Islamic EconomicsLecture 2:What is Islamic Economics?

Definition Islamic Economics is the STRUGGLE to

implement the orders of Allah in the domain of economic affairs in (Micro) our personal lives, (Meso) our communal lives, and (Macro) in the Ummah as a whole.

Note that all human beings are part of the Ummah – the believers are those who have accepted, while the rest have to be invited.

The Economic Realm: Quran contains guidance for: those who

believe in the unseen, and establish prayer, and spend out of what they have been given

Rejection of Postivisim – believe only in observables.

All actions are acts of worship. Spending for the pleasure of Allah (NOT to

maximize utility – pleasure of Nafs).{Economics

Methodology STRUGGLE versus OUTCOMES Success/Failure Not judged by Outcome Give Examples from PIBC paper.

Dual Nature of Struggle Struggle against desires of Nafs (NIGHT) Tahajjud – individual worship Struggle to change the world (DAY) Amr bil Maaroof & Nahi Anil Munkir

(DAY) The process of struggle [if carried out

properly] will generate local knowledge.

Simultaneity of Struggle Government First Versus Personal First Resolution: Simultaneous Struggle. Sequencing is necessary.

Nature of Knowledge Global, Universal, versus Ephemeral,

Individual Ideas Material Change Materials Ideas.

How to Struggle Describe IDEAL Work to achieve it. Process is what matters. Goals may

never be achieved.

History of Islamic Economics Struggle for Liberation. Communism Versus Capitalism. Islam offers a genuine alternative. Failure to build a genuine alternative Islamic Economics is branch of

Capitalism.