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FOUNDATION OF ISLAMIC ECONOMICS (ECON 1710) TOPIC 1 1 ULTIMATE OBJECTIVE Education is the instilling and inculcation of adab in man – it is ta’dib. (Syed Muhammad Naquib Al-Attas, 1993) 2 what will we learn? DEFINITION OF IE “An approach to interpreting and solving man’s economic problems based on the values, norms, laws and institutions found in, and derived from, the sources of knowledge in Islam.” (Mohamed Aslam Haneef, 1997) Task, Tools, Sources of tools 3 TOPIC 1: ISLAM, WORLDVIEW AND ECONOMICS 1. Islam, Iman & Ihsan 2.Why Islamic Economics? 3. Worldview 4. Islamic Economics 4 1. ISLAM, IMAN & IHSAN To understand totally the perfectness of this religion; Islam, Iman and Ihsan must not be separated. 5 1. ISLAM, IMAN & IHSAN Meaning of Islam • Word of origin: salam = peace • Definiton: Islam = submission to the will of Allah 6 ISLAM, IMAN & IHSAN Islam • Religion revealed to our prophet Muhammad . • Those accept Islam are referred in the Qur’an as mu’min i.e. those who have iman or faith. 7 MEANING OF ISLAM Definition of Islam • Religion of subservience to Allah, the supreme reality, from whom all orders of reality issue forth and to whom everything returns. • implies peace since surrendering oneself to the will of Allah, one can gain peace in this world and the hereafter. • Muslim = one who accepts the religion of Islam 8 CONCEPTS IN ISLAM Way of life Unity CONCEPTS Primordial 9 Universal WAY OF LIFE - all-encompassing; unlike Christianity: “And again I say unto you; it is easier for a camel to go through the eye of a needle than for a rich man to enter into the Kingdom of God.” (The New Testament: Matthew, Chapter 19: 24) - ritual & non-ritual practices; individual & societal requirements; in solitude or in society obligations. - Prophet Muhammad (upon whom be peace) = final prophet = final way of life. 10 UNIVERSAL 11 UNIVERSAL Pew Forum on Religion & Public Life (2005) “ Islam is already the fastest-growing religion in Europe. Driven by immigration and high birthrates, the number of Muslims on the continent has tripled in the last 30 years. Most demographers forecast a similar or even higher rate of growth in the coming decades. ” http://www.foreignpolicy.com/story/cms.php?story_id=3835 The IE challenge (1): Today’s world, Our problems/challenges are Universal in nature. So, Need universal solutions. 12 UNITY • Tawhid or unity concept offers a unified and coherent essence. Unlike Christianity: “Whatever the outcome, may be, Christians as a whole do not deny that their most serious problem is the ‘problem of God’.” (Syed Muhammad Naquib Al-Attas, 1993) Al-mithaq (the covenant) is our first testimony to tawhid. • Contained in shahadah and so central that Allah will forgive all sins except shirk. 13 PRIMORDIAL • All the divine religions propagated the doctrine of tawhid. • Unity of God i.e. the central message of Islam, has existed throughout the history of human being. • In Other Words, Islam was there from the very beginning. Adam was Muslim for he testified to the Oneness of Allah [la ‘ilaha illallah]. 14 PRIMORDIAL • This Oneness was gradually forgotten as it is the nature of human being to forget. • Allah SWT always sent prophets to renew the message of the unity of God by bringing man back to the awareness of the unity of God. • Although all the prophets established religions by different names but they were Muslims. • That is why the Qur’an refers to Ibrahim as musliman hanifan. 15 ISLAM, IMAN AND IHSAN Five pillars of Islam: 1- uttering the shahadatain 2- performance of the daily prayers 3- fasting during the month of Ramadan 4- performance of hajj or pilgrimage 5- paying zakah or alms-giving 16 ARTICLES/PRINCIPLES OF FAITH (IMAN) ALLAH HIS PROPHETS HIS BOOKS HIS ANGELS JUDGEMENT DAY DIVINE DESTINY 17 IHSAN • Means virtue • Muhsin = he who possesses Ihsan • Definition = worshipping Allah as if one were to see Him or at least with a deep awareness that Allah sees man. implies intensity and perfection of living 18 ISLAM, IMAN AND IHSAN To conclude, al-Din or Islam comprises: Five pillars of Islam and principles of iman (aqidah) Strict observance of the Divine Law (shari’ah) The pursuit of Ihsan (akhlaq). 