Author’s Foreword To The First Edition
In the name of Allah, the Merciful, the Compassionate
Dear readers, when we parted ways at the end of the book Falsafatuna (Our Philosophy), we agreed to meet again. I told you earlier that Falsafatuna is the first of our Islamic studies. It is a study that deals with the lofty Islamic structure - the unified ideological structure - followed by studies that are connected with the final touches in that Islamic model, with which we will eventually have a complete mental picture of Islam. It is the picture of Islam as a living doctrine in the heart of man, a complete system of life and a special method in education and thought.
We stated this in the introduction to Falsafatuna. We assumed that “Our Society” would be the second study in our research in which we would discuss the ideas of Islam concerning mankind, his social life and his method of analyzing and explaining the social entity. It was our intention to finish with that, and then move on to the third stage — to the Islamic system for life which is connected with the social ideas of Islam and which is based on its firm ideological structure.
However, the insistent desires of the readers was that we should defer “Our Society” and begin the publication of Iqtisaduna (Our Economics) since they are eager to be acquainted with a detailed study of the Islamic economics, its philosophy, its fundamentals, its outlines and its directives. Therefore, we have devoted ourselves to completing Iqtisaduna in an attempt to present in it a relatively complete picture of Islamic economics, as we understand it today from its sources.
I was hoping that this meeting of ours would be sooner. However, the overpowering circumstances resulted in some delay, despite the efforts I exerted along with my dear assistant, the most erudite and venerable, Muhammad Baqir al-Hakim, to complete this study and present it to you in the shortest time possible.
I would like to say here, above all, something about the phrase "Our Economics" or the phrase "Islamic Economics", the subject the studies of this book are concerned with. I would like to say what I mean by these phrases when I use them because the word "Economics" has a long history in human thought. This long history has given this word some measure of obscurity as a result of the various meanings, which are applied to it and the mix up in meaning between the scientific and doctrinal sides of economics.
Thus, when we want to know the exact meaning of Islamic economics, we must distinguish the science of economics from its doctrinal aspects, and we need to become aware of the extent of interaction between scientific and doctrinal thought. Once we are clear about that, we may move on to determine what is meant by Islamic economics, the subject we devote ourselves to the study in this book.
The science of the economics is the science that deals with the description of economic life, its events, its dynamics and its external measures. It deals with their reasoning and the general factors that influence them. This science has only recently come into being. In fact, to take the exact meaning of the word, it only came into force at the start of the capitalist era - about four centuries ago - even though its early roots extend into the earlier part of history. Every civilization has participated in economic thought as far as possible. However, the first actual scientific inference in the history of economics owed to the efforts done in recent centuries.
The economic doctrine of a society is an expression of the course, which the society prefers to follow in its economic life and in solving of its practical problems. On this basis, it is not possible for us to imagine a society without an economic doctrine because every society that is involved in production and distribution of goods must have a method on which it agrees in organizing these economic activities. It is this method that determines its doctrinal position with regard to economic life.
There is no doubt that the choice of a specific method for organizing economic life is not absolutely arbitrary. Rather, this choice is always based on certain ideas and concepts with a moral or scientific stamp or some other characteristics. These ideas and concepts bring about the ideological configuration of the economic doctrine based on them. When a certain economic doctrine is studied, it must be dealt with in respect of its method in the organization of economic life and its composition of ideas and concepts, with which the doctrine is connected.
For example, if we study the capitalist doctrine advocating economic freedom, then it is necessary for us to examine the fundamental ideas and concepts by which capitalism glorifies freedom and advocates belief in the principle. Such is the situation with regard to every doctrinal study. Ever since the birth of economics, its course has gone through the arena of economic thought.
Some scientific theories on economics have begun to shape part of the intellectual configuration of the doctrine. For example, when the merchants - who are the precursors of modern economic thinkers - claimed that they explained the amount of wealth each nation possessed - from the scientific point of view - as the extent to which the nation is in possession of ready money, they were using this idea to lay down their commercial doctrine.
Thus they encouraged foreign trade as the only way of obtaining ready currency from abroad. They also established an economic policy that would lead to the value of exported goods exceeding the value of imported goods, so that the country gains from the net inflow of currency in accordance with the increase in net exports.
