Islamic Economics & The Current Economic Crisis Pergas SPI Year 4 Islamic Civilisation
Outline Definitions (Introduction) Islamic Economy vs Western Economy (Handout) Cause of Current Economic Crisis (Video) Application of Islamic Economic – Solution to Current Crisis? (Discussion) Benefits of Islamic Economy (Conclusion)
Definitions “One way of defining Islamic economics is to qualify the term modern economics with Islam.” “The study of economics in the light of Islamic principles” “Bringing economics in consonance with the Shari'ah.” - S. M. Hasanuz Zaman Chief, Islamic Economic Division, State Bank of Pakistan, Pakistan
Definitions “Economics is the social science that studies the production, distribution, and consumption of goods and services” -Wikipedia “Islamic economics is economics in accordance with Islamic law (Shari’ah).” -Wikipedia
Islamic Economy versus Western Economy Islamic Economics Islamic Economics (
Cause of Current Economic Crisis Crisis of Credit Crisis of Credit (
Application of Islamic Economic – Solution to Current Crisis? The problems Exploitation Cheating, Deception Monopoly Engagement of Nominal transactions. No real value.
Knowledge-Based Economy Ethics-Based Economy What Ethics? Ethics based on Islamic Morals Teachings
Application of Islamic Economic – Solution to Current Crisis? Islamic economy is based on a set of values, and morals which includes Honesty Credibility Transparency Clear evidence Facilitation Co-operation Solidarity …and much more!
General Benefits Transparent transaction between seller and buyer - preventing from conspiracy or cheating. Transaction are interest-free (free from riba') - reduce all commodities prices. Transaction made with the products readily available - preventing from cheating. Seller should highlight any deficiency in the products that he is selling - avoid unhappiness and create Friendly environment and mutual trust among each other. Fair and just system for everybody.
Personal Benefits (as a Muslim) Barakah in dealings and lives. Free from haram and syubhah. With the zakat practised globally, reduce poverty. Reduce gap between rich and poor. Strengthen economy among Muslim countries. Every dealings are rewarded by Allah
“At this time – when the world of business and industry is crying out for ethical safeguards against large scale corruption, and when widespread pollution and the shortage of energy pose a threat to humanity – the moral teachings of Islam can not only provide the ethical guidelines needed for effective control of the economic behaviour but also compelling motivation for internal cooperation in the efforts towards the salvation of humanity.” - Muhammad Abdul-Rauf Islamic Doctrine of Economics