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,
In the essay “Judaism and Economic Reform”, Norman Solomon, a Jewish-American journalist, presents a compelling argument on the basis of the need for economic reform while providing simple religious base solutions. While discussing two major economic problems that plague the world’s current economy, Solomon introduces the Jewish view of the global economy and their general view on economics as a whole. With this introduction to the Jewish worldview of economics we as readers are able to transition into understanding Solomon’s solutions of education & using Jewish law to improve the current state of the global economy. Although Solomon’s ideas of education and relying on Jewish law to improve the global economy seem logical, Sallie McFague, a Christian theologian, provides a different yet similar viewpoint of improving the global economy in her essay “New House Rules: Christianity, Economics, and Planetary Living”. Her discussion of ecological and neo-classical economics forces the reader to revert back to Solomon’s essay to analyze his methods of fixing the current global economy.
The document explains how the Muslims thought that the marketing there might be a sin and would be punished by their god. The document talks about religious aspects and philosophical system in trade. How if both parties were honorable and told the truth about their possessions than they would be blessed. Yet if they lied or didn’t say the complete truth, than their blessing would be gone. Document two is from “A Muslim View of the Characteristics of Traders” and is written by Ibn Khaldun in the 14th century. “This is why [religious]Law allows the use of such methods.” This explains how in Ibn Khaldun’s travels there were also a philosophical system for religion. “This necessitates flattery, and evasiveness, litigation and disputation, all of which are characteristics of this profession. And these qualities lead to a decrease and weakening in virtue.“ This states that trade is the reason for the decreasing in what is good in the world. How due to trade, the good in people are weakening and causing more evil than good. The document also talks about how Ibn Khaldun, and his community solved the issue by the use of law enforcements. This shows how they saw
Adam Smith has developed and created the most influential works of economic, philosophy and beyond. Adam Smith made an economic model for his theory involving the economic market through his books. Adam Smith produced his own book titled “The Theory of Moral Sentiments” which revolved around morals of humans and mercy toward a person or a community. On the other hand, the book did have a slight vision of the rejection of loving yourself and the slim idea what an individual wants for his or her self. Adam Smith also produced another book titled “An Inquiry into the Nature and Causes of the Wealth of Nations” that was based on the concept of the politics of economy. This book also gave the idea that wealth’s amount is determined by the amount of work not by length. Adam Smith’s book eventually g...
Rahman, Fazlur. Islam & Modernity: Transformation of an Intellectual Tradition. Chicago: U of Chicago, 1982. Print.
Morality is the differentiation of intentions, decisions, and actions between those that are "good" (or right) and those that are "bad", but who dictates the morals of society?. The government actually takes a big chunk of credit for giving society its current morals. The role of the government in morals of society should be to dictate them in “hope” of a society in constant improvement and try to eliminate possibility of chaos. Not all morals are dictated by the government because we are born with a human nature, but the government should enforce on this already planted morals and further expand them. In other words, the government laws are just an attempt to back up what is (or should be) already implanted on our brains.
What is morality? Merriam-Webster dictionary states that morality is/are the beliefs about what right behavior is and what wrong behavior is
A decent number of people find it easy to consider poverty as ‘will of God, ' therefore, absolving themselves of any blame for the miseries created by the poor conditions in the society. In regard, they also draw one’s attention to several references in the Holy Bible to make their point. Likewise, there are some people, who highlight the importance of charity and spending on the poor people to alleviate poverty. Nearly all the Muslim societies have many believers affirm that poverty cannot prevail if all wealthy Muslims just paid their Zakat regularly. Some people even believes in going to the extent of claiming that the implementation of the Islamic system of Zakat would bring so many resources that the nation would not need to apply any other tax to manage its affairs. However, such claims cannot be supported by some research or reliable data. Away from the will of God scenario, corruption is one of the leading causes of poverty. Even more, all countries have corruption, even affluent governments. Corruption does not negate all that is right or explain all that is bad. There are some nations have corruption extensive, painful as it is, according to “Corruption Is Just a Symptom.” in Wall Street
The authors examine scripture from various places in the bible to make their case that the bible is full of economic advice. Additionally, the authors state (2010), “for centuries, cultures have looked to the Bible as a rich resource that has helped people think about the way morality and economics come together.” (Hill & Rae, 2010, p. 23) The author’s most basic understanding is that morality and economics are intertwined, and in order to fully understand economics one must understand the bibles economic standards. The authors laid out seven biblical teachings on issues such as economics, wealth creation, poverty, injustice, and assets throughout the book.
