AN ANALYSIS ON SELECTED FUNDAMENTAL CONCEPTS IN ISLAMIC ECONOMICS

Transcription

1 Proceedings of the 2 nd Islamic Conference 2007 (iecons2007) organized by Faculty of Economics and Muamalat, Islamic Science University of Malaysia. AN ANALYSIS ON SELECTED FUNDAMENTAL CONCEPTS IN ISLAMIC ECONOMICS Dayangku Aslinah Abd. Rahim School of Business and Economics Universiti Malaysia Sabah ABSTRACT: The world is witnessing the awakening of the Muslim ummah. Qur anic injunctions, as well as the Sunnah and other Islamic teachings are widely accepted all over the world. Muslims are expressing the desire to turn to Islamic ways and teachings in modeling their life practices, including their economic behavior. This paper tries to present a review analysis on some selected economic issues from the Islamic perspective, which is also known as Islamic economics. It touches on some general and fundamental ideas in Islamic economics particularly on the Islamic worldview, the concept of al-falah, the definition of Islamic economics, its basic principles and overall scope. These are some of the basic fundamentals in Islamic economics. People might already look higher into the management and practices of Islamic economics; however the fundamental should be laid down as it becomes the ground for the institution of Islamic economics itself. KEYWORDS: Islam, Economics, Islamic Economics

2 INTRODUCTION The First International Conference on Islamic Economics was held in Mecca in February 1976, in which Muslim economists and Shari ah experts were grouped together to discuss major issues and themes in economics. What began in the 1930 s and 1940 s as a branch of fiqh (jurisprudence) and developed into a collection of economic teachings and principles of Islam in the 1950 s and 1960 s was still developing into a more coherent and distinctive discipline which has come to be known as Islamic Economics (Haneef, 1995). Within this half-century, there were numerous writings by the exponents of Islamic economics, and thirty decades later the world was seeing the trend of Islamization of contemporary economics. The concept of Islamization comes from the concept of Islamization of knowledge, which, according to some scholars was proposed initially by the Palestinian thinker, Ismail Al-Faruqi (1982) in response to what he called the malaise of the ummah. The realization to Islamize knowledge is evident today in the considerable number of dissertations in terms of terminology, epistemology, methodology or the underlying philosophy of the Muslim scholars, either in terms of knowledge, in general, or some specific branch or discipline such as finance, economics and politics. The pursuance becomes frequent and vital especially when the Muslim world at present has begun to feel the overwhelming influence of the secular ways and their culture of thought and life practices that almost come to rival with the culture of Muslims around the world. Interestingly, Islamization of knowledge 1 has also been a concern of Muslim converts (Mua laf). In one Friday sermon at Harvard entitled Assimilation of Muslims, or Islamization of Knowledge, the khatib expressed his anxiety about the culture and education of the young generation of American Muslims. He was quoted as saying, Is there an Islamic biology or Islamic physics to teach this child? Has any Muslim written decently on world history over the last 100 years from the Islamic point of view? If not, how can we teach children history written from an unislamic perspective and expect them to remain Islamic? It is not that you can send your child to a so-called Islamic school and simultaneously assault them with confusing signals from the rest of the environment around them and expect to produce a healthy, mature, wise, knowledgeable Muslim adult. 2 The approaches and methodologies of Islamic economics and Islamizing economics might be different in some stages. Islamizing economics focuses more on the contemporary economic literature, majority called Western economics. The scholars in this particular field would extract the modern economic knowledge and try to Islamize it by referring to Islamic divine sources and other acceptable sources in Islam. 3 They 1 Al-Attas (1995) denoted it as Dewesternization of Knowledge Some external critics described Islamic economics as Capitalism Riba + Zakat OR Socialism Central Planning + Allah (Sadar, 1990), quoted by Abdul Kader (2001). 1

