4. EPISTEMOLOGY IN
ISLAM
•Process of systematizing the worldview into economic
vision, then to economic theory based on epistemology
•Epistemology: theory of knowledge is the branch of
philosophy concerned with nature and scope (limitations) of
knowledge.
•Process of developing Islamic economics differs from conventional
economics
•Evaluation of knowledge based on sources of knowledge in Islam
• In Islam, knowledge can be gained by:
• Referring to scriptures - revealed to man directly (via Prophets)
• Man endowed with sense and intellect (‘aql)-strive
5. EPISTEMOLOGY IN
ISLAM
•In Islam, central position or importance of
•Revelation i.e. the Quran and Sunnah
•The ultimate authority, point of reference
•Provides foundation upon which senses and intellect function
•Western epistemology
•Central position of scientific method
•The only valid method
6. CHANNELS OF ACQUIRING
KNOWLEDGE
•In Islam, knowledge is acquired through channels:
• True narration: word of God brought by the Prophet and
sunnah
• Established by past scholars: can be reviewed
• Sound senses: perception through five senses; observation
• Sound reason and intuition: intellect/ ’aql, sound reasoning
connected to heart/ qalb /intuition or spiritual heart and intuition
•Sources of knowledge
• Primary sources: revelation and sunnah
• Secondary sources: ijtihad
7. ISLAMIC ECONOMICS
•Relatively new areas of study
•Methodology discusses
• Process of building models
• Developing theories
• Testing hypothesis
• Establishing and using criteria to evaluate our process
• How do we know that our models, theories and hypotheses
are correct and on what authority do we say so
8. ISLAMIC ECONOMICS
•How do we use the Quran in the process of developing
Islamic economics and finance?
Islamic Islamic Islamic
Worldview Economic Economic
Vision Theory
Quran and other sources provide the guidelines and this
entails a process of deriving answers based on sources
9. ISLAMIC ECONOMICS
•From definition of Islamic economics
•Find values/rules directly in the sources
•If not directly available, then have to “derive” the meaning
•Most economic applications will have to be derived
•Need to understand Islamic worldview especially Islamic
vision of economics
•Islamic / shari’ah boundries of economics and finance must be
determined
•Shari’ah must be interpreted and applied
11. SHARI’AH
•Literal meaning: Path to watering place; path to guidance
•Technical meaning: path to tread for guidance in this
world; commands, prohibitions; values
•Divine guidance to man for achieving success. Guiding
human action 5 categories:
•Wajib (obligatory): doing gives reward, not doing is a sin
•Mandub (recommended): doing gives reward, not doing is not
sinful
•Mubah (permissible)
•Makruh (reprehensible): not doing gives reward, doing is not
sinful)
•Haram (forbidden): not doing gives reward, doing is sin
12. FIQH
•Literal meaning: Understand
•Interpretation of shari’ah
•Human effort and product of human ‘aql
•Knowledge of practical shari’ah laws (and principles and values)
derived from particulars of supporting evidence (either primary or
secondary)
•Interpretation follows certain rules and regulations,
procedure and criteria, i.e. usul al-fiqh
13. USUL AL-FIQH
•Knowledge of principles and methods leading to derivation
of fiqh
•To interpret shari’ah
•Man must use our ‘aql
•Follow the methodology in Islam, i.e usul al fiqh
•In interpreting shari’ah, it is a must to also understand the
objectives of the shari’ah (maqasid al-shari’ah):
•Educating the individual
•Establishing ‘adl (justice)
•Promote welfare (maslahah)
•Process of interpreting the shari’ah requires intellectual
assertion i.e. ijtihad
•Methodology of deriving fiqh
•Discussed under ijtihad (intellectual assertion)
14. INTERPRETING SHARI’AH
•To interpret shari’ah
•Man must use our ‘aql
•Follow the methodology in Islam, i.e usul al fiqh
•In interpreting shari’ah, it is a must to also understand the
objectives of the shari’ah (maqasid al-shari’ah):
•Educating the individual
•Establishing ‘adl (justice)
•Promote welfare (maslahah)
•Process of interpreting the shari’ah requires intellectual
assertion i.e. ijtihad
15. INTERPRETING SHARIAH
•Ijtihad performed by mujtahid or groups of scholars (group
ijtihad)
•3 kinds of ijtihad
•Select among different existing opinions
•Modifying existing opinions
•Making new opinions
17. •Stages in producing fiqh i.e detailed application of
shari’ah in economics and finance matters
• Understand Islamic worldview
• Establish Islamic economic vision
• Refer to primary sources of shari’ah, i.e. Quran and hadith
• Refer to works of past and present scholars of Islam and Islamic
economics
• Refer to contemporary economics and finance
• Establish principles, laws, assumptions, hypothesis models based on
(1)-(5), i.e. tentative theory (what should be)
• Test hypotheses and models, i.e. empirical studies (what is) if what is
≠ what should be
• Recheck (1) – (7) if still what is ≠ what should be
• Put forward policies to change the what is to conform with what should
be
