WHAT IS ISLAMIC ECONOMICS?
The way of defining Islamic Economics is to qualify q ualify the term modern or conventional economics with Islam. Islam is a religion from Allah SWT through prophet Muhammad SAW to mankind which means the total way of Mankinds life, that is what ever man does or is going going to do do must be abided by the Islamic norms and values as well as laws and other rules and regulations(shariah). regulations(shariah). And conventional economics has ha s best been defined by robbins as science which studies human behaviour as a relationship between ends and scarce means which have an alternative uses. Based on the definitions of the two concepts above, many scholars defined Islamic economics according to their understanding of the concepts. The T he following are the various definition of Islamic economics from different scholars: 1. Ahmad (1981) defined Islamic economics as a study of human behaviour in their attempts to satisfy needs from the abundant resources whose ultimate aim is to maximise benefit of self and society both in this world and the hereafter. 2. Akram(1983) sees Islamic economics as aims at the study human falah achieved by organising the resources of earth on the basis of cooperation and participation. 3. Hasnuzzaman(1984) Hasnuzzaman(1984) defined Islamic economics as the knowledge and application of injunctions and rules of
shariah that prevent injustice in the acquisition and an d disposal of material resources in order to provide satisfaction to human beings and enable them to perform perform their obligations to Allah and the society. 4. Mannan (1986) defines as studies of a social science in the economic problems of people to fill with the values of Islam. 5. S.M Ghazali Wafa et al (2002) defines as all human activities to use the sources which follow the law to perform perform their obligations to Allah. Observing Observing the above a bove definitions Islamic economics is the some part of conventional co nventional economics plus plus morals, norms and values of Islam, it covers a lot of micro and macro concepts of conventional economics like ownerships, rights to produce or create, what to produce, how to produce and for whom to produce, others include equity, returns on investments, development projects, stability in the value of o f money, broad base economic well being with full employment, optimum rate of economic growth, joint ventures, fiscal and monetary policies, etc . However Islamic economics ejected injustice, enforced en forced the prohibition of interest (riba), hoarding etc. And also promote the determination of the level of individual liberty, recognition the right of property, controlling the economic inequality within the natural limits, limits, maintaining the equality of social life, and social
security. It however prohibits prohibits the wider circulation of wealth, and recognizes social and individual welfare. In conclusion, Islamic economics is designed for economy to contribute richly on the achievement of the major socio-economic socio-economic goals of o f the society. LESSON LEARNT FROM PROF. TARIQ RAMADAN. LECTURE ISLAMIC ISLAMIC RENAISSANCE THE NEED FOR REFORM AND RENEWAL, TO IMPROVE ISLAMIC ECONOMICS DEVELOPMENT. Prof. Tariq is very talented and eloquent lecturer, in this lecture he pinpoint the following: 1. Muslims are of full of potentials 2. Universality Universality in time and space in islam 3. Changes and faithful 4. Things we shouldnt confused: a. Relationship between text and context con text b. Difference Difference between principles and an d models c. Rules and ways d. Rules and meaning. 5. Difference Difference between adaptation adap tation and transformation transformation vision beyond reality. 6. Dealing with rejection and projection 7. Thinking of what to produce and how to produce of halal goods to match the competition with western products.
The above are the lessons we learnt from the lecture, therefore therefore those points are what I am going use and see how Islamic economics can be developed. Firstly, the muslims are of full potentials this so because muslims muslims economics thinkers and economist tried and developed the Islamic economics concept concept and its now no w a discipline accepted worldwide, so the other muslim economist should start striving and explore e xplore their potentials in developing Islamic economics worldwide. Secondly universality in time and space in Islam, this means mind should be active to make changes in diversity, diversity, that is Islamic economic thinkers should have active mind and develop as many theories and models as they can in the time of the their life and places they are living , their universality of islam should be use to manage diversities, manage changeable dimensions and new challenges with the view of developing Islamic economics.
Thirdly those things that we shouldnt confused in in the improvement of Islamic economics development is text and context should be clearly differentiated ,that is the context in the text text of quran, hadith and fiqh are vividly understood before applying it into the economic theory or model. The difference di fference between principles and models should be understood by Islamic economics ulamas,
where principles are universal universal in nature and models are historical in nature we shouldnt confused those in developing anything in Islamic economics. The next is the rules and ways, in islam rules are in quran and an d sunnah (shariah) then the interpretation of ulamas on some concept and issues that are ar e not clearly interpreted in the quran and hadith and ways are how those rules are being followed with a light of vision, those must be considered and improvement in islamic economics will be achieved. The last one is different between rules and meanings, dealing with rules will come to a point where rules forget the meanings so this must be taken into consideration for improvement of Islamic economics. Fourthly is the difference between adaptation and transformation transformation that is transformation is the visionary change beyond reality in a society and adaptation is transferring transferring the idea of other society into the society, Islamic economics should be a transformation of conventional economics not adaptation. Lastly is the thinking thinking of what to produce p roduce and how to produce of consumable goods(halal) to match the competition with western products, professionals in Islamic economics should continue with the introduction introduction of products which will substitute haram goods and services that muslims are always consuming , this will tremendously improve Islamic economics development.
REFERENCES 1. Mohd Fauwadi Mat Ali(2008): The foundations of Islamic economic system. system. http://wanbk.page.tl 2. Hasnuzzaman S.M (1984): j ournal ournal Islamic economics, economics, volume 1 no.2 pp49-50 3. Tariq Abdulrahman( prof): video lecture on Islamic renaissance on the need for reform and renewal. 4. Wikipedia: http://www.wikipedia.com