3 tend to accept the existing knowledge, if the knowledge is not against the Shari ah law and/or especially the subject matter is not much touched on by the Islamic heritage. On the other hand, Islamic economics or pure Islamic economics (or quasi-pure) is the knowledge of economics derived from the Islamic heritage or within the Islamic framework. It used to be called Fiqh Mu amalat in the early golden days; however, this Fiqh is only concerned with the basic terms in economics such as business transactions and contracts. Today, knowledge has become more complicated and Fiqh Mu amalat does not seem to be enough to explain the complexity of economics. Thus, the need for the development of Islamic economics has arisen. 4 Nevertheless, there is also a third category, in which some scholars undertook the effort to enlighten Islamic economics with the mixture of both approaches. Some of them unconsciously Islamize modern economic knowledge; while on the other hand, they attempt to construct some issues in Islamic economics within the Islamic framework. They support the Islamization of economics, while not opposing the development of Islamic economics within the pure Islamic heritage. In the extreme cases, some scholars neither see the difference between the two conducts, nor feel that they are important as long as the subjects are in line with Islamic law and are viewed from an Islamic perspective. Since the approaches attempt to explain economics from the Islamic perspective, the author believes that the outcomes should not distinctly contradict each other. Both approaches are, in fact being pursued, and are useful, in the development of Islamic economics (Hassan, 1998). There might be a slight difference on some matters; however, both approaches in terms of methodology are still clearly derived from the two utmost Divine sources in Islam, namely; the Qur an and Sunnah. Consequently, both final products should be placed under one roof, i.e. Islamic economics. 5 LIMITATIONS OF THE STUDY The study in this paper is based on secondary data. Most of the contemporary writings in Islamic economics, whether extracted from research papers, articles, books, online resources, and conference papers or unpublished papers, are analyzed. There are a lot of writings in the theoretical foundations of Islamic economics. However the analysis in this study does not cover the topic comprehensively, as there are a lot of theories under Islamic economics. The paper only deals with the Islamic worldview and subsequently some of the fundamental principles in Islamic economics. It touches on several selected issues such as the definition, the agents, worldview and scopes of Islamic economics. 4 For further reading, see Fiqhul Mu amalat and the Need for Islamic Economics: A Clarification of Misconception by Chika Umar Aliyu (1993). 5 Some exponents in each field might criticize one another or put more stress on one approach while others would be indifferent to both approaches. 2

4 Some other foundations such as underlying assumptions, features, methodology, terminology and institutional framework are not included in the paper. 3

5 ISLAMIC ECONOMICS VERSUS ISLAMIZATION OF ECONOMICS: AN ANALYSIS The whole package in the Islamic approaches to economics generally contends of the writing on economics within an Islamic framework and the attempt to Islamize contemporary knowledge in global economics. In this section, the author intends to put forward some re-thought on various literature and dissertations by a number of contemporary scholars on the theoretical foundations of Islamic economics either by the Islamization of mainstream economics or within the Islamic structure. Some of the exponents listed several outlines of modern economic literature, and tried to look at them from the Islamic perspective in order to derive a part of Islamic economics. This is what might Hassan (1998) meant by step-by-step movement towards the ultimate in an evolutionary manner. It seeks to progressively modify the existing secular structures, and advocates reopening the doors of ijtihad in the light of modern needs, and compulsions. In terms of Islamizing economics, it does not come as easily as some scholars imagine it to be. There are many criticisms such as Islamic economics fails to escape the centripetal pull of Western economic thought (Nasr, 1992) or Islamic economics ends up as an attempt to cast Islamic institutions and dictates into a Western mould (Sardar, 1986). Kuran (1986 & 1993) dismisses the discipline as a fraud and Zeeshan Hasan (1994) sees there is nothing un-islamic about the conventional market economy, as Muslims should extend approval to modern interest rates. This paper limits itself to this discussion, as the analysis of the criticisms is not in the objectives of the paper; however, modern interest rates are similar to riba 6, and forbidden in Islam. 7 Islamic economics is one example of the attempts of Muslims these days to go back to the roots of Islamic teachings. The methods used might have some defects, but the intention and endeavor are bona fide. The idea of Islamizing modern economics and the approach of building a pure Islamic economic system within the Islamic framework will produce Islamic economic thought. The question is; can the result of these two approaches be combined? The answer is definitely yes. One colleague is heard saying: could people distinguish between a legitimate and an illegitimate child, even if they are born from the same mother? People might not see the linkage here, but sometimes an acceptable one camouflages an illegal feature. Knowledge then corroborates the authenticity of the facts. 8 In Islam, knowledge or ilm ranks in a higher position. It is included in the first direct revelation 9 to the Prophet (s.a.w). Knowledge is evolutionary; still the base will be solitary in Islam. All human knowledge comes from Allah. Conversely, man is relatively free in this world (within the limits of His scheme of Creation). Having been given the faculty to choose, he has the freedom either to become God-like by realizing his theomorphic character, or, 6 See Riba and Interest by Saiful Azhar which was published in the Sun on October, 4 th Extra readings, refer to the collection of Islamic Banking and Finance by Dr. Saiful Azhar (unpublished), Assoc. Professor in Department of Economics, IIUM; pp 323, 327, 332, 345, 348, 349 and (2002/2003). 7 The Qur an; 30:39, 4:161, 3: and 2: Again, the knowledge here should be derived from the right worldview from the Islamic perspective. 9 Surah Al- Alaq: 1-5 in the Qur an. 4

