1. The document discusses the key concepts of the Islamic worldview including tawhid (unity of God), khalifah (vicegerency of man), amanah (trusteeship), and tazkiyah (purification). 2. It explains the philosophy, principles and goals of Islamic economics based on the Islamic worldview. The principles discussed are ownership, freedom, and social-economic justice. The goals are economic well-being, universal brotherhood, equitable distribution of income and wealth, and employment generation. 3. The concept of falah (success in this life and the hereafter) is defined as the ultimate goal of human life according to the Islamic worldview. Resources

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MFK ISB544 Topic 2

2. Introduction to IE
Worldview
Definition,
philosophy,
principles &
goals
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4. At the end of the lessons, students should be
able:
 To explain the worldview of Islam.
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5.  Do not incorporate an inherent belief in human
brotherhood, socio-economic justice and the trust
nature of resources.
 Overly exaggerated emphasis on “survival of the
fittest” or “material conditions of life”.
 Do not motivating system to induce human being
to work in the interest of society.
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6.  Unable to realise simultaneously the goals of both
efficiency and equity by means of strategies based
on the secularist Enlightenment worldview.
 Muslim countries need a different economic system
– a system able to provide all the elements
necessary for human well-being in accordance with
the demands of brotherhoods and socio-economic
justice.
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8.  Since factors affecting world views differ, different
world views exist, leading to different “systems” for
different peoples.
 Theories explaining human behaviour also differ.
 Islamic world view based on ‘Islam’ and its sources
of knowledge.
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9. Worldview
God
Nature
Man
Religion
Knowledge
Aim in life
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10.  Literally means peace and submission
 Muslim - one who submits
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11.  Not equivalent to religion as understood in the
west.
 Watt (1979)
… means a way of spending an hour or so on on Sundays in practices
which give him some support and strength in dealing with the
problems of daily life, and which encourages him to be friendly
towards other persons and to maintain the standards of sexual
propriety; it has little or nothing to do with commerce or economics
or politics or industrial relationships … or may even look on religion
as an opiate developed by exploiters of the common people in order
to keep them in subjection.
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12.  Religion reduced to a private matter between and
individual and his/her God(s).
 no role to play in determining public affairs
 science replaced religion as authority
 religion for infantile man; science for
modern/nature man
 Nietzsche proclaims “God is Dead”
 This understanding of religion is not necessarily
applicable to all societies and civilizations.
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13.  Religion reduced to a private matter between and
individual and his/her God(s).
 No role to play in determining public affairs.
 Science replaced religion as authority.
 Religion for infantile man; science for modern/nature
man.
 Nietzsche proclaims “God is Dead”.
 This understanding of religion is not necessarily
applicable to all societies and civilizations.
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14.  Watt (1979)
… whole way of life … covers both the private and
public/societal lives of man, it permeates the whole
fabric of society, and includes theological dogma,
forms of worship, political theory and a detailed
code of conduct, including even matters which the
European would classify as hygiene or etiquette …
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15.  Watt (1979).
 No shunning this world.
 Din is for this world.
 Use this dunya to achieve akhirah.
Al-Qasas : 77
“But seek with the (wealth) which Allah has
bestowed on thee, the home of the Hereafter, And
do not forget thy portion in this world. But do
good as Allah has been good to thee and seek not
mischief in the land, for Allah loves not those who
do mischief
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16.  Tawhid or Unity or God.
 Kalimah Shahadah.
 Beautiful Names of God.
Implications for economics.
Al- Razzaq (the Provider).
Malikal Mulk (the eternal owner of Sovereignty).
Al-Muqsit (the equitable).
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17.  Insan.
 Created good.
 Body and spirit.
 Al-Hijr : 28-29
“Behold! Thy Lord said to the Angels : I am about
to create man, from sounding clay from mud
moulded into shape. When I have fashioned and
breathed into him of my spirit, fall ye down in
obeisance to him”
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18.  Given aql and knowledge.
(Al-Baqarah:31)
“…And He taught Adam the manes of all things…
 Best of creations.
(Al-Tin:4)
“We have indeed created man in the best of
moulds”
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19.  Role of abd and khalifah.
(Al-Dhariyat:56)
“I have only created Jinn and Man that they may
serve me…”
(Al-Baqarah:30)
“Behold! Thy Lord said to the angels: I will create a
vicegerent on earth…”
 Cannot be khalifah unless you are first and
foremost an abd.
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20.  Nasr (1990)
“There is no more dangerous creature on earth
than a khalifah Allah who no longer considers
himself to be an abd Allah”.
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21.  Creation of God for man.
(Al-An’am: 95-103)
Talks of vegetation and fruits, night and
day, heaven and earth, human being, rain.
Material world and world of ghayb.
Man as trustee to manage nature.
Natures as a sign of God.
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22.  Ibadah to achieve falah (ultimate success).
 Develop earth to achieve God’s pleasure.
 To attain falah we must have knowledge and
action
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23.  Ilm and derivatives appear 750 times in the
Qur’an.
 Fundamental requirement for all Muslims life-
long.
 Obligation (fard).
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24. Sources of
knowledge
Primary
Quran Sunnah
Secondary
Ijma’ Qiyas
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25.  Good action is ibadah.
 Good economic action is ibadah.
 Good action requires correct intention, correct
knowledge and observance of all shari’ah
requirements.
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26. 26
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27. Worldview
God
Nature
Man
Religion
Knowledge
Aim in life
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28. Sub Systems For Various Aspects of
Human Life
Political System
Economic
System
Social System
Philosophy Principles Goals
Tawhid
Khilafah
Amanah
Tazkiyyah
Ownership
Freedom
Social-Econ. Justice
Economic well – being
Universal brotherhood
Equitable distribution of
income
Employment generation
Worldview
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29.  According to M. Akram Khan:-
“Islamic economics aims at the study of
human falah achieved by organizing the
resources of the earth on the basis of
cooperation and participation”
 Key concepts in the above definition are
the following:-
a. Falah
b. Resources
c. Cooperation and participation
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30. a. Falah
 Literal meaning; -
to become happy, to have god luck or
success, to be successful.
 According to Raghib al-Isfahani:-
Falah is a both-worldly concept.
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31. a. Falah
 In this world it represents three things:-
i. survival,
ii. freedom from want,
iii. power and honour
 In the hereafter it stands for:-
i. eternal survival
ii. eternal prosperity
iii. everlasting glory
iv. knowledge free of all ignorance
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32. a. Falah
 According to Qu’ran , the ultimate goal of
human life should be the achievement of falah
in the hereafter, but it would be reward for
one’s deeds during his stay in this world
 Conformity to the Islamic way of life is a
means to achieve falah both in this world and
hereafter
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33. Micro-level Macro level
Falah Survival Biological survival
i.e.
Physical health, freedom from
disease
Ecological balance, hygienic
environment , and medical aid
for all
Economic survival
i.e.
Having means of livelihood
Management of natural
resources to generate
employment for the entire
population
Social survival i.e.
Brotherhood and harmonious
inter-personal relationship
Inner social cohesion; absence
of conflicts among different
groups
Political survival
i.e. freedom and participation in
the affairs of the state
Independence and self-
determination as an entity
Freedom from
want
Alleviating poverty Provisioning for the entire
population
Self-reliance i.e. work rather than
parasitic idleness
Generating resources for the
coming generations
Power and
Honour
Self-respect Economic power and freedom
from debt
Civil liberties, protection of honour
and life
Military power
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34. a. Falah
 In Qur’an the uses of the term falah its
derivatives occur at forty places
 A perusal of these verses leads us to
determine the conditions of falah i.e.
i. Spiritual
ii. Economic
iii. Cultural
iv. Political
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35. a. Economic Conditions of Falah
i. Infaq
ii. Prohibition of interest
iii. Fulfillment of covenants and trusts
iv. Justice
v. Enterprise
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36. b. Resources of earth
 Studies human behavior towards resources
of earth and investigates those modes of
utilisation which may lead to falah
 Resources of earth are meant to provide
livelihood to the creatures of God
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37. b. Resources of earth
 The Qu’ran informs us that God has created
sufficient resources for his creatures (41:10)
 Hence, scarcity may be either due to lack of
proper utilisation of natural endowments or
an imbalanced distribution
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38. b. Resources of earth
 IE studies resources from the point of view of
‘adequacy’ rather than scarcity
 It starts from the premise that the resources
of earth are adequate to achieve falah
 If some scarcity is being encountered man
must be doing something wrong, and ways
and means should be found t restore the
natural state of adequacy
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39. b. Resources of earth
 This may be broadening the productive
base, improving technical know-how, and
re-distribution of resources
 There is moral dimension to this question as
the man is accountable for his deeds in the
akhirah.
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40. c. Cooperation & participation
 Inter-personal relationship in Islam are based
on the universal brotherhood (ukhuwah) of all
human being (4:1).
 The Qu’ran has explicitly ordained Muslims to
help one another in furthering God-
consciousness (taqwa) and virtue (birr) (5:2).
 Thus mutual help rather than conflict should
be the basis of all economic relationship.
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41. 41
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Philosophy
of IE
Tawhid
Khalifah
Amanah
Tazkiyah

