, the personal discipline of ensuring that he should be widely knowledgeable of his opposition, thus allowing him to counter their criticisms in a more effective way. Hence, the virtue of striving to be more prepared than one's adversaries.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Major Works<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">With the demise of Ibn Hazm, his son Abu Rafi' reported that Ibn Hazm had completed as many as 400 works, comprising 80,000 sheets. These works encompass subjects such as jurisprudence, logic, history, ethics, comparative religion and theology. However, less than 40 of these works still exist. A list of the more famous works of Ibn Hazm is presented in the appendix to this chapter.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Thoughts of Economic Relevance<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm is an example of what can be referred to as of the total 'ulama - that is, those whose expertise in many issues of the human life are not restricted to that of conceptual juristic viewpoints, but rather are able to provide an Islamic-based opinion and rationale on the more mundane concerns, out of their true expertise and not merely out of their status as 'ulama.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Broadly discussing, four commonly highlighted economic concerns of Ibn Hazm may be projected to illustrate his "total" concern of the economic aspects of Muslims during his time. These are:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Basic needs and poverty<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Zakah<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Taxes<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Land tenure systems<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Basic Needs and Poverty<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm listed four forms of needs which make up the essentials of a basic standard of living for a human being: food, drink, clothing and shelter.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Each should satisfy the necessary conditions (as delineated by Islam). The food and drink should be sufficient for the provision of health and energy. The clothing should be sufficient to cover the aurat (parts of the Muslim's body that must be concealed from the non-mahram) and suitable for both the hot and cold seasons, and for rainy conditions. The shelter should be such that it protects the person from effects of the weather and provides a reasonable degree of privacy.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The question of who should bear the responsibility of ensuring the satisfaction of these basic needs must obviously be met by the state. However, Ibn Hazm emphasized also the role to be played by the rich, especially in helping out the needs problem prevalent within their regions. Ibn Hazm wrote:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">"The rich are obliged to provide sustenance to the poor living in their region. If they try to neglect or avoid it or deflect from this responsibility, the Head of the State must compel them to part with some of their wealth for the maintenance of the poor and the needy. In case the zakah is not sufficient to satisfy the basic needs of the poor, tax should be levied upon the rich Muslims to provide the poor with enough food, reasonable clothing and accommodation."<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The discussion of poverty is highly interrelated with the conceptual understanding of basic needs in the preceding sections. Non-fulfillment of basic needs is in fact a fundamental indicator to the existence of poverty.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">In this context, the writer would like to remind that poverty may accrue in a situation where the level of needs increases faster than the income necessary for the fulfillment of basic needs. This may occur from a drastic increase in population (either from birth or immigration), increase in the types of necessities necessary for any particular time and place or due to an increase in the number belonging to particular age groups. The existence of a wide disparity between the rich and the less well-off can compound the severity of the problem when the rich influence the structure, administration, tastes and strategic variables such as the general price level of an economy.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Zakah<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Under the discussion of zakah, Ibn Hazm emphasized its obligatory status, simultaneously stressing the role of the wealthy in eradicating poverty among the poor and the indigent. Ibn Hazm wrote that the penalty for those who do not support zakah suffices with the state collecting the zakah due either through voluntary means or through force. And if opposition against zakah still persists, then that person(s) should be fought. If this opposition denies zakah as an obligation, it should be declared murtad (apostate). Whichever way it is, punishment must be meted out to those who still persist in opposing this obligation, either hidden or explicitly.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm's emphasis on the position of zakah is such that the deceased who should have and have not paid the zakah due during his or her lifetime should have that obligation to be fulfilled from his or her wealth. Such unpaid zakah is a form of debt to Allah (SWT) and those entitled to zakah. And if debts to human beings are required to be settled, what more when it comes to debts owed to Allah (SWT)?<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The unpaid zakah is never written off. (This is of course in contrast to some conventional tax provisions which do allow' long-unpaid taxes to be considered as bad debts to the state if the time lapse has by-passed a certain time period). Zakah is different. Regardless of the type of zakah to be paid and regardless of the cause for non-payment of zakah (intentionally-done, delayed collection by the zakah-collectors, ignorance of obligation or otherwise), the zakah debt due is never written off, at least in the sight of Allah (SWT). (This is at least one major difference with conventional tax systems and regulations.)<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Taxes<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm was very much concerned with the factor of justice in the tax system. To him, before anything else is considered, the interests of the people must be considered when planning to impose tax compulsorily. The interests of the people must also be considered carefully' in times of collecting taxes because the people are the pool of tax payers. Hence, whatever losses that need to be borne by the people can ultimately affect the (system and amount of) tax collection. This should remind us of discussions in conventional public finance theories pertaining to willingness or propensity to pay taxes.