Transcript Slide 1 - Arsip UII

A Note on Islamic Economics
present practices, it could be reasonably hypothesized that early consensus among
scholars on two fundamental propositions, that: (i) interest is riba, and (ii) riskand profit-sharing is the Islamic alternative, allowed progress in the theory and
empirics of Islamic banking. This was done first through a systematic efforts
that established economic understanding of Islamic ideas and, second, through
derivation of analytic implications from the two consensus-based propositions. It
is the contention of this note that similar approach in different areas of the field
will be fruitful as Islamic economics passes from infancy into adolescence and
maturity. This would be within the framework of Professor Ali Khan‘s ‗grid
of enquiry‘, which ―simultaneously involves history, theory, and culture if the
answers that we seek are to have a depth of understanding...a historically-andtheoretically-informed understanding,‖ (p. 56 of his globalization paper, Islamic
Economic Studies, Vol. 8, No. 1. Each of the eight propositions (questions)
posed by Professor Ali Khan at the end of his important contribution constitutes
a challenge, in response to which his own ‗grid of enquiry‘ is indispensable,
particularly in the ‗articulation of an Islamic ethos‘ ).
6. A survey of literature on Islamic economics over the past few decades reveals a
reasonable degree of agreement on at least two important and fundamental issues. 10
The first concerns what Islam itself is about: ‗Justice and Equity‘ as ―the focus of
the prophetic message,‖ as Dr. Siddiqi suggests.11 He further indicates that:
―Islam is primarily about a spiritual view of life and a moral approach
to life’s problems, including the economic problem. The contentment
Islam promised man is rooted in this spiritual and moral framework. ...
It is time to demonstrate how modern man can live a peaceful, satisfying
life by shifting to the Islamic paradigm that values human relations
above material possessions.”12
Such a ‗paradigm‘, in Dr. Siddiqi‘s conception, also shared by other scholars,
is specified in its juxtaposition to another ‗paradigm‘ which contains ‗three
features‘:
a) it is focused on the individual, society, or community, and appears as a
mere aggregate having no independent significance;
b) the individual is motivated by self-interest and focused on private gain;
and
c) maximization is the norm in this individual‘s pursuit of profit in
enterprise/satisfaction in consumption (page 16).
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