al-māwardī's contribution to islamic economic thought: special reference to “kitab adab...

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Al-MWARD'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNY WA AL-DN” Presented by: Luqman Hakim Handoko Supervisor: Dr. Mustafa Omar Muhammed Kulliyah of Economic and Management Science International Islamic University Malaysia Ibnu Sina Presentation Room, 18 th July 2014

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Page 1: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Al-MAWARDI'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYA

WA AL-DIN”

Presented by: Luqman Hakim Handoko

Supervisor: Dr. Mustafa Omar Muhammed

Kulliyah of Economic and Management ScienceInternational Islamic University MalaysiaIbnu Sina Presentation Room, 18th July 2014

Page 2: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Outline

INTRODUCTION

AL-MAWARD

I LIFE AND HIS ENVIRON

MENT

AL-MAWARDI

’S CONTRIBUTIONS

TO ECONOMIC IDEAS

CONCLUSION

Page 3: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

I. INTRODUCTIONBackground of Study

• There are a lot of works of Muslim scholar directly or indirectly deal with economic dimension.

• Abu Hasan (1992) categorized them into five dimensions of analysis. • In terms of the topic discussed, Islahi (2004) did a great job to classify those works

into four broad categories.• Some studies has been great consideration and repetition such as Ibn Khaldun, Ibn

Taymiyah, al-Ghazali, al-Maqrizi and some others have been given little attention or practically ignored.

• One of those studies that have given less attention is Mawardi’s works. Not much has been written on Al-Mawardi’s contribution to the Islamic economic thought.

• Though there are studies on Mawardi’s economic thought which are mostly based and focused on his book Al-Ahkam al-sultaniyah, most of them are written in Arabic language.

• The economic idea of Mawardi still remained under-explored despite the fact that he authored several books such as Adab al-dunya wa-al-Din, Tashil al-Nazar wa Ta`jil al-Zafar, Adab al-Wazir, etc.,which are related to economic or political economic idea

• To the best of the author’s knowledge, no comprehensive research has been undertaken with the primary emphasis on al-Mawardi's economic thought, particularly his teachings on ethical dimension of Islamic economics. In this context, his book titled Adab al-dunya wa-al-Din.

Page 4: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Objective and Scope of Study

1

• To review the existing literatures on the economic ideas of al-Mawardi’s particularly his ideas contained in his book Adab al-dunya wa-al-Din

2• To analyze the economic idea of al-

Mawardi’s and its relevance to modern economics.

3• To provide recommendations based on the

finding.

Page 5: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Significant of Study• The discussion and research on Islamic heritages especially

about the economic thought of Al-Mawardi is still rare. The current study will overcome this setback by making it accessible to the prospective reader particularly those interested in the development of Islamic economy.

1• One of the main gaps to study Islamic economic heritages is

the language, whereby most of them are in Arabic language. Only few of the scholars that have mastered both Arabic and English language have shown significant interest in Islamic economic thought. Hence, the translation of this study from Arabic to English will facilitate the readers.

2• Finally, this study can enhance and enrich the existing

literature on theory of Islamic economics. As a result, it will enable the scholars and regulators to further develop a model for the Islamic economic theory. Moreover, this study may attract other researcher to discuss and examine the theory deeply

3

Page 6: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Method of Study

The current study is library-based research.

To analyze the information and data obtained, the researcher employed the following methods:

1) Descriptive method2) Analytical and explanatory comparative method3) Deductive method

Page 7: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

II. AL-MAWARDI LIFE AND HIS ENVIRONMENT

His Life And Death His name is Abu al-Hasan Ali Ibn-Muhammad Ibn-Habib al-Mawardi al-

Basri al-Shafii popularly known as al-MawardiAl-Mawardi born in Basrah 364H/974C ND died in Rabiul Awwal 450H at

the age of 86 years.His Intellectual LifeHis education was starting from Basrah and then continuing to Baghdad.

In Baghdad, he was surrounded by the four great schools of Fiqh namely, Shafi’i school, Maliki school, Hanafi school and Ahmad school.

He wrote many books in various themes. For example, here we list some of his writings on socio-economic and politic aspects

1. Kitab al-Ahkam al-sultaniyah wa-al-wilayat al-diniyah; 2. Tashil al-nazar wa-taʻjil al-zafar.3. Nasihat al-muluk. 4. Qawanin al-wizarah wa-siyasat al-mulk.5. al-Tuhfah al-mulukiyah fi al-adab al-siyasiyah. 6. al-rutbah fi talab ʼal-hisbah. 7. Adab al-dunya wa-al-din.

Page 8: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

During that time Islamic world divided in three regions, namely, Umayyad in Spain, Fatimid in Egypt and Abbasid in Baghdad.

Al-Mawardi entered into the judicial profession as Qadhi (judge) in the era of Caliph Qadir Billah (381-422H/991-1031C) and Caliph al-Qaim bi Amrillah (422-67H/1031-1070C). And Finally, he became the Agdha al-Qudhat (the greatest judge).

