Thursday, February 17, 2005

Islamic Worldview: View on Nature/Universe

This world, the place where we are living in is part of the universe. The concept of nature or universe in Islam includes the material world and also the unseen world. The resources for our economic activities we get them from the material world.

Apart from that, Muslims must believe in the existence of the unseen world. In fact, the existence of God, angels, hell and paradise are some examples of the unseen world which have significant implications in our conduct in this world.

There are reasons for why Allah has created this universe. Basically, this universe was created for man to realize the power of the Creator. Through observations, we could realize the attributes and greatness of Allah. This is how Allah wants us to know Him. Furthermore, this universe is a source of knowledge for man. Not only that we get knowledge from revelations, but we are encouraged to use our intellect to understand our existence. The creation of the universe facilitates us in doing the exercise.

Allah also has created this universe as a gift for mankind. This universe is for us to use and to utilize and these must be done based on the guidance provided in the Divine law of Allah. Allah has created the universe to serve mankind, His best creation. From the environment we get our resources and these are useful for our survival.

Therefore, it is important to note that, to ensure sustainability of our existence, we must observe three important relationships: relationship with God (as provided in view on God and religion), relationship with fellow man and relationship with the universe. Again, we emphasize that only by following the shari’ah, we can ensure harmony and balanced relationship of the three.

Friday, February 11, 2005

Islamic Worldview: View on Man

In the process to establish the Islamic economic system, the action and behavior of the economic agents determine the realization of the full- fledged success of the system. To materialize the system, man must conduct his actions based on the shari'ah.

Islam views the position of man as the best creation of Allah, the Almighty (Al-tin 95:4). Originally, man is born in fitrah (good in nature). Man is made up of physical body (jism) and soul (roh) where Allah has equipped him with ‘aql (intellect) and hawa (desire) in order for man to take the responsibilities as given by Allah.

What are the responsibilities of man? Man is given the responsibility to manage this universe as vicegerent (khalifah) of Allah (Al-baqarah 2:30). It is our responsibilities to manage the world based on the shari’ah because this is the only way that Allah wants us to follow in conducting our actions and activities to manage this world. Allah says: Then We put thee on the (right) Way of Religion: so follow thou that (Way), and follow not the desire of those who know not (Al-jathiya 45:18).

Man also is a servant of Allah, the Almighty. As servant of Allah, it is our responsibility to worship Him. Worship does not only mean to perform the specific rituals such as prayers, fasting, pilgrim and alms-giving, but conducting the entire actions and activities in life based on the shari’ah, lies the true meaning and way of worshipping. Clearly, these would include conducting our economic activities based on the divine law of Allah as one form of worshipping.

Apart from those responsibilities, as the last ummah, Allah has declared that the ummah of Prophet Muhammad SAW as the best ummah. To be the best ummah, we must call people to do good, to forbid people from doing evils and to have firm faith in Allah, the Almighty.

Islamic economic system can only be realized when man - the economic agent, has assimilated all those attributes and qualities as mentioned above. In man himself lies the real strength of the system.

Tuesday, February 08, 2005

Islamic Worldview: View on God and Religion

The concept of tauhid or the oneness of God is the central foundation of Islam. Allah says in surah Al-Ikhlas, verses 1-4: Say: He is Allah, the One and Only; Allah, the Eternal, Absolute; He begetteth not, nor is He begotten; And there is none like unto Him.

After man testifies that there is no god but Allah, and prophet Muhammad is His Messenger, all of his actions must be based on the teaching of Islam. This is where the meaning of true submission and obedience is manifested in a life of a true believer. In other words, the entire life of a true believer is only to worship his Lord, as commonly recited in the prayer from surah Al-an’am :162: Say: "Truly, my prayer and my service of sacrifice, my life and my death, are (all) for Allah, the Cherisher of the Worlds

Therefore, the guidance provided by Allah in the Qur’an and sunnah of His Prophet must be followed without any doubt and hesitation in order for man to achieve real success in this world and the hereafter. Of course, this would also include conducting our economic activities.

Sunday, February 06, 2005

Islamic Worldview and Islamic Economics

To develop Islamic economics, we need to understand the Islamic worldview first. This is because any system in this world is originated from certain ideology which is derived from, or influenced by the way we understand the meaning of our existence in this world (worldview).

Thus, what is worldview? Worldview is individual’s perception of the world, which on average tend to conform to the norms of what has socially been agreed (Zubair Hasan, Islamization, 1998). Or, worldview is the vision of reality and truth that appears before our mind’s eye revealing what existence is all about.

Islam provides the answers to the questions of reality of life and existence. The revelations (al-Qur’an and as-sunnah) explain where we are from and where we will go after death. With certainty of answers to such basic questions in life, any system that is derived from the ideology of Islam is very clear in its purposes and goals.

Basically, we could say that Islamic worldview is based on Islam (Aslam, 1996). The worldview of Islam encompasses both al-Dunya and al-Akhirah, in which the dunya aspect must be related in a profound and inseparable way to the Akhirah aspect and in which the Akhirah aspect has the ultimate and final significance to our purpose of existence.

