Labor in Islamic Perspective

BH30603Labor in Islamic

PerspectiveTitle: “The Sources of Basic Principles of

Islamic Economics”

Group Members:1. SITI NORHIDAYAH BT ABD WAHAB - BB111105562. NOR FATIHAH BT YAHAYA - BB111103893. SAEZATUL AZWA BINTI OSMAN - BB11110515

The Basic Principles in Islamic Economics

• Generally, there are 3 fundamental principles in Islamic economics.

Basic principles

Multi-faceted

Ownership

Economic freedom within a

defined limit

Social justice

The sources of Islamic Economics

The two fundamental sources of Islamic economics are:

1. Al-Quran

The Holy Book for Muslims.

The word "Quran," a verbal noun, is equivalent in meaning to "qira'ah," as both

come from the verb "qara'a" which means "to read."

It is incredible words of Allah S.W.T revealed to Prophet Muhammad through

angel Jibrael.

It is one of the most important fundamental sources in Islamic economics.

It is contains general and broad guidelines for the conduct of human beings.

It is also the first intention in the determination of the law.

2. As-Sunnah (Hadith)

The second most important sources after Al-Quran.

It is consists of the religious actions and quotations of

the Islamic Prophet Muhammad which includes

speeches, behavior/act, and confessions.

The way of life that Prophet Muhammad taught

people in theory and practice.

Was noted down by His companions in hadith.

For example:

Riba

1. The Prophet said: “There is no riba

except in loaning.” (Nasaee 4504)

2. The Prophet said: “A loan from which

some benefits accrue to the creditor is

one of the many different forms of

riba.” (Al-Bayhaqi)

Moral conduct in entrepreneurship

1. Abu Said related that Prophet said: “The

truthful and trustworthy businessman will

accompany Prophets, saints and martyrs on

the Day of Judgment.” (Darimi, Tirmidhi)

2. Abu Huraira reported that the Prophet said:

“A time will come upon the people when

one will not care how one gains one’s

money, legally or illegally.” (Bukhari)

• Others sources of Islamic economics:

1. Ijma (Consensus of Opinion)

Ajma’a - verbal noun of Arabic word:

a) To determine

b) To agree upon something

Considered as the 3rd sources.

Exist in both Al-Quran and As-Sunnah.

When an Ijtihad (interpretation) of one or

few scholars becomes universal, it turn into

Ijma.

• Example of Ijma is opinion from

Abdullah ibn ‘Umar radhiallahu ‘anhuma

and his friends which is a prohibition for

people who rent a good, then he rent

the good to other people but with

higher rates.

(Ibn Hazm – Al-Muhalla, problem no.

1314)

• The Ijma is based on the following

verse in Al-quran:

1. “O you who believe, do not consume

(use) your wealth among yourselves in

vanity, except it be a matching trade

between you” (Al-Nisa’ 4:29)

2. Qiyas (Analogical Deduction)

Other sources of Islamic economics.

It means,

a) measuring/ascertaining length, weight or

quality of something.

b) Comparison to establish equality/similarity

between two things.

In the language of Usul, Qiyas is the extention

of a Shariah ruling from an original case (Asl) to

a new case (Far') because the new case has the

same effective cause (Illah) as the original case.

• For example,

1. The Quran forbids selling or buying of

foods after the last call for Friday

prayers until the end of the prayer.

(Surah al-Jumuah 62:9)

Therefore, this prohibition is extended

to all kinds of transaction and activities

such as agricultures, administrations

and others.

3. Ijtihad (Exertion of Effort)

An intense efforts/ability from a faqih in

order to gather the divine laws of

Shariah from a reliable sources and

proofs.

The law of Shariah is still not clearly

stated in Al-Quran & Hadith.

A mujtahid is the one who does Ijtihad.

For example:

Zaqah is based on the doctrine of

justice and the lack of market

system to achieve fair distribution

The principles of zaqah are derived

from verses from Al-Quran and

Sunnah.

1. The principle of multi-faceted ownership

• Capitalist believes in the private individual form of ownership.

• Islamic society does not agree with capitalism .• In Islamic viewpoint, ownership is accepted in a

variety of forms-instead of the principle of only one kind of ownership. (Socialism) E.g private ownership.

• According to Quaranic verses, every thing in this universe belongs to God almighty. "Whatever is in the heavens and whatever is in the earth belongs to Allah." [Al-Baqarah, 2:284].

2. The principle of economic freedom within a defined limit

• To allow individuals a limited freedom within the bounds of the spiritual and moral values in which Islam believes.

• The execution of this principle in Islam was performed in the following way:

1. The sacred law provided the textual stipulation to forbid a group of social and economic activities . usury, monopoly will be hindered.

2. The sacred law To protect & safeguard public interest through the limitation of freedom of individuals in the actions they perform.

• Individual does not have the right to posses as much as he desires and should be limited for the public welfare

3. The principle of social justice

• Islam requires authorities intervene in economic activities. E.g management, planning, and distribution.

• It shall be the duty of the Islamic government ruling implement Islamic economy ad curb the abuses.

• Should have the intervene of government because government jurisdiction is outside the areas of the individual’s ability to execute.

• Government intervention prevent usury, monopoly

Conclusion..Islamic Economic System is a system in which is how Islam arrange economical life with what belongs through precision thinking, covering the moral values of Islam and the knowledge of economy. It also assesses the human activities in line with syariah requirements either on the acquisition, management and the use of resources for the benefit themselves, the community and the nation, including the spiritual and physical aspects to find mardhatillah.