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ibn Hazm was especially concerned over the nature of the tax collection system. Abusive and exploitative means of collecting taxes must be prevented. Taxes were to be collected by not transgressing the limits of the Shari'ah. Losses to taxpayers (arising from such shortcomings) can mean losses to the state too. This can possibly refer to the fall in the propensity to pay taxes, the lack of public support for the ruling government and the decline in potential tax revenues either arising from unpaid taxes or some of the paid taxes being siphoned by unscrupulous tax collectors.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">An account of the tax administration in Andalus during Ibn Hazm's time is recorded by S.M. Imamuddin:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">"The lowest branch of the finance department was located in the villages and supervised by a divisional head called 'amil. The harvest being ready, the field was inspected and the value of the produce was estimated by an officer called 'ashshar. There was a mutaqabbil to collect market and other duties within the fiscal area of his qabalah. In order to check these officers from cheating and charging more than the dues, strict vigilance was kept on them.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">An accounts register was maintained and census was taken during the time of Yusuf al-Fihri and the bishop Hostages prepared a complete descriptive list of tax and jizyah-payers during the time of Muhammad I and made annual visits to see that the taxes were properly realized.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The rate of land-tax generally varied from V6th to 1I3rd according to the quality of the land. The practice of collecting the tax on cattle in kind was given up by the Ummayyad Amirs but that of land-tax in kind or cash continued. The land-tax collected in kind during the time of Hakam I amounted to 4,700 mudd of wheat and 7,747 mudd of barley. Ali Ibn Hammud (1009-1 018 AD) ordered the people of Jaen to pay the land-tax in cash at the rate of six dinars for a mudd of wheat and three dinars for that of barley instead of paying in kind. Muslims paid zakah at the rate of 2½% on their wealth and young earning members of non-Muslim families paid poll-tax (jizyah) varying from 12 to 48 dirhams a year in monthly installments. There were custom-houses in big and small towns, commercial centers and ports. Idrisi speaks of an office of Rihadrah (the custom-house) at Lorca and Himyari of that at Qalab. Arms, war-horses, books and bridal ornaments were exempted from import duties.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">After meeting the expenditure of local administration, the amount of taxes deposited in the local treasury was passed on to the provincial bait aI-mal and from there, the balance was transmitted to the Central headquarters at Cordova which controlled all the treasuries of the country and replenished the coffer of a province which fell short of fund. The taxes collected from the mustakhlas (the royal land) were passed on directly to the Bait al-Nail al-Khas (the royal treasury) for the personal expenses of the ruler. The royal Khas lands accumulated in the provinces due to the confiscation of lands from the nobles from time to time. The administrative head of the royal property was Sahib al-Diya. The annual revenue from these lands and markets alone amounted to 765,000 dinars during the time of 'Abd aI-Rahman III. Some rulers showed due consideration to the tax-payers when they suffered from any natural calamity. Abd aI-Rahman III on his accession to the throne abolished all illegal taxes. Hakam II reduced the military and extraordinary taxes by one-sixth in 975 AD."</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8481124136834094472.post-84282549335233540232009-09-26T13:11:00.004+06:002010-04-22T18:14:28.516+05:00ECONOMIC THOUGHT OF 'ABD ALLAH HARITH AL-MUHASIBI<div class="MsoNormal"><o:p> Brief Life History</o:p></div><div class="MsoNormal"><o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Abu' Abd Allah Harith Ibn Asad aI-' Ana,zi al-Muhasibi was born in <st1:city w:st="on"><st1:place w:st="on">Basra</st1:place></st1:city> in 165 AH/781 AD. The name 'Anazi could possibly indicate that he belonged to the Arab Bedouin tribe of' Anaza.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Not many historical records could account for al-Muhasibi's family. However, it has been recorded by his biographers that his father had left at his death, a fortune of about 300 000 dinars for al-Muhasibi. However, because the father was said to have been a Qadari (believer of an unIslamic set of beliefs), al-Muhasibi renounced any inheritance of that wealth and had it handed over to the bait aI-mal.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">One confirmed fact was that al-Muhasibi came to <st1:city w:st="on"><st1:place w:st="on">Baghdad</st1:place></st1:city> at an early age with his parents. <st1:city w:st="on"><st1:place w:st="on">Baghdad</st1:place></st1:city>, being the then centre of trade and scholarship in the Muslim world, provided al-Muhasibi with the best available education. This excellent training was to manifest in the future writings, talks and conduct of al-Muhasibi.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Al-Muhasibi's personality is well-illustrated by the title al-Muhasibi with which he is well-known. This title was bestowed due to his practice of frequently examining his conscience, especially during a state of recollection of Allah (SWT).<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Al-Muhasibi was a jurist of the Shafi'i school of canon law. He had studied under Imam al-Shafi'i himself. As a theologian, he advocated the use of the 'aql (faculty of reasoning). Initially, he became inclined towards the Mu'tazilites and their rationalism. Eventually, he became among the first to turn against them using the dialectic vocabulary of the Mu'tazilites themselves. However, al-Muhasibi was wrongfully involved with the Mu'tazilites in a general persecution due to Ibn Hanbal's attack on the dialecticians. Although al-Muhasibi had employed the logical and dialectical methods of the Mu'tazilites with the intention of utilizing these methods to oppose the latter, al-Muhasibi's original works and the sufistic tendencies of his teachings caused him to be a suspect during the persecution. This unfair suspicion inevitably forced him to retire from all involvement to teach freely and openly in <st1:city w:st="on"><st1:place w:st="on">Baghdad</st1:place></st1:city>.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">This unfortunate landmark of his career was not to blemish the fact that al-Muhasibi was the first Bunni sufi whose works manifest as a complete theological education. He laced sufism with philosophy and theology. His works, both written and taught, combined to produce exact philosophical definitions evolved within the ambit of a rigorous search for increased moral purification. The famed al-Junayd Ibn Muhammad al-Baghdadi was to be a disciple to al-Muhasibi. However, the effect of the suspicion suffered from being unjustly related to the Mu'tazilites' erroneous ways was to persist until al-Muhasibi's demise in 243 AH/857 AD.