Current Issues in Islamic Economics Fall 2012

Links to Other Courses on Islamic Economics (sequences of lectures)

For a very brief introduction, see newspaper article: On Islamic Economics. Below is a list of video/audio lectures delivered during a course entitled “Current Issues in Islamic Economics” delivered in Fall 2012 at International Institute of Islamic Economics (IIIE, IIUI)

Lecture 1: Methodology for Teaching and Learning [11 Sep, 2012]

Lecture focus on two main issues.
1. Islamization of Knowledge Project, its current situation and what strategy should be opted for the true islamization of knowledge. See CIIE10lec02.doc for a writeup of ideas on which this discussion is based.
2. Brief Contrast between Western and Islamic Method of Teaching and learning, their objectives, and effects on humanity.
Discussion Class [13 Sep,2012]
Discussion class based on Methodology for Teaching and learning, what are the major contrast between Western and Islamic Teachings.


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Lecture 2: What is Islamic Economics [17 Sep, 2012]

  • In this lecture new definition of Islamic Economics has been proposed i.e., “Islamic Economics is the STRUGGLE to implement the orders of Allah in the domain of economic affairs in (Micro) our personal lives, (Meso) our communal lives, and (Macro) in the Ummah as a whole.”
  • Great stress has been given on the issue that we should focus on process, not on outcomes, its not necessary that we achieve that goal for which we are struggling, but the thing which Allah counts is our struggle and our intention.
  • Difference between apparent purpose and the actual purpose has been explained with the help of different examples.
  • Nature of knowledge and how one should make efforts to achieve.

The paper on which this lecture is based is: RE-DEFINING ISLAMIC ECONOMICS.

Quiz [20 Sep,2012]
Based on Lecture 1 and Lecture 2
Discussion Class [24, Sep 2012]
Discussion Topic: What you have learnt from the VLE Lec 2 “Origins of Western Social science”.

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Lecture 3: Origins of Western Social Science [27, Sep2012]

In this lecture more focus has been made in highlighting the ground realities about which most of the people don’t know. West claim that they are the most civilized nations and when they looked around the world, they found that most of the nations are uncivilized and backward. So they feel the burden that they should teach other nations how to become the civilized one that’s why they attack and conquered other nations but reality is totally opposite of what is endorsed by them, in this lecture we have discuss such hidden realities which mostly people don’t know. Infact west is the most uncivilized and cruel nation. When they left their religion, then they have to answer every question regarding creation of world, human, morals, society in a new way which is based on scientific knowledge, which badly effect their societies whose affects we can easily seen, and now they are also endorsing these in our minds and we are also blindly following them. In this lecture we have discussed how western social science develop and become dominant, and tried to make it clear how Islam is better than West and falsify the claim that West is Developed and East is under developed.

See Lecture on Origins of Western Social Science for text of lecture.

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Lecture 4: Scarcity [1 Oct, 2012]

“Scarcity” is the heart of economic theory. In this lecture we have discussed how scarcity becomes fundamental issue in economics. Islam teaches us that there is abundant of resources and no issue of scarcity. But unfortunately Muslim scholars are so much impressed by the western teachings that they start finding taweels to connect the Quran and Islamic teachings in line this put great loss to the islamization of Knowledge project. In this lecture we have compared the Western and Islamic views about Scarcity, its causes, how to handle the problem, and the consequences of solving the problem. In this lecture we have established that islamic views are superior, and in accordance with observations and it falsify western claim that their teachings are objectives and factual.

For text, see: Islamic and Western Conceptions of Scarcity

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Discussion Class

Discussion Class [4 Oct, 2012]
In this class following issues have been discussed;
1. Why Islamic Economics started in 20th century? If it is really Islamic then why it did not started from the period of Holy Prophet (PBUH).
2. Why it is not properly established?
3. Why the current Islamic economics has no relation with the actual Islamic teachings.

