Lecture at Imam Sadiq University. Conventional economics is based on flawed assumptions about human behavior and welfare, while Islamic Economics offers deeper insights. For 75min YouTube Video Lecture, see: bit.do/ytisu

1. Lecture 1 :
Introduction
Dr. Asad Zaman
Series: Islamic Economics
For Video Lecture, see:
bit.do/azisu

2. In the name of Allah, Most Gracious, Most Merciful
This series of lectures is a part of an ongoing endeavor to spread knowledge and
awarenes about Islamic Economics
In doing so this series questions the worldview created by western economic
theories
ABOUT DR. ASAD ZAMAN
CURRENTLY: Vice Chancellor, Pakistan
Institute of Development Economics
PREVIOUSLY: Director General,
International Institute of Islamic
Economics, International Islamic
University Islamabad
Email: asadzaman@alum.mit.edu
You can discover more about Islamic Economics, Dr. Asad Zaman and get free access to all his
lectures and writings here: http://asadzaman.net/
The overall guide to topics covered by Dr. Asad Zaman can be found here::
https://sites.google.com/site/asaduzaman/

3. Delivered by:
Dr. Asad Zaman
Venue: Imam Sadiq University Tehran

4. To watch 75minute lecture on You Tube:
Islamic Economics: Lecture 1
(Imam Sadiq University, Tehran)
Shortlink: bit.do/ytisu

5. Western thought
and Islam…
The conflict at the
conceptual level…
Part - 1

6. Western
Knowledge?
or widely believed ignorance….
and what does Islam offer?

7. “
Actions are based on intentions.
What’s the price of your intentions?

8. The power
of belief in
Allah

9. Best of forms
A human is inherently
priceless, and all the
material things in the
world are no match for
his worth, unless….
Worth and positioning of humans
Worse than beasts
A man falls in the trap of
his nafs and is illusioned
by the glitter of the
world. He would sell
himself at a small price

10. All that
glitters…

11. Worth and positioning of humans
Enhance the
potential
Bigger
motives
Reduce the
capacity
Small
Worldly
Targets

12. Everything
has a fair
price?

13. Capitalism
A man is not worth more
than marginal producy of his
labor
Selling time and actions in
return for money
Service is provided as a
means to earn money
Decisions are based on the
basis of amount of money
The labor market – two contrasting views…
Islam
Every individual is unique- a
treasure in himself
Every action is Ibadah
Money is earned as a means
to provide service “al-
khidmah”
Decisions are based on the
basis of nature of service

14. Seeing through the tunnel vision of western paradigm…
◈ Is money the main determinant of
success?
◈ what is the value of God-
consciousness and internal peace?
◈How nations are ranked and viewed?
◈How state department of economics
approaches problems?

15. The post-colonial
world…
And the rise of the thought
of Islamic Economics
Part - 2

17. How to switch-over?
EvolutionRevolution
Surrender?

18. The second generation of thinkers confused…
first
second
last
between
Physical
Science
Economic
Sciences
Normative Positive
vs
vs

19. Inserting
the
Islamic
gear

20. The task for the present-time thinkers
What
To deal with the flawed
theories which have
turned into widely held
beliefs
How
Using modern
mathematical and
econometric analysis
Why
Concretely responding
to widely held
misconceptions is the
need of time

21. Was the battle
long lost…
How did Islamic systems
fade away long ago?
Part - 3

22. Confusions over hierarchy of human knowledge
Wahy
Human reason
Derived
philosophies
When muslims were impresed from greek philosophies
they conflicted whether human reason can take the same
place as divine knowledge. Time revealed that human
reason is vulnerable to flaws…

23. And even the memories vaporised…
Because we do not have a purely Islamic system for a long
time, we have difficulty seeing how substantially different
system Islam offers in all spheres of life, including:
System of governance
Social system
Economic system
Educational system
And so on…

24. We had traces of Islamic institutions prior to colonization
Institutions are organized to fulfill the needs of society. But
institutions built by the colonizers also had to fulfill their
needs
Example 1
Auqafs: These were used to
educate and heal free of charge.
Example 2
Justice was not expensive. There
was a notion of free justice

25. The way forward
and the right approach…
Part - 4

26. Approaching the solution
Brainstorm
Understand the Islamic spirit- and do not compromise on it
Let the body and the form evolve into a creature which can
survive against the modern capitalism
Keep refining: accept what is compatible with Islamic spirit
and reject what is unislamic

27. The difference between right and wrong
Focus on Maqasid-ul-sharia
Do not think too low. We do not need to catch up with the
west, we need to improve over them!
Wrong way
Pick a typical interst based
financial arrangement and find
a way in sharia to create an
arrangement with similar
payoffs.
Right way
Find possible good purposed
which are currently served by
financial arrangements and fulfill
those purposes in truly Islamic
ways

28. How not to go about it?
Typical
Instrument
Islamic
compromise
with similar
payoffs
Posibble
good/
permisible
objectives
Bond Sukuk
Supporting
widows
Automobile
Insurance
Takaful
Cooperative
risk pooling
Mortgage/
Finance Lease
Musharika
Provude
homeless a
home

29. Prerequisites
Ijtihad, barinstorming and research
Seeds of ideas to be grown into practicle forms
Focus on Maqasid-ul-sharia
High thinking. We do not need to catch up with the west,
we need to improve over them!
Astuteness. One correct step at a time
Patience and resillience

30. Thanks for watching
Question session