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Major Works<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The works of al-Muhasibi are good examples of distinguishing between the ascetic ways of the Muslim sufi and the Christian monks. Where the latter propagates the life of seclusion and a less active role in the mundane affairs of a community, the teachings of al-Muhasibi are judged to develop the sufi to remain an active member of his community despite his spiritual commitments. The works of al-Muhasibi are also reported to have a greater emphasis on the practical side of the spiritual-life adherent.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Perhaps in an attempt to avoid over-indulgence in solely spiritual conceptualization, in addition to excessive and unnecessary dogmatism in his teachings, al-Muhasibi based his works greatly on his own spiritual experiences. He sincerely believed in sharing with others the way of purification of the soul through the ways that he himself had undergone and found effective. Also perhaps, in an attempt to refute the misconceptions attached to the sufi teachings, he deliberated on the positive aspects of the sufi way of life and the necessity for inner purification (as a prerequisite to a more meaningful and effective role of a Muslim).<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">The number of al-Muhasibi's works have been claimed by sufi adherents to have reached a total of 200. However, only far smaller proportions are in existence today. A list of a selected few is presented in the appendix to this chapter.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Major Lesson of Economic Relevance<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Need for Control of One's Self Interest ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Being the great sufi that he was, emphasizing on the purification of the inner self, it is thus not surprising that the reminder to control one's self interest appears unexhaustively in many of al-Muhasibi's writings. To al-Muhasibi, one can hope to serve Allah (SWT) in the true sense of the word and in all aspects of his life, only if he has no taint of self interest in his actions and thoughts. Demanding as this may be, al-Muhasibi had never declared that the act of self-purification will be an easy one. However, al-Muhasibi was cautious to remind people in his Kitab al Ri'aya Ii Huquq Allah wa'i Qiyam biha that efforts towards controlling of one's self interest can be hindered through one's association or indulgence (in whatever degree) with matters of sin.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Concept of the Balance (Mizan) ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">In his Kitab al-Tawahhum wa'l-Ahwal, al-Muhasibi enjoined that one must constantly be conscious of ensuring that the balance arising from one's indulgence tilts towards one's benefits. In other words, benefits should always outweigh costs.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">In this regard, we should remind ourselves that the Islamic concept of benefits and costs are not limited to those of only the worldly or material forms. There are also the hereafter benefits and costs. Those that can be attained or received only from the hereafter, if ignored, can tilt the mizan towards one's disfavor.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Development of the Homo Islamicus ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Among other matters, al-Muhasibi's Risalah Adab al-Nufus deliberates in detail on the development of the soul. Al-Muhasibi believed that the self needs constant observation and care. The fundamental values that must be imbued within the self include among others:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Ikhlas (single-mindedness in the service of Allah (SWT));<o:p></o:p></div><div class="MsoNormal">Thiqah (reliance on Allah (SWT));<o:p></o:p></div><div class="MsoNormal">Shukr (gratitude);<o:p></o:p></div><div class="MsoNormal">Humility;<o:p></o:p></div><div class="MsoNormal">Submissions;<o:p></o:p></div><div class="MsoNormal">Nasihah (the giving of faithful counsel);<o:p></o:p></div><div class="MsoNormal">Love of what Allah (SWT) loves and hatred of what He hates;<o:p></o:p></div><div class="MsoNormal">Muhasabah (self-examination);<o:p></o:p></div><div class="MsoNormal">Muraqabah (meditation);<o:p></o:p></div><div class="MsoNormal">Self-discipline; and,<o:p></o:p></div><div class="MsoNormal">Being knowledgeable of Allah (SWT), Iblis, oneself and the work of Allah (SWT).<o:p></o:p></div><div class="MsoNormal">The underscoring significance of the above values lies magnified in the Islamic advocation for the replacement of the homo economics or the orthodox economic man with the homo Islamicus or the Islamic man.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Wealth ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Wealth must not be made the object of one's love (or pursuit). Subsequently, even the desire to accumulate it is abhorred. Alternatively, one should be contented with little. Even if the reason for its accumulation is for use in good works, the act of accumulating wealth can potentially lead to one's preoccupation with mundane affairs. As a result, one's heart cannot be totally disposed for the remembrance and worship of Allah (SWT). Once this occurs, then the ensuing evils of avarice and pride may be seeded in one's heart. Further discussion on this perspective is available in al-Muhasibi's Kitab al-Wasaya.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Earnings ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">A clear exposition of this subject-matter and its related issues is detailed in al:'Muhasibi's Risalah al-Makasib wa'l Wara' wa'l-Shubuhah. Margaret Smith summarised the contents of this work (which has the greatest degree of economic content) in her book, An Early Mystic of Baghdadi:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">"In this work, al-Muhasibi modifies the quietest tendencies of certain of his predecessors, and condemns excessive rigorism in the matter of what is dubious, while continuing to advocate the need for abstinence and asceticism. The basic principle in these matters, he teaches, should be reliance upon God (tawakkul), who can be trusted to provide for His creatures, and therefore they have no excuse for recourse to what is unlawful or doubtful in origin. In this connection al-Muhasibi sets forth a fine conception of God as Creator, with discerning knowledge of, and care for, His creatures. Faith in God and the remembrance, with the lips as with the heart, that He is the Sole Provider, the Lord of life and death, and Sovereign over all things, will lead men to this complete trust in Him, and to the observance of His sanctions. But this does not mean that a man should refrain from taking lawful means to earn a livelihood, or live in idleness at the expense of others. The right type of abstinence (wara') is to abstain from what God has prohibited and what is abhorrent to Him of action, whether in word or in deed, and of thought and motive, and what this is can be known by self-examination before proceeding to action.