The Nature of excessive Behaviour in Islamic Economic Framework : An Investigation

1. Presented by
Zein Muttaqin
At
ISEFID Weekly Discussion
Venue: PLB of KENMS
30 March 2018
The Nature of Excessive
Behaviour In Islamic Economic
Framework: An Investigation

2. § The availability of many conventional theories and models of consumer behavior
were seen inadequate to educate consumers on how to consume ethically,
eventually to overcome the current consumption issues, such as wasteful use of
resources, labour and capital (Adnan, 2011).
§ This trends is asserted by Anup Shah (2008) that
“Today‘s consumption is undermining the environmental resource base. It is
exacerbating inequalities. And the dynamics of the consumption-poverty-
inequality-environment nexus are accelerating. If the trends continue without
change — not redistributing from high-income to low-income consumers, not
shifting from polluting to cleaner goods and production technologies, not
promoting goods that empower poor producers, not shifting priority from
consumption for conspicuous display to meeting basic needs — today‘s
problems of consumption and human development will worsen.”
Introduction

3. § The very manner of rational consumer who comes up to decide of
purchasing goods or services defined as consumer behaviour (Cornescu &
Adam, 2015).
§ Most of theory in discussing of consumer behaviour is related how the
consumer made decisions over they preferences on goods also the
ultimate utility values that will be perceived (means maximizing the utility
values).
§ Khan (2013) criticized that the theory of consumer behaviour is ignoring
the role of ethics in consumer's decision making is bound to leave out
such pressing economic problems like alleviation of poverty and
sustainable development outside the mainstream of economics.
Consumer Behavior Revisited

4. Traditional Consumption Behaviour
High Utilitarian
Reinforcement
Low Utilitarian
Reinforcement
High Informational
Reinforcement
ACCOMPLISHMENT ACCUMULATION
Low Informational
Reinforcement
HEDONISM MAINTENANCE
§ Accomplishment are maintained by high levels of both utilitarian and informational reinforcement and
may include conspicuous consumption behaviors such as buying status cars
§ Hedonism are characterized by high levels of utilitarian reinforcement and are usually reinforced by
entertainment—for example, watching popular TV programs might be placed in this category.
§ Accumulation are principally reinforced by informational reinforcement and may include collecting
trading stamps or points in a loyalty program (for a supermarket).
§ Maintenance are routine behaviors necessary to sustain one’s physiological being (eating, sleeping) and
to function as a member of a social group, or a citizen in society (paying taxes for inescapable
consumption or getting a passport).

5. § The Islamic faith values consist of the fundamental concepts and
the Shariah statements that govern a Muslim’s individual relationship
with the Almighty Allah and determine his belief holding.
§ As for the ethical values, they correspond to the positive attributes
that govern the individual relationship with the people through the
fundamental principles and human law statements.
§ Subsequently, these latter live up the ethical values that could
interact positively with the faith dimension to produce habits and
natures that make the individual fair with his/her community and
inspire the community to be fair with its individuals.
Islam and Muslim Decision Making Relationship

6. Needs and Maqasidh Al Sharia
Tahsiniyat
Hajiyyat
Dharuriyat
Faith
Intellect
LifeProperty
Posterity
§ Dharuriyat, the level where the
above five elements are barely
protected.
§ Hajiyyat, the level where the
protection of the above five
elements is complemented to
reinforce their protection, and
§ Tahsiniyat, the level where the
above five elements are either
ameliorated or refined

7. Islamic Core of Consumer Behavior
Tabdzir Israf
Avoidance
of
Excessive
Consumption
Wasteful
Consumption
In terms of definitions, some people equate definitions of israf (excessive) and tabdzir
(wasteful) as extravagance behavior

8. In conventional framework of analysis of consumer behaviour at micro level, it is not
possible to identify waste because a rational consumer always equates relative
utility to relative prices. However, conventional economic science tends to limit
their attention of the wasteful subject.
Hence, waste should be recognize in manner of,
Wasteful In Economics
Spends more on a commodity than needed
Consumes more of a commodity than needed
Spends on needs of lower order, at the cost of meeting higher
order needs
Spends on non need commodities, commodities that do not
contribute positively to the consumer's wellbeing

9. § Islam is a religion of moderation and opposes every form of excess and extremism.
§ A person who is immoderate in his personal and social life is most likely to be either
immoderate or extreme in his religious views.
§ The religious or intellectual perception of an individual is deeply influenced by his
own actions and behavior patterns. This
Islamic Consumption Patterns
Islamic Consumption
Pattern
Miserly Consumption
Moderate
Consumption
Prodigally
Consumption

10. § The consumption system in the Islamic economics contains a large
number of consumption spending models between two thresholds.
§ First, a minimum of the spending that does not descend below the avarice
threshold
§ Second, a maximum of the spending that does not exceed the excessiveness
threshold.
§ This multiplicity of spending models will be reflected in the elasticities of the
consumption spending by the disposable income or the budget spending.
§ The diversity of spending will be detailed in the next section to address the
Islamic consumer model. There is an interval of admissible consumption
corresponding to many consumption behaviors according to the layers of
earning as indicated by Shaibani :
Cont’d

11. “There are many layers of earning, the amount that must be available for each
one i.e. the subsistence level of living allowing to perform the religious duties. It is
supposed that this level is expressed in a real amount, and what is needed to do
the religious duties becomes a duty, if the individual will not earn more of that a
real amount he is in that capacity”
§ The layers of earning are arranged from imperative earning, recommended earning
and the permissible earning, respectively.
§ The imperative earning concerns what meet the basic needs of the individual
him/her self, his/her familial dependents and his/her parents through the kindest
expenditure. These needs are related to food, clothing, housing, remedy, education
and transportation means. The necessary earn helps to settle the previous licit debt,
if any, and to make a possible saving effort by deferring a fraction of his/her
consumption spending for the coming days.
Cont’d

12. Balancing
•(rather than optimizing)
as a key element in
human decision making
in all activities
Need Fulfillment
•(rather than satisfaction
of wants) as the main
focus of economic
activities
The Proposed Features of IE
The Garden of Knowledge and
Virtue
12
• The distinction of wants and desires needs
to be established firmly on positive
economic ground
• The maximization of satisfaction is justifiable
as long as within the sharia boundaries
(Yousri, 2013)
• Inconsistency terms of lust that synonymous
over hedonistic behaviour, which is should be
tamed, although it has been discouraged by
Islam.
• There would always be a limit within which
pursuit of lust would not conflict with the
concept of balance required by reason and
by social norms. To that extent conventional
economics will remain valid.
(Yousri, 2013)

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Further Reading