To act morally means one must think and act in such a way that always considers, supports, and attempts to improve general welfare; furthermore, such thoughts and actions must occur because of moral intentions, not just because one has to. Also, pre-defined rules exist for the common good and these rules help with moral judgment. Such rules would include “no killing”, “no stealing”, and “no lying”. These don’t exist to provide an advantage or cause disadvantage—they exist simply for the good of every individual. To have morality means one must always adhere to these rules no matter the consequences, who is affected, or how it happens, because they only ensure the most good for everyone. However, one’s own standards for morality must also remain considerate of that of others’.
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
According to Sloman (2003), many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend; what is costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. It is concerned with the production of goods and services and the ...
This model should connect different organizations in the Muslim world together and should give a deep insight about the main principles that motivate people and organizations. This model should also offer a better understanding of the situational and cultural factors that exist in Muslim societies (Ali, 2009). Moreover, developing such a model can help to understand the nature of leadership and to understand the factors that help shape leaders in the Muslim world. Additionally, the model will offer researchers an opportunity to understand Islamic culture and the complex environment at economic organization and the developmental and organizational issues in many Muslims countries (Ali, 2009). It will also help to limit the gap between leaders and followers in Muslims societies because organizations in Muslim societies suffer from deep and serious crises (Ali, 2009). These crises can be solved when managers and policymakers in the Muslim world become more pragmatic. They also should know the differences between what is ideal and what is reality, and to know when they should adopt the principles of their faith (Ali, 2009). Furthermore, while Islam is spreading around the world, tribalism remained entrenched in Arab politics and social organization and confusion has persisted for many non-Muslims about what Islamic,
Both law and morality serve to regulate behaviour in society. Morality is defined as a set of key values, attitudes and beliefs giving a standard in which we ‘should’ behave. Law, however, is defined as regulating behaviour which is enforced among society for everyone to abide by. It is said that both, however, are normative which means they both indicate how we should behave and therefore can both be classed as a guideline in which society acts, meaning neither is more effective or important than the other. Law and morals have clear differences in how and why they are made. Law, for example, comes from Parliament and Judges and will be made in a formal, legal institution which result in formal consequences when broken. Whereas morals are formed under the influence of family, friends, media or religion and they become personal matters of individual consciences. They result in no formal consequence but may result in a social disapproval which is shown also to occur when breaking the law.
Our group have been assinged to discuss on the topic above but in Islamic Banking perspectives. Therefore, before going any further, let us clarify definition of the Principles of Islamic Banking and clarify what are the elements involve in the Principles of Islamic Banking. Beside, we will also do some comparison of product or services offered by both banks which are conventional and Islamic banking. Apart from that, we will also clarify the problems or challenge faced by the agency which practices the Islamic banking in their agency.
...etween Islam and western civilization. The differences in the belief, rituals, and the culture. Islam has some common features with western civilization. Throughout this paper, the most surprising fact that I found out was the contribution of Islam to the modern world, which were geometry, algebra, geography, physics, science, trigonometry, sine, tangent, and co-tangent. The lesson that I learned from this paper would be about the five pillars. Even though, every single pillar doesn’t apply to me the second pillar which represents prayer was a great lesson to be learned. It also revealed to me how important is the role of prayer in Islam society. Overall, it was a great experience learning about the Muhammad life, Quran, Hijrah, core beliefs of Muslim, contributions of Islam to the modern world, and this research helped me to understand more in depth about islam.