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">This work includes an interesting section on the practices of the ascetics and Sufis of al-Muhasibi's time and proceeding times, showing their scrupulous anxiety to refrain from anything including the least taint or possibility of what was unlawful. Some, he says, betook themselves to the mountains and the valleys, and gathered tamarisk leaves and what could be picked up in the way of seeds and pulse and herbs, which had a value if stored, and these they collected in summer for use in wi1?ter. Others chose to exist on windfalls and fresh herbs and grass and such vegetation as was to be found growing wild, when hunger drove them to eat. Some were content with what had been thrown away, while another group preferred to beg for food. Some ascetics living in the regions of <st1:country-region w:st="on"><st1:place w:st="on">Syria</st1:place></st1:country-region> used to glean what they could of corn and barley, following the reapers, but this, al-Muhasibi notes, was not a practice in his time. He refers also to those who would not glean behind the reapers on land bought with money wrongfully acquired, or land bestowed by the Government upon "its supporters, or consisting of estates of which the rightful owners had been despoiled. Others, again, chose to earn a living by manual labor, or by taking up the sword in the service of God, in preference to gleaning at the harvest, because the latter procedure had no precedent under the rule of the first four Imams, and these were agreed upon fighting under the banner of every Commander of the Faithful, whether good or bad. Others chose to retire into a monastery and live there in seclusion, unless there was a call for the services of Muslims, on account of the advance or invasion of some enemy into the territory of Islam, and in these circumstances, it was obligatory for them to wield the sword,' but when the need had passed, and the community no longer required their services, they would retire once more into the monastery they had established, holding that it was the more excellent way. This group among the Sufis, al-Muhasibi considers to be much in error.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">He deals also with the question of buying and selling and what is to be considered lawful or unlawful for the servant of God in this respect, and quotes the case of those who considered that to buy a knife, or wood to serve as fuel for cooking, from the Government, was unlawful, and so also was the purchase of a leather whip or a whetstone from a Christian. Others disliked trading with women for thread (the twisting of thread being done by women), or for a rosary, lest it should mean temptation to look upon what was unlawful.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Al-Muhasibi deprecates bigotry and fanaticism and the attitude of those who would starve rather than partake of what did not seem to them lawful, and points out that this extremist view had brought some to the loss of reason and to suicide. The right road to follow, he thought, was that of scrupulous abstinence from what was known to be unlawful, after self-examination in order to be sure in the matter, and trust in God that He would not fail to provide all that was necessary for His creatures, who need to have recourse to what was unlawful or to extreme fanaticism in the search for the lawful, which was in itself unlawful".<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Zuhd (Abstinence) ...<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">In his Kitab al-Masa'il fi Zuhd wa Ghayriha, al-Muhasibi discussed the subject of zuhd. To him, it may be necessary at times to abstain from what is right (in itself) because it may become the cause for something which is wrong. However, al-Muhasibi did not believe in abstinence of extreme degrees.<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">"... what is wrong must be renounced without hesitation, whether it be in thought or word or deed, and much that is doubtful must be renounced, even if right in itself, because it may lead to wrong, but what is right and, as the result of investigation and self-examination, is seen to be in accordance with the Will of God, should not be renounced from mere scrupulosity, for such abstinence may lead to injury to health or reason and risk to life, find abstinence of this kind is itself unlawful and a sin against God".<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Al-Muhasibi is reported to have written:<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">"The believer who is seeking for godliness ...renounces all that is destructive to him in this world and the next, and leanness is manifest in him", and mortification and solitude and separation from the companionship of the pious, and the appearance of grief and absence of joy, and he chooses all that, hating to indulge in pleasure which may incur the wrath of his Lord and make him worthy of His chastisement, and he hopes that his Lord will be well pleased with what he does, and that he will be saved from chastisement, and will be permitted to come into His presence and to taste of the joys of Paradise, unalloyed and unabated, and to abide therein to eternity, enjoying the good pleasure of his Lord, the All Gracious and All Glorious".<o:p></o:p></div><div class="MsoNormal"><br />
</div><div class="MsoNormal">Al-Muhasibi's opinion on zuhd should enlighten a more objective commitment rather than a "fanatical" occupation on the concept of zuhd. Al-Muhasibi qualified the concept well and directly portrayed the zahid (the person practicing zuhd) as one who has a sound set of criteria in determining which forms of abstinence qualify as an Islamically acceptable form of abstinence. To a substantial extent, this dissolves the initially perceived counter productive image created by al-Muhasibi's sufi-based opinion on the accumulation of wealth, stated earlier. What is actually propagated by al-Muhasibi is the highly cautious, meticulous and controlled relationship between a person and his wealth, not a rampant and uncontrolled liberal attitude towards it.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-19102512225831557172009-09-12T12:00:00.001+06:002010-04-22T18:14:57.144+05:00ISLAMIC ECONOMIC THOUGHT<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"></span><br />
