ISLAM AND ECONOMICS

DEFINITION: ISLAM ECONOMY IN ISLAMIC FRAMEWORK ECONOMY AS WORSHIP

What is definition of Islam?

 Islam is derived from the Arabic word aslama i. peaceful and hapiness. ii. Submission/ obedience or surrender. Islam : the religion called Islam is grounded in the concept of peace in and through ones submission to the authority and will of Allah ( God) Submission to the Will of God and obedience to His law Allah SWT says in the Quran : When his Lord said to him, Submit, he said, I have submitted to the Lord of the worlds.. (2:131)

What is the relationship between religion and economics?

 Michel Mayer, (Instructions Morales et Religieuses, lere leson) defines religion as the set of beliefs and precepts which must guide us in our conduct toward God, other people and toward ourselves. M.Abdullah Draz summarized as a chart of conduct. The message of the Prophet Shuaib was basically an economic message. The Quran reports him as saying: Will you not fear Allah? I am to you an apostle worthy of all trust. So fear Allah and obey me. No reward do I ask of you for it; my reward is only from the Lord of the Worlds. Give just measure and cause no loss (to others by fraud). And weigh with scales true and upright. And do not withhold things justly due to men, nor do evil in the land, working mischief.(26:178-183)

 Islam consists of a set of beliefs which organizes the relationship between the individual and his creator; between the person and other human beings; between the person and universe; and even the relationship of the person to himself. In that sense Islam regulates human behavior, and one human behavior is economic behavior. Economic behavior is dealt by Muslims as a means of production, distribution, and consumption of goods and services. In Islam, human behaviorwhether in the economic area or other areasis not value free nor is it value neutral; it is connected with the ideological foundation of the faith.

Figure 1:

Islam (way of life)

Aqidah (faith)

Shariah (practical actions)

Akhlak (ethics, behaviour)

Ibadat (man and God code of conduct)

Muamalat (man and man code of conduct)

Politics

Economics

Social

Banking and Finance

Other Sectors

Islam consist 3 basic elements: 1) Aqidah concerns all aspects of faith and belief of a Muslim in Allah and His Will. 2) Shariah concerns with all forms of practical action taken by Muslim in manifasteing his faith and belief. 3) Akhlak covers all aspects of Muslim behaviour, attitudes and work ethics with whice he performs his practical actions.

What is shariah?

 Literally : the road to the watering place, the straight path to be followed Technically : the canon law of Islam, all the different commandments of Allah to mankind.

What is Fiqh?

 Fiqh is derived from the root word of fa qa ha which literally means comprehension or true understanding. Imam Abu Hanifah : the knowledge of what is for mans self and what is against mans self. Al-Amidi : the science of understanding the legal obligations derived from its sources (i.e. Quran, Sunnah and other sources of Islamic law) Technically : the science of Islamic law is the knowledge of ones rights and obligations derived from the Quran or Sunnah of the Prophet, or the consensus of opinions among the learned(ijma) or analogical reasong (qiyas).

 In Islamic framework, fiqh divided into four:

Fiqh Ibadah Muamalat Munakahat Jinayat

Fiqh Ibadah - Prayer - Fasting - Almsgiving (zakat) - Pilgrimage (hajj)

Fiqh Muamalat
Commercial transcations Management of finance of the state Administration of justice The rights of non-Muslims in an Islamic state The relationship between an islamic government and a foreign goverment The political system in islam Other laws governing the relationship between man and other Allahs creature

 Fiqh Munakahat:
Marriage Divorce Inheritance, guardianship and related matters.

Fiqh Jinayat
Unlawful sexual intercouse (zina) theft (sariqah), Robbery (hirabah) False accusation of unlawful sexual intercouse (qazaf) Drinking of liquor (shurub alkhamar) and other matters

SHARIAH
The wider circle, includes all human actions

FIQH
Confined to what are commonly understood as human acts as far as their legality and illegality are concerned

Body of revealed injunctions found both in the Quran and Sunnah 3 main components

One components of the shariah

SHARIAH
Fixed and unchangeable.

FIQH
Certain ruling of fiqh changes according to the changes of the circumstances under which they are applied.

Based on revelations on which the knowledge is only obtained from the Quran and Sunnah

The power of reasoning is stressed and deductions based upon knowledge are continuously referred to with approval

SHARIAH
Rules which is explicitly mentioned by the text of Quran & Sunnah without any ambiguity (sarih) in its meaning and inference to a particular rule, example zakat, fasting and prayer.

FIQH
Rules which the full grasp of the knowledge relies on the human understanding and deduction from various sources.

WAAJIB/MUST MAKRUFAT

MANDUB/RECOMMENDED MUBAH/ALLOWED MAKRUH/HATED

MUNKARAT

HARAM/PROHIBITED

Fardh

That for which the one who performs it is rewarded, whilst the one who abandons it is punished. Avoid in involving in riba activities either as the riba taker or the riba giver.

(Must)
That for which the one who performs it is rewarded, whilst the one who leaves it is not punished. This category is recommended for the Muslim to do such as donation and the recording of the debt..

Mandub (Recommended)

Mubah

This category is left undecided and left for the person.Doing or not doing the Mubah does not count as a good or bad deed. Intention of the person can change Mubah to Fardh, Madub, Makruh or Haram. All contracts and transactions are permissible.

(Allowed)

Makruh (Hated)

This category is a detested and hated such trade in the mosque. Not doing the Makruh counts as a good deed and doing it does not count as a bad deed

This category is prohibited for the Muslim to do such as stealing, lying, riba in banking and misappropriation of anothers wealth. Doing the Haram counts a bad deed Haram and not doing it counts as a good deed. (Prohibited)

 Means worship "Worship means submission" (Lisan al-'Arab). "He prayed to Allah means he worshipped Allah". Who is the worshipper of Allah? Allah said in Quran (62:9-11):
O ye who believe! When the call is proclaimed to prayer on Friday (the Day of Assembly), hasten earnestly to the Remembrance of Allah, and leave off business (and traffic): That is best for you if ye but knew! And when the Prayer is finished, then may ye disperse through the land, and seek of the Bounty of Allah. And celebrate the Praises of Allah often (and without stint): that ye may prosper. But when they see some bargain or some amusement, they disperse headlong to it, and leave thee standing. Say: "The (blessing) from the Presence of Allah is better than any amusement or bargain! and Allah is the Best to provide (for all needs)."

Right aqidah Right intention Work based on Islamic needed Methods doing the work should align with Islamic needed Give a right impact and bring benefit to all people Completeness the worship that must be done.