Economics literally means “science of the household management”. In others it relates to the method of managing mundane issues of life. Earlier Western writers on the subject preferred the term “political economy” and so it ignored the individual, familial or social side. Political economy was defined as “an enquiry into the nature and cause of the wealth of nations”. It was understood as “the phenomenon of society as arise from the combined operation of mankind for production of wealth”.
Thus the emphasis of the subject initially was on wealth. It was later realised that such emphasis on wealth does not look good. This lead to the thinking that it is “a study of man…. It enquired how he gets his income and how he uses it.” Finally, the definition of economics has been refined as a study of “human behaviour as a relationship between ends and scarce means which have alternative uses”.
Even a cursory view of the above mentioned development of economic thought reveals that it is materialistic in nature and so one need not wonder about the actual development of the world under its influence. The household management, wealth of nations, income and uses, and study of scarce resources are all display of materialism. What else is materialism? It is an approach where material possessions matter and spiritual values, ethics and religion have no place. It is an expression of the belief that nothing exists except and beyond matter.
The Arabic translation of the word economics is ma’shi’at. Its root is aysh which means life. So it may be translated back into English as “science relating to life”. So the translation is perfect. However, this is not the correct manifestation of the development of the subject-matter in Islamic thought. There is the need to understand it in its true perspective so that the correct position may be appreciated.
Islamic juristic scholars (fuqaha) have divided Islamic law (fiqh) in three broad categories: worship (ibadaat); good behaviour between human beings (ikhlaq) and obligations between human beings owing to transactions (mu’amalaat). The first one relates to obligations of human beings towards the Creator and the latter two relate to dealings between the creatures, the human beings. The category described by the scholars as mu’amalaat is akin to subject nowadays referred to as economics. It may be called mu’amalat al-malia (those relating to financial transactions).
The beginning point between fiqhul-mu’amalaatal-malia and the economics of today is different. The Islamic concept begins with transactions between human beings and in this context considers the items being transacted. The conventional economics begins with goods, services, resources, wealth etc. Human beings who transact these items are placed thereafter. So man gets primacy in Islam as compared to commodities in conventional economics. There lies the difference between the two; one leads to the serene life here and the hereafter and the other takes man to materialism. The consequence of the latter is disaster which we are witnessing in the world around us.
OBJECTS OF LAW IN ISLAM
Islam stands for welfare of human beings and its provisions are meant to ensure justice for all so that the desired prosperity in human society may be achieved. The ingrained principles of economic transactions in Islam may be summed up as justice, equity, growth and welfare of human beings. This can be done by ensuring that the higher objectives of Islamic law are adhered to. Islamic scholars have described these higher objectives of Islamic law as Protection of Life, Religion, Reason, Progeny and Property, as also preservation of dignity and freedom. (maslaha & maqasid al-shari’ah).
HOW ISLAM ACHIEVES THESE OBJECTIVES
Islam addresses all aspects of human life. The traditions of Prophet Muhammad (peace and blessings of Allah be to him) provide guidance for the fulfilment of the life here and the hereafter. Even a pure economic exercise undertaken with the motive of betterment of life in this world is not outside the ambit of the divine counselling and commandment available to mankind in the forms of commandments of Allah the Exalted as contained in the Holy Qur’ān and the traditions (sunnah) of the blessed Prophet.
With regard to economic transactions Islam has assured that its objects are achieved through various methods. Several commandments of the Qur’ān and the traditions (sunnah) of the Prophet (peace and blessings of Allah be to him) clearly provide basic related principles and a small list of forbidden things. Islam has not provided any exhaustive list of permitted (halaal) things. The Islamic principle is that anything that is not forbidden is permitted.
There were many economic related systems and activities in practice on which the Prophet kept silence. His silence (taqreer), like his sayings and actions (hadith and sunnah), is part of his traditions because he would not have allowed any wrong thing to continue. The Prophet (peace and blessings of Allah be to him) corrected wrong prevalent business related transactions. For example, mudharabat (passive partnership) was in practice during his times which he let continue. But there was a system of increasing the debt for delayed payment (riba an-nasiah) which the Prophet forbade.
Islamic jurists have done extensive work on the subject of the small list in the light of the verses of the Qur’ān and the traditions of the Prophet. These scholars have pinpointed around 15 such prohibitions. Hence any economic activity which keeps these specific prohibitions at bay becomes permitted. In fact, all ills of economy today are linked to disregard of these prohibitions.
The required course-correction of the economy of the world is to adhere to the principles of justice, equity, growth and welfare of human beings and avoid the prohibitions as enshrined by the Shari’ah in their letter and spirit.