The High Class

(caliph

s, Minist

ers, judges,

etc)

The Middle Class (Soldiers, civil servants,

Merchants, engineer)

The Low Class ( ordinary people, farmers, small craftmen,

slaves etc,)

Economic sectors

Agriculture Industry Trade and buseniss Husbandry

Abbasid under buwayhid’s control 334H-447H/945C -

1055C

Fatimid Era (279-567 H at Egypt

Umayyad II era 300-/929-1031C at Andalusia

300 H 600 H400 H100 H 200 H 500 H 700 H

Abbasid era (132 H/750 M-656 H/1258 M) Baghdad (Iraq)

His Political Environment

His Socio-Economic Environment

b. Economic Sectorsa. Social Structure

Page 9: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

III. AL-MAWARDI’S CONTRIBUTIONS TO ECONOMIC IDEAS

Literature ReviewNo Author Finding

1 Siddiqi (1980) Introduced al-Ahkam al-sultaniyah. indicated that the book is rich with the economic content such as market supervision, agricultural relations, and taxation

2 Abdul Azim Islahi (2004)

The author indicated that al-Mawardi discussed socio-economic development on several books such as Adab Wazir, Tas’hil al-Nazar wa Ta`jil al-Zafar, and Adab al-dunya wa al-Din. he stated that the last book is the comprehensive one on it.

3 Amedroz (1916) He focused on the institution of al-hisbah or market supervision

4 Wilson (2009) In his book Islamic economic a short story, he focused on al-Ahkam al-sultaniyah and compared it with al-kharaj’s Abu Yusuf.

5 Hawwas (1983)

wrote a thesis about partnership contract titled Min usul al-iqtisad al-Islami. the author explained disagreement of scholars on Mudharabah (partnership) issues

Page 10: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

No Author Finding

6 Subhi Fandi al-Kubaisi (2002)

wrote an article titled al fikr al-Iqtishad li al- Mawardi min Khilali al Al-Ahkam al-sultaniyah. The author discussed three economic concepts and then tried to compare them with the contemporary scenario. The author extensively explains: 1) the concept of ownerships of land and its kinds. 2) the public finance and its functions. 3) the importance of the institution of hisbah.

7 Shawqi ʻAbduh

Sahi (1998)

wrote on Isʹhamat al-Imam al-Mawardi fi al-nizam al-mali al-Islami. 1. The author discussed in detail the sources of zakat and

explained how to and to whom it should be distributed.2. the author examined the public finance of the state.3. the author discusses the issues of department of finance.

9 Murat, Bahar, and Abdullah (2013)

wrote an article on Abu Al-Hasan Al-Mawardi’s Views on Economic Policies. The authors discussed the policies that should be taken by government among which are income policy, spending policy, monetary policy, pricing policy, and employment policy and market supervision.

Page 11: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Overview of The BookThe book, Adab al-dunya wa-al-Din, was written in an ethical style that

deals with many themes related to the issues of human life. He establishes his views based on an abundance of evidence from al-

Quran, then Hadith (traditions), etc. It is an influential book among Muslim countries.As the author briefly mentioned, the book contained five chapters. 1. The first chapter is the virtue of the reason (intellect) and the evil of

the desires.2. The second is the ethic of knowledge. Al-Mawardi explained the

magnificence and superiority of seeking knowledge. He also emphasized the importance of seeking knowledge in order to differentiate between the knowledgeable and the ignorant.

3. The third is the religious ethic. The reason or intellect has a great position in the discussion of religious ethic.

4. The fourth is the mundane or worldly ethic. The discussion on worldly matter is quite detailed compared to the previous chapters. Most of his economic thought placed in this chapter is explored by the researcher.

5. The last is related to the ethic of the soul. According to him, the final goal of this topic is the purification of the soul from the evil attitude.

Page 12: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Economic Behaviour1. Human Nature

Human nature

Weak

Social Being

Need Cooperation for fulfilling their need

Have more necessities than animal

Nessecities (hajah)

Needs (hajah Massah)

Wants (shahwat ba’ithah)

maximization

of quantity(shahwa

t fi iktsar)

maximization

of quality

(shahwat

ladhidhah)

2. “Wants” and “Needs”

3. Consumer Behaviour

Turning away from pleasure

Middle path Maximization of pleasure

Islamic consumer behaviour

Page 13: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

4. Characteristics of human being in relation to wealth and prosperity

Looking for Halal

Searching for needs

Ungrateful Person

Characters of human being

Unsatisfied people

Laziness

Blamed

Submission (Tawakkul)

Ascetic (Zuhud)

Never felt satisfied except with the glories and material abundance

Saving the wealth for their heirs

Searching for excessive wealth to do a good deed.

Saving or hoarding the wealth for their hobby

Encouraged as the way of life

It is blamed if there is no effort

Human Behaviors

Contentment

(Qana'ah)

Asceticsm

(Zuhud)Generos

ity(Sakho')

Extravagance (Israf

wa Tabzir)

& Miserlin

ess(Bukhl)

Greed (Khirs)

5. Human behaviours in relation to the economic needs

6. Riches and Poverty• Al-Mawardi discussed the different opinions between the riches and the poverty• Though people agreed that the absolute poverty is hateful (makruh) and

rejecting the riches is disrepute (mazmum).• poverty and riches are not the main problem in economics relation. The

differences and the disparities are the cause of coalition and the cooperation. And these mutual assistances are the cause of unity.