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</b></span></span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Islamic Economic Thinking</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">It is the task of the scholars to refer to the Islamic sources to obtain Islamic norms on economic issues and to find out solutions consistent with these norms. This has happened throughout Islamic history according to the need of the time and space, and has produced a rich heritage of Islamic literature covering all aspects of human life including economic issues and other matters having implications for economic behavior.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Economic issues have been addressed from different perspectives by various authors in the context of different disciplines and in response to the needs of respective times in the Islamic history. Five different dimensions of analysis may broadly be identified.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">First, discussions related to economic matters in the discipline of Tafsir (exegesis), which is the explanation of the divine book Al-Qur'an. The Qur'anic verses related to economics have been explained by mufassirin (personalities doing exegesis) as an integral part of the Qur'anic code of human life. A good number of books of Tafsir is available containing discussions on relevant economic matters. For instance, discussions on the prohibition of interest,1 encouragement of economic activities for human welfare,2 and so on.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Second, discussions of economic issues in the discipline of Fiqh (Islamic jurisprudence). The legal aspects of economic problems, along with other Shari'ah matters, have been analyzed by the great jurists of Islam in the books of Fiqh. For example, the legal aspects of mudarabah and musharakah have been dealt with in this discipline in some great detail.3</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Third, the great Islamic personalities discussed economic matters in the context of ethical system of Islam for moral development. This analysis is different from the juristic analysis of economic matters in that the latter presents the legal status and limits while the former emphasizes the real spirit of Islam over and above legal limits, guiding man towards the most desirable economic behavior of human beings. The works of ulama, sufis, Islamic philosophers and Islamic reformers (mujaddidin) come under this category.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;">read more>>></span></span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><a href="http://www.islamic-world.net/economics/economic_thought.htm">http://www.islamic-world.net/economics/economic_thought.htm</a></span></span></div></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-31268065855433170162009-09-12T11:56:00.003+06:002010-04-22T18:15:26.471+05:00AL-GHAZALI ON ECONOMIC ISSUES<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"></span><br />
<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The central focus of Imam al-Ghazali (1058-1111 AD), a great philosopher and sufi (Islamic mystic), was Islamic philosophy and Islamic ethical values, which compass all dimensions of life including economics. As such his discussion of economic issues emerge in the ethical perspective of human life as a. whole, rather than a segregated value-neutral discipline as it appears in the contemporary economic analyses and systems. Hence his analysis is generally normative rather than positive in nature.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Al-Ghazali was writing in the 11th and early 12th centuries which were roughly six centuries before the emergence of Mercantilism and seven centuries before Physiocracy and Adam Smith (1723-1790), that is, roughly six to seven centuries before the beginning of economics as a discipline. Even then, it is interesting to note that al-Ghazali's writings contain a good number of economic ideas, although discussed in the ethical normative perspective.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Life and Time</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Born in 1058 in a village called Ghazalah of northern Iran, Abu Hamid Muhammad al-Tusi al-Ghazali was a great Islamic scholar in a number of subjects including philosophy, sufism, theology and jurisprudence. A son of a poor but righteous spinner, he lost his father at a young age and began study with his father's sufi leader and friend, then joined a madrasah (a religious institution), and gained knowledge from several reputed scholars of the time. His reputation as a scholar made Nizam al-Mulk al-Tusi to appoint him to the Chair of Theology at the Nizamiyyah College of Baghdad in 1091 at his age of 34. Although highly successful in teaching, drawing even the jurists in his classes, he left the college in 1094, performed hajj (pilgrimage), traveled places to meet great Islamic personalities, and devoted to Sufism when he also got time for writing. Although he took up teaching positions.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The present paper is based on this classic work of al-Ghazali, the Ihya 'Ulum ai-Din, which provides a mirror image of his scholarship and personality and contains several chapters ("kitab" in his terminology) on subjects related to economics.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Economic Philosophy</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Underlying every-economic system there is a philosophy, and so is the Islamic economic system. Although economics did not emerge as a system as yet, al-Ghazali's philosophical and intellectual mind did not fail to put Islamic economic thought in its proper philosophical perspective.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The philosophy underpinning al-Ghazali's analysis of economic pursuit is that economic achievement is a means to the end, and not an end in itself. Wealth is a means to the success in the eternal life. Implicit in this is the philosophy of life embodied in the concepts of tawhid (the unity of Allah), akhirah (the hereafter) and risalah (the institution of Prophethood), and also explicitly mentioned elsewhere in his works.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><span class="Apple-style-span" style="color: black; font-family: 'times new roman'; font-size: 16px;"></span></span></span></div><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span><br />