19 1. ISLAM, IMAN & IHSAN: SUMMARY ISLAM AQIDAH 20 SHARIAH AKHLAQ The IE challenge (2): Incorporate ASA in our universal solutions. 2. WHY ISLAMIC ECONOMICS? Why not conventional economics? Why Islamic economics system? 21 Why not Conventional Economics? •CE claims that it is a value free discipline •No human endeavor value free • Schumpeter (1954): Analytic effort is of necessity preceded by a preanalytic cognitive act, called vision • Analytic work begins with material provided by our vision of things, and this vision is ideological almost by definition. The book published 4 yrs after his death (1954) and covers a complete history of economic theory from Ancient Greece to the end of the second world war (1945). 22 Why not Conventional Economics? • Alparslan Acikgenc (1994): Nature of human mind cannot but perceive a problem within a scheme of constructive unity • J. S. Mill (1836): Political economy, therefore, reasons from assumed premises 23 These assumed premises stem from one's worldview, which in our case [Islam] necessarily discusses the concepts of God, man, nature and religion: Since economics deals with man's relationship to nature, other human beings, with valuation in its broadest sense, and in the spheres of production, consumption and distribution of goods and services, the understanding of the Islamic view of man and nature is fundamental ( Mohamed Aslam Haneef, 1997 p.43) 24 Why not Conventional Economics? All aspects of human activity are influenced by one’s worldview/vision • • Our values are derived from our WORLDVIEW • So, economics are VALUE-LOADED 25 ECONOMICS: VALUE FREE? Stage 1 • Choice of topic to be pursued • In training, class time, book and periodical coverage Stage 2 • Choice of variables and assumptions • Theory adoption leads to variables classification ECONOMICS: VALUE FREE? • Choice of methods Stage 3 • Qualitative vs. Quantitative • Choice of Ends and Means Stage 4 • Concepts like efficiency • Choice of Policy Prescription Stage 5 • Classical vs. Keynesian Why Islamic Economic System? • Al-sahwah al-Islamiyyah or Islamic revivalism/resurgence in early 1970s in Muslim countries • Failure of conventional civilization models • Oil boom in 1970s • Muslim countries try to find solutions to “own” economic problems • Continuous intellectual discourse on economic issues and related disciplines from Islamic perspectives • Makkah (1976): Birth of Islamic Economics discipline is marked by the First International Conference on Islamic Economics. • Islamabad (1983) • Kuala Lumpur (1992) • Loughborough (2000) 28 Seri Title of the Year Venue es Conference 1 First IC on IE 1976 Makkah, KSA Major Theme/ Agenda of the Conference General. No specific theme was fixed for the conference (M.Iqal, 2008: 75) 2 Second IC on IE 3 Third IC on IE 1992 KL, Malaysia 4 Fourth IC on IEB 5 Fifth IC on IEF 2003 Bahrain 6 Sixth IC on IEF 2005 Jakarta, Islamic Economics and Banking in the 21st Century Indonesia 7 Seventh IC on IEF 2008 Makkah, KSA 8 Eighth IC on IEF 2011 Doha, Qatar Sustainable Growth and Inclusive Economic Development from an Islamic Perspective 9 Ninth IC on IEF 2013 Istanbul, Turkey Growth, Equity and Stability: An Islamic Perspective 29 1983 Islamabad Development, , Pakistan Perspectives Finance and Distribution in Islamic Financing Development from Islamic Perspective 2000 Loughbor Islamic Finance: Challenges and Opportunities in the 21st ough, UK Century Sustainable Development and Islamic Finance in Muslim Countries 30 31 WV The overall perspective from which one sees and interprets the world. 2. A collection of beliefs about life and the universe held by an individual or a group. (http://www.thefreedictionary.com/worldview) 3. Came from German word : Welt•an•schau•ung 1. 4. Weltanschauung coined by Kant (1724-1804) 5. 