Talk:History of Islamic economics

Would "History of Islamic economics" be a better title? Thoughts?Bless sins (talk) 17:23, 12 January 2008 (UTC)

A paper from the School of Business at Auckland University of Technology is reliable.Bless sins (talk) 17:32, 12 January 2008 (UTC)

Islamic Capitalism?

The section on free-market in Islam is misleading and inaccurate. Timur Kuran in his 2004 Journal of Economic Perspectives argues that the very institutions cited in this wiki, were responsible for stunting the growth of capitalism in Islamic East. Since Kuran is a world leader in economic history and economic thought in Islam, I think this section needs serious revision. mrjahan —Preceding comment was added at 22:08, 2 June 2008 (UTC)

Orphaned references in Islamic economics in the world

I check pages listed in Category:Pages with incorrect ref formatting to try to fix reference errors. One of the things I do is look for content for orphaned references in wikilinked articles. I have found content for some of Islamic economics in the world's orphans, the problem is that I found more than one version. I can't determine which (if any) is correct for this article, so I am asking for a sentient editor to look it over and copy the correct ref content into this article.

Reference named "Oweiss":

• From Labor theory of value: I. M. Oweiss (1988), "Ibn Khaldun, the Father of Economics", Arab Civilization: Challenges and Responses, New York University Press, ISBN 0887066984
• From Muqaddimah: I. M. Oweiss (1988), "Ibn Khaldun, the Father of Economics", Arab Civilization: Challenges and Responses, New York University Press, ISBN 0887066984.

I apologize if any of the above are effectively identical; I am just a simple computer program, so I can't determine whether minor differences are significant or not. AnomieBOT⚡ 12:57, 17 November 2008 (UTC)

Removal of Content: Lawsuits

The citation for lawsuits (Ray Spier (2002), "The history of the peer-review process", Trends in Biotechnology 20 (8), p. 357-358 [357]. ) in the article is somewhat misleading. I have reviewed this citation and have a copy of it in personal possession. The author is candid in discarding any written history prior to 100 CE, deeming it unreliable. The first article he could find on peer review that fit his definition of history was a document around 820 CE indicating a right to sue based on peer review. It is disingenuous to assume that the ability of two opposing parties to appear before some institution of law to have their case heard and a judgement rendered, the definition of lawsuit, began at this point in time. Hschlarb (talk) 20:19, 17 December 2008 (UTC)

microcredit and microfinance

How are these classed as Islamic when they charge high interest rates? Faro0485 (talk) 16:31, 31 March 2009 (UTC)

Zakat

Zakaat is The compulsory state levy at prescribed rates on the annual net savings after meeting all kinds of liabilities and expenditures.

Unused and un-invested surplus (al-‘afw), is however, is to be surrendered to, and to be collected by, the state of Islam, which guarantees security of means and employment on a world basis to all. These measures have been enacted to finance the welfare programme of the state to eradicate and banish poverty, ignorance and all kinds of maladies from the world.

Md. Nasireddin Ghani (talk) 18:37, 10 January 2010 (UTC)

Al-Afw (Un-invested/unused Surplus

Preamble:

Allama Iqbal envisions the operation of the Qura’nic command – Qulil ‘Afw [Say to the people: ‘spend the surplus’ above the median level for the benefit of the common man, Al Qur’an 2:219] in the modern age in the following verses:

Jo harf-e- Qulil ‘Afw mein poshidah hai abtak Is daur mein shayad wuh haqiqat ho namoodar.

The truth hidden in the Qur’anic verse Qulil ‘Afw And hitherto unexplored, may be revealed unto mankind, In the present age.

THEORY OF SURPLUS VALUE IN ISLAM

The Theory of Surplus Value is a Qur’anic Conception, crisply defined in the Qur’an fourteen hundred years ago before Karl Marx, Thus:

“They ask you as to how much they should spend (for the cause of humanity for Allah’s sake). Say: The entire Surplus. (Al-Qur’an, 2:219).

Take the Surplus, promote good, and ignore the uninformed (for the truth and justice of Islam to prevail). (Al-Qur’an, 7:199)

This edict provides the wherewithal to the State of Islam, to ensure primary human rights to all and to abolish poverty, ignorance, inequalities and all the ills of the Society, - as decreed and ordained in the Magna Charta of Human Rights – the great Qur’an. It enunciates of the policy of public finance as well in the Kingdom of Islam.

Land and Natural resources are a part of the universe and they belong to Allah. Man, as His Khalifa and His manager, is entrusted with the efficient management of these natural resources to ensure proper exploitation, maximum production and equitable distribution of the joint product of man and nature, the free gift of Allah, to all mankind.

“To Allah belongs land (and the natural resources), the heirdom whereof He bestows upon whomsoever among His servants He may will” (Al -Qur’an, 7:128).

Land and natural resources have been created by Allah for the benefit and nourishment of all mankind and of all creatures. The function of the Government of Allah is to see that these are not misappropriated for selfish individual aggrandizement of wicked people and followers of the devil at the cost of all others.

