Editing Islamic economics (section)

==History==
{{Further|History of Islamic economics}}

===Pre-modern Muslim thought on economics===
Classical scholars in the Muslim world did however, make valuable contributions to Islamic thought on issues involving production, consumption, income, wealth, property, taxation, land ownership, etc. are [[Abu Yusuf]] (d. 798),  [[Muhammad al-Shaybani|Muhammad bin al-Hasan]] (d. 805), [[Al-Mawardi]] (d. 1058), [[Ibn Hazm]] (d. 1064), [[Al-Sarakhsi|Sarakhsi]] (d. 1090), [[Nasir al-Din al-Tusi|Tusi]] (d. 1093), [[Al-Ghazali|Ghazali]] (d. 1111), [[Abu al-Fadl Ja'far ibn 'Ali al-Dimashqi|Al-Dimashqi]] (d. after 1175), [[Ibn Rushd]] (d. 1187), [[Ibn Taymiyyah]] (d.1328), Ibn al-Ukhuwwah (d. 1329), [[Ibn al-Qayyim]] (d. 1350), [[Mir Sayyid Ali Hamadani|Sayyid Ali Hamadani]] (d. 1384), [[Abu Ishaq al-Shatibi|Al-Shatibi]] (d. 1388), [[Ibn Khaldun]] (d. 1406), [[Al-Maqrizi]] (d. 1442), [[Jalal al-Din al-Dawani|Dawwani]] (d. 1501), [[Aurangzeb|Muhammad Aurangzeb Alamgir]] (d. 1707).<ref>{{cite encyclopedia |last=Chapra|first=M. Umar|editor=Whaples, Robert|title=Islamic Economics: What It Is and How It Developed |url=http://eh.net/encyclopedia/article/chapra.islamic|encyclopedia=EH.net: Encyclopedia of Economic and Business History|year=2010|access-date=8 July 2011|url-status=dead|archive-date=9 June 2011|archive-url=https://web.archive.org/web/20110609123906/http://eh.net/encyclopedia/article/chapra.islamic}}</ref><ref>{{cite book |last1=Jackson|first1=Roy|title=Mawlana Mawdudi and Political Islam: Authority and the Islamic State|date=2010|publisher=Routledge|isbn=9781136950360}}</ref>

[[Abu Yusuf]] (d. 798) was author of the book ''al Kharaj''&mdash;literally "the return or revenue" but was used by the author to mean "public revenues and taxation"&mdash;which was a policy guide to [[Harun al-Rashid]], the fifth [[Abbasid Caliphate|Abbasid Caliph]].{{sfn|Kahf|2003|p=2}} Muhammad bin al-Hasan (d.805)  wrote  ''al Iktisab fi al Rizq al Mustatab'' [Earned Desired income], intended as advice to businessmen "in their endeavors to create income opportunities".{{sfn|Kahf|2003|p=2}} Abu 'Ubaid al Qasim bin Sallam (d.839) was the author of  ''al-Amwal''  (plural of "wealth").{{sfn|Kahf|2003|p=2}}