6 using his free will, to deny God (Akkas, 1998 on elaborating the third famous axiom i.e. free will of Naqvi, 1981). Allah paints the world with every color, and furnishes human beings with aql and desire. He directs men with revelation through the Prophet (s.a.w) but entitles men to choose. Consequently, Allah warns them by providing the hereafter; the place where human action will be judged accordingly. Life is a trial to mankind. Hence, it should be not be surprisingly to discover polluted knowledge in this world (as Hassan termed it in his 1998 paper), and the need to dewesternize the knowledge will be aroused (as al-attas called it in his 1978 paper). As a consequence, Islamic economics should come in one package. The system should be applicable to all mankind, under the Muslim state or any other government that wants to follow the structure. The author agrees on the importance and the need to systemize the Islamic worldview. This worldview is also pertinent to other branches of knowledge as well. It is the core, which determines the direction of each discipline. The next stage then, as Haneef (1997) mentioned, is to derive and extract a certain economic vision (in the case of Islamic economics) within the overall worldview, which is relevant to the construction of the economic vision. Therefore, Islamic economics commences with the Islamic worldview, and is subsequently followed by the Islamic economic vision. ISLAMIC ECONOMICS WORLDVIEW The fundamentals of Islamic economics should consist of the Islamic worldview and the Islamic economic vision. Since the primary sources of Islamic economics are the Holy Qur an and the Sunnah of the Prophet (s.a.w), the Islamic worldview and economic vision must be first visualized and extracted from these two sources (Haneef, 1997). The philosophical foundations derived from the Islamic framework would become the worldview of Islamic economics. Subsequently, the relationship of man with God and his relationship with other humans and creations are significant to determine his behavior and conduct. Hence, the foundations such as tawhid, the roles of man as a vicegerent and servant of God, ibadah, trust and the hereafter factor, would be the underlying philosophies and principles in Islamic economics. In addition, the above-mentioned philosophies characterize Islamic economics; however, to its non-believer agents (in the Islamic economic system), the sense should be more towards brotherhood i.e. living in harmony and following their leaders. The Islamic government should be responsible for the welfare of its entire people regardless of their religions and ethnic origins. In Islam, the intervention of the state in economic enterprises is vital (it was also the practice of the Prophet s companions); however, the degree of interference is subject to the needs of society. The famous idiom of Power Corrupts; Absolute Power 10 Corrupts Absolutely should be given a thought even in the Islamic state affairs. 10 The power here refers to worldly power. However, in Islam the real absolute power belongs to God. 5

