PAPERS
ISLAMIC ECONOMIC MAZHAB THOUGHTS
1 Mahzab Baqir al-Sadr
First, schools Baqir-sadr. This school was spearheaded by Baqir as-Sadr with his
phenomenal book "Iqtishaduna" (Our Economics). This school believes that economics can
never be in line with Islam. Economy is still economy and Islam is still Islam. The two can never
be combined because they both come from contradictory philosophies. One is anti-Islam, the
other is Islamic.
In their view, this philosophical difference has an impact on the different perspectives of
the two in looking at economic problems. According to economics as we know it, economic
problems arise because human wants are unlimited, while the resources available to satisfy
human wants are limited. The Baqir School rejects this statement, because according to them
Islam does not recognize the existence of limited resources. The evidence used is the Koran.
"Indeed We have created everything in a precise measure" (Surah Al-Qomar [54]: 49).
Thus, because everything has been measured perfectly, actually Allah has provided
sufficient resources for all humans in the world. The opinion that human desires are unlimited is
also rejected. For example, humans will stop drinking when their thirst is satisfied. Therefore,
this school concludes that unlimited desires are not true because in reality human desires are
limited.
In addition, all theories developed by conventional economics are rejected and discarded.
Instead, this school tries to compile new theories in economics which are directly extracted and
reduced from the Al-Quran and As-Sunnah, although we have not seen the results of the
development of economic theories extracted from these revelations.
Besides Muhammad Baqir as-Sadr, the figures of this school are Abbas Mirakhor, Baqir
al-Hasani, Kadim as-Sadr, Iraj Toutouchian, Hedayati, and others.
2 Mainstream
, Schools Second, mainstream schools. This school of thought differs from the Baqir
school of thought. This second school actually agrees that economic problems arise because of
limited resources faced with unlimited human wants. Limited resources do exist, even
recognized by Islam. The evidence used is: "And indeed We will give you a trial, with a little
fear, hunger, lack of wealth, life and fruit. And give good news to those who are patient" (Surah
Al-Baqarah [2]: 155). Meanwhile, unlimited human desires are considered as natural things. The
argument is: "Boasting has neglected you, until you enter the grave. Don't be like that, later you
will know (the consequences of your actions)" (Surah At-Takasur [102]:1-3).
And the words of the Prophet Muhammad, that humans will never be satisfied. If given
the gold of one valley, he will ask for the gold of two valleys. If given two valleys, he will ask
for three valleys, and so on until he enters the grave. The views of this school on economic issues
are almost no different from conventional economic views. It is the scarcity of resources that
causes economic problems. The difference between mainstream schools and conventional
economics lies in how to solve these problems.
The leaders of this school include M. Umer Capra, MA Mannan, M. Nejatullah Siddiqi,
and others. The majority of them work in the Islamic Development Bank (IDB), which has
financial support and access to various countries, so that the dissemination of their ideas can be
done quickly and easily. They are doctors and professors in economics who study (and some
teach) at western universities. Therefore, this school has never thrown conventional economic
theories into the trash at the same time. Indeed, taking the good and useful things produced by
non-Islamic nations and cultures is not at all forbidden. The Prophet said that wisdom /
knowledge for Muslims is like a lost item. Wherever it is found, it is the Muslims who are most
entitled to take it. History has shown us that many Islamic scholars and scientists borrowed
knowledge from other civilizations such as Greece, India, Persia, China and so on. In short, what
is useful or in accordance with Islam is taken, which is not useful or contrary to Islamic
teachings is abandoned.
3 Alternative-Critical School
Third, alternative-critical school. The pioneers of this school were Timur Kuran
(Chairman of the Department of Economics at the University of Sourthen California), Jomo
(Yale, Cambridge, Harvard, Malaya), Muhammad Arif, and others. This school criticizes the
previous schools. The baqir school is criticized as a school that tries to find new things that have
actually been discovered by others. Destroy the old theory, then replace it with a new theory.