Perhaps the most well-known Islamic scholar who wrote about economical issues was [[Ibn Khaldun]],<ref>[[Sobhi Mahmassani|Mahmassani, Sobhi]] (1932). ''Les Idées Economiques d'Ibn Khaldoun (The Economic Thought of Ibn Khaldoun)'', BOSC Frères, M. et L. RIOU, Lyon, is an early treatise on Ibn Khaldun's economic thought.</ref>{{#tag:ref|also called the father of modern Historiography and Sociology.<ref name="glasse-2005-138">{{cite book|last1=Glasse |first1=Cyril|editor1-last=BeDuhn|editor1-first=Jason|title=New Light on Manichaeism: Papers from the Sixth International Congress on Manichaeism|date=2005|publisher=Brill|page=138|chapter-url=https://books.google.com/books?id=4nHWT_RqkOcC&q=Ibn+Khaldun+%22father+of+modern%22&pg=PA138|access-date=7 April 2017|chapter=How We KNow the Exact Year the Archegos Left Baghdad|isbn=978-9004172852}}</ref> Schumpeter (1954) p 136 mentions his sociology, others, including Hosseini (2003) emphasize him as well|group=Note}} who has been called "the father of modern economics" by I.M. Oweiss.<ref>I. M. Oweiss (1988), "Ibn Khaldun, the Father of Economics", ''Arab Civilization: Challenges and Responses'', [[New York University Press]], {{ISBN|0-88706-698-4}}.</ref><ref>{{cite journal |last1=Boulakia |first1=Jean David C. |title=Ibn Khaldûn: A Fourteenth-Century Economist |journal=Journal of Political Economy |date=1971 |volume=79 |issue=5 |pages=1105–1118 |doi=10.1086/259818|s2cid=144078253 }}</ref> Ibn Khaldun wrote on what is now called economic and political theory in the introduction, or ''[[Muqaddimah]]'' (''Prolegomena''), of his ''History of the World'' (''[[Kitab al-Ibar]]''). He discussed what he called ''asabiyya'' (social cohesion), which he cited as the cause of the advancement of some civilizations. Ibn Khaldun felt that many social forces are cyclic, although there could be sudden sharp turns that break the pattern.<ref>{{harvnb|Weiss|1995|pp=29–30}}</ref>

His ideas about the benefits of the [[division of labor]] also relate to ''asabiyya'', the greater the social cohesion, the more complex the successful division may be, the greater the economic growth. He noted that growth and development positively stimulates both [[supply and demand]], and that the forces of supply and demand are what determines the prices of goods.<ref>{{harvnb|Weiss|1995|p=31}} quotes Muqaddimah 2:276–78</ref> He also noted [[macroeconomic]] forces of population growth, [[human capital]] development, and technological developments effects on development.<ref>{{harvnb|Weiss|1995|p=31}} quotes ''Muqaddimah'' 2: 272–73</ref> In fact, Ibn Khaldun thought that population growth was directly a function of wealth.<ref>{{harvnb|Weiss|1995|p=33}}</ref>

Medieval Islamic economics appears to have somewhat resembled a form of capitalism, some arguing that it laid the foundations for the development of modern capitalism.<ref>{{citation|title=Charlemagne, Muhammad, and the Arab roots of capitalism|first=Gene W.|last=Heck|publisher=[[Walter de Gruyter]]|year=2006|isbn=978-3-11-019229-2}}</ref><ref>{{citation|title=Capitalism and Freedom: The Contradictory Character of Globalisation|first=Peter|last=Nolan|publisher=Anthem Press|year=2007|isbn=978-1-84331-280-2|page=277}}</ref>

===Early modern period===
Economic policies based on [[sharia]] were introduced throughout the [[gunpowder empires]], which led to their commercial expansion. Chiefly the [[Ottoman Empire]] and [[Mughal India]] underwent substantial increases in per capita income and population, and a sustained pace of technological innovation. A significant event was the creation of [[Muslim India]]'s [[Fatawa 'Alamgiri]], compiled by [[Mughal Emperor]] [[Aurangzeb Alamgir]] and [[Shah Waliullah Dehlawi]]'s family, through which the Indian subcontinent surpassed [[Qing China]] to become the world's largest economy, valued 25% of world GDP, while the region of [[Mughal Bengal]] entered a period of [[proto-industrialization]],<ref>{{cite book|title=Money and the Market in India, 1100–1700|author=Sanjay Subrahmanyam|publisher=Oxford University Press|year=1998 |isbn=9780521257589}}</ref><ref>{{cite book|title=How India Clothed the World: The World of South Asian Textiles, 1500-1850|author=Giorgio Riello, Tirthankar Roy|publisher=[[Brill Publishers]]|year=2009|page=174 |url=https://books.google.com/books?id=niuwCQAAQBAJ&pg=PA174|isbn=9789047429975}}</ref><ref>{{cite book|title=Modern World System and Indian Proto-industrialization: Bengal 1650-1800, (Volume 1)|author=Abhay Kumar Singh |publisher=Northern Book Centre|year=2006|isbn=9788172112011}}</ref> making direct contribution to [[England]]'s first [[Industrial Revolution]] after English dominance was established following the [[Battle of Plassey]].<ref name="tong"/><ref name="esposito"/><ref name="rayB"/>

