ECONOMIC GOVERNANCE IN ISLAM: GOALS, VALUES AND PRINCIPLES

Abstract

Abstract 

“Islam”, safely saying, is a political, economic, and social  phenomena sometimes thought to be exclusively religious. It is neither  a mystical doctrine nor a philosophy, but simply a program of life  according to the rules of Nature which God has decreed upon His  creation; its supreme achievement is the complete coordination of the  spiritual and the material aspects of human life. Economy, being the  integral part of humans’ collective life, is explicitly governed by the  injunctions of Islam. Owing to the everlasting divine scheme for  guidance and the changing circumstances over time Islam doesn’t  provide an operation manual for human conduct, but clear and solid  guidelines and principles capable to hold a viable system of economics  for each and every age. Thus goals and values have been set and  principles been provided through both divine message and divine  messenger. Islam is not an ascetic religion and doesn’t deprive its  followers from the good things provided by God in this world, rather it  bounds economic well-being with principles of moral norms and  values. This has been supplemented with universal brotherhood and  social justice system which leads to equitable distribution of income  provided that entities of the aggregate have freedom to earn a living  within the context of social welfare and compassion in the society.  Furthermore, economic conduct has been regularized through a three tiered regulation system in Islam; firstly through divine rules, secondly through State’s patronage and, thirdly through moral constraints,  unlike the steering or rowing governance of the state alone, under  neoliberalism. It is through this attitude that Islam ensures the  channelization of man’s powers and resources in such a manner as to  lead eventually to general good. This paper is an appraisal of the basic  goals, values and principles of economic governance in Islam.