What Makes Islamic Economics A Moral Economy? Essay

What Makes Islamic Economics A Moral Economy? Essay

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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 of distributional equity.
Tawhid is a concept of oneness. 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 gr...

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...e time will destroy the houses of people under poverty, Islamic Economics tells us that it is not rational since he will improve his wealth while destroying others.
From the above discussion, it is clear that the concept of socio-economic justice is an important element of Islamic Economics. Islamic Economics is the economics that does not separate morality from the economics itself. Therefore, Islamic Economics can be defined as follows:
“Islamic Economics is the science that studies how the society should allocate their resources in order to meet welfare; materially, and socially, without leaving the morality behind”.
To conclude, the presence of moral values in its basic principles, its objectives which reckon social justice as more important than self-satisfaction, and the existence of moral values in its rationale are what makes Islamic Economics a moral economy.

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