===Development of "Islamic economics"===
According to Turkish-American economist [[Timur Kuran]], "not until the mid-twentieth century" was there any body of thought that could be called "Islamic economics", that was "recognizable as a coherent or self-contained doctrine". But around 1950 "campaigns launched to identify self-consciously, if not also exclusively, Islamic patterns of economic thought and behavior".{{sfn|Kuran|2004|p=x}} The famous early-20th Century Muslim nationalist and author [[Muhammad Iqbal]], for example, did not refer to religion in his treatise on economics.<ref name=norman-74>{{cite book |editor1-last=Hathaway |editor1-first=Robert M.|editor2-last=Lee|editor2-first=Wilson |title=Islamization and the Pakistani Economy|chapter-url=http://www.chicagobooth.edu/~/media/E49831A1165C49EBA902C83648F0CE36.pdf |publisher=Woodrow Wilson International Center for Scholars|date=2006|access-date=13 August 2012 |first=Omar |last=Norman |chapter=5. The Profit Motive in Islam: Religion and Economics in the Muslim World|page=74|quote=Indeed it is worth noting that "Islamic economics" is of modern 20th century origin. Even at the turn of the 19th century, the phrase was not used by major Islamic thinkers. The great philosopher Iqbal, who was inspirational to the movement for Pakistan, did not refer to religion in his treatise on economics. Iqbal's Ilm–ul–Iqtesaad, published in 1902, was notable in its absence of religion in the understanding of the economy. The intellectual father of Islamic economics is Maulana Maudoodi, the scholar whose views have shaped the Jamaat-e-Islami}}</ref>

Islamic economics grew naturally from the Islamic revival and political Islam whose adherents considered Islam to be a complete system of life in all its aspects, rather than a spiritual formula<ref>{{Cite web|url=http://www.islam101.com/economy/economicLife.htm|archiveurl=https://web.archive.org/web/20160419153555/http://www.islam101.com/economy/economicLife.htm|url-status=dead|title=The Economic Life of Islam|archivedate=April 19, 2016|website=www.islam101.com}}</ref> and believed that it logically followed that Islam must have an economic system, unique from and superior to non-Islamic economic systems.{{#tag:ref|M.T. Usmani, for example states: "Unlike other religions, Islam is not confined to some moral teachings, some rituals or some modes of worship. It rather contains guidance in every sphere of life including socio-economic fields. The obedience from servants of Allah is required not only in worship, but also in their economic activities, ..."<ref name=IIFTU1998:10>[[#IIFTU1998|Usmani, ''Introduction to Islamic Finance'', 1998]]: p.10</ref>|group=Note}} "Islamic economics"  "emerged" in the 1940s according to the Encyclopedia of Islam and the Muslim World.<ref name=EoIMW-596>{{cite book|editor1-last=Martin|editor1-first=Richard C.|title=Encyclopedia of Islam and the Muslim World|date=2004|publisher=Macmillan Reference USA|isbn=978-0-02-865912-1|pages=596–7|chapter=Riba}}</ref> Maulana ala Maududi's 1941 address "The economic problem of man and its Islamic solution" (''Insaan ka Maashi Maslah aur aus ka Islami Hul'') is "generally considered to be one of the founding documents of modern Islamic economics"{{sfn|Khan|2015|p=57}}<ref name="Nasr 1996">{{cite book |last1=Nasr |first1=S.V.R. |date=1996 |title=Mawdudi and the Making of Islamic Revivalism |location=New York and Oxford |publisher=Oxford University Press |pages=103–106}}</ref>{{sfn|Kuran|2004|pp=84–86}}