7 THE CONCEPT OF AL-FALAH AS THE ULTIMATE OBJECTIVE Hasanuzzaman (1997) refers to al-falah as success in the hereafter. He added that the verses expressing falah and its derivatives in a positive sense appear to indicated success in the hereafter as a reward for repentance, tawbah (24:31, 28:67), remembrance, dhikr (7:69, 8:45, 62:10), purification, tazkiyyah (59:9, 87:14, 91:9), fear of Allah, taqwa (2:189, 3:130, 3:200, 5:35, 5:100), and restraint from evil desires and deeds (5:90, 59:9, 64:16). Falah is also promised for good deed (23:1, 28:67), following Divine Guidance (2:5, 7:157, 31:5) and obedience and seeking of Allah s pleasure (24:51, 30:38). Falah in this world is denied to the wizards who contested the Prophet Moses (10:77, 20:69). In other places it is falah in the hereafter that is denied to the unbelievers (kafirun), the unjust (zalim) criminals (mujrimun), and liers (iftira ala-allah) (6:21, 6;136, 28:27, 10:17, 12:23, 16:116, 23:117, 28:82). 11 What is success to Muslims? Every Muslim would have a desire to achieve success in the hereafter (al-falah). Even though nobody could ensure that kind of success, Allah guides man to accomplish that victory by educating him in his approach to live in the right way in this world. The world is the intermediary to the success in the hereafter. One should utilize the world in accordance to God s pleasure. Wealth is a means to success in the eternal life. 12 According to al-ghazali, man needs food to maintain good health without which it is difficult to fulfill moral obligations including seeking knowledge and its application, 13 which includes service to Allah and humanity. 14 All of these would require income and wealth, hence earning has been encouraged. 15 In addition, Islam discourages begging and dependence on others, which one cannot avoid if he refrains from earning activities. 16 Some scholars such as Akram Khan (1984) and Arif (1985) also relate al falah to economic activities. The concept might well be associated with other disciplines of knowledge, yet economic enterprises have a bigger slice of the pie. Everyone, including politicians, socialists and religious men, has to acquire earnings for survival. Hence, the concept of al-falah also correlate to the pursuit of economic affairs. One could be involved in economic endeavors for success in the hereafter. Consequently, the concept of al-falah in Islamic economics should encourage every Muslim to go for economic power. Wealth can bring supremacy particularly to the government and the country. It raises the volume of one s voice and power status at the international level. Each Islamic country should pursue economic control and become a wealthy nation. Subsequently, Muslims will put the religion into its proper place. 11 Ibid, footnote # 4, pp Abu Hamid al-ghazali, Ihya Ulum al-din, Vol. 2, Kitab Adab al-kasb wa al-ma ash, op. cit. pp Ibid, pp Sadeq (1992) on his review of al-ghazali works. 15 Al-Ghazali, pp Sadeq (1992), pp. 89. Further readings on his interesting analysis of al-ghazali works, see pp

