AN ANALYSIS OF THE DEVELOPMENT

OF

SOCIO-ECONOMIC THOUGHT

M Zohorul Islam

FCA

Bangladesh Institute of Islamic Thought (BIIT)

An Analysis of the Development of Socio-Economic Thought M Zohurul Islam FCA

Published byBangladesh Institute of Islamic Thought House # 50, Road # 16 (Old 27) Dhanmondi, Dhaka-1209, Bangladesh.
Phone : 9138367, 8122677, Fax : 9114716 Email : biit_org@yahoo.com

First Edition April 2008 Baishakh 1415 ISBN

984-70103-004-8

Price Tk. 100.00, US$ 10.00

Cover Design M. A. Akash

Printed by Al-Falah Printing Press 423, Bara Moghbazar Dhaka- 1217 Phone: 9345741, 9358432

Publishers Note
Praise be to Allah (swt) that He has granted the Muslim scholarship to advance the research and study of Islamic Economics for the well-being of mankind in a time when conventional economics is losing its capability to face the challenge of ever growing complexities of modem economies. The Muslim economists worked relentlessly and silently during the entire period of the later part of the last century. In this book, the author has tried to make a comparative study of the state of affairs of the two systems of economics in their broad spectrums and their potentials to face the onslaught of current crises in economies of different countries. In doing so, he has demonstrated the comparative advantage of Islamic economics management proposition. We hope that this publication will be a timely one and encourage the new comers to carry on research in this new field of study of economics. In bringing out this book, we have received heartful cooperation from brothers Md. Ruhul Amin for carrying out of the tiresome job of proof reading and other jobs with the press, Md. Abdul Aziz for performing all managerial works for the publication and Md. Zahir uddin for doing the arduous job of typing the manuscript for preparing the press copy. Also we thank the printer M/s. Al Falah printing press for printing the manuscript with their toil and technology and for making the job finally done. May Allah (SWT) grant us mercy and accept this humble contribution in the cause of His Dwain. M. Azizul Huq Vice President (Admn.) Bangladesh Institute of Islamic Thought (BIIT)

Preface
There has been a gradual process of development in thought of every science since the dawn of civilization. The oldest witness of recorded history of the civilization is that of Greeks. But there were some ancient civilizations even before the Greeks. But we hardly find any detailed records of those civilizations particularly in the field of thought. The changes of civilizations were marked by changes in their thought patterns. In the development of thought, the history is also curious. Some times the change was gradual and in some others it was spectacular and revolutionary. However, during the advent of Islamic Civilization, Europe was in the Dark Age. The Speed of changing thought pattern in Islam was tremendous. This speed in changing beliefs, concepts, scientific enquiry and overall philosophical, social and technological thought process excelled all others on the planet earth. The Europeans took the lessons and gained ground educating them in the Islamic Universities of Spain. Unfortunately, the western took different course of isolating religio-ethical values of Christendom specially in the making of renaissance. They began to mobilize from the fifteenth century and triumphantly moved for two centuries. The western thought was specially marked and influenced by scientific and technological revolution. This civilization therefore reached its pinnacle in a span of last two/three centuries only. The weaknesses, lapses and pitfalls are now gradually being visible in the development of thought in almost all branches of social sciences particularly in the socioeconomic and philosophical jargons. Concomitantly, The scenario in the Islamic socio-economic and philosophical thinking seems to be rising from centuries long slumber. Rejecting the concept of the closure of Ijtihad

the Muslim scholars are coming up gradually and enthusiastically along with a pattern that goes to the roots of puritan values of Islam. Taking into account of these phenomena, for quite a long, I have been intending to demonstrate the changing situations in both the civilizations. Our conviction is that the Islamic thinking in all aspects of individual and collective life is a much more superior, pro-active and welfare-oriented proposition not only for Muslims but also for all mankind. This being the thesis, I have tried to collect in support of this thesis from the literature produced by the wisemen, scholars and social activists of both the civilizations. In doing so I have immensely and comprehensively quoted from the writings of the scholars of both the systems for which I am greatly indebted to them. I have started from the Greek civilization with the writings of Aristotle, Plato, Xhenophen and then passed to Roman Civilization. We have embarked on an elaborate analysis of the modern secular and western socio-economic civilization demonstrating its decadence. We have thereafter presented the thinking of the Muslim Imams, Mujtahid and current scholars of Islam. We hope that this small treatise will be useful to all who are concerned with the regeneration of Islamic Ummah to provide a genuine leadership in reshaping the pattern of socioeconomic thinking for all mankind. May Allah (SWT) accept this humble contribution for His cause and reward all concerned herein and hereafter.

M Zohurul Islam FCA Executive Director Bangladesh Institute of Islamic Thought

CONTENTS
Introduction Nature of the old-age theories Communism in the ancient period The Ancient west the Greek And the Roman doctrines Platos works Communism in Plato The Thought of Aristotle International trade Economic thinking of the Romans Christianity and the growth of economic thinking Other social sciences and Christianity The Economic gospel of saints The thought of St. Thomas Aquinas Money lending and interest The beginning of the modern thinking Renaissance in the offing The Rise of capitalism And classical economics Abuses of capitalism and laissez-faire The role of interest in The built-in-system Interest and income distribution The case of interest in Productive Investment 9 10 15 17 19 20 22 25 29 32 33 35 36 38 42 45 48 51 52 54 57

Is communism an antidote to interest-free economy? The role of international trade-an Instrument of exploitation Development thinking its anomalies Development of growth thinking The emergence of a new system of value A new trend in thinking Economic Globalization The re-structuring of economic thinking the Islamic alternative Philosophy of Islamic economics The Nature of ownership in Islam Relation of production co-operation Development and growth Money, Zakat, banking, Riba and investment Concept of money and its Role in Islamic economy Islamic banking and investment Fiscal functions and policy in public finance Budgeting strategy Monetary policy Economic system of Islam Goals of the economic system

63 65 70 71 73 74 88 96 102 105 110 111 112 112 114 114 116 117 118 119