Islamic economic

1. TOPIC 5
SOURCES OF ISLAMIC
ECONOMICS
.
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2. LEARNING OBJECTIVES
At the end of this topic students
will be able to understand the
following from both Secular and
Islamic perspectives.
 Methodology of Economics.
 Development of Economics as a
Discipline.
 Kind of Knowledge and their
sources.
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3. METHODOLOGY OF
SECULAR ECONOMIC
 Western source of knowledge is based
on cultural tradition reinforced by strictly
philosophical premises based upon
speculations & assumption.
 Secular economics considered all
knowledge originated from human
research and exploration. It makes a
distinction between reason and
revelation derived from the common
western thought and relies on reason
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4. SECULAR ECONOMIC AS A
DISCIPLINE
Economics emerged as a formal
discipline not more than THREE
CENTURIES ago.
A quick look at the family tree of
conventional/secular/modern
economics shows its beginning with
the Mercantilists/traders in the 17th
and 18th centuries.
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5. CONT. SECULAR ECONOMIC AS A
DISCIPLINE
 Economics as a formal discipline finds its
origin in Adam Smith (1776),
 Developed further by the classical economists
in the late 18th and early 19th centuries
(Malthus 1778, Ricardo 1817) and
 Neoclassical economists of the mid-and-late
19th centuries (Mill 1848, Walras and Marshall
1890).
 It was further advanced in the 20th century by
Keynes (1936) and other economists including
the rational expectations and Post-Keynesian
schools. The radical stream takes its shape in
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6. ISLAM AND KNOWLEDGE
 Islam is a religion based upon
knowledge. Islam motivates man to be
curious about knowledge so that he will
be able to grasp the truth of everything,
the truth of his nature, his existence, his
role, his Creator and the universe.
 Islam rejects blind imitation without
questioning the validity of the issue.
Since Islam is the true religion and the
Only Truth is Allah, Islam believes that if
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7. METHODOLOGY OF ISLAMIC
ECONOMIC
 Most economic applications have to be
derived from the main sources of
Knowledge i.e. Quran and Sunnah.
 Have better understanding of the
Islamic Worldview especially on the
Islamic vision of Economics.
 Islamic / Shari’ah Boundaries of
Economics must be determined. 7
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8. SOURCES OF KNOWLEDGE IN ISLAM
Knowledge can be classified into two
kinds with respect to the sources of
knowledge;
1. Revealed Knowledge and
2. Acquired Knowledge
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9. REVEALED KNOWLEDGE
 This is Allah given knowledge
through His Messenger which is the
highest form of knowledge.
 The sources of this knowledge is
derived from al-Quran and al-
Sunnah.
 This kind of knowledge is obligatory
to all Muslims and regarded as fard
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10. FARD ‘AYN/ OBLIGATORY KNOWLEDGE
 Al-tawhid/creed/theology (Allah, His
Essence, His Attributes, Names and
Acts).
 The Holy Qur’an (recitation,
interpretation, tafsir & ta’wil etc.)
 The Sunnah (Seirah, hadith
transmission etc.)
 Shari’ah (jurisprudence and law).
 Linguistic sciences: Arabic, its grammar
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11. II. ACQUIRED KNOWLEDGE
 This knowledge can be acquired through
various methods of enquiry such as
contemplation, observation, scientific
research, experiments, etc. on which
modern science is based.
 This knowledge is not obligatory to all but
there should be Muslims in the community
who know this knowledge.
 This knowledge is fard kifayah which
includes all the natural and social
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12. HOW ISLAMIC ECONOMIC AS A
DISCIPLINE HAD BEEN DEVELOPED?
Most economic applications have
to be derived from the main
sources of Knowledge in Islam i.e.
Quran and Sunnah.
Have better understanding of the
Islamic Worldview especially on the
Islamic vision of Economics.
Islamic / Shari’ah Boundaries of
Economics must be determined.
Shari’ah must be interpreted and
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13. CONT. .
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. 13
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14. PRINCIPLES OF ISLAMIC
JURISPRUDENCE
Ijma‘ (consensus of Opinion)
 Qiyas (analogical deduction)
 jtihad (Personal Reasoning)
 Fatwa (legal opinion)
 Istihsan (Equity in Islamic law)
Maslahah Murslah (Consideration of
Public interest)
 Urf (custom)
 Istishab (presumption of continuity)
Sadd al-Dhara‘I (blocking the means)
Hukm Sharai (law of shariah)
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15. END OF TOPIC 4
Q & A
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