1. The Contribution of Ibn Khaldun in Economic Presented by: Mr. Yuhan Satapo 230712 Simsit Ronkriya 230823 Siti Mariyae Waedueramae 230716 Siti Nadia Binti Nuruedeen 231116 Khaled Ali Barahma 228667 Yasin AbdulRahman Yasin 223856 Abdelrahman z.m. Altawashj 236572

2. Table of Contents Introduction Who is Ibn Khaldun? Ibn Khaldun’s Contribution in Economics –Demand & SupplyDemand & Supply –Property RightsProperty Rights –Market & Price System & Theory of ValueMarketPrice System Theory of Value –Division of LabourDivision of Labour –Fixed PriceFixed Price –Monetary PolicyMonetary Policy Conclusion References

3. Introduction Islamic Economics Islamic Finance practice Islamic Economics Islamic Economics is the theoretical background of the practice of Islamic Finance, which is currently achieving rapid growth, its practice shapes the history of Islamic Economics by raising arguments on the theoretical feasibility of Islamic economics

4. Who is Ibn Khaldun? father of economies Ibn khaldun is “the father of economies.” Hadramut, Yemen He is Abdurahman bin Muhammad bin Muhammad bin Muhammad bin Al-Hasan bin Jabir bin Muhammad bin Ibrahim bin Abdurahman bin Ibn Khaldun. His ancestry originated from Hadramut, Yemen.

5. Ibn khaldun on Islamic Economic (General Thoughts)

6. Demand and Supply DemandDemand –People Desire –Government Spending Supply –Cost of Product –Product Scarcity

7. Definition of Property rights RIGHT use and benefitThe RIGHT of the owner of an asset to use and benefit from asset. RIGHTtransferThe RIGHT to transfer the ownership to others.

8. Property Right and Justice Man Property Cultivation Justice JUSTICEJUSTICE is a balance set up among mankind. Protection of PropertyIn Islam, Protection of Property is under five necessary things.

9. Ibn Khaldun predicts the decline of economic activities. Attack on Property Destroy of the incentive Poor property right relatively poor forever.

10. Market It is a “FREE MARKET ECONOMY.” The structure is based on SUPPLY and DEMAND. This is where buyers and sellers are FREE to do any transaction in accordance of their MUTUAL AGREEMENT on price.

11. Price 2 Prices are set from 2 different perspectives: Differences in Prices Different Locations  The Differences in Prices for labor in Different Locations. Differences in Wages Differences in the Stages  The Differences in Wages to the Differences in the Stages of development of the localities.

12. Theory of Value; Labour Contribution LABOURVALUED  LABOUR is VALUED in contribution of the economy. Large Civilization Large Profits [earnings] Large Labour Profit  A Large Civilization yields Large Profits [earnings] because of the Large amount of [available] Labour which is the cause of [Profit].

13. Division of Labour There are 3 divisions in a discussion Industry Level Society Level International Level

14. Industry Level Concentratingcrafts Concentrating on the development of crafts as a way of improving production. He says “some crafts are simple, and others are composites.” Human civilization requires different type of crafts as the society develops. higher demand Lead to a higher demand of the related goods.

15. Society Level Emphasizing that the individual on his own cannot produce all what he needs in life. Cooperationincrease of production Cooperation will lead to the increase of production (main implication of the division of labor) social cooperation and specialization higher production This social cooperation and specialization will lead to the higher production (Multiple effect).

16. International Level available labor increases population increasehigher demand The available labor increases as the population increase and its lead to the higher demand of luxury goods. If a city has large population, it can use the labor more efficiently to produce more by division of labor between necessary and luxury goods Theory of economic development interaction use and constitution of labor Theory of economic development based on the interaction of different countries which is based on the use and constitution of labor.

17. Fixed Price AGAINST in fixing the prices Ibn Khaldun was achingly AGAINST government involvement in fixing the prices of goods and services as it brings the following consequences. no longer be able to tradePeople will no longer be able to trade. takes away all incentives ruining the fiscalIt takes away from them all incentives to efforts, thus ruining the fiscal. cause the destruction of civilizationIt may cause the destruction of civilization. dangerous, harmful, and ruinousIt is even more dangerous, harmful, and ruinous for the subjects.

18. Monetary Policy Monetary Policy PRICESmonetary authority controls the supplyIt is the PRICES by which the monetary authority of a country controls the supply of money to ensure price stability and general trust in the currency. STOOD AGAINSTIbn khaldun STOOD AGAINST the manipulation of currency. "the quantity of money is of no significance for a country's wealth."He said "the quantity of money is of no significance for a country's wealth."

19. Conclusion Ibn Khaldun concept of laborIbn Khaldun utilizes the concept of labor as the source of value of goods, and the role of labour in the wealth of a particular nation. Demand and SupplyMarket is set by Demand and Supply at mutual price. fixing price and manipulation of currencyIbn Khaldun did not agree with the concept of fixing price and manipulation of currency. Justicedealing with property.Justice must present when dealing with property.

20. References Hassan, J. R. (2015). Ibn Khaldun and Adam Smith: Contributions to Theory of Division of Labor and Modern Economic Thought. Retrieved from Muslim Heritage: http://www.muslimheritage.com/article/ibn- khaldun-and-adam-smith-contributions-theory-division-labor-and- modern-economic-thought OWEISS, I. M. (1988). Ibn Khaldun, Father of Economics. Retrieved from Dr. Ibrahim M. Oweiss: http://faculty.georgetown.edu/imo3/ibn.htm