Importance Of Islamic Economics

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While at first it might appear that Islamic Economics is just a kind of economics with the moral values, a closer look reveals that its values are what makes it not a pure economics but instead a moral economy. This essay will demonstrate why should Islamic Economics be considered as a moral economy rather than economics by discussing the foundational principles, the economic objectives, the real problem of the economy in the developing countries, and the economic rationale. The final part of the essay will define what makes Islamic Economics a moral economy.
Choudhury (1983) illustrates that there are 3 fundamental basis of Islamic Economics; the principle of Tawhid and Brotherhood, the principle of work and productivity, and the principle
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According to Choudhury (1983), In the economy, it encapsulates the essential meaning of Islamic Economics, which teaches us how to build a business relationship, and, moreover, acknowledges God’s existence in every activity we run. To establish the principle of Tawhid and Brotherhood, Islam forbids riba; exploitative gains of money made in trade, and teaches us to redistribute our individual and national income. One underlying substance of the economy besides the working of the economy based on market exchange, allocation of resources, as well as maximising utility together with profits, that Islamic Economics considers as the major crucial matter; economic justice.
Pursuing this further, the second fundamental basis of Islamic Economics is the principle of work and productivity. It states that a labourer 's wage must be equal to the amount and also the group of work performed by him. On the side of the employer, when he gets income greater than what is due to him by dint of his input of labour as well as other resources, which produce this income, he commits rububiyyah; a sole trader of the means of production. Islamic economics belief is that all the production belongs to God. A person who exceeds the limit has violated the principle (Choudhury,
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Morality is the governing normative standpoint (Skorupsi, 1993). Morality is beyond law or regulation. It is a person’s perspective toward something, standards of behaviour, and the principles of right or wrong. If he or she thinks alcohol will not affect his soberness, even if the law forbids it, he will still drink it. To sum up, moral distinguishes legitimate from illegitimate practices based on one’s belief (Thompson, cited in Arnold,
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