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    Falsafah Ekonomi Islam

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    Cendekia Pandir
    Islamic economics emerged formally in 1976 with the goal of rearranging economic life according to Islamic principles. However, it still lacks a clear philosophical foundation and well-defined methodology, threatening its status as a distinct discipline. This document argues for developing an Islamic economic philosophy based on an Islamic worldview to address these shortcomings. It proposes a "tawhidic methodology" that unifies doctrinal, rational, and empirical analysis to appraise economic theories based on their integrity, unity, and ability to explain realities and help achieve ideals. It also discusses the need to establish the microfoundations of Islamic economics by defining the nature of the "Islamic economic agent."

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    Falsafah Ekonomi Islam

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    Cendekia Pandir
    253 views18 pages
    Islamic economics emerged formally in 1976 with the goal of rearranging economic life according to Islamic principles. However, it still lacks a clear philosophical foundation and well-defined methodology, threatening its status as a distinct discipline. This document argues for developing an Islamic economic philosophy based on an Islamic worldview to address these shortcomings. It proposes a "tawhidic methodology" that unifies doctrinal, rational, and empirical analysis to appraise economic theories based on their integrity, unity, and ability to explain realities and help achieve ideals. It also discusses the need to establish the microfoundations of Islamic economics by defining the nature of the "Islamic economic agent."

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    Falsafah Ekonomi Islam

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    Islamic economics emerged formally in 1976 with the goal of rearranging economic life according to Islamic principles. However, it still lacks a clear philosophical foundation and well-defined methodology, threatening its status as a distinct discipline. This document argues for developing an Islamic economic philosophy based on an Islamic worldview to address these shortcomings. It proposes a "tawhidic methodology" that unifies doctrinal, rational, and empirical analysis to appraise economic theories based on their integrity, unity, and ability to explain realities and help achieve ideals. It also discusses the need to establish the microfoundations of Islamic economics by defining the nature of the "Islamic economic agent."

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    253 views18 pages

    Falsafah Ekonomi Islam

    Uploaded by

    Cendekia Pandir
    Islamic economics emerged formally in 1976 with the goal of rearranging economic life according to Islamic principles. However, it still lacks a clear philosophical foundation and well-defined methodology, threatening its status as a distinct discipline. This document argues for developing an Islamic economic philosophy based on an Islamic worldview to address these shortcomings. It proposes a "tawhidic methodology" that unifies doctrinal, rational, and empirical analysis to appraise economic theories based on their integrity, unity, and ability to explain realities and help achieve ideals. It also discusses the need to establish the microfoundations of Islamic economics by defining the nature of the "Islamic economic agent."

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    © All Rights Reserved
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    of 18

    FALSAFAH

    EKONOMI ISLAM
    (PHILOSOPHY OF ISLAMIC ECONOMICS)

    DR. HAFAS FURQANI M.Ec

    CENTRIEFP FEBI
    UIN AR-RANIRY

    Kuliah Umum Ekonomi Islam Seri 1, Biro Rektor, UIN Ar-Raniry,


    23 September 2016
    INTRODUCTION
    The Emergence of Islamic economics:
    Formal emergence: 1976 (1st International Conference on Islamic
    Economics, Makkah)
    Main Driven:
    Practical: to rearrange economic life in accordance with Islamic principles ---
    institutions
    Intellectual: to develop economics in accordance with Islamic principles ---
    IOK, Islamic economics discipline
    Supporting Factors:
    o Mainstream economic crisis:

    The mainstream body of knowledge of economics based on the neoclassical


    school is increasingly criticized for its shortcomings and lack of coherence in
    understanding of real economic problems; lacks appropriate
    methodology to deal with problems and hence solutions provided are not
    comprehensive.
    ISLAMIC ECONOMICS SCIENTIFIC
    COMMUNITYS RESPONSE

