Quaide-Azam Lecture at 33rd AGM & PSDE Conference. Prosperity has been misunderstood as wealth, whereas it should refer to human development. Dramatic changes in worldviews and policies would result from re-defining prosperity correctly

1. Quest for Prosperity:
Culture & Economy
Quaid-e-Azam Lecture
PSDE: 33rd AGM & Conference
Dr. Asad Zaman, VC PIDE

2. What is the Purpose of our LIVES?
All Social Science Depends On The Answer !
Social Science: The Study of Human Beings as
individuals, communities, societies –
All human action is driven by PURPOSE.
Without understanding human purpose, we
cannot understand human behavior.
Institutions are embodiment of collective
intentions to achieve common social goals.

3. Secular Answer: NO PURPOSE!
Bertrand Russell: A Free Man’s Worship
All the labours of the ages, all the devotion, all
the inspiration, all the noonday brightness of
human genius, are destined to extinction in the
vast death of the solar system, and that the
whole temple of Man's achievement must
inevitably be buried beneath the debris of a
universe in ruins
LIFE IS MEANINGLESS – There is NO PURPOSE

4. Polanyi: The Great Transformation
Traditional Society
• Organic Whole, Unity
• Common Purpose
• Community, Society
• Self-Sufficiency
• Responsibility
• Regulations on Property
Market Society
• Disjointed, Individualistic
• Everyone has own vision
• “There is no society” Thatcher
• Dependence on Market
• Each for himself
• Absolute Rights
For video-recording of entire 43m Lecture,
Visit: Quest for Prosperity: Culture & Economy

5. A Unique European Experiment
Pursuit of Wealth – universally recognized as
harmful to human soul.
Keynes: “The love of money as a possession —
as distinguished from the love of money as a
means to the enjoyments and realities of life —
is a somewhat disgusting morbidity”
NONETHLESS – we must cultivate it, in order to
accumulate WEALTH as a society! Once wealth
accumulates, it will solve ALL problems!
Trickle-Down is at HEART of Western Economic Thought

6. The Great Transformation
• Value of a Market Society are ANTI-THETICAL
to Traditional: Paternalistic, Regulatory.
• Capitalist Values: GAUTHIER: A rich man may
feed crumbs to his dog, and ignore a starving
woman begging for his help.
• Transition was revolutionary and traumatic.
Market Society values conflict with Social
• Imagine PAYING your mother for parenting
services, to see the contradiction.

7. The Lost Vision
• Society as an ORGANIC WHOLE, cooperating
to achieve common goals was ABANDONED
• Secular Society – Different groups with
different goals, no commonalities, living
together under COMMON laws.
• Rule of Law (arbitrary) is essential to
regulate conflices.

8. Consequences of Pursuit of Wealth!
Hockey Stick of Wealth
Reverse Hocky Stick of:
Climate, Environment
Death of Species
Deadliest Century in Wars
Damage to Society, Community
Engagement of all human beings in a MAD
pursuit of wealth, with LOSS of happiness.
Failure of a GRAND Experiment to create Heavens on Earth

9. The Capitalist Picture: Painting Failure as Success
Gains have been captured by top 1% -- MASSIVE increase in
inequalities – TODAY 8 people own more that bottom 3.5 billion

10. The Not-So-Hidden COSTS that have been paid for this growth
Destruction of the FUTURE of humanity AND ecology

11. Reversing the Great Transformation
Creating a Collective Vision for Mankind as a
Whole
Marshall Hodgson: The Venture of Islam
Muslims succeeded in building a new form of
society, with … distinctive institutions, art and
literature, science and scholarship, political and
social forms, (… with) an unmistakable Islamic
impress. (Over …) centuries, this new society
spread … throughout most of the Old World. It
came closer than any had ever come to uniting all
mankind under its ideals.

12. Create NEW consensus on prosperity
• Every human being has infinite potential
• It is our collective responsibility to ensure
that every child born receives opportunity to
develop the capabilities s/he is born with.
• A society is prosperous to the extent that it
creates CAPABILITIES and CHARACTER!
• NO SCARCITY in a CARING/SHARING
Economy

13. How can we launch a revolution?
The key is the Human Being – the most
precious among creations of God
With INFINITE potential.
The idea of using MAN as a resource for
production of WEALTH is a cruel inversion of
priorities.
WEALTH is a means to empower and enable
men to develop their capabilities to the fullest

14. Prosperity: Richness of Human Lives
Human beings are the means and ends of
development – Mahbubul Haq
Human Lives are infinitely precious -- Quran
Purpose of Life is to develop the amazing
potential inside all of us.
Measure of prosperity – neither wealth, nor
happiness – unquantifiable – EMPOWERMENT

15. Consequences of re-defining PROSPERITY
Social Welfare Function:
Economics: More wealth for everybody.
New: More human capabilities for all
CONSEQUENCE:
From Pareto-Wealth to Pareto-Health
If income transfers can improve health,
education, life expectancy, capabilities of
some, without harming others --

16. REVERSAL: De-Growth,
Minimize Consumption
• Avoid Israf, Tabzeer – excess spending,
conspicuous consumption
The required characteristics for success
Q59:9 – Those who do not covet wealth
belonging to to others, who give preference to
others over themselves (even though they are
themselves poor). Those who are saved from
the desired of their own nafs – they are the
ones who will prosper
Key Insight: Welfare does not depend on consumption
– it depends on our social relationships.

17. Building Strong Communities
• Social Networks are biggest source of
happiness.
• Communities are the organic cells of change.
• Love among the hearts cannot be purchased
with all the gold in the world (Quran)
• Social change only possible by group effort
• Community Driven Development – key
• Akhtar Hameed Khan – pioneer.