8 AGENT OF ISLAMIC ECONOMICS Hassan (1998) and Sadeq (1992) pointed out that Islamic economic thinking is as old as Islam itself, reflected as Islamic economic norms and values, rather than a separate discipline of knowledge. Therefore, common challenges that are confronted by Islamic teaching could also be faced by Islamic economics. The authentic teachings and some procedures are available (and subject to growth), but again it is up to mankind to manifest them. In Islamic economics, it is assumed that the agent of economics is an Islamic man. Still, if a Muslim prefers to act in a contrary, the accusation of the failure of Islamic economics is unjustifiable. 17 It is thoughtful to suggest that there might be various categories of agents in Islamic economics, for instance; God-conscious man (or he can be called Islamic man ), Muslim man and the non-believer. However, it is important to stress here that only the God-conscious man (who should be a Muslim as well i.e. the religion is Islam), will put Islamic economics into its place. Yavas (1999) has concluded that a man is neither selfish nor altruistic based on his laboratory experiments (modern games). Thus, he deduced that both norms and incentives are important determinants of people s behavior. The author agrees with the last statement, but refuses to reach to the same conclusion. In Islam, man is taught of his nature (fitrah). The best creation that is blessed with favors but lowly in origin 18, man has a limited free will 19. Yet in his free will, he either inclines or declines towards God. The guidelines to the way of life have been laid out, but the nature of forgetfulness 20, impatience 21 and being misled by evil 22 also exist. That is why Allah gives a warning in the Qur an to beware of Satan 23 and to return to Him 24 on any account. Both social obligation and self-interest are essential to man. However, they should not contradict each other. If they do, then altruistic norms would win. 25 DEFINITION OF ISLAMIC ECONOMICS The definition of Islamic economics is still debated by economists. There are several definitions laid out by the scholars. 26 In brief, these are the lists of various definitions (either as a formal proposals or informal descriptions) or views of Islamic economics according to numerous scholars: 17 Nasr (1992) indicated that people blame Islamic economics when the institutions (physical institutions such as the banking industry and university) fail. The reason was due to the attempt to put an Islamic solution into an alien system. 18 The Qur an; 16:4-8, 32:7-9, 35:11 and 36: The Qur an, 10: The Qur an, 20: The Qur an, 70: The Qur an, 7: The Qur an, 7: The Qur an, 6: Yet, at the end (especially in the hereafter), this behavior would help to serve self-interest as well. 26 Some Muslim economists do not give an exact definition of Islamic economics; either the term is already self-explained or it is assumed that the readers know what Islamic economics is. Also, some of the exponents just describe Islamic economics without putting forward a formal definition. 7

9 1. Islamic economics is the knowledge of the application of the injunctions and the rules of the Shari ah regarding acquisition and disposal of available resources for providing satisfaction to the individuals in order to enable them individually and collectively to perform their obligations to Allah and the society (Hasanuzzaman, 1997). 2. Islamic economics studies on allocation and distribution of economic resources from Islamic perspective (Radiah A Kader, 2001). 3. Islamic economics aims at the study of how human achieve al-falah by organizing the resources of earth on the basis of co-operation and participation (Akram Khan, 1984). 4. Islamic economics is a social science which studies the economic problem of a people imbued with the values of Islam (M.A Mannan, 1983). 5. Islamic economics is the knowledge that discusses human behavior individually and collectively in his endeavor to satisfy his biological and social wants, maintaining a balance between them, in using available resources (Ghanim, 1989). 6. Islamic economics directs economic activities and organizes them in consonance with Islamic tenets and economic principles (Al-Fanjari, 1986). 7. Islamic economics is viewed as emanating from the Islamic worldview, dominated by revelation and having a flexible methodology which combines western neoclassical/keynesian economics with fiqh (Siddiqi, 1988). 8. Islamic economics is a systematic effort to study the economic problem and man s behavior in relation to it from an Islamic perspective (Eldin Zaim, 1989). 9. It is a collection of general economic principles that we extract from the Qur an and the Sunnah and the economic structure that we construct on the basis of those general principles, conforming to all situations and ages (al-arabi, 1986). 10. It is both a science and an art which deals with the daily routine of a Muslim s economic life i.e. how he earns his income and how he spends it. It is a science in the sense that it involves many scientific methods in the production of material goods, their distribution and consumption (Abul Kalam, 1991). 11. Islamic definition of economics should not be separated from the general definition of economics. The laws of Islamic economics remain the same. The centralization of Islamic value will not change the laws of science of Economics (Laliwala, 1989). 12. Islamic economics is a nascent social discipline whose concern is to reformulate economic principles and prepositions in accordance with Islamic values and ideals (Khursid Ahmad, 1981) or Islamic economics represents a systematic effort to try to understand the human economic problem and his behavior in relation to that problem from an Islamic perspective (Khursid Ahmad, 1992). 13. Islamic economics is the study of a Muslim s behavior who organizes the resources which are a trust, to achieve al-falah (Arif, 1985). 14. Islamic economics can be seen as a branch of the science of economics which is studied based on the Islamic paradigm (i.e. its axioms, system of values and ethics), similar to the study of capitalist economics and socialist economics (Kahf, 1987). 8

