ECONOMIC PLANNING AND ISLAM
(i) Definition of Economic Planning:
Economic Planning is a modern and effective tool for:
1. Making the best use of human and material resources.
2. Ensuring that economies, especially those based on planning like communist systems,
efficiently allocate resources.
3. Addressing the needs of newly-independent developing countries where economic
planning is becoming more popular.
Economists have defined Economic Planning in various ways:
- Dickinson: Economic Planning involves making key economic decisions about what to
produce, how much to produce, and for whom to produce. These decisions should be based
on a comprehensive survey of the economic system and taken by a designated body.
- Lewis Lorvin: Economic Planning is an organizational tool where individual enterprises and
industries are integrated into a single system. Its goal is to use all means and resources to
satisfy the people's needs over a specific period.
(ii) Prerequisites of Planning:
, Based on the definitions above, the prerequisites of planning are:
1. A complete survey of known and potential resources.
2. Enthusiasm among planners and the public to use these resources for economic
development.
3. Setting desirable economic and social objectives.
4. Establishing a central organization to control the planning system according to a well-
considered program.
(iii) Islam and Planning:
Islam is a comprehensive code of life, with all its parts forming an organic whole. Formulated
by a Master Mind, it is just and balanced in all spheres. There is no flaw or imbalance in the
creation of the earth and the sky [Al-Mulk:3]. The sun, moon, and stars exemplify discipline.
Similarly, the Divine has created order in Islam. Islam offers a balanced life free of excess or
deficiency and advocates moderation in all aspects, including the economic sphere. Islam
promotes care and prudence in the consumption and use of resources, advocating against
waste to ensure they are fully utilized to meet people's needs.
Economic planning is overseen by an external central body, while an internal
superintendent, in the form of self-conscience, restrains immoderate behavior and reminds
individuals of Allah's reckoning for unfair use of His bounties. Islam has made it obligatory
for people to avoid wastage to ensure resources are maximally utilized.
(iv) Planning and Spending of Wealth::
(i) Definition of Economic Planning:
Economic Planning is a modern and effective tool for:
1. Making the best use of human and material resources.
2. Ensuring that economies, especially those based on planning like communist systems,
efficiently allocate resources.
3. Addressing the needs of newly-independent developing countries where economic
planning is becoming more popular.
Economists have defined Economic Planning in various ways:
- Dickinson: Economic Planning involves making key economic decisions about what to
produce, how much to produce, and for whom to produce. These decisions should be based
on a comprehensive survey of the economic system and taken by a designated body.
- Lewis Lorvin: Economic Planning is an organizational tool where individual enterprises and
industries are integrated into a single system. Its goal is to use all means and resources to
satisfy the people's needs over a specific period.
(ii) Prerequisites of Planning:
, Based on the definitions above, the prerequisites of planning are:
1. A complete survey of known and potential resources.
2. Enthusiasm among planners and the public to use these resources for economic
development.
3. Setting desirable economic and social objectives.
4. Establishing a central organization to control the planning system according to a well-
considered program.
(iii) Islam and Planning:
Islam is a comprehensive code of life, with all its parts forming an organic whole. Formulated
by a Master Mind, it is just and balanced in all spheres. There is no flaw or imbalance in the
creation of the earth and the sky [Al-Mulk:3]. The sun, moon, and stars exemplify discipline.
Similarly, the Divine has created order in Islam. Islam offers a balanced life free of excess or
deficiency and advocates moderation in all aspects, including the economic sphere. Islam
promotes care and prudence in the consumption and use of resources, advocating against
waste to ensure they are fully utilized to meet people's needs.
Economic planning is overseen by an external central body, while an internal
superintendent, in the form of self-conscience, restrains immoderate behavior and reminds
individuals of Allah's reckoning for unfair use of His bounties. Islam has made it obligatory
for people to avoid wastage to ensure resources are maximally utilized.
(iv) Planning and Spending of Wealth::