<span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Place and Benefit of Economic Activity</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Al-Ghazali has written a full section, as indicated above, to show the significance, importance and benefit of economic activity and earning. Economic activity for halal (permitted) earning has a religious status, provided one follows the Islamic norms of economic activity and the objective is good, and not for pride and accumulation. He substantiated this by quoting from the Qur'an, the traditions of the Prophet (SAW) and the traditions of other Islamic personalitiesl4. The major points may be summarized as follows. First, Allah (SWT) has provided resources for the benefit of mankind and so they should work to earn them, use them, and express the gratitude of Allah (SWT). Second, economic pursuits in order to be free from the dependence on others, and to fulfill one's own need, the need of the family, need of parents, neighbors and relations, and to satisfy other Islamic obligations are considered efforts in the way of Allah (SWT), which will have high status in the hereafter, provided Islamic norms of earning have been followed. Third, economic pursuits for accumulation of wealth, pride, and for spending in undesirable things are considered as efforts in the Way of the devil. That is, the means and objectives of economic activities should be Islamically permitted and desirable.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Al-Ghazali has clarified the doubts arising from such sayings which seem to discourage economic pursuits.15 According to him, economic pursuits are condemned if their objective is to get more than needed for the accumulation of wealth and its hoarding, and not to spend in goodness and charity. This is because its implication is to make the world as one's objective, which is the root of all evils. Even worse, if one resorts to cheating, oppression and other malpractices to make money. On the other hand, if the objective is to be independent of others, meeting the needs of the life for himself and family, and to spend in goodness and charity, then the economic pursuit is better than abstinence from it.</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Need for The Knowledge of Islamic Economics</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Al-Ghazali included the knowledge of economic matters into the obligatory knowledge mentioned in the Prophetic tradition, "Seeking of knowledge is obligatory (fard) on every Muslim". If economic activity is encouraged so much so that it has a status of worship, its knowledge is also necessary, "Know that acquiring knowledge in this Bab (in the field of economics) is wajib (compulsory) on every earning Muslim ". This is because one must know how to deal with a problem when it arises, lest he might get himself involved in what is not allowed. One should not wait to ask around when he encounters a problem. If he does so, there is a likelihood to do what he is not supposed to do. Therefore, every earning Muslim should have the basic knowledge of the matter. In his support, al-Ghazali presents the practice of' Umar, the second caliph, who used to visit the market places and say, "He should not do business in our markets that does not have its knowledge".</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">It seems from his discussion that al-Ghazali is concerned with the Islamic rules of economic activity which are Islamic legal norms and values of economic activities, and are the subject of Islamic jurisprudence, discussed in the chapter of mu'amalat (socio-economic activities). In the contemporary literature, Islamic economics includes Islamic legal norms and their economic analysis. Therefore, according to al-Ghazali, the basic knowledge of Islamic economics is compulsory on every economically active Muslim to the extent of basic Islamic legal norms relevant for his activity, whether it is obtained from Islamic economic literature or from the juristic sources, through study, reading or discussion with the persons of knowledge. Such obligatory knowledge of economic activities is of many kinds (branches), of which six must be acquired by those who are involved in such activities. These are bai' (trade and commerce), riba (interest, usury), salam (forward buying), ijarah (renting), musharakah (partnership) and mudarabah (sleeping partnership for profit sharing). Al-Ghazali discussed all of them</span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Bai' (Trade)</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Following the tradition of Fiqh literature, al-Ghazali analysed three elements (arkan) in bai': (1) the two transacting parties, the buyer and the seller; (2) the items of exchange, the goods and services; and (3) the statement of contract. This classification proves his analytical insight and perception of economics.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Al-Ghazali discussed the juristic eligibilities of persons for valid transaction. Transaction with any man or woman is valid provided the person is not minor, insane, blind or slave. The transaction of minor and insane persons is invalid because they are not mukallaf. Although a blind person is a mukallaf, he or she is unable to see the item of transaction and hence his/her transaction is invalid. If, however, the blind person appoints a wakil (representative or agent) to act on his behalf, the transaction will be valid. Arms (weapons) cannot be transacted with a non-Muslim if he comes from dar al-harb (a country in the condition of war, or a non-Muslim country).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">There are six conditions for a mubi' (an item of exchange) to be eligible from Shari'ah point of view for a valid exchange. First, the item of exchange should not be impure in itself, such as dog, pig, alcohol and so on. Those items which are not impure in themselves and are useful may be exchanged. Second, the items of exchange should be useful and beneficial. On this score, snakes and rats may not lawfully be exchanged. Third, the seller should be the owner of the items of sale, or be permitted by the owner to sell them. A person is not allowed to sell even his spouse's or children's items in the expectation that they will not object to it. Fourth, the item of sale must be transferable in a Shari'ah approved manner. For example, milk in udder and fish in the water may not be sold because of the mixing of the sold and unsold items. Similarly a mortgaged item may not be sold by the owner, because it is not transferable from Shari'ah point of view until it is released from the mortgage. Fifth, the item of sale must be known with certainty, and also its quality and quantity. Sixth, the item of sale must be in the possession of the seller.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;">read more>>></span></span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><a href="http://www.islamic-world.net/economics/al_ghazali.htm">http://www.islamic-world.net/economics/al_ghazali.htm</a></span></span></div></span></span><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-51417219540319056852009-09-12T11:43:00.003+06:002010-04-22T18:15:53.749+05:00IBN KHALDUN, FATHER OF ECONOMICS<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"></span><br />
