Paper Title: Configuring Problems of Economics in Islamic Perspective: Moral Nexus, Realities and its Unification

Author:        Hafas Furqani, Mohamed Aslam Haneef        

Publisher:    International Journal of Ethics and Systems, Vol. 39 (4), 875 – 891. 

This paper explores answers to the question that what should be the subject matter of Islamic economics.

Authors urge that Islamic economics, as a new body of knowledge, needs to clarify the economic problems that will be its subject matter. The paper brings an insight into the subject matter of Islamic economics as conceived by scholars in two approaches, namely, economic problems “as they are” and economic problems “as they should be”.

Authors argue that Islamic economics as a discipline will be strengthened if it has a clear subject matter that will be the object of study.

However, the conception of economic problems proposed by Islamic economists is based on life-reality, i.e. of what human beings face in their life (practical-type economic problems as they are) and based on life guidance from the Qur’an on how human beings should live as well as life-objectives, i.e. of what goals he should strive for (ideal-type economic problems as they ought to be) brings implication that there are differences in determining the object of study of Islamic economics.

Authors define Islamic economics as “a study of resource appropriation to realize human well-being (maslahah)”. This suggests that economic problems as manifested in life reality will be studied within the grand objective of life in Islam (maqasid al-Shariah), and economic problems as perceived in life goals will be studied in the context of life reality.

Islamic economic theory will be formulated not only to solve the apparent problem of “what is” but also formulated in a way that refers to goals (ideals) of “what ought to be” that will provide solutions to current economic problems according to certain vision and to take steps to move in that visionary direction.

Authors explain that Islamic economics perceives its subject-matter as an interaction of both the means and ends, studying actual human behaviour and human ends.

The way authors envision the discipline of economics, it needs to embed in its body of knowledge:

1. Empirical researches at micro, institutional and macro level to identify problems both from economic, moral and social perspective.

• Fiqh of economics to develop and evaluate solutions to economic problems in both micro and societal perspective. Fiqh of economics is also needed to identify problems from the faith perspective. For instance, an economic good or service or an institution might be solving the economic problem, but in a Shari’ah non-compliant way.

• Inductive and empirical researches in human economic behaviour to understand the physical, emotional and psychological needs and characteristics of human beings.

• Macro-level policy researches to study the economic problems and finding solutions through careful evaluation.

• Well-reasoned literature supported by textual reasoning, logical reasoning and where applicable (scientific reasoning) to explain the Islamic teachings, worldview and philosophy to influence preferences, choice behaviour and sensitize people in becoming ethical agents as vicegerents of Allah in this world.

This dimension of bringing ethics is missing in mainstream economics literature. Though, it implicitly promotes selfish self-interest, greed and wealth accumulation. There will be overlap in Islamic and mainstream economics, but Islamic economics will have a broader scope, vision and goals and distinct analytical tools of reasoning to evaluate and study problems and their solutions not just from economic lens, but also from ethical lens.