Meanwhile, he criticized the mainstream school of thought as a copy of neoclassical (modern)
economics, which eliminated the usury variable and included zakat and intention variables. This
school is a critical school. They argue that critical analysis is not only carried out on socialism
and capitalism, but also on Islamic economics itself. They believe that Islam must be true, but
Islamic economics is not necessarily true because Islamic economics is the result of human
interpretation of the Al-Quran and As-Sunnah as the epistemology of Islamic economics, so the
ISLAMIC ECONOMIC MAZHAB THOUGHTS
1 Mahzab Baqir al-Sadr
First, schools Baqir-sadr. This school was spearheaded by Baqir as-Sadr with his
phenomenal book "Iqtishaduna" (Our Economics). This school believes that economics can
never be in line with Islam. Economy is still economy and Islam is still Islam. The two can never
be combined because they both come from contradictory philosophies. One is anti-Islam, the
other is Islamic.
In their view, this philosophical difference has an impact on the different perspectives of
the two in looking at economic problems. According to economics as we know it, economic
problems arise because human wants are unlimited, while the resources available to satisfy
human wants are limited. The Baqir School rejects this statement, because according to them
Islam does not recognize the existence of limited resources. The evidence used is the Koran.
"Indeed We have created everything in a precise measure" (Surah Al-Qomar [54]: 49).
Thus, because everything has been measured perfectly, actually Allah has provided
sufficient resources for all humans in the world. The opinion that human desires are unlimited is
also rejected. For example, humans will stop drinking when their thirst is satisfied. Therefore,
this school concludes that unlimited desires are not true because in reality human desires are
limited.
In addition, all theories developed by conventional economics are rejected and discarded.
Instead, this school tries to compile new theories in economics which are directly extracted and
reduced from the Al-Quran and As-Sunnah, although we have not seen the results of the
development of economic theories extracted from these revelations.
Besides Muhammad Baqir as-Sadr, the figures of this school are Abbas Mirakhor, Baqir
al-Hasani, Kadim as-Sadr, Iraj Toutouchian, Hedayati, and others.
2 Mainstream
, Schools Second, mainstream schools. This school of thought differs from the Baqir
school of thought. This second school actually agrees that economic problems arise because of
limited resources faced with unlimited human wants. Limited resources do exist, even
recognized by Islam. The evidence used is: "And indeed We will give you a trial, with a little
fear, hunger, lack of wealth, life and fruit. And give good news to those who are patient" (Surah
Al-Baqarah [2]: 155). Meanwhile, unlimited human desires are considered as natural things. The
argument is: "Boasting has neglected you, until you enter the grave. Don't be like that, later you
will know (the consequences of your actions)" (Surah At-Takasur [102]:1-3).
And the words of the Prophet Muhammad, that humans will never be satisfied. If given
the gold of one valley, he will ask for the gold of two valleys. If given two valleys, he will ask
for three valleys, and so on until he enters the grave. The views of this school on economic issues
are almost no different from conventional economic views. It is the scarcity of resources that
causes economic problems. The difference between mainstream schools and conventional
economics lies in how to solve these problems.
The leaders of this school include M. Umer Capra, MA Mannan, M. Nejatullah Siddiqi,
and others. The majority of them work in the Islamic Development Bank (IDB), which has
financial support and access to various countries, so that the dissemination of their ideas can be
done quickly and easily. They are doctors and professors in economics who study (and some
teach) at western universities. Therefore, this school has never thrown conventional economic
theories into the trash at the same time. Indeed, taking the good and useful things produced by
non-Islamic nations and cultures is not at all forbidden. The Prophet said that wisdom /
knowledge for Muslims is like a lost item. Wherever it is found, it is the Muslims who are most
entitled to take it. History has shown us that many Islamic scholars and scientists borrowed
knowledge from other civilizations such as Greece, India, Persia, China and so on. In short, what
is useful or in accordance with Islam is taken, which is not useful or contrary to Islamic
teachings is abandoned.
3 Alternative-Critical School
Third, alternative-critical school. The pioneers of this school were Timur Kuran
(Chairman of the Department of Economics at the University of Sourthen California), Jomo
(Yale, Cambridge, Harvard, Malaya), Muhammad Arif, and others. This school criticizes the
previous schools. The baqir school is criticized as a school that tries to find new things that have
actually been discovered by others. Destroy the old theory, then replace it with a new theory.
Meanwhile, he criticized the mainstream school of thought as a copy of neoclassical (modern)
economics, which eliminated the usury variable and included zakat and intention variables. This
school is a critical school. They argue that critical analysis is not only carried out on socialism
and capitalism, but also on Islamic economics itself. They believe that Islam must be true, but
Islamic economics is not necessarily true because Islamic economics is the result of human
interpretation of the Al-Quran and As-Sunnah as the epistemology of Islamic economics, so the
