INTRODUCTION

THE FOUNDATION OF ISLAMIC ECONOMICS

Lecturer:Nuruddin Mhd Ali, MA, M.Sc

1

Objectives1. to introduce the students to the newly emerged

discipline of Islamic economics

2. to explain how Islam as a religion provides solution to the basic economic problem as faced by human beings

3. to explores some fundamental issues related to Islamic economics. It will discuss Islamic economics from its background, principles, development and prospects

Teaching Methodology

1. Lecturer 2. Group Discussion

3. Class Presentati

on

4. Paper Research

5. Issues Debate

Field Research

on Industry

Assignment

(Groups Assignment)

The students will be divided into groups which consist of 2 - 5 students. Each group should prepare to presentation on subtopics as listed in the course outline below.

(Individual Assignment)

Each student should write article on essay design (2500 Words) about crucial and urgent topics on economics in two perspective (Islamic and Conventional)

Grading Scheme

Extra Participation = 10%

Quality Assignment = 20%

Good Mid-Term Exam = 30%

Excellently Final Exam = 40%

Topic List (1)The Foundation of Islamic Economics

• Islamic Way of Life

• Islamic Economics; Definition & Methodology

Topic List (2)Islamic Economic Thought

• Classical

• Middle age

• Modern

• Islamic economic school of thought

Topic List (3)Positioning of Islamic Economics

• the history of world economic system

• mainstream of economic system (capitalism, socialism, welfare state)

• Critiques on world economic system

• Islamic solution

Topic List (4)Prohibited Transaction of Islam

• The history of money

• Critiques on interest

• Riba in Islam

• Definition of gharar and maysir

• Modern application of gharar and maysir

• Why we should avoid them?

• Islamic solution

Topic List (5)Partnership and Profit-Loss Sharing (PLS)

• Partnership in economic theory

• Theory of profit-loss sharing

• Applications in banking and finance

Topic List (6)Islamic Theory of Consumption

• Theory of consumption

• Implication on economy

• Islamic teachings on consumption

• The implication on economy

Topic List (7)Islamic Theory of Firm

• Some theories of firm

• Critiques on corporate behavior

• Good corporate governance

• Corporate social responsibility

Topic List (8)Poverty Alleviation an Islamic Perspective

• Introduction to Islamic fiscal policy

• Introducing zakah, background, change, and development

• Economic development and poverty eradication

• Zakah role in poverty eradication

Topic List (9)Islamic Wealth Management

• Earning income in Islamic perspective

• Wealth management in Islam

• Islamic Financial planning (household consumption, insurance, pension fund, saving, investment, zakah)

Topic List (10)Waqaf

• Background, law, history, and development/backwardness

• Waqaf management in some muslim countries

• Waqaf management in Indonesia

• Cash waqaf (what, why, how)

Topic List (11)The Role of State of Islam

• the role of state in economy

• free economic system

• the role of state in Islam

Topic List (12)Islamic Monetary Policy

• Conventional Monetary System

• Critiques on conventional monetary system

• Islamic solution

Topic List (13)Economic Cooperation among Moslem Countries

• Economic Potential in Muslim Countries

• Economic Problem in Muslim Countries

• Economic Cooperation among Muslim Countries; Prospect and Opportunity

References (1)Anto. MB. Hendrie. 2003. Pengantar Ekonomika Mikro Islami.

Yogyakarta: Ekonisia

Antonio, M. Syafii. 2001. Bank Syariah Dari Teori ke Praktek. Jakarta: Gema Insani Press

Chapra. M. Umer. 1985. Toward Just Monetary System. Leicester: The Islamic Foundation

______________. 1989. Islam and Economic Development. IIIT

______________. 1995. Islam and The Economic Challenge. Leicester: The Islamic Foundation

______________. 2000a. The Future of Economics, an Islamic perspective. Markfield: The Islamic Foundation

______________. 2000b. Is it Necessary to have Islamic Economics? The Journal of Socio-Economics, Volume 29, p. 21 – 37.

References (2)El-Gamal, M. E. 2001a. ”An Islamic Explication of the Prohibition of

Gharar in Classical Islamic Jurisprudence. A paper presented at the 4th International Conference on Islamic Economics and Banking held in Loughborough, August 13-15, 2000. Also available on-line: http://www.ruf.rice.edu/~elgamal/files/gharar.pdf

__________. 2001b. An Islamic Explication of the Prohibition of Riba in Classical Islamic Jurisprudence. On-line resource available on: http://www.ruf.rice.edu/~elgamal/files/riba.pdf

Kahf, M. 1980 A Contribution to the Theory of Consumer Behaviour in an Islamic Economy. In Ahmad, K. (ed.) Studies in Islamic Economics, Ch 2, The Islamic Foundation, UK.

Khan, M. F. 1992 Theory of Consumer Behaviour in Islamic Perspective. In Ahmad, A. and Awan, K. R. (eds.) Lectures on Islamic Economics, Ch 9, IRTI, The Islamic Development Bank, Saudi Arabia.

References (3)________. 1995 Essays in Islamic Economics. Ch 2, The Islamic

Foundation, UK..

Naqvi, Syed Nawab Haidar. 1994. Islam, Economics, and Society. London: Kegan Paul International

Siddiqi. M. Nejatullah. 1981. Muslim Economic Thinking. Jeddah: International Center for Research in Islamic Economics

____________. 1985. Partnership and Profit-Sharing in Islamic Law. Leicester: The Islamic Foundation

Al-Suwailem, S. 2000 Towards an Objective Measure of Gharar in Exchange. Islamic Economic Studies, Volume 7, Numbers 1 & 2.

other related articles to concerned topics

AlhamdulillahThank You

Q and A