Hasan, Zubair (2011): Scarcity, self-interest and maximization from Islamic angle. Forthcoming in: No. IRTI: IDB Laureate Lecture Series 2011 : pp. 1-25.
Download (329kB) | Preview
This paper clarifies some misinterpretations of three foundational concepts in mainstream economics from Islamic viewpoint. These are scarcity of resources, pursuit of self-interest and maximizing behavior of economic agents. It argues that stocks of resources that God has provided are inexhaustible. But important is the availability of resources out of stocks to mankind. Availability is a function of human effort and the state of knowledge about resources over time and space. In that sense resources are scarce in relation to multiplicity of human wants for Islamic economics as well. Self-interest must be distinguished from selfishness. The motive operates on both ends of human existence: mundane and spiritual. Its pursuit does not preclude altruism from human life. Counter interests keep balance in society and promote civility. Islam recognizes the motive as valid. Maximization relates to quantifiable ex ante variables. Uncertainty of future outcomes of actions makes maximization a heuristic but useful analytical tool. The concept is value neutral. What is maximized, how and to what end alone give rise to moral issues. Modified in the light of Shari’ah requirements the three concepts can provide a firmer definition for Islamic economics centered on the notion of falah.
|Item Type:||MPRA Paper|
|Original Title:||Scarcity, self-interest and maximization from Islamic angle|
|English Title:||Scarcity, self-interest and maximization from Islamic angle|
|Keywords:||Scarcity; self-interest; opportunity cost; maximization; Islamic Economics; israf;; heuristics|
|Subjects:||A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A22 - Undergraduate
B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics
B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B13 - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)
B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B11 - Preclassical (Ancient, Medieval, Mercantilist, Physiocratic)
|Depositing User:||Zubair Hasan|
|Date Deposited:||17. Jun 2011 11:49|
|Last Modified:||02. Jan 2016 05:21|
Ahmad, Khurshid (November 6, 2007): Capitalism, socialism, the welfare state and Islam, Prize winner’s lecture at IRTI/IDB Jeddah (Power point slides).
Addas, Waleed A. J. (2006): Methodology of Economics: Secular Versus Islamic, Research Management Centre, International Islamic University of Malaysia.
BBC Report (August 11, 1984) on Zola Budd story.
AI 3 (2006): The Biggest Disruption in History: Massively Accelerated Growth Since the Industrial Revolution http://www.mkbergman.com/250/the-biggest-disruption-in-history-massively-accelerated-growth-since-the-industrial-revolution/
Chapra, M. U (2001): What is Islamic Economics, IDB Prize winners lecture series, No.9, IRTI (First published in 196).
Coase R. W (1984): Adam Smith’s View of Man in J.C. Wood (ed.) Adam Smith: Critical Assessments Croom Helm.
Farooq, M. Omar (2006): Islamic law and the use and misuse of Hathith, New Horizon. Also available at: http://ww w.globalw ebpost.com/farooqm
Haneef M. Aslam and Furqani, M (2004): Contemporary Islamic Economics: the Missing Dimension in Genuine Islamization, Journal of Thoughts on Economics Vol.19, No.04, pp.29-48.
Hasan, Zubair (2002): “Maximisation Postulates and their efficacy for Islamic Economics “American Journal of Islamic Social Sciences, Vol. 19, No.1
--------------- (1998a): Book Review: “Teaching Economics in Islamic Perspective“ By M.N.Siddiqi, Islamic Economic Studies Vol. 6, No. 1, 1998 pp. 111-132
--------------- (1998): “Islamization of Knowledge in Economics: Issues and Agenda” IIUM Journal of Economics and Management Vol. 6 No.1, pp. 1-40, (Special Issue).
---------------- (1996): Book Review: An Introduction to Islamic Economics by M. Akram Khan The American Journal of Islamic Social Sciences, Vol. 13, No. 4, Winter, pp. 580-585.
----------------- (1992): ‘Profit Maximisation: Secular Versus Islamic’ in Sayyid Tahir et al (Ed) ‘Readings in Microeconomics: An Islamic Perspective’ Longman, Malaysia (Chapter 20, PP. 239-255).
----------- (1988): ‘Distributional Equity in Islam’ in Munawar Iqbal (Ed.) ‘Distributive Justice and Need Fulfilment in an Islamic Economy’, the Islamic Foundation Leicester, U.K. (Chapter 1, PP. 35-62).
----------- (1985: “Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance”, Journal of Research in Islamic Economics, Jeddah Vol. 3, No. 1, pp. 13-27.
----------- (1975): Theory of Profit, Vikas Publishing House, New Delhi 110002.
Kahf, Monzer in Sayyid Tahir et al (Ed) ‘Readings in Microeconomics: An Islamic Perspective’ Longman, Malaysia (Chapter 9, The Theory of Production PP.113-119).
Khan, M. Akram (1994): An Introduction to Islamic Economics, International Institute of Islamic Thought and Institute of Policy Studies, Islamabad Pakistan.
Khan, Mohsin S and Mirakhor A. (1992): Islam and the Economic System, Review of Islamic Economics, Vol.2, No.1 pp.1-29.
Kuran, Timur (1989): “On the notion of economic Justicein contemporary Islamic thought” International Journal of Middle East Studies, Vol. 21, No.2 pp.171-191.Available also at http://econpapers.repec.org/RePEc:fth:socaec:m8814.
League Table (2007) in Does Human Knowledge double Every 5 Years? Web http://newsfan.typad.co.uk/does_ human knowledge double/ Monday 9.8.2010 11.10 PM
Matt Rosenberg (2009): About.com Guide [http://geography.about.com/od/obtainpopulationdata/a/worldpopulation.htm]
Robbins, Lionel (1935): An Essay on the Nature and Significance of Economic Science, 2d. ed. 1945 reprint Macmillan, London.
Sen, A. K. (1977): Rational Fools: A Critique of the Behavioral Foundations of Economic Theory, Philosophy and Public Affairs, Vol. 6, No. 4. pp. 317-344.
Siddiqi, M. N (1984): Islamizing economics, International Institute of Islamic Thought (IIIT), Herndon, VA 22070 – 4705, USA
-----------------(1992): Teaching Economics in Islamic Perspective, in in Sayyid Tahir et al (Ed) ‘Readings in Microeconomics: An Islamic Perspective’ Longman, Malaysia (Chapter 20, PP. 1-33.
----------------- (1998): Teaching Economics in Islamic Perspective, Scientific Publishing Centre, King Abdulaziz University, Jeddah S.A
----------------- (2006): Islamic banking and finance in theory and practice: A survey of the state of the art, Islamic Economic Studies, Vol. 13, No. 2, February.
Silva, S.S da and Reis R.P and Ferreira, P.A (2009: Concepts of nature value: Are the particular characteristics of nature goods being considered? VII International PENSA Conference, Sao Paulo, Brazil
Smith, Adam (1996 print): An Inquiry into the Nature and Causes of the Wealth of Nations, The Glasgow Edition.
Syed Agil, Syed Omar (1992: Rationality in EconomicTheory, in Sayyid Tahir et al (Ed 1992) Teaching Economics in Islamic Perspective ‘Readings in Microeconomics: An slamic Perspective’ Longman, Malaysia (Chapter 2, PP. 31-48).
The World Economy, Historical Statistics 1950 – 2001 Tables 7a, 7b, and 7c (World Economy (WE) website)
Olsen, James Stewart, (2002) Encyclopedia of the Industrial Revolution, Greenwood Publishing Group, 2002.
Available Versions of this Item
- Scarcity, self-interest and maximization from Islamic angle. (deposited 17. Jun 2011 11:49) [Currently Displayed]