We believe that the foregoing discussion is enough to clarify the meaning and purport of a school of economics and the science of economics, and now we can make clear what we believe about Islamic economy.
Islamic economy, as we observed in the course of not preceding study, consists of a school of economics and not the science of economics. Hence, when we say that Islam has a school of economics, we do not mean that it has the science of economics. Islam has not come to discover the phenomena of economic life and their causes. That is not its responsiblity. Just as it is not supposed to state the laws of astronomy, it is also not supposed to state the laws of economics. Islam has come to organize the economic life and to evolve a system based on social justice.
Islamic economy represents a just system of economic life, but it has nothing to do with the scientific discovery of the economic relationship as it actually exists. That is what mean when we say that Islamic economy is a school and not a science.
In other words, if for example, Islam had discussed the causes of the rise in the price of intrest bearing shares, its discussion would have been scientific, but it has, on the other hand, evaluated these shares and declared them forbidden. According to it only equal participation and profit sharing should form the basis of the relationship between financier and an entrepreneur.
Now as we clearly know the nature of Islamic economy, we can see what prevents the people from believing that there exists such a thing as Islamic economy.
Most of the people deny the exsistence of Islamic economy because they do not differentiate between the science of economics and the school of economics. They ask as to how there can be an Islamic economy when in Islam there is no such disscussion of economic problems as conducted by Adam Smith and Ricardo. Islam has made no mention of the law of diminishing returns, the law of supply and demand and the law of wages and has not also discussed the general theory of value.
How can the existence of Islamic economy be admitted when it is known that economic disscussion have developed only during the past four centuries with the efforts of such pioneers as Adam Smith and the physiocrats and the commercialists who preceded him?
Those who deny the existence of Islamic economy uphold the above arguments. They seem to be under the impression that we claim the existence of economic disscussion in Islam.
But after we know the difference between the science of economics and the school of economics and understand the Islamic economy is a school, no room is left for the denial of its existence. It is not claimed that islam talks of the law of supply and demand. What is meant is that Islam has propounded the principles for the organsation of economic life, and has invited the people to follow them. Hence it is reasonable to believe that Islam has a seprate system of economy.
Owing to lack of space we do not propose to go into the details of Islamic economy and to quote extensively from the holy Quran and the traditions of the House of the Prophet SAWS of Islam. Anyhow, we purpose to throw some light on the methods of the holy Quran and the traditions in this respect and show how economic theory can be deduced from the general principles and concepts of Islam.
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DATED:14/04/2024
Article taken from Book Published by Islamic Seminary `Islam and the Schools of Economics'. Author Ayatullah Baqir Al-Sadr. Transalated in English by M.A.Ansari