Then, how would Islamic worldview affect our life? In our later discussions, we will see how Islamic worldview shapes our economic system after we address how Islamic worldview provides answers to the questions of god, religion, man, nature, aim in life and knowledge. All answers for these points, directly or indirectly affect the economic system which we want to establish – the Islamic economic system

Friday, February 04, 2005

Islam and islamic Economics

Before we can understand Islamic economic system, the understanding of Islam is crucial because the economic system here is part and partial of the ‘complete way of life’ of Islam.

Islam does not separate economic affairs and its teaching and there is no way the two can be separated because separation of the two could cause incomplete practice of the religion.

It is important to note that, all economic activities must be conducted according to the shari’ah in order to make them accepted as a form of worship to Allah, the Almighty. Hence, economic affairs must not divert man from his true purpose of existence which is to worship Allah, the Almighty and to conduct his activities (including economic activities) based on the divine laws.

Man must submit himself to Allah. He must obey his Lord’s laws. Only by following the revelation can man achieve peace in his life in this world and the hereafter. This is suitable with the literal meaning of Islam which means peace, obedience, surrender and submission.

Therefore, aqidah is the fundamental essence in the teaching of Islam and the establishment of its economic system. Crux of the term Islam and aqidah could be best understood from the following hadith:

On the Authority of `Umar r.a. who said:
One day while we were sitting with the Messenger of Allah there appeared before us a man whose clothes were exceedingly white and whose hair was exceedingly black; no signs of journey were to be seen on him and none of us knew him. He walked up and sat down by the Prophet SAW.
Resting his hands against his and placing the palms of his hands on his thighs he said:

O Muhammad, tell me about Islaam. The Messenger of Allah said: Islaam is to testify that there is no deity worthy of worship but Allah and Muhammad is the Messenger of Allah, to perform prayers, to make zakaah, to fast in Ramadaan, and to make the pilgrimage to the House if you were able to do so.
He said: You have spoken rightly; and we were amazed at him asking him and saying that he had spoken rightly.
He said: Tell me about eeman. He said: It is to believe in Allah, His angels, His books, His messengers, and the Last Day, and to believe in divine destiny, both the good and the evil thereof. He said: You have spoken rightly.
He said: Then tell me about ihsaan. He said: It is to worship Allah as though you are seeing Him and while you see Him not, yet truly He sees you.
He said: Then tell me about the Hour. He said: The one questioned about it knows no better than the questioner. He said: Then tell me about its signs. He said: that the slave-girl will give birth to her mistress and that you will see barefooted, naked destitute herdsmen competing in constructing lofty buildings.
Then he took himself off and I stayed for a time. The he said: O `Umar, do you know who the questioner was? I said: Allah and His Messenger know best. He said: It was Gabriel, who came to teach you your religion.
It was related by Muslim.


Only by realizing the true meaning of Islam, iman, ihsan and the Hour (Doomsday), man’s consciousness over his true purpose of creation and existence can be manifested to the fullest in this world. In order to achieve that, part and partial of the requirement is to conduct our economic activities based on the shari’ah. Hence, Islamic economic system is indispensable in that process so that man can manifest his obedience to Allah, in conducting his economic activities.

Thursday, February 03, 2005

Why Islamic Economics?

Islam as a comprehensive religion is not only deals with specific worships like prayer and pilgrim. In fact, Islam is ad-deen, which is the way of life according to the divine laws of Allah, the Almighty. It covers various aspects of life and that includes economics.

In order to develop the Islamic economic system, a good understanding of Islamic worldview is important. The question of worldview is crucial because from a worldview we derive an ideology, and from an ideology we derive a system.

Since the Islamic worldview is different from the secular worldview (which lays the foundation of the conventional economic systems, namely capitalism and socialism), the establishment and development of Islamic economic system is obligatory for all Muslims.

Another reason why we need to establish Islamic economic system is due to different methodology used in its model-building process as compared to the methodology of model-building in the conventional economics. In Islamic methodology, the superiority and prerogative of the divine laws over any other laws will nullify the latter in a case where the two go against one another.

For example, according to the Qur’an, riba or usury is unlawful. Therefore, any economic theory, law, principle or logic which is backed by the idea of interest is fundamentally wrong from its very beginning and therefore, the system which exists from it, is basically a rotten and erroneous system.

Furthermore, the operational design of Islamic economics is also different from the conventional economics. The values, norms, laws and institutions in Islamic economic system are based on Islam. These then, shaped the market and the economic agents of the system to conduct their activities and to behave based on “the Islamic rules of the game”.

Our last point is that, the need and urgency to develop Islamic economic system is also attributed to the problems and shortcoming of the conventional economic systems. Failures of socialism to provide sound solutions to the problems brought by capitalism, and the heightening problems of capitalism today, require economists and scholars to find new alternatives and new paradigms to fix and solve the problems.

Islamic economic system provides many solutions and answers to the problems. The system is moderate, practical, dynamic, rational and compatible for every nation, society and individual at any time and place. Our discussion here will provide proves to all these claims.