10 15. Islamic economics can be viewed as the way Islam prefers to follow in the pursuit of its economic life and in the solution of its practical economic problems in line with its concept of justice (al-sadr, 1981) or it is a system that embodies Islamic norms in organizing economic life (al-sadr, 1982). 16. Islamic economics can be broadly defined as an approach to interpreting and solving man s economic problems based on the values, norms, laws and institutions found in, and derived from, the sources of knowledge in Islam (Haneef, 1997). 17. It is that branch of knowledge which helps realize human well-being through an allocation and distribution of scarce resources that is in conformity with Islamic teaching without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalance (Chapra, 1996). With no intention to analyze each definition given by various economists (the author proposes that this should be done entirely in another paper), the author is interested in the description on Islamic economics given by Kalam (1991) even if she does not agree to the whole meaning. Kalam defined Islamic economics as both a science and an art which deals with the daily routine of a Muslim s economic life i.e. how he earns his income and how he spends it. It is a science in the sense that it involves many scientific methods in the production of material goods, their distribution and consumption. The definition might have some flaws. The economic agent here refers only to Muslims. Kalam said that he has not used the word human being because Islam is an ideological religion and, as such, has direct concern only with its followers. The author agrees with the opinion that the Islamic rules are only relevant to its followers. However there are many examples of the non-believers living under the Muslim government. Indeed, there were a lot of them during the life of the Prophet (s.a.w) and under the leadership of the four Caliphs. The non-muslims should not be excluded under the Islamic economic system. There are perhaps some special arrangements for them under the system, but they are not totally cut-off from any Islamic state. The definition also lacks Islamicity. Kalam might feel that the term Muslim is sufficient to describe it. He is actually giving a very simple definition but it is understandable to the layman as well. What is exhilarating in the definition is the use of a phrase: how he earns and how he spends. The author considers this is appropriate to Islamic economic concepts. However, the author realizes that it only explains a part of Islamic economics. The author might suggest an improvement in the definition. The term resources and Islamic spirit should be included whereas the terms Muslim and economic (it shows redundancy) should be altered. Thus to the author s understanding, Islamic economics can be broadly defined as a science and an art which deal with the mode of resources allocation, production, distribution, and consumption; aggregately and individually, from the Islamic perspective. 9

11 One might argue how the above definition could refer to both Muslims and non- Muslims. 27 Islamic economics should be an obligation for Muslims, and can be a matter of choice for the non-believer. Yet, if the non-believers were under the Islamic state, which exercises Islamic system (including the economy), then they are subjected to some of the rules and regulations (if not the whole rulings). They must observe some code of conduct. To Muslims, they are fully responsible to the laws; however, they might decide to go against some guidelines under Islamic economics, which are not explicitly formalized under government acts. Examples are good intention and sense of altruism. How about the consequence? Let Allah be the Judge. SCOPE OF ISLAMIC ECONOMICS In terms of the scope of Islamic economics, undoubtedly it is broader than the contemporary one as it involves the hereafter factor in philosophy. However, it should not be the responsibility of Islamic economics to explain about other disciplines as well, such as politics and sociology. They are interconnected, but there should be a systemized discipline for each branch of knowledge. They share one worldview; still, they have their own identities and distinctive features. The important element in the scope of Islamic economics is resources. Thus the way people behave regarding the allocation, production, distribution and consumption of resources should refer to the demeanors that are outlined in the primary sources, and the secondary sources as well. Some may act differently, still that should not attack the credibility of the Islamic worldview or Islamic economics. However, there might be some modifications, amendments or improvements in the progress of developing Islamic economics and that is acceptable; as it is one way to extend the boundaries of human knowledge. It is worth mentioning that resources 28 are closely interrelated with efficiency and equity as in mainstream economics. The correlation is not left out in Islamic economics as it is justified in the sense of trust (amanah) and justice ( adl). The concepts of wasting resources 29, hoarding 30 and concentration of wealth in a few hands 31 are indeed forbidden in Islam. Economics is everyone s type of routine. It is dealt with collectively as well as individually. Hence, a society, together with an individual should have an economic eye on the use of resources. It is the bounty of God, which man inherits. Each element of nature has its own use; from the sunshine to the flowing water. Each person is responsible towards the earth and its nature. It is not surprising to see the emergence of environmental concern in these days due to the practice of over exploitation and manipulation. 27 With regard to the omission of some terms in the definition such as al-falah, it is useful to read further on Hasanuzzaman, For interesting discussion on resources and scarcity, see Hassan (1996). 29 The Qur an, 6:141, 7:31 30 The Qur an, 104: The Qur an, 107:2-7 10