When the naturalists came up with a new interpretation of wealth based on the belief that agricultural production - not the results from commercial and industrial activities - is the only production output that guarantees the growth of wealth and the creation of new values, they established in light of the so-called scientific interpretation a new doctrinal policy that aims at making the works for the development and progress of agriculture, as the basis of all economic life.
Or when Malthus - in light of his scientific calculations - established his famous theory that the growth of human population is relatively more rapid than the growth of agricultural production and that this would definitely lead to a great famine in the future of mankind, he was propagating birth control using political, economic and moral means. Similarly, when the socialists explained the value of the commercial product as work expended in the production of this article, they were rejecting capitalist-style gains and embracing the socialist doctrine in distribution. The doctrine holds that the worker is the only participant in the production who has the right to the product since he is the only person, who creates value for the product.
Thus, all scientific theories have begun to influence the doctrinal view1 and light up the paths for doctrinal scholars. Marx then added something new to the intellectual configuration in the economic doctrine. That was the science of history or what he called "Historical Materialism", in which he claimed that he had discovered natural laws that governed history. He expressed the doctrine as an inevitable result of these laws. In order that we should be acquainted with the economic doctrine that must prevail at a specific stage in history, we should consult those unalterable laws of the nature of history and discover the requirements in that stage.
Because of that, Marx believed in the socialist and communist doctrine as the inevitable result of the laws of history, which began to produce this doctrine in this stage of man’s history. Therefore, the economic doctrine was counted together with the science of history just as it was linked before that with some of the studies in economics.
On this basis, when we use the term "Islamic economics", we do not exactly mean "economics" because economics is a relatively new science. Furthermore Islam is a missionary religion and a way of life, and its real role is not the pursuit of scientific examinations. Rather, by "Islamic economics" we mean the economic doctrine of Islam which embodies the Islamic system in the organization of economic life based on the composition of thoughts this doctrine holds and signifies, comprising the Islamic value system and the scientific, economic or historical ideas which are linked with economic issues or the historical analysis of human societies.
So, by "Islamic economics" we mean the economic doctrine observed within its complete framework and in connection with the ideological configuration it depends on that explain the doctrine's viewpoints in respect of issues it is concerned with. This ideological configuration is determined for us in accordance with the light that the same doctrine shed on the matters of the economics and history. Islamic economics may be scientifically studied and investigated by examining the doctrine that it embraces and propagates.
For example, when we want to evaluate the Islamic standpoint on value of a commodity from a scientific point of view – in defining the its source, the way the value emerges and whether this value is gained as a result of work alone or some other factors - we must examine Islam's doctrinal point of view with regard to capitalist-style gains and how far it acknowledges them as fair gains.
When we want to know the Islamic view on the true contribution by the capital, the means of production and the labor in the production process, we must examine the rights that Islam has granted to each of these elements in the context of (wealth and income) distribution, according to the principles of "lease", “passive partnership”, “musaqat” 2, “muzara’ah” 3, "sale" and "loan".
When we want to know the Islamic view on the abovementioned Malthus Theory, regarding the rapid increase in population, we may understand it in light of Islam's stance with regard to its general policy of birth control. If we should want to find out Islam's opinion on "Historical Materialism" and its claims in relation to developments of history, we may discover this by examining the permanent nature of the economic doctrine in Islam and its belief in the applicability of this doctrine in all stages of history through which man has lived ever since the appearance of Islam, and so on.
And now, having defined the meaning of "Islamic economics" in a way that will facilitate the understanding of future studies, we must discuss briefly the chapters of the book. In the first chapter, the book deals with the Marxist doctrine, bearing in mind that his ideological configuration finds a visible expression in "Historical Materialism".
First of all, we examined this ideological configuration. Then, we shall move on directly to a criticism of the doctrine. We shall leave that subject, after having demolished the alleged scientific fundamentals the doctrinal essence of Marxism is based on.