32 Welt = world and anschauung= View a comprehensive conception or image of the universe and of humanity's relation to it. Worldview in German Philosophy …. worldview expresses a set of beliefs that are foundational and formative for human thinking and life. A worldview is a commitment, a fundamental orientation of the heart, that can be expressed as a story or in a set of presuppositions (assumptions which may be true, partially true or entirely false) which we hold (consciously or subconsciously, consistently or inconsistently) about the basic constitution of reality, and that provides the foundation on which we live and move and have our being. (James Sire’s Revised Definition of Worldview) 33 34 Various WORLDVIEWS 35 36 37 3. Worldview • Vision of reality and truth that appears before one’s mind, revealing what existence is all about • Governs the way people interpret the world • “No science can be more secure than the unconscious metaphysics which it tacitly presupposes.” (Whitehead in Chapra, 2000) 38 3. The ring of worldview Religion Aim in life God WORLDVIEW Nature 39 Man Islamic Worldview • Centered on the principle of Tawhid or unity of God •Unity of creation and purpose •Unity of sources of knowledge and action Al-Attas: “Ru’yat al-Islam Lilwujud” or “The view of Islam about existence” • • Man, his aim in life, the universe, the way he interacts are all inter-related • Man’s behavior governed is by rules of Quran and Sunnah • Pursue material gain with a view that existence in this world and hereafter is important ISLAMIC VS WESTERN WORLDVIEW • Is Islamic worldview different from conventional worldview? • Since factors affecting worldviews differ, it is natural to also have different worldviews, thus different theories to explain human behaviour • Islamic worldview is based on Islam and its sources of knowledge • A complete worldview at the time of revelation-fundamental concepts in the Quran are not open for changes in meaning • Islamic: based on revelation; flexible but not replaceable • Western: scientific worldview 1. ISLAMIC VIEWS ON RELIGION • Not equivalent to religion as understood by the west • • • • Religion is a private matter between Individual and God No role to play in determining public affairs and policies Science has replaced religion as authority Religion is for infantile man vs. science is for modern/mature man • Watt (1979) on religion to the west: “…means a way of spending an hour or so on Sundays in practices which give him some support and strength in dealing with the problem of daily life…; it has little or nothing to do with commerce or economics or politics or industrial relationships..” 1. ISLAMIC VIEWS ON RELIGION West vs. Islam: •To understand position of religion and its implications on economic discipline and activity, need to analyze the following three aspects because: •they have been shaping the body of western knowledge through the specific historical experience of the West. •to ignore them is an act of naivety and a lost of opportunity to be wise. What are the three aspects? Points of analysis Secular Secularization Secularism 44 SECULAR Secular as a word: From Latin saeculum=time and location= now + world=> events in this world • • Secular activities: deal with the “here and now” or activities on this world in our lives • Secular concept = the condition of the world at this particular time => (historical connotation) spatio-temporal notion in relativity of human values. • Secular worldview concerns with worldly life ONLY. 45 Islamic Worldview • Islamic worldview encompasses this life & hereafter • Not ‘anti-this world’. • Islam has clear guidelines to undertake life in this world: “But seek, with that (wealth ) which Allah has bestowed on you, the home of the Hereafter, and forget not your portion of legal enjoyment in this world, and do good as Allah has been good to you, and seek not mischief in the land. Verily, Allah likes not the Mufsidun (those who commit great crimes and sins, oppressors, tyrants, mischief-makers, corrupts)”. (Al-Qasas: 77) 46 SECULARIZATION = The process of rescuing man’s reason and language; first from religious and then from metaphysical control. • Experience of Christian/western civilization since 17th century - in the age of enlightenment as elaborated by Cox (1965) and al-Attas (1978) • Process outcome = gradual decline of religion and its authority over life; separation between life and religion • Elliade (1987) in Encyclopedia of Religions • Dichotomy between religion and remainder of human life is a western product and concern • Distinction between sacred & profane, religion & other aspects of human endeavor is a result of secularization. 