12 Generally, from the discussion in this paper, it seems that the author assumes the existence of Islamic economics. There are a lot of movements in the writing of Islamic economic thought and policy either by contemporary exponents or by the earlier scholars. 32 Therefore, the assumption should be valid, and there is no time frame for the development of Islamic economics. It is undeniable that there is not any systemized Islamic economic system, for example, in the Muslim world today. The thought and the implementation sometimes flow to different streams. Yet, this is not an excuse to halt the progress of developing Islamic economics. Islamic economics is time-proof; thus, it is valid in the modern world. It should be applicable to the entire world population. CONCLUSION Islamic economics is a nascent discipline compared to modern economics. However, the Islamic approach to economics began as early as Islamic teaching itself i.e. during the life of the Prophet Muhammad (s.a.w) more than 1400 years ago. Nevertheless, the development of a more coherent and distinctive discipline of Islamic economics, either the making of a pure Islamic economics or the Islamization of contemporary economics, has created great interest among the dedicated Muslim economists in the present day. The paper basically tries to highlight an Islamic approach to economics followed by numerous contemporary scholars, especially economists. Some scholars tend to advocate the development of a pure Islamic economics, while others attempt to Islamize the knowledge in current economics. A great deal of literature has discussed both issues, and the effort might be categorized under the Islamic economics subject. The paper has presented some ideas on the Islamization of knowledge or economics by al-faruqi, al- Attas, Siddiqi, Hassan, Nik Hassan and Chapra, whereas names such as Haneef, Hassan, Hassanuzaman, and Akhtar just to cite a few have contributed most of their views to the concept of Islamic economics. The paper also briefly discusses some selected issues in economics from the Islamic perspective. It brings together scholars thought on the Islamic worldview, the al-falah concept, definition and some fundamental issues. The worldview, for instance, is determined by the Islamic framework where all the underlying philosophies and main principles are extracted from the equivalent sources as to the Islamic laws. In term of the definition, in essence, Islamic economics presents Islam s viewpoint on the human economic situation. In addition, the Islamic economic system should be extended and must be made applicable to all mankind. It is not just restricted to Muslims, or to Godconscious man. However, only the latter type of man will put Islamic economics into its place. An economic agent under Islamic economics should have both self-interest and altruistic norms as his characteristics. These are fundamentals, as fulfilling self-interest and social obligation are among the keys towards reaching self-achievement. However, the limit of 32 E.g. of both references, Readings in Islamic Economic Thought by Sadeq and Aidit (1992) and Contemporary Islamic Economic Thought: A Selected Comparative Analysis by Haneef (1995). 11