More conservative salafi have shown less interest in socioeconomic issues, asking the question, "the prophet and his companions didn't study 'laws' of economics, look for patterns, strive for understanding of what happens in commerce, production, consumption. Why should we?"<ref name="roy-133"/> Maududi himself also dismissed  the need for a "new science of economics, embodied in voluminous books, with high-sounding terminology and large organisation", as the true "economic problem of man"—along with all his social, political and other problems—"can be easily understood" and is simply the failure to follow Islamic law.<ref name="EPoM-1941">{{cite book|last1=Maududi |first1=Maulana |title=Maulana Maududi: The Economic Problem Of Man And Its Islamic Solution. Being an Address delivered in the Muslim University, Atigarh. on 20th October, 1941|date=1941|publisher=Australian Islamic Library |url=https://archive.org/details/MaulanaMaududiTheEconomicProblemOfManAndItsIslamicSolution|access-date=19 March 2018}}</ref>{{sfn|Maududi|n.d.|pp=[https://archive.org/details/MaulanaMaududiEconomicSystemOfIslam/page/n14 8]–9}}

;1960, 70s
In the 1960s and 1970s, Shi'a thinkers worked to describe Islamic economics' "own answers to contemporary economic problems." Several works were particularly influential:
* ''Eslam va Malekiyyat'' (Islam and Property) by Mahmud Taleqani (1951),
* ''[[Iqtisaduna]]'' (Our Economics) by [[Mohammad Baqir al-Sadr]] (1961) and
* ''Eqtesad-e Towhidi'' (The Economics of Divine Harmony) by [[Abolhassan Banisadr]] (1978)
* ''Some Interpretations of Property Rights, Capital and Labor from Islamic Perspective'' by Habibullah Peyman (1979).<ref>Bakhash, Shaul, ''The Reign of the Ayatollahs'', Basic Books, c1984, pp. 167–68</ref><ref name="international.ucla.edu">{{Cite web|url=http://www.international.ucla.edu/cms/files/behdadtxt.pdf|archiveurl=https://web.archive.org/web/20120117090118/http://www.international.ucla.edu/cms/files/behdadtxt.pdf|url-status=dead|title=Revolutionary Surge and Quiet Demise of Islamic Economics in Iran|archivedate=January 17, 2012}}</ref>

Al-Sadr in particular was described as having "almost single-handedly developed the notion of Islamic economics".<ref>{{Cite journal|url=https://www.meforum.org/825/the-renewal-of-islamic-law-muhammad-baqer-as-sadr|archiveurl=https://web.archive.org/web/20081007051609/http://www.meforum.org/article/825|url-status=dead|title=Review of The Renewal of Islamic Law: Muhammad Baqer as-Sadr, Najaf, and the Shi'i International|first=Daniel|last=Pipes|date=June 1, 1994|archivedate=October 7, 2008|journal=Middle East Quarterly|via=www.meforum.org}}</ref>

In their writings, Sadr and the other authors "sought to depict Islam as a religion committed to social justice, the equitable distribution of wealth, and the cause of the deprived classes," with doctrines "acceptable to Islamic jurists," while refuting existing non-Islamic theories of [[capitalism]] and [[Marxism]].  [[Mohammad Baqir al-Sadr]] and also cleric [[Mahmoud Taleghani]] developed an "Islamic economics" emphasizing  a major role for the state in matters such as circulation and equitable distribution of wealth, and a reward to participants in the marketplace for being exposed to risk or liability. 
This version of Islamic economics, which influenced the [[Iranian Revolution]], called for public ownership of land and of large "industrial enterprises," while private economic activity continued "within reasonable limits."<ref>{{harvnb|Bakhash|1984|pp=172–173}}</ref> These ideas informed the large public sector and public subsidy policies of the Iranian Revolution.

