Economic System of Islam

‘ Host: Could you explain how this new series relates to the previous series of this program and what is the relevance of the subject? Jamal Badawi: In the first three series the emphasis was on the articles of faith in the fourth series the emphasis shifted to pure acts of worship (the other pillars

Summary 8.1 “Introduction”The first program was basically and introductory program.’ We covered what the relevance of religion is in the matter of economics.’ We indicated that economic behavior is part of the overall behavior which is regulated by religion.’ This applies in the case of other religions but in the case of Islam it is

Summary of 8.2 “Property Rights”The second program dealt with the right of property in Islam.’ Islam recognizes people’s right to own property as an instinctive natural tendency among all people.’ However, there are various levels of property ownership.’ There are properties that are owned by one individual, family, tribe, by a nation or society at

‘ Host:” Please explain the connection between today’s topic and the last three topics? ‘ Jamal Badawi: In the first three we dealt with basic principles on which a proper ideal economy can be established.’ The first program covered the broader principles and conceptual foundation.’ In the second and third program we dealt with some

Summary of 8.4 “Consumption”In the previous program we started to apply the broad principles in Islamic economic foundation on specific topics.’ We started dealing with the question of consumption.’ In order to make it easy to understand we compared the Islamic view of economics compared to the Western way of looking at it.’ The comparison

Summary of 8.5 “Production: Qur’anic Foundation”Instead of looking at curves and theory we started from the ideological foundation of production and productivity in Islam.’ We indicated that the basis for productivity in Islam is not mearly economic survival but also seeking the pleasure of God by responding to his directives in the Quran to explore

Summary of 8.6 “Production: Learning and Experimentation”The major part of our discussion was on the position of Islam towards science and how it encouraged the use of senses, reason and experimentation.’ We indicated that the experimental approach was not introduced to the West by Roger Bacon but that it was known to Muslims centuries before

Summary of 8.7 “Muslim Contribution to Astronomy & Chemistry”‘ Last weeks program was a continuation of the effect of progress in Islamic sciences in the Middle Ages and its effect on the Renaissance in Europe.’ We tried to look into some of the basic routes through which Muslim learning and sciences penetrated into Europe including

Summary of 8.8′ “Muslim Contribution to Mathematics and Physics”‘ The eighth program focused on Muslim contributions to the fields of mathematics and physics.’ In mathematics we spoke of the introduction of Arabic numerals and the concept of zero which lead to a revolution in mathematics.’ We examined some particular fields such as Algebra which was

Summary of 8.9 “Muslim Contribution to Medicine”We talked about the contribution of Muslims to medicine.’ First, we tried to show the relationship between Islamic teachings and the interest in medicine and how they are intertwined.’ We actually viewed the major contribution of major physicians to medicine all the way from the 8th century to the

Summary of 8.10 “Muslim Contribution to Other Fields I”‘ In the tenth program we briefly looked into the contribution of Muslims in Geography and how that was encouraged by the various teachings of Islam like prayers, Pilgrimage and fasting which necessitated this.’ Even if Muslims did not come to the Americas before Columbus they at

Host: Are there specific measures that can be used to help maintain productivity? ‘ Jamal Badawi: Islam’s respect for the right of private ownership is part of inducing production and productivity as it responds to people’s instinctive need to possess something and try to invest in things and to make them grow.’ The inducement that

Summary of 8.12 “Prohibitions of Riba (Interest) I”‘ The previous program continued the broad topic of production and productivity in Islam.’ After going through many program which showed Muslim’s attitude towards science and technology.’ We touched on some of the specific measures in an ideal economic system where there is a great deal of incentive

Summary of 8.13 “Prohibitions of Riba (Interest) II”In the previous program we described the two different types of interest that were common before Islam.’ We said that one was clearly prohibited in Islam and the other many jurists believe to be prohibited by analogy.’ We discussed the rare opinions of those who made and error

Summary of 8.14 ” Prohibitions of Riba (Interest) III/ Distribution”In the 14th program we started by highlighting a few points pertaining to the previous discussion on interest and interest dealings which have been forbidden by Islam.’ We indicated that the prohibition of interest dealings in Islam doesn’t necessarily mean prohibition of saving or investment and

Summary of 8.15 “Zakah & Distributive Justice”We continued our discussion of the basics of the economic system and consumption, production and distribution.’ On the question of distribution, Islam looks at the distribution of commodities and income.’ In our discussion of distribution of income or the achievement of social justice we mentioned that there are four

Summary of 8.16 Charity & Distributive JusticeSo far we covered three of the four basics to achieving social justice and they include Zaikai or Institutional Charity, taxes and voluntary charity.’ The fourth is inheritance which we hope to discuss today.’ In the previous program the focus was on the third means of achieving social justice,

Summary of 8.17 “Distributive Justice & Inheritance”The law of inheritance was dealt with in the last program as the fourth mean for achieving social justice in an ideal Islamic society.’ We discussed the basic characteristics of the Law of Inheritance in Islam which is mainly something that is consistent with human nature and recognizes the

‘ Host:’ What is an alternative to the dilemma faced by many home owners- with mortgages coming up for renewal and the interest is very high?’ What is SER? ‘ Jamal Badawi: SER means Shared Equity and Rental for home ownership.’ In a way it is a substituted or possible alternative to the traditional that

Summary of 8.19 An Alternative to Mortgage I Suppose one had a house worth $50,000 and the mortgage is up for renewal and one still owes the company $40,000.’ What was suggested was that one divides the value of the house into 50 $1000 shares and then you can sell forty shares (besides your own

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