MAN AND NATURE ARE THE AGENTS OF PRODUCTION

Man and Nature co-operate with each other in the production of wealth for the benefit of all mankind in the Kingdom of Allah. They, therefore, have each a share in the joint product. Nature’s share is collected in the Baitul Maal (State Treasury) by the Khalifa for equitable distribution among the disabled, the sick, the poor and the destitute, in order to help them to stand on their own legs, to remove inequalities, and to bring the stragglers into line to march forward and join the race with the soldiers of Allah to encircle the globe.

“And it is Allah Who confers on some of you superiority over some others in wealth and means. Why not then those who have been favoured with abundance give it away to their dependants in such a manner that they all become equal. Do they deny that this abundancy is a favour of Allah to them? (Al-Qur’an, 16: 71).

The capitalist idea of land, labour, capital and entrepreneurs as factors of production is an anathema in Islam. Land is part of Nature. Labour and entrepreneurs are the capitalist divisions of man into classes and masses.

Nature and Man are two agents of Allah for the production of wealth in this world. After man is paid his dues in return for his industry, there remains an undistributed surplus which, in the capitalist state, is unjustly appropriated by the capitalist classes in one form or other in return for undertaking no risk of uncertainty of a productive enterprise.

The Surplus is the Natures share of the national products- on the wealth produced in the Kingdom of Allah.

In the Kingdom of Allah, there is no division of man into classes. There is only one ‘Ummat’ of mankind. The surplus of the joint product of Man and Nature is the share of Nature or the share of Allah placed at the disposal of the Viceroy to feed the stragglers and to help them to join the company of workers rightfully and honourably.

Karl Marx was not originator of the Theory of Surplus Value. His definition of the Theory was also wrong. This was natural, for he came to a confused conclusion after analyzing the nature of capitalist production. According to him, the measure of the value of an article is the amount of labour necessary to produce it. The labourers, however, produce more than they consume but under the capitalistic regime, they lose the surplus value of what they produce over and above their wages. He thus sowed the seeds of class-struggle, strikes, lockouts and the division of men into militantly hostile groups.

But labour cannot produce anything in vacuum. It can produce only in co-operation with Nature and with help of natural resources which are free gifts of Allah to all mankind. Capital is the by-product of Man’s industry and Nature’s co-operation, and it consists of the undistributed surplus value left after payment to man of his dues fully, for his industry, organization and leadership. Capital also, therefore, is a free gift of Allah to all mankind.

HOW TO DETERMINE THE SURPLUS?

Plain living and high thinking has been the actively living motto of Islam. The criterion should be the lives of Muhammad (Sm.) and rightly guided Caliphs. Building up of a balanced character through complete self-realization by each individual is the first and fundamental principle of the state of Islam. State capitalism or state socialism or state communism, negating or dwarfing the personality of the common man has no place in Islam.

The main function of the head of the state of Islam is to serve as a friend, philosopher and guide – freely accessible to every individual citizen or corporate body of individuals for the fullest development of self of the individual or the corporate body, in harmony with the Divine order which is subject to eternal laws to be discovered by discerning minds and acted upon by the entire humanity.

One of the Divine attributes is that Allah is Rabbul ‘Alamin – that He is the Sustainer and Nourisher of the universes. Allah gives everything but takes nothing in return except submission to His Sole Sovereign Divinity and accord with His order and the laws of Harmony in the universe. The man who is to serve as His Khalifah - His Viceroy – is invested with this Divine attribute which is fully developed in him so that he can feel the oneness of the life eternal and forgo the transient for what is an eternal continuity. He will then have his outlook on the permanent aspect of life beyond this decaying world and be able to hold a firm grip on it and its resources to minister to the comforts, prosperity and happiness of others and acquire satisfaction for himself by seeing others under his care happy, prosperous and peaceful. For his material comforts or gains, he comes last of all, he being the residuary legatee in the Kingdom of Allah.

Theory of Surplus Value cannot work in a secular system:

The guiding principle to regulate work and distribution of wealth in the state of Islam is ‘from each according to ability, to each according to needs for a respectable living.’ This principle worked successfully in the state of Islam alone. Because it promises a future life in which every individual is accountable to his Sovereign Master for his performances in his earthly term. And he will receive rewards for his loyalty to the Revealed Constitution [The Qur’aan] or punishments for his disloyalty.

But this guiding principle cannot work in any other system. It has failed in Communism. Capitalism and other [secular or man-made] systems do not believe in, and do not accept, this principle. In the state of Islam, Nature is an agent of production. The surplus (Al-‘Afw) above the cost of production is the share of Nature, which must go to the state treasury (Baitul Maal) to promote and finance welfare services and meet the essential demands of its citizens in distress and in dire needs, to eradicate poverty, misery, ignorance and unskilled labour and not to multiply the number of beggars. Appropriation of un-invested surplus by the state prevents hoarding, dissolute living and extravagance.

Excerpts collated from: 1. The Intelligent Man’s Guide to Islam (1969), by Muhammad Khalilur Rahman 2. The Clarion Call of the Eternal Qur’aan (1991), by Muhammad Khalilur Rahman

Md. Nasireddin Ghani (talk) 18:38, 10 January 2010 (UTC)