Sunni cleric [[Taqiuddin al-Nabhani]] proposed economic system (''Nidham ul-Iqtisad fil Islam'' (The Economic System of Islam) by Taqiuddin Nabhani (1953)) combined public ownership of large chunks of the economy (utilities, public transport, health care, energy resources such as oil, and unused farm land), with use of the [[gold standard]] and specific instructions for the gold and silver weights of coins, arguing this would "demolish ... American control and the control of the dollar as an international currency."<ref>{{cite web|url=http://www.hizb-ut-Tahrir.org/english/books/hizb-ut-Tahrir/chapter_09.html |archive-url=https://web.archive.org/web/20040704022600/http://www.hizb-ut-tahrir.org/english/books/hizb-ut-Tahrir/chapter_09.html |title=Untitled Document |archive-date= 4 July 2004 |access-date=8 February 2015 |url-status=dead }}</ref>

Likewise, Sunni imam [[Imran N. Hosein|Imran Nazar Hosein]] preached a similar system to [[Taqiuddin al-Nabhani|al-Nabhani]], advocating for a syncretic system with a gold / silver standard, while also having heavy government regulations of the market. Hosein is notable for being among a faction of Islamic scholars with a strict interpretation of riba prohibitions in the Qur'an, with the general definition of interest being as broad as money increasing over time for a single purchase. 

In the Sunni world the first international conference on Islamic economics was held at the King Abdulaziz University in Jeddah in 1976. Since then the [[International Association for Islamic Economics]] in collaboration with the [[Islamic Development Bank]] has held conferences in Islamabad (1983), Kuala Lumpur (1992), Loughborough (2000), Bahrain (2003), Jakarta (2005) and Jeddah (2008), Iqbal (2008).<ref>Iqbal, Zamir and Abbas Mirakhor (2008). ''An Introduction to Islamic finance.'' Lahore; Vanguard Books</ref> In addition there have been hundreds of seminars, workshops and discussion groups around the world on Islamic economics and finance.{{sfn|Khan|2013|p=6}} In the U.S. a small number of [[patent application]]s have been filed for Sharia compliant financial service methods.<ref>An example of a patent application: {{Cite patent|country=US|number=2003233324}} "Declining balance co-ownership financing arrangement" (an allegedly Sharia compliant financing arrangement for home purchases and refinances that does not involve the payment of interest), since abandoned.</ref>
;Khomeini era
What has been called one of "two versions" of "Islamic economy" existed during the first ten years (1979–1989) of the [[History of the Islamic Republic of Iran|Islamic Republic of Iran]] during the life of [[Supreme Leader of Iran|Supreme Leader]] (and [[Iranian Revolution|revolution]] founder) [[Ayatollah]] [[Ruhollah Khomeini]]. This was an "Islamist [[socialist]], and state-run": It was "little by little supplanted" by a more liberal economic policy.<ref name=roy-138>{{harvnb|Roy|1994|pp=138, 140}}.</ref>

;Post-socialist trend
In the 1980s and 1990s, as the [[History of the Islamic Republic of Iran#Iran's economy and human development|Islamic revolution]] failed to reach the [[per capita income]] level achieved by the regime it overthrew, and communist states and socialist parties in the non-Muslim world turned away from [[socialism]], Muslim interest shifted away from government ownership and regulation. In Iran, "''eqtesad-e Eslami'' (meaning both Islamic economics and economy) ... once a revolutionary shibboleth, is indubitably absent in all official documents and the media. It disappeared from Iranian political discourse" about 1990.<ref name="international.ucla.edu"/> During the era of [[Muhammad Zia-ul-Haq|Zia-ul-Haq]], several Islamic economic concepts and practices were introduced into the domestic economy, as part of Zia's Islamisation reforms (see [[Islamic economics in Pakistan]]).

