1. The document discusses the concept of scarcity from both secular and Islamic economic perspectives. 2. Secular economics views scarcity as limited resources being unable to meet unlimited human wants, while Islamic economics sees it as a problem of inefficient distribution rather than absolute lack. 3. Both perspectives acknowledge scarcity, but Islamic economics emphasizes relative rather than absolute scarcity, and sees discovery of new resources and knowledge as possible solutions according to Allah's will.

1. Bismillahi Rahman Rahim
Secular view on scarcity.
In conventional economics, Scarcity (also called paucity) is the fundamental economic problem of
having seemingly unlimited human wants in a world of limited resources. It states that society has
insufficient productive resources to fulfill all human wants and needs. The notion of scarcity is that there
is never enough (of something) to satisfy all conceivable human wants, even at advanced states of
human technology. Scarcity involves making a sacrifice, giving something up, or making a tradeoff in
order to obtain more of the scarce resource that is wanted. The condition of scarcity in the real world
necessitates competition for scarce resources, and competition occurs "when people strive to meet the
criteria that are being used to determine who gets what."
This brief explanation builds the impression that the resources are fixed and depreciating in quantity
over time yet the human wants are unlimited causing a negative effect on resource availability
Islamic view on scarcity.
In Islamic economics, attaining Falah rotates a lot around the aspects of how scarcity is understood and
managed in society. Islamic economics recognizes scarcity in a different perspective as it will be drawn
from the following distinct scholars.
Drawing from two scholars namely Khan A.M. (1984), “Islamic Economics: nature and need”, journal
of Research in Islamic Economics, Vol. 1 No. 2, p.55. and Hassan, Z. (1996), Book Review: An
Introduction to Islamic Economics, Khan defined Islamic economics as the study of human Falah
achieved by organizing resources of earth on the basis of cooperation and participation. Hassan defined
Islamic economics as the study of human behavior concerning the use of scarce resources for satisfying
multifarious wants in such a way as would maximize Falah.
Drawing from the definition by Mr. Khan, he points out that:-
1. The sole cause of scarcity is the ineffectiveness of the distribution and utilization of resources by
humans and he is on the assumption that they are adequate.
2. This also conforms to the fact that it does not go against the name of Allah of being The Sustainer
(Al-Razaq) meaning that he made provisions on this earth sufficient for all his creation living on
Earth highlighted by this verse “How many are the creatures that carry not their own sustenance? It
is Allah Who feeds (both) them and you: for He hears and knows (all things).” (Al-Ankabut: 60).
3. On the point of organizing resources, Libya is a good example when it built a man made river to
improve water supply in the desert areas away from river Nile.
4. As for the inequality of distribution, he bases on the fact that Allah bestows rizq as he best wills in
Surat Al-Imran: 37 “So her Lord (Allah) accepted her with goodly acceptance. He made her grow
in a good manner and put her under the care of Zakariya (Zakariya). Every time he entered Al-
Mihrab to (visit) her, he found her supplied with sustenance. He said: "O Maryam (Mary)! From
where have you got this?" She said, "This is from Allah." Verily, Allah provides sustenance to
whom He wills, without limit.”
However drawing from Mr. Hassan’s definition, we note that:-

2. 1. He acknowledges that there is a problem of scarcity of resources in existence and the multifarious
(Having many varied parts or aspects) wants of man.
2. He bases on the fact that Allah also acknowledges the insatiable desire for more wealth in man in
some of his verses and hadith for example Anas bin Malik (may Allah be pleased with him) narrated
that the messenger of Allah (may Allah’s peace and blessings be upon him) said: “The son of Adam
(i.e. man) grows old and so also two desires grow old with him; love for wealth and a wish for a long
life.” [Bukhari: Book 8: Volume 76: Hadith 430].
3. In addition to that, from his book, he says that drawing from the views of Akram and others in
respect to scarcity, it is the failure to realize the fact of the existence of ample resources for human
beings and others at all points in time and space is one thing, while their availability to individuals or
groups at a given hour and location and in the required qualities is quite different. It is not the
existence of resources as they say, but the state of their availability builds the meaning to the idea of
scarcity as a cornerstone also in Islamic economics too.
4. He also says that the availability of resources is rather an improvement of knowledge of their
existence, extraction, modes of utilization and their costing. In support to this, it can be shown in the
history of America, J. Rockefeller an oil mogul only knew that the only marketable part of crude oil
was kerosene and stored away petrol and diesel because they were highly flammable as a waste
material. Due to financial competition from his peers namely Cornelius Vanderbilt, Henry Ford and
J.P. Morgan, he sought ways of benefiting more from the crude oil and pioneered the development
of combustion engines which made use of his waste product and make more profits. Furthermore
Allah bestowed Uganda with knowledge of Oil in history but the exploration took a while and
exploitation is also far.
After the analysis of all the derivatives of scarcity from both definitions, I realize that both are right to
some extent and in aggregation of both I say that:-
 There is relative scarcity rather than absolute scarcity of resources that need to be utilized
efficiently, effectively and sparingly.
 Man was created with natural greed for more hence unlimited human wants but Allah ordained
restraint on this for the pious
 There is need for search for knowledge of more provisions yet to be discovered and better means
or methods of getting more utility or uses from the resources at hand.
 There is God given inequality of resources as a test of Man hence Allah ordained all ways of
distributing to those experiencing relative scarcity. Distribution is related to charity and is the
only ibadat that has no limit and the least rules compared to the other ibadat in Islam.
 In respect to adequacy of resources, there is no known limit to the quantity, quality and use of
productive resources on the planet earth except that which is known by Allah.
 The timing of Discovery of knowledge of existence of new resources and better ways of
utilization lies in the hands of Allah who knows when best to bestow it on who he wills at the
best time.
 The rate of population growth lies in the hands of Allah so it’s not a mistake but a will of Allah.

3. References
 “The concept of scarcity and its influence on the definitions of Islamic economics, A critical
Perspective.” By Amir Wahbalbari, Zakaria Bahari and Norzarina Mohd-Zahrim. Department of
Social Sciences, Universiti Sains Malaysia, Pennag, Malaysia.
 Khan A.M. (1984), “Islamic Economics: nature and need”, journal of Research in Islamic
Economics, Vol. 1 No. 2, p.55.
 Hassan, Z. (1996), Book Review: An Introduction to Islamic Economics,
 Al Qur’an karim
 Sahih Bukhari
 www.wikipedia.org
 “The men who built America” The history channel documentary

4. Islamic University In Uganda
Kampala Campus
Course: BIBF
Course Unit: Principles of Islamic Economics
Lecturer: Dr. Kasule Taha
Date: May 21, 2017
Name Reg Number signature
1. Mikidad Ratib 216-033031-09200 ………………….……………
Assignment 2 question.
Identify any economic concept of your choice.
Explain what the Islamic world view says about the concept.
Discuss the secular and Islamic world view opinions concerning the
concept.
Provide your opinion based on what you have found.