The second chapter is devoted to the study and criticism of capitalism and the determination of its relationship with economics. The study of Islamic economics begins directly in the third chapter. In that chapter we shall discuss a number of basic ideas of this economics. Then, we shall move on to the particulars in other basic principles, in order to describe the system of (wealth) distribution and production in Islam, on the strength of the particulars the two other systems are built on with regard to distribution of the natural resources, the restrictions imposed on private ownership, the principles of equitability, mutual agreement, collective responsibility, financial policy, the state power and its mandate in economic life, the roles of the respective factors of production (labor, capital and the land or other tools of production) and the right of each to the wealth produced, plus all other relevant aspects in presenting a complete and clear picture of Islamic economics.
Finally, there remain a number of points connected with the discussions in the book, particularly in the last chapters that examine the details of Islamic economics. These must be highlighted from the beginning:
a) The Islamic views that are connected with the juristical aspects of Islamic economics are presented in this book in a way that is free from the methods of deduction and scientific research that are employed in the wider juristical studies. When these views are supported by Islamic texts - such as Quranic verses and the hadith - by that is not meant the scientific evidence of the legal principle, because the proof of the principle with a verse or hadith does not mean simply the rendition of this verse or hadith. Rather, the evidence requires such depth, precision and comprehension that are beyond the scope of this book.
Over and above the occasional presentation of those verses and hadiths, we have in view the procuring of a general set of knowledge for the reader, supported by the Islamic texts.
b) The juristical opinions that are presented in the book need not be taken only from the author himself, for the book deals with opinions that are juristically at variance with the ijtihad4 of the book’s author on the matter. However, the general characteristic, which has been largely observed in those opinions, is that they are the result of the ijtihad by one of the mujtahids5, irrespective of the number of people holding that opinion and the stance of the majority with regard to it.
c) The book sets forth legal principles in a general way, without going into the details and precepts outside their domain, as those are beyond the scope of the book.
d) The book always confirms the relationship between Islamic principles but that does not mean that they are principles, which are connected with an independent legal meaning, such that, if some of those principles are not used, the rest will become null and void. Rather, it means is that, the philosophy which is intended over and above those principles can be fully realized only with Islam being applied in total instead of in parts - even if it is necessary in reality to conform with each principle - regardless of whether or not one conforms with another principle.
In the book there are division of some aspects of the Islamic economics that were obviously not intended in a legal text. Rather, they have been taken from all the legal principles that are related with the matter. Therefore, those divisions precisely follow the extent to which those legal principles are in conformity with them.
In the book there are terms that may be misunderstood. Therefore, we have explained their respective meanings in accordance with our understanding, in order to avoid any ambiguity. For example, the term "state ownership", according to our understanding, means: all property that belongs to the ‘Divine Office’ of the State. This is the property of the state and whomever occupies the office personally or as a deputy, has to deal with it in accordance with what Islam has stipulated.
This book does not deal with the external form of Islamic economics alone and is not concerned with being a literary model, with numerous jargons and meaningless generalizations. Rather, it is an initial attempt – irrespective of its actual success and degree of innovativeness - to explore the depths of economic thought in Islam and to succeed as a model of thought, on which the lofty structure Islamic economics could be based; a structure rich in its philosophy and fundamental ideas, clear in its character, particularities and general tendencies, and well defined as to its stance in relation to other major economic doctrines, and comprehensively linked with the complete organic structure of Islam.
This, it is necessary for the book to be studied as a small part of the imposing Islamic structure. The book was required to philosophize on Islamic economics by looking at the economic life and the history of mankind, and to explain the philosophical element of Islamic economics.
I have no happiness except by God's leave. I trust in Him and to Him I turn in repentance.
Muhammad Baqir as-Sadr
an-Najaf al-Ashraf
Iraq
- 1. We must note here that many of the scientific theories in economics have an extremely negative attitude with regard to the doctrine, just like the theories that explain various matters of economic life set within a firm doctrinal framework. The doctrinal view is directly influenced by the theories, which deal with general matters in the economic field, not relative matters within each particular framework.
- 2. “Musaqat”, a crop sharing contract over the lease of a plantation land limited to one crop year under Islamic law.
- 3. “Muzara’ah”, a temporary crop sharing contract under Islamic law.
- 4. “Ijtihad” is the formulation of an independent judgment in a legal or theological question.
- 5. “Mujtahid” is a legist formulating independent decision in legal or theological matters.