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1-Introduction to Islamic Economics.ppt
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Course Instructor :Yousuf Ibnul Hasan
Islamic Economic System
Chapter 1
Course Instructor :Yousuf Ibnul Hasan
Subject : Essentials of Islamic Finance
Year : 2009
Course Instructor :Yousuf Ibnul Hasan
Islam
Course Instructor :Yousuf Ibnul Hasan
Islam means Invitation.
The basis of Islam is Tawhid which is the
Relationship between Allah and Man
Course Instructor :Yousuf Ibnul Hasan
It is total commitment to the will of Allah by submission &
mission to mould human life in accordance with Allah’s will.
Tawhid (Oneness of Allah)
Course Instructor :Yousuf Ibnul Hasan
4 Great ways of accepting Tawhid
1st Look back and thank Allah.2nd Look forward and trust Allah3rd Look Around and believe Allah4th Look within you and find Allah
Course Instructor :Yousuf Ibnul Hasan
What is Islamic Economics ?
•Islamic economics is as old as Islam itself”•It is a complete political, social, financial & economic system for the Islamic & Non Islamic Community.•Islam is “Deen” that totally differ to the religion because of the definition, depth and details
Course Instructor :Yousuf Ibnul Hasan
Islamic economics is an independent system,
It enjoys a separate identity. It is a self-contained system with its own
economic policy, It covers interests at
Private or Public Material or Spiritual
Course Instructor :Yousuf Ibnul Hasan
Islamic EconomicsFor
Economists
Course Instructor :Yousuf Ibnul Hasan
20th Century Economistsdefine Islamic Economics
Hasan-uz-Zaman
Islamic economics is the knowledge and application of injunctions and rules of the
Islamic Jurisprudence that prevent injustice in the gaining and disposal of material
resources in order to provide satisfaction to human beings and enable them to perform
their obligations to Allah and society.
Course Instructor :Yousuf Ibnul Hasan
M. Akram Khan
Islamic economics aims at the study of human
recovery achieved by organizing the resources of
earth on the basis of cooperation and participation.
Course Instructor :Yousuf Ibnul Hasan
Dr. Najatullah Siddiqui
Role of Shariah define the belief of justice and freedom, cooperation and sharing that are fundamentals to Islamic economic philosophy with the total Islamic system.
Key to economic philosophy of Islam lies in man's relationship with Allah, His universe and His people.
i.e. other human beings are the nature and purpose of man's life on earth
Course Instructor :Yousuf Ibnul Hasan
Islamic Economic system is based on four principles
All wealth belongs to Almighty Allah Man is the trustee of the wealth Hoarding of wealth is prohibited Wealth must be in circulation at all
time
Course Instructor :Yousuf Ibnul Hasan
Islamic economics is an independent system,
It enjoys a separate identity. It is a self-contained system with its own
economic policy, It covers interests at
Private or Public Material or Spiritual
Course Instructor :Yousuf Ibnul Hasan
3 Principles of Islamic Economics, which performs the basis of the above principles
1 - Ijma (Gathering),2 - Qyas (Discussion)3 - Amal (Act).
Course Instructor :Yousuf Ibnul Hasan
Islamic Economic eliminate monopoly of a group or individual who
Keep a control on world monetary polices. Who gets most out of these resources. Blocks wealth to cross their jurisdictions Remain in between privileged society.
This is classified as Capitalist form of Economy that protects the class of
influence and privileged.
Course Instructor :Yousuf Ibnul Hasan
It does not impose any limits on amount of wealth that an individual can acquire.
It guides maintaining of wealth in proper form of distribution & incentive on work and efforts.
It show opposition & defend against misuse of exploitation in getting hold of wealth through unfair means.
It clearly denies "free" market of Capitalism, which has led to the situation of survival of the large part of the society.
Islamic Economic eliminate monopoly of a group or individual who………………………Contd
Course Instructor :Yousuf Ibnul Hasan
In Islamic Economics public revenue from natural resources used to secure needs of community and not to fill pockets of casino owners.
State to provide public, essential resources to cover needs of every individual and family.