47 SECULARIZATION • Having three components: 1. Disenchantment of nature: nature as an object to be exploited by man. In Islam, nature as a sign of Allah’s existence, to be utilized by man 2. Desacralization of politics: ultimate authority given to man. In Islam, the ultimate authority and power belongs to Allah 3. Deconsecration of values: all norms, values, laws can be changed according to man’s preferences. In Islam, man cannot over-rule God 48 SECULARISM • Ideology that says only this world is relevant • When combined with materialism • It denotes that only this world is real • Hence, any reference to the ‘hereafter” is irrelevant Economics should be conducted purely on “costs and benefits” of this world • • Islam would not accept this ideology 1. ISLAM VIEWS ON RELIGION • Ideology of secularism and secularization as a philosophical process is incompatible with Islam and its worldview • Islam cannot accept secularization (dealing with only here and now): contradictory, incoherent, meaningless • Islam has no problem with involvement of man in worldly pursuits • In Islam, religion is not human creation, but it represents a “way of life” - Din 50 ISLAM IS DIN • The term “din” used to denote “religion” in the Qur’an • Comes from root word “dana” • Mentioned 92 times in the Qur’an • Meaning debt, obedience, judgement / way / custom; inter-connected to explain “religion” • Is not limited to rituals/faith • • • • A way of life Detailed code of conduct Willing and conscious submission to Allah in all aspects of life Economics and its related activities are potentially ibadah or acts of worship • Based on revealed knowledge, man uses his intellect to organize life on earth: Intention, action according to shari’ah Al-Islam & Al-Shari’ah • Al-Islam is the Din of all prophets but shari’ah vary among prophets • Shari’ah of Prophet Muhammad S.A.W. is the most comprehensive and complete • It is guidance in all aspects of the Muslim’s life, private and public, individual and social, spiritual and material, and political and economics. 2. ISLAMIC VIEWS ON GOD • Belief in unity of God, TAWHID • Oneness of God; Expressed in Kalimah shahadah • Core concept /foundation of Islamic worldview • Other aspects of Islamic worldview are logical extensions •3 aspects of TAWHID • Oneness of the lordship of Allah: to believe that there is only one lord for entire universe • Oneness in the worship of Allah: to believe that none has right to be worship but Allah • Oneness of the names and qualities of Allah: none can be qualified with the Names/qualities of Allah 2. ISLAMIC VIEWS ON GOD Thus, as a Muslim (one who submits) is to do as God has directed and for His sake • • Beautiful names of Allah which have implications for economics NAMES OF ALLAH Al-razzaq (the Provider/Sustainer): “’Iesa (Jesus), son of Maryam (Mary), said: O Allah, our Lord! Send us from heaven a table spread (with food) that there may be for usfor the first and the last of us-a festival and a sign from You: and provide us sustenance, for You are the Best of sustainers”. (Al-Maidah: 114) NAMES OF ALLAH AL-MALIKUL MULK (the eternal owner of sovereignty) “Know you not that it is Allah to Whom belongs the dominion of the heavens and the earth? And besides Allah you have neither any Wali (protector or guardian) nor any helper”. (AL-BAQARAH:107) NAMES OF ALLAH AL-GHANI (the rich) “And your Lord is Rich (Free of all wants), full of Mercy, if He will, He can destroy you, and in your place make whom He will as your successors, as He raised you from the seed of other people” (AL-AN’AM: 133) 57 3. ISLAMIC VIEWS ON MAN • Arabic: “INSAN” from root word “NASIYA” means “he forgot”: “and remember when your Lord brought forth from the children of Adam, from their loins, their seed and made them testify as to themselves (saying): Am I not your Lord? They said:Yes!We testify, lest you should say on the day of resurrection:‘verily, we have been unaware of this’.” (SURAH AL-A’RAF: 172) ISLAMIC VIEWS ON MAN • The