Economic Doctrines of Islam

Abstract

Dr. Haq’s book belongs to the same group of issue-oriented studies in Islamiceconomics that Umar Chapra’s’ books do. However, unlike Chapra, who firstprovides a critical evaluation of the failed modem economic systems and thenestablishes the supremacy of Islam’s economic development strategy, IrfanUl Haq starts out with a comprehensive expository analysis of Islamic mnomicdoctrines. He then relies on extensive personal interpretation to derive andthen justify various policy prescriptions for the promotion of economic growthin an Islamic economy.The book contains four parts, which are divided into fourteen chapters. Thefirst five chapters in the first two parts discuss Islamic methodology and Islam’ssocial and political order. The book‘s major theme is included in the third andfourth parts where the author discusses most of the economic issues and policies.Since the controversial policy-oriented economic subjects are covered inthese parts, I will concentrate on the evaluation of these major economic subjects.These subjects include the proper role of the public sector, fard al-kifayahand its implications, interest-free financing, land ownership and tenure, taxation,poverty, employment, and the policies to provide economic essentials.Fard al-Kifayah and Its Implications for Economic PolicyIn discussing the principle of fard al-kifayah and the role of the Islamic statein providing public goods, Dr. Haq advocates a policy of nationalization ofresources as an appropriate policy for an Islamic state to follow. The same policyis extended elsewhere to include price fixing and direct control of the graintrade, and by implication, of all other commercial activity. Rather than providinga justification for such a policy on economic and Islamic grounds, he carriesout his entire discussion on the assumption that big government has the capacityand the means to solve all economic problems. This thesis, in my view, contradictsthe basic economic philosophy of Islam, which incorporates private initiativeand free enterprise with a primary focus on the individual as a decisionmaker and khurifah of God on earth. The author continues to overlook the factthat equity and efficiency are not complementruy, but often competitive. Anover-emphasis on the distributional justice of Islam creates an erroneous impressionthat in the Islamic worldview, economic growth and development are relegatedto a secondary role. This is not only incorrect, but it also contradicts thevery thesis of his book. Elsewhere I have elaborated on the Qur’anic view ofman and its implications for his economic role.land Ownership and TenureIn the beginning of chapter 10, the author correctly notes that Islam allowsland accumulation without any restrictions and recommends a balanced ...