42. i. Tawhid
 Foundation of Islamic faith
 Oneness and Unity of God
 It means that universe has been consciously
designed and created by the Supreme being
 Quranic verse
(3:191; 38:27; 23:15)
 Everything created by Him has a purpose which
gives meaning and significance to the existence
of Universe
 After creating this world, the Supreme being did
not retire
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43. ii. Khalifah (Vicegerancy)
 Quranic verse:-
(2:30; 6:165; 35:39; 38:28; 57:7)
 Man endowed with:-
a. Spiritual
b. Mental characteristics
c. Material resources
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44.  As a khalifah man is free which enable
them to think and reason to choose
between right ad wrong
 By nature man is good and noble
(15:29; 30:30; 95:4)
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45. iii. Amanah
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46. iv. Tazkiyah
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47.  IE is further supported with the following
principles:-
i. Ownership
ii. Freedom
iii. Social-economic justice
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48. Principles
of IE
Ownership
Freedom
Social-
economic
justice
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49. i. Ownership
 A social (including legal) relationship of an individual
or group with an object involving a system of rule of
access to, and control of resources.
 86 times in the Qu’ran.
 Absolute owner is God.
 Man as khalifah and ‘abd has relative and conditional
ownership.
 Man is responsible to society and accountable to God
for his property.
 Labour and need are both legitimate bases of
property ownership.
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50. ii. Freedom
 In Islam, man is free but still subject to the
guidelines in the form of shari’ah
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51. iii. Social-economic justice
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52.  With proper understanding of definition,
philosophy and principle Islamic economics
outline to achieve the following goals:-
i. Economic well-being
ii. Universal brotherhood
iii. Equitable distribution of income and wealth
iv. Employment generation
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53. Goal
Economic well
being
Universal
brotherhood
Equitable
distribution of
income and
wealth
Employment
generation
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54. i. Economic in general.
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55. Sub Systems For Various Aspects of
Human Life
Political System
Economic
System
Social System
Philosophy Principles Goals
Tawhid
Khilafah
Amanah
Tazkiyyah
Ownership
Freedom
Social-Econ. Justice
Economic well – being
Universal brotherhood
Equitable distribution of
income
Employment generation
Worldview
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56. THANK
YOU…
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