best of creation, created good, comprising of body and spirit: “verily, we created man of the best stature (mould)” (At-teen: 4) • Laqad Khalaqna al-insana fi ahsani taqwim • Given ‘aql and knowledge: And He taught Adam of all things (al-Baqarah: 31) Wa allama Adam al-asmaha kullaha 59 3. ISLAMIC VIEWS ON MAN • Created as vicegerent (KHALIFAH) on earth: (SURAH AL-BAQARAH: 30): and remember when your Lord said to the angels: ‘I am going to create a vicegerent on earth…” - ض َخ ِليفَة ِ َو ِإ ْذ قَا َل َرب َُّك ِل ْل َم ََل ِئ َك ِة ِإ ِنِّي َجا ِع ٌل ِفي ْاْل َ ْر • Created as ‘abd (worshipper) of God: (SURAH AD-DHARIYAT: 56):“I created not the Jinns and human except to worship Me” •ُون َ اإل ِ َو َما َخلَ ْقتُ ْال ِج َّن َو ِ نس ِإالَّ ِليَ ْعبُد • Implications of roles: • As khalifah: nature, universe and other creations are entrusted to man for his utilization, responsibility • As ‘abd: man does not have the ultimate authority other than to follow the will of God 3. ISLAMIC VIEWS ON MAN • Cannot be khalifah unless you are first and foremost an ‘abd • Nasr (1990): there is no more dangerous creature on earth than a khalifah of Allah who no longer considers himself to be an ‘abd Allah. • Man’s life = a test on execution of this twin role. “Blessed be He in Whose Hand is the dominion, and He is Able to do all things. Who has created death and life, that He may test you which of you is best in deed. And He is the All-Mighty, the Oft-Forgiving.” (Al-Mulk: 1-2) 4. ISLAMIC VIEW ON NATURE • Nature/universe in the Quran: • Comprise of “heavens and earth and all in between” • ض َو َما َب ْينَ ُه َما MAI’DA; 5:17) ِ س َم َاوا َّ (و ِ َّّلِلِ ُم ْلكُ الSURAH ِ ت َو ْاْل َ ْر َ • Mention about vegetation and fruits, night and day, heavens and earth, human being, rain • Another sign to direct man to worship Allah, the Creator • Nature is a bounty from God • Must be utilized in the best way possible, in accordance with God’s will, remembering that it is part of God’s creation • Man as trustee to manage nature • 2 types of nature 62 • Material world (visible) • Unseen world (ghayb or invisible): believe in the existence of God, angels, hell and paradise 5. ISLAMIC VIEWS ON AIM IN LIFE • Primary aim of life for human as described by Islam • To achieve happiness (falah) • Ultimate success and pleasure of Allah • Al-Ghazali describes ‘means’ through which man can prepare for happiness in this world and hereafter (sa’adah) 1. 2. 3. 4. Al-nafsiyyah – soul Al-jismiyyah – body Al-kharijiyyah – external good Al-tawfiqiyyah – divine grace ATTAINING FALAH • Al-nafsiyyah – the goods of the soul • Comprising faith (iman) and good character • Achievable through action (‘amal) • Iman = Amal : soul can only be improved if man has knowledge and apply that knowledge ATTAINING FALAH • Good character comprise of: • Temperance - repression of desire and anger “The strong is not the one who overcomes the people by his strength, but the strong is the one who controls himself while in anger.” (Sahih Al-Bukhari, Vol. 8, hadith no. 135) • Justice – observing of moderation in all actions ATTAINING FALAH Application to economics: - ethical requirements in business activities - corporate social responsibility, corporate governance & corporate accountability Iman and husn al-khuluq are the most important means of happiness to public and private firms. ATTAINING FALAH • Al-jismiyyah – the goods of the body • Second importance • Health + strength = allows perfect performance of ibadah that requires physical movements • Long life = amplifies no. of performance • Pleasant appearance – hadith sahih Muslim: “All of Allah’s affairs are beautiful, and He loves things of beauty.” 67 ATTAINING FALAH • Al-kharijiyyah – external good (surrounding) • Useful for happiness • Wealth, influence, family and noble birth (family in which knowledge and piety are instilled to all members) • Al-tawfiqiyyah – divine grace • Essential for happiness • Comprise of divine guidance (hidayah), divine direction, divine leadership and divine strengthening • Primary means of achieving falah are goods of the soul, that can be acquired with help of bodily and external goods, if he is given divine grace. HOW TO ATTAIN TAWFIQ? “And Allah increases in guidance (hidayah)those who walk aright [true believers in the Oneness of Allahwho fear Allah much (abstain from all kinds of sins and evil deeds which He has forbidden), and love Allah much (perform all kinds of good deeds which He has ordained)]. And the righteous good deeds that last, are better with your Lord for reward and better for resort.” (Maryam: 76). 