The Islamic Economic Doctrine: A Comparative Study

Citation

Wilson, R. (2011), "The Islamic Economic Doctrine: A Comparative Study", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 4 No. 1, pp. 104-106. https://doi.org/10.1108/imefm.2011.4.1.104.1

In 2000 the first partial translation into English of Mohammad Baqir Al‐Sadr's study, Iqtisaduna (Our Economics) appeared, thanks to the efforts of Kadom Shubber. Now finally the entire study has been translated, with Dr Shubber's work going beyond the limitations of conventional translation by providing a text that can easily be read and seen to make sense by economists and other social scientists and not only specialists in Islamic studies. The earlier work covered Al‐Sadr's critique of Marxist economics and free market economies. This new work extends the coverage to include an account of the main features of Islamic economic doctrine, pre‐ and post‐production distribution in Islam and the theory of production from an Islamic perspective. In other words, rather than being just a critique of essentially secularist systems, it sets out the Islamic alternative based on shari'ah teaching.

The complete work demonstrates Al‐Sadr's intellectual capacity and breadth of vision. Al‐Sadr was a scholar of fiqh, Islamic jurisprudence, rather than modern economics, but his analysis reveals a considerable depth of understanding of how economies function, and a wide knowledge of economic history far beyond the confines of his native Iraq. The principles of Islamic economics are clearly and convincingly presented; indeed from the text it is apparent as to why Al‐Sadr has been inspirational for his many followers. Above all, Islamic economics is depicted as being about bringing distributional justice and ensuring that economies are managed in line with Islamic moral codes. Rules are seen as necessary to ensure that the faithful take the righteous path in life, and it is in this context that the designation of activity as halal (permitted) or haram (prohibited) must be understood.

Islamic economics is viewed as comprising three elements, multiple ownership, economic freedom within constrained limits and social justice. Although ownership in Islamic society is neither private nor public, Al‐Sadr stresses that it would be incorrect to depict such ownership as capitalistic or socialist. Both of the latter systems had to accommodate some elements of the opposing doctrine, such as allowing private plots on collective farms in the former Soviet Union. However, the ideal Islamic system needs neither, as ownership is constrained by moral values and beliefs that ensure that it is not abused, yet functions efficiently. Islamic economic doctrine is seen as being based on both morality and realism, with beliefs, shari'ah concepts and human emotions harnessed to ensure that a system based on justice prevails.

Al‐Sadr rejects the free market view that the major economic problem is resource scarcity; nor does he accept the Marxist view that the basic problem is the disharmony between the production system and distributional relationships. Rather, in the Islamic view, nature has the capacity to meet all of life's requirements as God has provided ample resources for human needs. The economic problem arises because humans can squander their inheritance from God and by disobeying the commands of the Almighty can abuse resources. Although Al‐Sadr did not live to see the contemporary debate on climate change and environmental degradation, there can be little doubt from his writings what his position would have been.

It is apparent that Al‐Sadr had an excellent grasp of Marxist economics, although he of course fundamentally disagreed with its basic tenets. In a socialist system, it is labour which creates value, but in an Islamic system labour justifies ownership, but does not necessarily account for all value, as the two are separate concepts. Al‐Sadr cites the case of pearl divers who may own the pearls they harvest, but their value is not solely determined by the costs of collection. Of course it can be argued that pearls represent natural resources and different economic laws apply to manufacturing, but ultimately even the latter relies on the God‐given material inputs for production and not only the work of men.

Al‐Sadr sees need as the justification for re‐distribution, with society divided into three groups: those who work and the product from this enables them to prosper; those who work but only have sufficient to cover basic needs, and those who cannot work and are dependent on others in society for their needs. Being prosperous is legitimate, when the income earned results from work, but for the sake of social cohesion and harmony it is vital that all needs are met, which inevitably involves some re‐distribution. Ownership is also justified by labour, but natural assets, including land, which do not result from human labour, cannot be individually owned. However, those who farm the land have a right to occupy the land they work and can legitimately exclude others from using the land, the farmers being custodians of the land who are ultimately responsible to the Almighty for their stewardship.

In his writing Al‐Sadr cites the opinions of many Islamic scholars, some of whom differ over what types of asset can be owned. A distinction is drawn between overt and covert minerals, as the former cannot be owned, but the ownership of latter can be debated, as they can often only be exploited through great effort and expense because they are found deep beneath the earth's crust. Some Islamic jurists see the latter as justifying ownership, but although Al‐Sadr recognises the strength of their arguments he supports the view of Iman Malik that it is for the religious authority to determine how mineral resources should be exploited, taking account of Islamic teaching on justice and distribution, and not individuals seeking to help themselves to the resources for their own sole benefit.

The merit of Al‐Sadr's work is that he tackles difficult and potentially divisive issues in a purposeful and objective manner. He not only cites the Holy Quran as the ultimate guiding authority, but also the opinions of shari'ah scholars, both sunni and shia, as although Al‐Sadr was shia, he recognises that many sunni scholars advanced persuasive arguments. In other words, Al‐Sadr is always open‐minded, and his conclusions are based on the moral strengths of the arguments made, and not on which scholar advances the argument. His approach is that of the legal scholar, always inquisitive and seeking the truth, rather than one who is so blinded by one set of ideas that they cannot accept, or even recognise, the merit of others.

In short, from this new and complete translation of Iqtisaduna it is apparent why Al‐Sadr is regarded as a major contributor to the contemporary literature on Islamic economics, and why his work will enlighten and inspire many future generations of fiqh scholars. Furthermore, this English translation will bring Al‐Sadr's writing to the attention of those interested in religious perspectives on economics more widely, especially as Kadom Shubber has provided an admirably lucid translation that can readily be understood by social scientists and non‐Muslim theologians with perhaps a limited knowledge of Islam.