18. Collective Responsibility
• Farz-e-Kifayah: Crucial Islamic Innovation
• Our MAIN job, as a society, is to ensure
provision of a good life to every member.
• EVERYONE is PERSONALLY responsible.
• Feed, Clothe, House, Educate, and provide
Healthcare for all.
• Muslims Societies accomplished this through
WAQF: Central Institution for spending on
others. Contrast with BANKS, opposite spirit

19. Obstacles in Launching Revolution
• Modern Market Society came into being by
RUTHLESSLY crushing Traditional Society and
Values.
• Evolutionary change is not possible.
• Political, Social, Economic, and
Environmental Arena’s are BATTLEGROUNDS.
• Central Battle is WAR OF IDEAS

20. THE BATTLE OF IDEAS
REPLACING ET1% BY ET90%
Visit & Join my blog for large numbers
of posts on: “An Islamic WorldView”

21. What is ET1%
• Marx: Capitalism works by persuading the
laborer that his exploitation is necessary,
and just.
• ET1% works by persuading the masses that
modern capitalism works by natural laws –
cannot be opposed. Produced fair/just
results (everyone gets marginal product).
And it is BEST for everyone – efficient,
trickle-down theories.

22. Economic Theory: Soft Power of 1%
Graph Plots INCOME SHARE OF THE TOP 10%

23. ET1%: The Weapons of Mass Deception
• Scarcity: Growth + Trickle Down
• GNP per capita
• Quantity Theory of Money
• The Solow Growth Model
• DSGE Model
• Disappearance of Rentier Class
• Marginal Productivity Theory
• Labor Market Theory

24. Is SCARCITY fundamental problem?
Jeffrey Sachs: End of Poverty: $175 billion
0.7% of GDP of 30 OECD Countries.
175b = 15% of 1.2 Trillion Military Expense
HealthCare Costs of OBESITY: $210 billion
Global Cosmetics Industry: $445 billion
WHERE is the scarcity?
Easterlin Paradox: Chasing Growth SUCCESSFULLY
for 100 years has not increased happiness.

25. Solution? Empathy, Compassion
• H Umar RA: Why are you eating coarse grain
flour? Because not everyone can afford it.
• Cultural Ideals: Private Wealth.
• Economic Theory: Maximize your own
consumption – WITHOUT any concern for
others!
• Contradicts EMPIRICALLY observed behavior
• Generosity, Gratitude, KEYS to happiness!

26. ET1% WMD: GNP per capita
• Why measure AFTER
dividing it equally?
• Why not BEFORE
dividing it?
BECAUSE IT WOULD
REVEAL RISING
INEQUALITY –
Weapons of Mass
Deception

27. ET1% WMD: QTM & Finance
Money does not matter? It is ALL important
WMD: Financial Capital = Physical Capital
Interest on Money is LIKE rent on Machine
Central Question WHO creates Money?
Currently: Private Banks do, but State does in
appearance
Michael Hudson – Financial Capital STEALS
returns which should accrue to Real Sector.

28. ET1% WMD: Solow Growth Model
• Maximize growth by increasing savings to
buy capital. Accumulation of capital is key to
growth.
• Mahbubul Haq: Cruel and Sordid Process.
• Change of Heart & Paradigm Shift
• Humans are means and ends of
development.
• Maximize INVESTMENT in Human beings.

29. ET1%: Rentier Class Disappears
• Land, Money MERGED with Capital
• Marginal Product: All earnings are JUSTIFIED
by contribution to society.
• Distribution is FAIR, Driven by Economic
Laws, and Leads to Efficiency.
• Rich should get more!
• Bush & Trump: taxing the poor to give to the
rich

30. HOW TO LAUNCH A REVOLUTION?
See my personal website: Transforming Knowledge
For large numbers of articles, videos, and lectures on
related topics

31. Marxist Solution:
• Revolt of the Poor against the Rich.
• Seizing Power, and giving it to the people.
• Power is always in hands of a FEW.
• They always use it for their own purposes.
• HOWEVER, social values dictate what
happens to the rest.

32. Islamic Solution
• Create a CULTURE of GENEROSITY
• Create Kindness, Compassion
• Let the Rich Fast, to feel the hunger of the
poor.
• Encourage use of wealth to eradicate
poverty.
• DISCOURAGE excessive accumulation of
wealth.

33. Persuade the Millionaires:
Wealth is Earnings of Illusion
SOFT Weapons: Easterlin Paradox: Money
doesn’t buy happiness
Survey of Millionaires: Confirms Easterlin
Consumption is not Key to Happiness
CHARACTER Traits:
Gratitude, Contentment, Generosity
Scarcity is an ATTITUDE, not a reality

34. How Did Islam Create a Revolution
Excellence in Conduct. The best Muslim is the one who has
the best conduct.
Mercy to all Nations: We have the welfare of the entire
humankind in our hearts. This is the responsibility entrusted
to the Ummah of Muslims.
All men and women are brothers and sisters, born of Adam
and Hawwa. We are all equal, and we are responsible for
each other.
Power is given to us to HELP the oppressed, not to oppress.
Wealth is given to us so that we can help the needy, not to
flaunt it like Qaroon
The leader of a nation is the servant of the people.
All creation is the family of God. The way to get near to God
is to be of service to the Creation

35. Formula for Success:
• Same as it
was 1400
years ago.
• People are
searching in
the wrong
direction

36. LINKS to Related Materials
43m Video Lecture: Quest for Prosperity
1000 word summary: Re-Defining Prosperity
My Blog: An Islamic WorldView
My personal website: Transforming Knowledge
My YouTube Channel: AsadZaman7
Other YouTube Channel: AZ Islamic Economics
Economics Posts: WEA Pedagogy Blog