    Responses:
    1970s 1980s: bigger picture as a system of Islamic
    economics
    1990s now: downstream areas of banking and finance
    M. Fahim Khan (Essays in Islamic Economics) Observes:
    After 40 Years, Islamic Economics is not yet recognized as
    a distinct discipline. Some scholars who have involved in
    this project have taken U Turn and no more believe that
    IE is potential to be a discipline. Some have taken position
    that there is no need for a separate discipline.
    Conventional (Neo-Classical economics) is sufficient to
    explain Islamic economics behavior.
    PROBLEMS IN CURRENT MOVEMENT
    Insufficient response and gaps in Islamic economics research
    program
    Islamic economics as a discipline is still at formative stage.
    Nevertheless, the discourse of an Islamic economic philosophy -
    that discusses the foundations of Islamic economics to be a
    discipline is limited and rather elementary as the scientific
    community shifted the discussion into downstream areas of
    banking and finance.
    Lack of foundation of Islamic economics
    Developing an Islamic body of knowledge of economics, and/or
    Islamizing modern economics, cannot be done properly without a
    clear and coherent philosophical foundation that is projected from
    an Islamic worldview or vision. Only then can the discipline sustain
    itself or to provide genuine Islamic alternatives to contemporary
    mainstream economics with the indigenous solutions requested.
    CHALLENGE FOR ISLAMIC ECONOMICS
    A serious challenge for Islamic economics is whether
    it qualifies to be called a discipline?
    Discipline criteria ( Acikgenc, 2003):
    clear subject matter,
    well-defined body of knowledge,
    methodology or methodologies,
    continuous flow of theories and knowledge accumulation.

    Does Islamic Economics


    have the above?
    THE PHILOSOPHY OF ISLAMIC ECONOMICS SCIENCE

    Islamic understanding of
    economic realities New
    ONTOLOGY Islamic economic conceptual perspective DISIPLINE
    foundation of economics DIMENSIONS:
    Definition,
    Subject-matter.
    Islamic economic methodology New Scope,
    Islamic economic key-concepts approach Sources of
    EPISTEMOLOGY
    Islamic economic conceptual of economics knowledge,
    scheme Purpose and
    criteria of theory
    appraisal,
    Scrutinizing the Value-Bias in New value-
    Mainstream Economics Microfoundations
    orientation of discipline
    AXIOLOGY Infusing Islamic Ethics in of economics
    Economics
    WORLDVIEW SYSTEMATIZATION IN THE DISCIPLINE
    CONSTRUCTION

    Developing the Islamic


    Understanding economic
    economics philosophical
    phenomena/realities
    foundations

    Developing the Islamic


    Developing Islamic economics
    economics conceptual
    key-terminologies
    scheme/framework

    Developing an Islamic economic Developing an Islamic economic


    methodology to appraise and ethical framework and incorporating
    justify theories in Islamic those ethics into the body of
    economics knowledge and its theories
    The Epistemological Challenge of Islamic
    Economics Science

    The unity of doctrine and realities, ideals and facts, haqiqah and
    haqq,
    The Interaction of doctrine, realities, and theory .
    The Purpose of Theory Appraisal in Islamic
    Economics

    The purpose of theory


    Appraisal in Islamic
    Economic
    Methodology

    To produce economic To produce


    To produce economic
    theory that could economic
    theory that is able to
    link the ideals and theory that
    explain realities
    realities, doctrine and could help in
    and their relationship
    factual experience, goal
    values and facts in totality
    realization
    THE CRITERIA IN ISLAMIC ECONOMICS THEORY APPRAISAL

    The INTERNAL-INTEGRITY Criteria:


    To see internal fitness of a
    theory Doctrinal
    Integrity
    The RELATIONAL-UNITY Criteria:
    unity of doctrinal, logical and
    factual dimensions.
    unity of understanding and
    explaining realities;
    transcendental, logical and THEORY
    empirical realm.
    unity of doctrine and practical Factual Logical
    realities, ideals/goals and integrity Integrity
    factual experiences, values
    and facts, normative and
    positive dimensions, a priori
    and a posteriori.
    Methodological Unity (Tawhidic
    Methodology)
    A methodology that attempts to unify the object of study;
    the Realities, doctrine and practical experiences, ideals and
    facts, normative and positive aspects, haqiqah and haqq.
    A methodology that is going to fulfill the integrity and unity
    criteria in Islamic economic theory.
    Characteristics:
    INTERACTIVE and INTEGRATIVE approach rather than DISSOCIATIVE
    or REDUCTIONIST.
    MULTIPLICITY (plurality) of METHODS in scientific enquiry
    Gives EQUALITY to all methods of inquiry, but it aims at
    THEORETICAL INTEGRITY and UNITY to arrive at total understanding
    and coherent interpretation of reality and reach the ultimate truth.
    METHODOLOGICAL UNITY: the unity framework of doctrinal, rational
    and empirical dimensions.
    Goal: THE UNIFICATION OF MULTIPLE TRUTH: doctrinal truth,
    logical truth and empirical truth.
    ISLAMIC ECONOMIC AGENT?
    Kirzner (2000: 14): it has long
    been recognized that economics
    depends for the derivation of its The basis of the
    theoretical propositions, upon its microfoundations
    of Islamic
    understanding of human nature. economics

    The assumptions of economic Equipped with


    man (homo economicus) are Islamic Islamic
    assumptions on
    essentially constructed from Man? his economic
    behavior
    certain visions put by
    economists based on a certain The scientific
    basis as well as
    worldview that will guide further directions in
    terms of research
    development of economics as a in Islamic
    economics
    science.

    The notion of economic man is


    not a value free concept (it is
    what ought to, not what is).
    APPROACH

    To look at the ideal characteristics of man


    Substantial without ascribing to them an Islamic title:
    Approach Restrictiveness and exclusiveness of Islam
    (Man in Islamic Classificatory (type instead of types of
    economics) behavior)
    Unfortunate situation/ lack of example

    Explicit reference to homo Islamicus with


    Formal Islamic terminological values:
    Approach Identification of the field of study
    (Islamic scientific clarification based on the
    economic man) framework and criteria developed in
    behavioral analysis
    Strong response in scientific community
    THE CHARACTERISTICS OF ISLAMIC MAN:
    EXPLORING FRAMEWORKS AND KEY-CONCEPTS

    Conceptual Challenges:
    In developing appropriate concepts that are able to
    capture those messages or spirit
    In developing a framework of how human behavior is to
    be approached and analyzed.
    In developing key-terminologies to capture the dynamic
    relationship of individual, state, society and nature in
    individual agent behavior in Islamic economics.
    Technical challenges:
    Genuine (derived from Islamic worldview)
    Not a patchwork modification
    Implies the shift of paradigm
    THE NATURE OF MAN IN ISLAM

    Process of
    creation

    Self-sacrifice or
    benevolence
    Nature of
    Self

    Enlightened self-
    Raison interest
    detre?

    Self-interested but
    without hurting others
    His interest
    existence in
    realities
    Selfish behavior
    The basis of human behavior: Self-interest versus huquq
    Self-Interest Huquq
    Unitary and atomistic self-view (emphasizing Holistic/Integrated self-view (human is having
    individual identity) both individual and social identity)
    Unitary (static) type of behavior (Self-centred) Reciprocity (dynamic) type of behavior
    Static process of choice; self-interest/self- Dynamic process of choice- considering others
    utility as ref. interest

    The motive of economic agent: Utility versus maslahah


    Utility Maslahah
    The basis: pain and pleasure defined and The basis: benefits and harms defined and
    calculated at the level of individual calculated to the self and others
    Subjective concept, measured at the level of Objective criteria of beneficial and harm (good
    individual (personal basis) and bad, vice and virtue)
    Individuals utility is relatively (might or might Individuals maslahah is relatively consistent
    be) inconsistent with societys utility with societys maslahah
    Utility is not measurable or comparable Maslahah is a measurable and comparable
    concept
    The cardinal virtue of economic agent: Rationality versus taqwa
    Rationality Taqwa
    Self-interest is the foundation of rationality Huquq preservation as foundation of taqwa
    Self-interest as balance sheet of rationaity behavior
    A rational individual is a utility maximize Huquq as balance sheet of taqwa individual
    All his actions are directed to maximize his self- calculation
    utility A taqwa individual is a maslahah maximizer
    Taqwa behavior aims at maximizing maslahah in
    all aspects/dimensions of life
    WASSALAMUALAIKUM
    THANK YOU

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