69 HOW TO ATTAIN TAWFIQ? Make du’a (invocation): Allah ask us to do – “And when My slaves ask you (O Muhammad SAW) concerning Me, then (answer them), I am indeed near (to them by My Knowledge). I respond to the invocations of the supplicant when he calls on Me (without any mediator or intercessor). So, let them obey Me and believe in Me, so that they may be led aright.” (Surah Al-Baqarah: 186) 70 In conclusion, Islamic Worldview ≠ Secular Worldview 71 4. ISLAMIC ECONOMICS Before talking about/ defining IE, What is ECONOMICS all about ? • Economics: study of human behavior in relation to the use of scarce resource to fulfill unlimited wants • Economics is a field that deals with management of scarce resources (production, consumption and distribution) • Due to scarcity, we have to make choices • Man interacts with other human beings and nature to make these choices 73 ECONOMICS AND ISLAMIC ECONOMICS • Economics is both an activity and a discipline • How man interact is determined both by natural laws and social laws/culture in a system, i.e. economic and financial systems • Social laws/culture based on worldview of people • Systems are products of society •The discipline is derived from one’s worldview ISLAMIC ECONOMICS • IE is Part of din • Economic activities based on the Islamic worldview • Production, consumption and distribution activities • Make choices • according to Islamic description, analysis, prescription • Approach to and process of interpreting and solving man’s economic problems based on the values, norms, laws and institutions found in and derived from the sources of Islam (Prof. Dr. Mohamed Aslam Haneef, 1997) ISLAMIC ECONOMICS DEFINED Khurshid Ahmed (1981) = The study of human behaviour in their attempts to satisfy their needs from the abundant resources, which Allah has provided, within the context of the stipulation of Allah with a view of maximizing the benefit for the self and the whole society both in this world and the hereafter. Arif (1985) = The study of a Muslim man’s behaviour who organizes the resources that are a trust to achieve falah. 76 ISLAMIC ECONOMICS • Major economic issues • Conventional economics: • Unlimited wants • Limited resources • Achieving the highest utility • Islamic economics: • Economic pursuit must be derived from Islamic worldview • Economic goals do not contradict the shari’ah • Shari’ah constraints to be observed in making choices 77 ISLAMIC VIEW ON SCARCITY SCARCITY Existence Availability Factors •Knowledge •Effort •Time Choice •Consumption •Production •Distribution ABSOLUTE SCARCITY CONCEPT Unlike western secular economics, Islamic economics rejects absolute scarcity because: It denies the concept of God Power underlined by “Verily, His Command, when He intends a thing, is only that He says to it, “Be!”and it is!” (Yasin, 36: 82) Allah has provided resources in abundance-“And He gave you of all that you asked for, and if you count the blessings of Allah, never will you be able to count them. Verily! Man is indeed an extreme wrongdoer, - a disbeliever”. (Ibrahim,14: 34) RELATIVE SCARCITY CONCEPT “…, the inference that scarcity becomes nonexistence for economics, whether secular or Islamic, is rather eristic, to put it mildly. The catch is in the failure to realize that the fact of the existence of ample resources for human beings and others at all points in time and space is one thing, while their availability to individual or groups at a given hour and location and in the required quantities is quite another. It is not the existence of resources per se, but the state of their availability that lends meaning to the idea of scarcity as a cornerstone of economics. The availability of resources is an increasing function of knowledgeknowledge of their existence, of the ways to extract or obtain them, of their use and of their cost.” (Hasan, 1995: 581, cited in Wahb al bari Amir Ahmed. 