13 self-interest is reached when it contradicts social interest. The scope of Islamic economics is very broad. It analyses and guides human behavior regarding the allocation, production, distribution and consumption of resources, plus it injects the hereafter factor into the spirit. The success in hereafter (al-falah) is the ultimate objective of the economic activities. To conclude, the author wholeheartedly supports the effort to develop Islamic economics from various exponents. The concepts and methodology of Islamic economics are as equally important as the creation of the Islamic institutional framework itself. Developing Islamic economics should be an ongoing process; however, the fundamental and its worldview should be obviously on hand so that the effort to derive onto Islamic economics stucture is possible. The right worldview will shape the correct method of doing things. Thus this can result in the fulfillment of the purpose of man, as an abd and khalifah in this world. Man is the best creation and deserves to be in the best place. Let us be part of the assembly, insyaallah. Wallahua lam. REFERENCES Abdul Kader, Radiah Ekonomi Islam. Kuala Lumpur: Univision Press Sdn. Bhd. Abdullah, Yavas Experimental Tests of the Homo Economicus: The Implications for the Research on Islamic Economics. Harvard Islamic Finance Information Program. Cambridge. Abu Sulayman, Abdul Hamid Ahmad The Theory of the Economics of Islam (I). IIUM Journal of Economics & Management. 6. (1). Abu Sulayman, Abdul Hamid Ahmad The Theory of the Economics of Islam (II). IIUM Journal of Economics & Management. 6 (2). Abul Kalam, S.M The Basic Principles of Islamic Economics. Journal of Islamic Banking and Finance. 8 (3). Acikgenc, Alparslan Islamic Science: Towards a Definition. Kuala Lumpur: ISTAC. Afzal-Ur-Rahman Doktrin Ekonomi Islam: Jilid III. (Translator: Zaharah Salleh). DBP and KPM. Afzal-Ur-Rahman Doktrin Ekonomi Islam: Jilid IV. (Translator: Osman Ahmad and Mazni Othman). DBP and KPM. Ahmad, Khurshid Kajian Dalam Ekonomi Islam. (Translator: Sibly Maros and Amir Hussin Baharuddin). Dewan Bahasa Pustaka. 12

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16 Mannan, Muhammad Abdul The Frontiers of Islamic Economics: Some Philosophical Underpinnings. Toward Islamization of Disciplines. Mawdudi, Sayyid Abul A la Towards Understanding Islam. Leicester: Islamic Foundation. Mawdudi, Sayyid Abul A la Let Us Be Muslims. Kuala Lumpur: The Islamic Foundation, A.S. Noordeen. Muhammad Arif The Islamization of Knowledge and Some Methodological Issues in Paradigm Building... AJISS. 4 (1). Muhammad Baqir al-sadr Iqtisaduna. Beirut. Nasr, S.V.R Islamisation of Knowledge: A Critical Overview. Islamic Studies: Nik Hassan, Nik Mustapha Islamisation of Malaysian Economy: A Philosophical Approach. Lights on Islamic Economics. 2 (1). Pramanik, Ataul Huq. Islamization of Economics, (unpublished). Sami M. Abbasi, Kenneth W. Hollman and Joe H. Murrey Islamic Economics: Foundations and Practices. International Journal of Social Economics. 16 (5). Sardar, Ziauddin Islamic Futures: the Shape of Ideas to Come. Chapter 9. Kuala Lumpur: Pelanduk publications. Sayyid Tahir, Aidit Ghazali, Syed Omar Syed Agil Readings in Microeconomics: an Islamic Perspective. Longman Malaysia Sdn. Bhd. Shahih Bukhary (Malay ed.). Jilid IV, V & VI, Kuala Lumpur: Victory Agencie. Siddiqi, Muhammad Najatullah Islamizing Economics. IIIT. Siddiqi, Muhammad Nejatullah Muslim Economic Thinking: A Survey of Contemporary Literature. (Translator: Mohd. Amin Abdullah). Kuala Lumpur: DBP. Taleghani, Ayatullah Sayyid Mahmud Features of Islamic Economics. Society and Economics in Islam. US: Mizan Press. Berkeley. Yusof Ali, Abdullah The Holy Qur an. Saba Islamic Media. 15