1. Ethics and Universal Values
Lecture 1

2. Content What is economics?
How economics originated and deviated from ethics?
Difference between economics science and school of economics
Difference between normative and positive science
Socialism-Capitalism-Islamic Economics System
Importance of history and emotions of Muslims in success of economic system for Muslim societies
Why not western economic system?

3. What is economics?
"The mechanics of utility and self interest." (W. Stanley Jevons - Late 19th Century)
"Economics is the study of people in the ordinary business of life." -- Alfred Marshall, Principles of economics; an introductory volume (London: Macmillan, 1890)
"Economics is the science which studies human behavior as a relationship between given ends and scarce means which have alternative uses." -- Lionel Robbins, An Essay on the Nature and Significance of Economic Science (London: MacMillan, 1932)
Economics is the "study of how societies use scarce resources to produce valuable commodities and distribute them among different people." -- Paul A. Samuelson, Economics (New York: McGraw-Hill, 1948)

4. Economics and Ethics Origin of economics Adam Smith and Ethics
Marx and Ethics
Adam Smith to Amartya Sen
Marginalist revolution, Classical and Keynisan era and Ethics
Growth, Material Wellbeing and Ethics
Modern Economics, Experimental Economics and Ethics

5. Overview of Economics and its types
Microecomics
Macro Economics
Applied Economics
Econometrics
Environmental economics
Economic System
Capitalism vs Socialism vs Islamic Economic System

6. Economic science vs School of Economics
Economics science = Fact finding, Cause finding, Effect finding, calculations of figures, evaluates policies. Phenomenon of Economic life, their interrelationships. Science of economics is just like other science.
School of Economics = Ellaborates Ethics, Provides standards for Evaluation, policy for a just economic system, social justice to organize economic life.

7. Economic Science vs School of Economics
Economic System
Economic Science
Description
Elaborates Ethics and values
Provides standards for Evaluation
Policy for a just economic system
Aimed to provide social justice to organize economic life.
Same like other sciences
Finds fact
Finds cause
Finds Effect
Calculates figures
Evaluates policies
Studies phenomenon of Economic life
Studies interrelationships.
Subject
Production and Distribution
Object
To provide social justice
Fact finding

8. School of economics is framework
School of economics provides a framework. E.G Free economy is a pre-requisite for Law of Wages
Wage
Subsistence Level

9. Socialism vs Capitalism vs Islamic Economic System
Islamic Eco System
Objective is Justice
Objective is justice
Justice is equality in living standard
Justice is equality in freedom
Justice lies in equality of certain living standards to all members of society and giving them freedom to earn more
Subject is production and distribution
Values Neutral
Values Loaded
Ethically limited to equality
Ethically blind
Ethically rich

10. History, Emotions and Economic System
Every economics system has its own definition and concept of Justice.
Justice cannot be measured, it can only be adopted by the economic system through its principles of justice and outlook of life.
Every economic system has its own concept of Justice and it judges every economic activity on its basis.
For a Muslim society, an economic system is prone to failure which is not compatible with history of Muslims and their emotions/aspirations.
An economic system based on the Islamic philosophy of Justice, compatible with values and ethics of Islam seems successful in a Muslim society.

11. Why not Western Economic System?
Western Economic system is based on freedom with no concept of ethics such as responsibility.
Economic system of Islam provides the concept of Divine Sovereignty.
Faith in Divine Sovereignty and man as vicegerent on earth convince a person to behave ethically with responsibility while enjoying freedom.
Whereas, any western economic system is unable to ensure responsible behavior of people where clash of interest comes between two persons or groups, because freedom already eradicated responsibility.
Hence, Ethics and values based economic system of Islam seems suitable for sustainable progressive society.

12. Home assignment Weekly assignment (Marks = To be announced in class)
Prepare the review of article by Amartya Sen entitled “….” Journal name …”…” Year……
Mid term assignment (To annexed answer of question 7 in the mid term exam)
Convert the class lecture into detailed text enriched by further terms, concepts, definition, theories, holy verses of Quran, Hadith, Bible and quotations of famous philosophers.