2009.The concept of scarcity and its implication on human behaviour: a Quranic perspective. Unpublished IIUM Master Dissertation.) 80 RELATIVE SCARCITY: Islamic View Relative scarcity is related to a given present situation regarding the availability of resources. Factors that affect the supply side are knowledge, time, and effort while factors that affect the demand side concerns about the choices that man makes in consumption, production and distribution decisions. This situation where the supply side is lower than the demand side raises the issue of relative scarcity from the Islamic economics view. 81 RELATIVE SCARCITY: How to Resolve? This problem can be resolved by improving knowledge, time, and effort on existing resources; and relook at CPD (consumption, production and distribution activities) with the aim of putting less pressure on the presently available resources. For instance, the reducing of consuming impermissible (haram) or luxurious goods and services would allow the channeling of resources to the production of permissible and more important types of goods and services. [ Trade off] The simple act to prevent wastage would also help in addressing the relative scarcity problem. [food wastage] Waste not, want not 930 tonnes of food being thrown away every day (see,http://www.thestar.com.my/story/?file=%2F2011%2F6% 2F10%2Fnation%2F8876846) It generates about 15,000 tonnes of food and kitchen waste daily – enough to fill 7.5 football fields or to feed 7.5 million people a day. [See, http://www.thestar.com.my/News/Nation/2013/06/05/Waste ful-ways-of-Malaysian-gluttons-15000-tonnes-of-food-enough-tofeed-75-million-people-thrown-a/] Waste not, want not [http://www.freemalaysiatoday.com/category/business /2013/01/04/waste-not-want-not/] 83 RS: Is The Concept Unislamic? What do you think? RS: Is The Concept Unislamic? The relative scarcity concept is not unIslamic since it does not question: Allah’s power to provide sustenance to mankind the fact that existing resources are in abundant It is our action that can solve the problem of relative scarcity- “And if Allah were to enlarge the provision for His slaves, they would surely rebel in the earth, but He sends down by measure as He wills. Verily! He is in respect of His slaves, the Well-Aware, the All-Seer (of things that benefit them)”. (Ash-Shura, 42:27) َ س َّ ط ير ِّ ِ ُاّلِل ٌ ص ِ الر ْزقَ ِل ِع َبا ِد ِه لَ َبغ َْوا ِفي ْاْل َ ْر ِ ض َو َٰلَ ِك ْن يُن ِ َِِّّ ُل ِبقَدَر َما َيََا ُُ ِإنَُُّ بِ ِعبَا ِد ِه َخ ِبي ٌر َب َ َولَ ْو َب Present global state of relative scarcity ecological footprint What is EF? Ecological Footprint is a measure of human demand on the Earth's ecosystems represents an accounting system for biocapacity that tracks how much biocapacity there is, and how much biocapacity people use. For 2007, humanity's total ecological footprint was estimated at 1.5 planet Earths; that is, humanity uses ecological services 1.5 times as quickly as Earth can renew them. Usefulness of Ecological Footprint a means of comparing consumption and lifestyles, and checking this against nature's ability to provide for this consumption. The tool can inform policy by examining to what extent a nation uses more (or less) than is available within its territory, or to what extent the nation's lifestyle would be replicable worldwide. The footprint can also be a useful tool to educate people about carrying capacity and over-consumption, with the aim of altering personal behavior. Ecological footprints may be used to argue that many current lifestyles are not sustainable. 87 ISLAMIC FINANCE • To finance the economic activity in an Islamic framework = fuel to the economic engine of a country • Must have institutions using instrument according to rules and regulations which are all bound by the shari’ah • Observe basic prohibitions in business transaction: riba (usury), gharar (speculation) and maysir (gambling) • Underlying exchange involved must be halal • Profit should come from trading transactions and other permissible contracts.