Page 14: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Economic Activities1. Earning of a Livelihood (Al-Kasb) A Al-Mawardi defines, al-Kasb as means that may lead to the acquiring of

materials (al-madah) and action that is aimed to meet the basic needs (al-hajah).

Al-Mawardi defines the materials (al-madah) as something that is obtained from the source, which can grow and flourish. It can be divided into two, namely, the flourished plants and proliferated domestic animals

Mawardi said that the work (kasb) and factor of production (madah) are the main factors to fulfill the needs and to acquire human well-being.

2. Production Activities and Economic Sectors

Production activities

Agriculture Husbandry Trade Industry

intelectual skill (sina'ah

fikri )

Technical

skill (sina'ah 'amal )

mixed between

two

Page 15: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

3. Division of Labor and SpecializationAccording to Al-Mawardi, Allah created human beings with

special capabilities. Using his special capability, he can acquire wealth to fulfill his needs.

However, the differences in capabilities and difficulties to acquire wealth forces human to cooperate with one another.

Furthermore, by knowledge, it would make the work easier and efficient and ensure the achievement of economic goals.

Increasing in productivity

asEconomic Goal

Mutual-Cooperation

Division of Labor and Specialization

Knowledge

Efficiency and easiness

Page 16: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Socio-Economic Development theory Islahi (2000) reported that his economic development theory is scattered in his various books, but the

comprehensive one is the book titled: Adab din wa Dunya. He used the term salah-yasluhu-salah to express the meaning of the development. The word islah, might, is the best term that can represent the meaning of the

development. When it is associated with the wealth, the meaning is close to ‘imarah or ‘umran or tanmiyah

Development ProgressMacro or State levelThe role of Religion

Powerful Government

Universal Justice

peace and Security

Welfare State

Motivation

Micro or individual levelThe submission of Soul

Brotherhood

The Abundance of Material

Page 17: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Al-Mawardi and ibn Khaldun Theories of Socio-Economic Development: a Brief Comparison

No

Variables

Al-Mawardi Ibn Khaldun

1 Role of Governme

nt

Government has great role in implementing the din (religion), establishing the justice, providing the material or resources and keeping the security of the nation. To be successful in its role, the government has to be powerful enough.

The political authority or government should ensure the well-being of the people, providing a proper environment for actualization development, establishing the justice trough implementation of the Shari’ah and distribution of the wealth.

2 Shari’ah Both, to ensure the effective running of government, it need standard code of conduct that is provided by the Shari’ah

3 Justice the implementation of the justice could strengthen brotherhood, bring prosperity to the country and boost economic growth, etc

if there is justice in the society it will facilitate development and strengthened the society.

4 Role of Wealth

Mawardi prefers the material abundance to ensure the society benefits equally. It will lead the society to prosperous life and peace

To spend more on the well-being, government needs material abundance and the assurance that the wealth comes from the taxes. Therefore, to gain higher income from the taxes, increasing economic activity is necessary to increase the income

Page 18: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

IV. CONCLUSION AND RECOMMENDATION

Concluding Remarks Al-Mawardi has undoubtedly made noteworthy contributions to modern economic

ideas. He has discussed the basics theory much earlier than the early economists have done in the western economic thought.

Al-Mawardi discussed the economic behaviour very well and in detail. His economic theory embodies interrelationships between religion, economic,

social, psychological, and political factors. Based on finding, his rationality and micro foundations differ from modern

economics theory that focused solely on rational behaving self-interested economic agent.

The poor and the rich are sunnatullah (taken for granted). It is not the main problem of the economy, but the real problem is the human behaviour toward the wealth.

There are similarities between Mawardi’s and Ibn Khaldun’s theory on socio-economic development. Both analyses have interdisciplinary approach, which are important variables of analysis that links each other.

Page 19: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

Limitations and Recommendations• It is important to point out that the

finding and the analysis of the study should be interpreted in the context of these limitations.

• The finding does not represent his entire economics ideas. In other word, this study considers the idea that appears in his book Adab Dunya wa din.

LIMITATION • Since this study is a partial study, it is

necessary to conduct comprehensive study on all his writing that are related to economic. It is important because, the researcher found that there are several other books are related to political economy and economic theory and even household management.

• Based on this finding, we suggests to study his idea on socio-economic development in detail and also partially study specific themes on his idea.

• Through this study, we found that the scholars of the past have made significant contribution to Islamic economics discourses. Unfortunately, these works remain in the library collection that needs to be studied.

RECOMENDATION

Page 20: Al-MĀWARDĪ'S CONTRIBUTION TO ISLAMIC ECONOMIC THOUGHT: SPECIAL REFERENCE TO “KITAB ADAB AL-DUNYĀ WA AL-DĪN"

والسالم عليكم ورحمة الله وبركاته