Readings for this discussion are in: Islamic Economics: A Survey of the Literature

Part 1:

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Discussion Class: [8 Oct, 2012]
Different diagnoses of Muslims’ Backwardness and remedies have been proposed by different school of thoughts. In this lecture we have briefly discussed these.Secondly a debate has been conducted regarding does our success is in following western teachings or should we only follow Islamic Teachings. Is it Justified to accept West as a Successful nation, are they really successful? Or the success of the World lies in following Islamic teachings.

For background reading, see The Crisis in Islamic Economics

Part 2:

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Lecture 5: Market Economy and Its Limits Part 1[11, Oct 2012]

Mostly people believed that history is objective, factual but infact history is always biased. West claim that they feel the white man burden that’s why they attack other nations to make them civilized but its not true, in this lecture we have tried to show the true picture of why west attack other nations. Second important issue that has been discussed in this lecture is how market society emerge how it defeat traditional society. What are the consequences of Social disruption?

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Lecture 6: Market Economy and Its limits Part 2 [15, Oct 2012]

This lecture is the continuity of the previous lecture. In this lecture detail analysis of the essential requirements of the Market economy has been discussed i.e., Labor Market, Market for Land, Money and Financial Markets.
Discussion Class: Contrasts between Islamic and Western Approaches to Education. [18 Oct, 2012]

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Discussion Part 1

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Discussion Part 2

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Lecture 7: Logical Positivism [22nd Oct, 2012]

In this Lecture we mainly focus on logical positivism, how it emerge, and its effects on West. Because of rejection of religion West have to redefine all such concepts about which religion provide complete answers. They have to redefine how did the Universe originate? How did man come in to existence? What will be basis for Morality and Behavior, what will be rules for organizing society and what will be the nature of knowledge. Economic theories are also based on Logical positivism, in this lecture we have factually established that logical positivism is wrong so all economic theories are also naturally wrong, so there is need to start making Economic theory from the ground level as its foundation is also very weak and false.

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Lecture 8: Failure of Supply and Demand [25th Oct, 2012]

Original lecture was not recorded. However, same topic has now been covered in several lectures in Advanced Microeconomics. See in particular, lectures 8,9 and 11,12


Lecture 9: Islam Vs Economics [1st Nov, 2012]

Scarcity is the heart of economic theory. Economist suggests that we should increase growth and it will have trickle down effect and por will also get benefit. But reality is totally opposite of what has been pretended by the West. In this lecture we have tried to establish how Islamic teachings related to economic affairs contain far greater wisdom than what is currently being taught at vast majority of economics departments in leading universities throughout the world. We have provided both Islamic arguments as well as Empirical evidence how economic growth as such does not affect scarcity. Islam offers a radically different diagnosis, and correspondingly a radically different solution to our economic problems.

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Discussion Part 1

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Discussion Part 2

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Discussion Part 3

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Lecture 9: What is Islamic Economics (Part 2)

This lecture is the continuity of the previous lecture related to Islamic Economics. In previous lecture we have established the difference between process and outcome and in this lecture we have discussed in more detail about other aspects of Islamic Economics like Islamic Microeconomics (Individuals), Islamic Meso-economics , Islamic Macroeconomics and how it is opposite of current conventional economic theory. Secondly we have discussed the criticism made by west on Islamic economics like West criticize that Islamic economics is normative, just describe ideals which have no implication in real life. In this lecture we have provide answers to these criticism. Thirdly we have discussed the concept of knowledge in west and in Islam and the contrast between the two, application of Logical Positivism in Economic theory and prove that how it is wrong.

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Discussion Class:

These discussion classes are based on the questions which have been asked in the Model paper and we have tried to answer all these questions.

Part 1: Islamization of Knowledge, Methodology of teaching and learning and origins of Western Social science.

Part 2: Islamization of Knowledge, Methodology of Teaching and Learning, Origin of Western Social Science, What is Islamic Economics, Scarcity

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Part 3: Origins of Western Social Science and Market Economy and its limits.

