2. LEARNING OBJECTIVES
At the end of this topic students
will be able to understand the
following from both Secular and
Islamic perspectives.
Methodology of Economics.
Development of Economics as a
Discipline.
Kind of Knowledge and their
sources.
2
5/27/2023
INCEIF
3. METHODOLOGY OF
SECULAR ECONOMIC
Western source of knowledge is based
on cultural tradition reinforced by strictly
philosophical premises based upon
speculations & assumption.
Secular economics considered all
knowledge originated from human
research and exploration. It makes a
distinction between reason and
revelation derived from the common
western thought and relies on reason
3
5/27/2023
INCEIF
4. SECULAR ECONOMIC AS A
DISCIPLINE
Economics emerged as a formal
discipline not more than THREE
CENTURIES ago.
A quick look at the family tree of
conventional/secular/modern
economics shows its beginning with
the Mercantilists/traders in the 17th
and 18th centuries.
4
5/27/2023
INCEIF
5. CONT. SECULAR ECONOMIC AS A
DISCIPLINE
Economics as a formal discipline finds its
origin in Adam Smith (1776),
Developed further by the classical economists
in the late 18th and early 19th centuries
(Malthus 1778, Ricardo 1817) and
Neoclassical economists of the mid-and-late
19th centuries (Mill 1848, Walras and Marshall
1890).
It was further advanced in the 20th century by
Keynes (1936) and other economists including
the rational expectations and Post-Keynesian
schools. The radical stream takes its shape in
5
5/27/2023
INCEIF
6. ISLAM AND KNOWLEDGE
Islam is a religion based upon
knowledge. Islam motivates man to be
curious about knowledge so that he will
be able to grasp the truth of everything,
the truth of his nature, his existence, his
role, his Creator and the universe.
Islam rejects blind imitation without
questioning the validity of the issue.
Since Islam is the true religion and the
Only Truth is Allah, Islam believes that if
6
5/27/2023
INCEIF
7. METHODOLOGY OF ISLAMIC
ECONOMIC
Most economic applications have to be
derived from the main sources of
Knowledge i.e. Quran and Sunnah.
Have better understanding of the
Islamic Worldview especially on the
Islamic vision of Economics.
Islamic / Shari’ah Boundaries of
Economics must be determined. 7
5/27/2023
INCEIF
8. SOURCES OF KNOWLEDGE IN ISLAM
Knowledge can be classified into two
kinds with respect to the sources of
knowledge;
1. Revealed Knowledge and
2. Acquired Knowledge
8
5/27/2023
INCEIF
9. REVEALED KNOWLEDGE
This is Allah given knowledge
through His Messenger which is the
highest form of knowledge.
The sources of this knowledge is
derived from al-Quran and al-
Sunnah.
This kind of knowledge is obligatory
to all Muslims and regarded as fard
9
5/27/2023
INCEIF
10. FARD ‘AYN/ OBLIGATORY KNOWLEDGE
Al-tawhid/creed/theology (Allah, His
Essence, His Attributes, Names and
Acts).
The Holy Qur’an (recitation,
interpretation, tafsir & ta’wil etc.)
The Sunnah (Seirah, hadith
transmission etc.)
Shari’ah (jurisprudence and law).
Linguistic sciences: Arabic, its grammar
10
5/27/2023
INCEIF
11. II. ACQUIRED KNOWLEDGE
This knowledge can be acquired through
various methods of enquiry such as
contemplation, observation, scientific
research, experiments, etc. on which
modern science is based.
This knowledge is not obligatory to all but
there should be Muslims in the community
who know this knowledge.
This knowledge is fard kifayah which
includes all the natural and social
11
5/27/2023
INCEIF
12. HOW ISLAMIC ECONOMIC AS A
DISCIPLINE HAD BEEN DEVELOPED?
Most economic applications have
to be derived from the main
sources of Knowledge in Islam i.e.
Quran and Sunnah.
Have better understanding of the
Islamic Worldview especially on the
Islamic vision of Economics.
Islamic / Shari’ah Boundaries of
Economics must be determined.
Shari’ah must be interpreted and
12
5/27/2023
INCEIF
13. CONT. .
Economic issues have been
addressed from different
perspectives by various authors in
the context of different disciplines
and in response to the needs of
respective times in the Islamic
history. 13
5/27/2023
INCEIF
14. PRINCIPLES OF ISLAMIC
JURISPRUDENCE
Ijma‘ (consensus of Opinion)
Qiyas (analogical deduction)
jtihad (Personal Reasoning)
Fatwa (legal opinion)
Istihsan (Equity in Islamic law)
Maslahah Murslah (Consideration of
Public interest)
Urf (custom)
Istishab (presumption of continuity)
Sadd al-Dhara‘I (blocking the means)
Hukm Sharai (law of shariah)
14
5/27/2023
INCEIF