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</b></span></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">In his <i>Prolegomena</i> (<i>The Muqaddimah</i>), 'Abd al-Rahman Ibn Muhammad Ibn Khaldun al-Hadrami of Tunis (A.D. 1332-1406), commonly known as Ibn Khaldun, laid down the foundations of different fields of knowledge, in particular the science of civilization (<i>al-'umran</i>). His significant contributions to economics, however, should place him in the history of economic thought as a major forerunner, if not the "father," of economics, a title which has been given to Adam Smith, whose great works were published some three hundred and seventy years after Ibn Khaldun's death. Not only did Ibn Khaldun plant the germinating seeds of classical economics, whether in production, supply, or cost, but he also pioneered in consumption, demand, and utility, the cornerstones of modern economic theory.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Before Ibn Khaldun, Plato and his contemporary Xenophon presented, probably for the first time in writing, a crude account of the specialization and division of labor. On a non-theoretical level, the ancient Egyptians used the techniques of specialization, particularly in the era of the Eighteenth Dynasty, in order to save time and to produce more work per hour. Following Plato, Aristotle proposed a definition of economics and considered the use of money in his analysis of exchange. His example of the use of a shoe for wear and for its use in exchange was later presented by Adam Smith as the value in use and the value in exchange. Another aspect of economic thought before Ibn Khaldun was that of the Scholastics and of the Canonites, who proposed placing economics within the framework of laws based on religious and moral perceptions for the good of all human beings. Therefore all economic activities were to be undertaken in accordance with such laws.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Ibn Khaldun was cognizant of these ideas, including the one relating to religious and moral perceptions. The relationship between moral and religious principles on one hand and good government on the other is effectively expounded in his citation and discussion of Tahir Ibn al-Husayn's (A.D. 775-822) famous letter to his son 'Abdallah, who ruled Khurasan with his descendants until A.D. 872. From the rudimentary thoughts of Tahir he developed a theory of taxation which has affected modern economic thought and even economic policies in the United States and elsewhere.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><span class="Apple-style-span" style="color: black; font-family: 'times new roman'; font-size: 16px;"></span></span></span></div><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span><br />
<span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Labor Theory of Value, Economics of Labor, Labor as the Source of Growth and Capital Accumulation</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">With the exception of Joseph A. Schumpeter, who discovered Ibn Khaldun's writings only a few months before his death, Joseph J. Spengler, and Charles Issawi, major Western economists trace the theory of value to Adam Smith and David Ricardo because they attempted to find a reasonable explanation for the paradox of value. According to Adam Smith and as further developed by David Ricardo, the exchange value of objects is to be equal to the labor time used in its production. On the basis of this concept, Karl Marx concluded that "wages of labour must equal the production of labour" and introduced his revolutionary term <i>surplus</i> value signifying the unjustifiable reward given to capitalists, who exploit the efforts of the labor class, or the proletariat. Yet it was Ibn Khaldun, a believer in the free market economy, who first introduced the labor theory of value without the extensions of Karl Marx.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;">read more>>></span></span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><a href="http://www.islamic-world.net/economics/father_of_economics.htm">http://www.islamic-world.net/economics/father_of_economics.htm</a></span></span></div></span></span><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-54272544904403717842009-09-12T11:29:00.004+06:002010-04-22T18:13:33.363+05:00ECONOMIC THOUGHT OF IBN AL-QAYYIM<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"></span><br />
<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman';"><div align="left"><span style="color: #000330; font-family: verdana; font-size: 85%;"><b><i>Ibn al-Qayyim: The Man and His Age</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shams aI-Din Abu 'Abdullah Muhammad Ibn Abu Bakr, known as Ibn Qayyim al-Jawziyyah, was born in Damascus on the 7th Safar 691 AH (29th January, 1292) and died there on 23rd Rajab 751 AH (26th September, 1350).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Before we go into the details of his ideas on Islamic economics, it would be useful to consider in brief the socio-political and economic conditions of the time, for, it is likely to have influenced his thinking. Ibn al Qayyim lived in the times of Sultan Nasir Muhammad b. Qalawun (1293-1341 AD) who was able to establish a relatively stable government and pay attention to the improvement of educational and economic conditions of the country. He effected a comprehensive redistribution of land and made reforms in the taxation systems. There was a number of schools and libraries in the Mamluk period. The 'ulama had great influence on the Sultan and the people.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">An important aspect of the period was the widespread cults of Sufism and taqlid (following and supporting opinions of a particular Imam). Ibn al-Qayyim was well versed in all the main disciplines of the time. He was the most famous pupil of Shaikh aI-Islam Ibn Taimiyyah (1253-1328 AD).</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><span class="Apple-style-span" style="color: black; font-family: 'times new roman'; font-size: 16px;"></span></span></span></div><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span><br />