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Lecture 10: Development: Myth and Facts

In this lecture we have discussed the development paradigms currently under discussion by leaders in the field. Which, if any, are suitable for adoption in Pakistan? One thing common to all six is that they pay no attention to history. Also, they pay no attention to the political environment, which may pose constraints or create opportunities. Also, they are all firmly grounded in the materialistic view that nuts and bolts of plans matter, and human beings and their dreams and visions do not. We should focus on human beings. The paradigm of the Prophet Mohammad S.A.W. Caring for each other deeply. How Social Capital changes everything. Cooperation, caring, sharing, these are the things which matter. Impossible for economic theory.  We have possibilities outside the range of those theories.  If we change the conception of government, we can get there. We have to work on becoming fully human beings.

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Lecture 11:Discussion Class

Islamic Economics came as a response to Capitalism and Communism. But we have seen that there is no such development in Islamic Economics. In this lecture we have discussed the reasons why these efforts are not successfuland what are the actual Islamic teachings which need to be followed and these are completely opposite to the conventional western economics.
Lec 11{Discussion part 1}
There are two views among the Islamic Economist, one is the majority view which is also widely believed by Muslims that West is successful and if we wanted to be successful then we should follow west. While the second view is minority view that Islam provides complete guidance in all affairs of life and if we want to be successful then we should follow Islamic teachings, we don’t need to follow west. In this discussion class we have discussed both positions, provide arguments in favor and against of both positions and tried to established this fact by providing empirical as well as theological evidence that West is not a successful nation and our success lies in following Quran and Hadith and not in blindly following the West.

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Lecture 12: Legitimization of Pursuit of Wealth

The accumulation and pursuit of wealth has always been considered a bad thing. The Bible states that the love of money is the root of all evil. Through a sequence of historical events, Europeans came to believe that “lack of money is the root of all evil.” This can be called the “great transformation”, and it has affected all of us. Once the pursuit of money become a virtue instead of a vice, only then is it possible to have banks, interest and other paraphernalia of a capitalist society. Several people have analyzed how the pursuit of money became desirable in the west. One analyst is Tawney, whose work we shall study in depth in this lecture. Understanding this is crucial to understanding the spirit behind the financial and ownership structures of a capitalist society. This in turn, is crucial to understanding economic theory
The underline recorded lecture has simple discussion on this issue, detailed analysis is available at the Faculty lectures which is bit difficult and available at this link http://vle.iiu.edu.pk/course/view.php?id=1563

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Lecture 13: Rebuilding Islamic Economics

Just as a market economy functions within a market society, so an Islamic Economy functions within an Islamic Society. To create an Islamic economic system requires the creation of an Islamic society. However, this does not mean that we postpone our efforts to create an Islamic Economy because the society is not Islamic. Rather, the creation of an Islamic Economic system is part of the effort that is needed to create an Islamic Society. How this can be done is the subject of this lecture.There are two views regarding rebuilding Islamic society one is evolutionary view and other is revolutionary view. In this lecture we have discussed both views and provide arguments in favor as well as against of both views and provide an alternative strategy which if adopted may lead to success. The underline recorded lecture has simple discussion on this issue, detailed analysis is available at the Faculty lectures which is bit difficult and available at this link http://vle.iiu.edu.pk/course/view.php?id=1563

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Lecture 14: Discussion Class:

Scarcity is the heart of economics. In this lecture we have discussed that the diagnosis provided by the economist (Scarcity is the basic problem) is totally wrong and the remedy which they proposed is also wrong. Actually all economic theories are based on the concept of logical positivism, which states that knowledge is only based on facts and logic. It has been empirically proven that logical positivism is wrong but still large majority of economist believe on this. Finally we have discussed that the solution provided by Islam is  solution provided by the Islam.

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Lecture 15: Concluding Lecture:

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