………………………Contd
Course Instructor :Yousuf Ibnul Hasan
It forbids monopolies by outlawing hoarding of wealth and eliminating copyright or
patent laws that would open avenue for
potential monopoly to develop.
………………………Contd
Course Instructor :Yousuf Ibnul Hasan
It protects the ownership of businesses and companies by restricting it only to those who
contribute both capital and effort to the company or business and effectively putting the seal on such concepts as "corporate takeover"
from ever becoming a reality.
………………………Contd
Course Instructor :Yousuf Ibnul Hasan
It classify wealth in a systematic way that protects rights of individuals to access wealth.
It protects the society and secures the needs of the people.
It mandates vital and natural resources as public property while allowing for unlimited access to luxury items.
It protect society by defining certain needs as “prohibited needs” .
………………………Contd
Course Instructor :Yousuf Ibnul Hasan
It disregard corrupt man-made systems and protect honor, rights of woman, minor and orphans.
It ban all forms of prostitution, pornography or any activities that exploit charms and physical attractiveness of women.
It prohibit alcohol, gambling, spiral of corruption, social turmoil and moral devastation
………………………Contd
Course Instructor :Yousuf Ibnul Hasan
3 Components of Islamic Economic
The principle of adaptable ownership
The principle of economic freedom within a defined limit
The principle of social justice.
Course Instructor :Yousuf Ibnul Hasan
Islamic law permits three types of ownership,
The individual ownership.The state ownership.The public ownership.
Course Instructor :Yousuf Ibnul Hasan
Principle of Economic Freedom within a Defined Limit Islamic law is the source that that
prohibits all such social and economic activities that differ to the teaching of Islam and the principles and values that are approved by Islam. Such social and economical activities fall under the categories of Riba, like holdings, monopoly, gambling and speculation
Course Instructor :Yousuf Ibnul Hasan
It clearly define principal on which ruler of an estate sworn in for the supervision of general activities and intervene in anti Islamic economic activities.
The state must protect and safeguard the public interest through the control on individual freedom in the illegal and non-permitted actions they involve due to which the economic activity of the community and society suffer.
Principle of Economic Freedom within a Defined Limit……………………..Contd.
Course Instructor :Yousuf Ibnul Hasan
Men have no right to possess unlimited wealth and desire to obtain wealth by any means and way he may choose of his like.
Right is given to every member of the society by appointing each one is a guardian of the public trust and the ownership is limited for the public welfare and in the betterment of mankind.
……………………………………..Contd
Course Instructor :Yousuf Ibnul Hasan
2 Principles of Social Justice
Principle of give-and-take responsibility Principle of social balance
Course Instructor :Yousuf Ibnul Hasan
Muslim contribute for Economics
Ibn Khaldun Muslim Philosopher, Scholar & Economist.
Respected as father of Economic System of all times
Authenticated name in Islam for defining different fields of knowledge, specially science of civilization,
Contributed theories and concept in economics that placed him above-board in the history of economic
thought as a major predecessor.
Adam Smith accepted him as the "father," of economics.
Course Instructor :Yousuf Ibnul Hasan
Planted seeds of classical economics in production, supply and cost
Pioneered in consumption, demand, and utility, the bases of modern economic theory
Believer in free market economy. Introduced labor theory of value.
Ibne Khuldoon Concepts and Theories for economics
Course Instructor :Yousuf Ibnul Hasan
Free economy & for freedom of choice.
Analyzed relationship of economic study, which are demand, supply, prices and profits
First to put seed of modern demand theory which was further developed by Thomas Robert Malthusian, Alfred Marshall
Course Instructor :Yousuf Ibnul Hasan
Logically role of cost of production on supply and prices
Theory of profit as a reward for undertaking risk in a future of uncertainties
Concept for traders maximize profits, "Buy cheap and sell valued,"
Concept of macroeconomics “Theory of Growth” based on capital accumulation
through man's efforts
Course Instructor :Yousuf Ibnul Hasan
Economic Development through Migration Tax Theory in history Theory for the best Rate of Taxation Explain advantages of trade among nations
through foreign trade with people's satisfaction, merchants' profits, and country’s wealth and how all increased.
Course Instructor :Yousuf Ibnul Hasan
Thank You
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