<span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Economic Philosophy of Islam</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Ibn al-Qayyim has laid special emphasis on the following points:</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: 85%;"><b><i>Homo Islamicus and Not Homo Economicus</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Ibn al-Qayyim highlights the basic Islamic faith that every man is accountable before Allah (SWT) for his conduct and that Allah (SWT) is the source of guidance and direction. Ibn al-Qayyim emphasizes the Islamic view that this life is a test and a trial. This test and trial is administered by Allah (SWT) through awarding riches as well as through taking them away. The possession of wealth is not a proof of Allah's favor, nor is lack of it a disfavor. Wealth is not meant for mere enjoyment, which is a level on which beasts live.</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: 85%;"><b><i>Justice</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">According to Ibn al-Qayyim, justice "(adl) is the objective of the Shari'ah. In fact, the Shari'ah comprises justice, blessing and wisdom. Anything contrary to justice which turns the matter from blessing and welfare into a curse and an evil, and from wisdom into disutility has nothing to do with the Shari'ah.</span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: 85%;"><b><i>Values and Their Impact on Economic Life</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">After describing the Islamic view that it is required of people to adopt values like God-fearing, piety, virtue, honesty, truth, and to keep them away from evils like falsehood, fraud, corruption, Ibn al-Qayyim states that the natural corollary of falsehood is corruption and that success cannot be achieved in the worldly life and the hereafter by means of corruption. It is injurious to economic life as well as to the other aspects of worldly life. The consequences of falsehood are well-known.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Shedding light on the bad consequences of disobedience and social evils, he writes elsewhere that the effects of sins are vicious and condemnable. These are injurious to body and soul, which causes damage to this world and the life after death. He argued that one of the obvious effects is deprivation from livelihood. He supports his opinion with a Hadith of the Holy Prophet (SAW) saying that sin causes a decrease in man's livelihood. On the contrary, God-fearing piety and good deeds cause increase in livelihood and success in economic matters and in the hereafter.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The evils like falsehood, fraud, jealousy, exploitation and dishonesty create chaos, suspicion, instability and frustration in the society and hinder economic progress. On the contrary, the absence of these evils and the presence of Islamic values create an atmosphere of confidence and security in the society that will lead to cooperation in production and stability in economic condition. These positive Islamic values are expected to increase production and general prosperity.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;">read more>>></span></span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"><span class="Apple-style-span" style="font-size: 12px;"><a href="http://www.islamic-world.net/economics/ibn_al_qayyim.htm">http://www.islamic-world.net/economics/ibn_al_qayyim.htm</a></span></span></div></span></span><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 100%;"></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8481124136834094472.post-9509412339258639722009-09-12T10:33:00.001+06:002010-04-22T18:11:19.613+05:00ECONOMIC CONCEPTS OF IBN TAMIYYAH<span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; font-family: 'times new roman'; font-size: 16px;"></span><br />
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</b></span></span></div><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Brief Life History</b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Ibn Taimiyyah's full name is Taqi aI-Din Ahmad bin 'Abd al-Halim. He was born in Harran on 22 January, 1263 AD (10 Rabi' al-Amwal, 661 AH). His family had long been renowned for its learning. His father' Abd al-Halim, uncle Fakhr aI-Din and grandfather Majd aI-Din were great scholars of Hanbalite jurisprudence and the authors of many books. Endowed with a penetrating intellect and a wonderful memory, Ibn Taimiyyah studied at an early stage all the disciplines of jurisprudences, traditions of the Prophet, and commentaries of the Qur'an, mathematics and philosophy and in each he was far ahead of his contemporaries. Among his teachers was Shams aI-Din al-Maqdisi, first Hanbali Chief Justice of Syria following the reform of the judiciary by Baibars.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"><span class="Apple-style-span" style="font-size: 10px;"><br />
</span></span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"><span class="Apple-style-span" style="font-size: 10px;"><span class="Apple-style-span" style="-webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; color: black; font-family: 'times new roman'; font-size: 16px;"></span></span></span></div><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"></span><br />
<span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"><div align="left"><span style="color: #1e2d3b; font-family: verdana; font-size: 85%;"><b>Just Price, Market Mechanism and Regulation</b></span></div><div align="left"><span style="color: #000330; font-family: verdana; font-size: 85%;"><b><i>Just Price</i></b></span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">The Qur'an lays great emphasis on justice. It was quite natural to apply the idea to market relations, especially to prices. Thus the Prophet, peace be upon him, characterized riba as overcharging a trusting customer.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">A just or fair price is mentioned in some traditions from the Prophet in the context of compensation due to an owner, for example, in the case of a master who frees part of a slave. The slave becomes a free man and the master is compensated for the remaining part at a fair price (qumah al-'adl). The same term occurs in a report about the second Caliph 'Umar bin Khattab, fixing a new value for blood money (diyah) after the purchasing power of the dirham fell due to a rise in prices. The notion of a just or fair price is also found in one of the state letters of the fourth Caliph, 'Ali bin Abi Talib.</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Jurists who codified Islamic rules about business transactions, applied to concept in case a defective object is sold, in case of usurpation, forcing a hoarder to sell his goods, overcharging, disposal of the property of a trust, etcetera. Generally, they thought that the just price of something is that price which is paid for similar objects in a given time and place. Therefore} they preferred to call it the price of the equivalent (thaman al-mithl).</span></div><div align="justify"><span style="color: #2f4965; font-family: arial; font-size: 9pt;">Though the notion of a just or fair price was present in Islamic jurisprudence since the earliest times, Ibn Taimiyyah seems to be the first Islamic scholar to have paid .it special attention.</span></div><div align="justify"><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"><span class="Apple-style-span" style="font-size: 10px;"><span class="Apple-tab-span" style="white-space: pre;"> </span>read more>>> <span class="Apple-style-span" style="color: black; font-family: 'times new roman'; font-size: 13px;"><a href="http://www.islamic-world.net/economics/ibn_taimiyyah.htm">http://www.islamic-world.net/economics/ibn_taimiyyah.htm</a></span></span></span></div></span></span><span class="Apple-style-span" style="color: #2f4965; font-family: arial; font-size: 85%;"></span><br />
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