The term lived on in the Muslim world, shifting form to the less ambitious goal of interest-free banking. Some Muslim bankers and religious leaders suggested ways to integrate Islamic law on usage of money with modern concepts of [[ethical investing]]. In banking this was done through the use of sales transactions (focusing on the fixed rate return modes) to support investing without interest-bearing debt. Many modern writers have strongly criticized this approach as a means of covering conventional banking with an Islamic facade.{{sfn|Khan|2013|pp=216–}} (Sohrab Behada has argued that the economic system proposed by Islam is essentially a capitalist one.<ref name = Behada>{{cite journal |last1=Behdad |first1=Sohrab |title=Property Rights in Contemporary Islamic Economic Thought: A Critical Perspective |journal=Review of Social Economy |date=1989 |volume=47 |issue=2 |pages=185–211 |doi=10.1080/00346768900000020}}</ref>)

==== Similarity of Islamic economy with other countries ====
In an interview with Professor Hossein Askari, a professor at George Washington University, the German newspaper "Suddeutsche" prepared a report on the ranking of countries that "respect Islamic values".
Ireland, Luxembourg and Denmark are at the top of the said ranking table in relation to "Islamic economy in non-Islamic countries". No Muslim-majority country is among the top 25 countries in this ranking. Israel is in 27th place and thus much higher than Saudi Arabia which is in 91st place. Germany is in 26th place in this table. In the research conducted by Shahrzad Rahman and Hossein Askari, two professors of George Washington University, an estimate of the extent of Islamic economy of 208 countries around the world was made, the results of which are very interesting and according to that, many countries that, although are not Islamic (such as Ireland, Denmark, Luxembourg and Sweden); But their economy has similarities with the economic model of Islam or the Islamic economy.<ref>{{Cite web|url=https://www.tabnak.ir/fa/news/312840/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF-%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%DA%A9%D8%B4%D9%88%D8%B1%D9%87%D8%A7%DB%8C%DB%8C-%DA%A9%D9%87-%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D9%86%DB%8C%D8%B3%D8%AA%D9%86%D8%AF|title=اقتصاد اسلامی کشورهایی که اسلامی نیستند!|date=January 21, 1392|website=fa}}</ref><ref>{{Cite web|url=https://www.baharnews.ir/news/65680/%D9%8A%D9%83-%D8%AA%D8%AD%D9%82%D9%8A%D9%82-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A-%D9%85%D9%85%D8%A7%D9%84%D9%83-%D8%BA%DB%8C%D8%B1%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D8%B9%D8%AF%D8%A7%D9%84%D8%AA-%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D8%A8%DB%8C%D8%B4%D8%AA%D8%B1-%D8%B1%D8%B9%D8%A7%DB%8C%D8%AA-%D9%85%DB%8C-%DA%A9%D9%86%D9%86%D8%AF|title=يك تحقيق اقتصادي: ممالك غیراسلامی|date=January 8, 2015|website=پایگاه خبری بهار نیوز}}</ref><ref>{{Cite web|url=https://www.binanews.ir/%D9%8A%D9%83-%D8%AA%D8%AD%D9%82%D9%8A%D9%82-%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%DB%8C-%D9%85%D9%85%D8%A7%D9%84%D9%83-%D8%BA%DB%8C%D8%B1%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D8%B9%D8%AF%D8%A7%D9%84/|title=ممالك غیراسلامی "عدالت اسلامی" را بیشتر رعایت می‌کنند! – بینانیوز}}</ref><ref>{{Cite web|url=https://www.dw.com/fa-ir/%DA%A9%D8%B4%D9%88%D8%B1%D9%87%D8%A7%DB%8C-%D8%BA%DB%8C%D8%B1%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D8%B9%D8%AF%D8%A7%D9%84%D8%AA-%D8%A7%D8%B3%D9%84%D8%A7%D9%85%DB%8C-%D8%B1%D8%A7-%D8%A8%DB%8C%D8%B4%D8%AA%D8%B1-%D8%B1%D8%B9%D8%A7%DB%8C%D8%AA-%D9%85%DB%8C%DA%A9%D9%86%D9%86%D8%AF/a-18174991|title=کشورهای غیراسلامی "عدالت اسلامی" را بیشتر رعایت می‌کنند – DW – ۱۳۹۳/۱۰/۱۷|website=dw.com}}</ref>