4.1 The Economc Reality of the Islamic World
Before going through the subject of this topic, it is relevant here to define the Economics as a modern science. In his book the Wealth of Nations, Adam smith defined economics "the science of wealth." This matches with the industrial revolution, mechanization and excessive production. However, it disregarded the study of human behavior which is the realm of economics. The definition also overlooked the economic activities which contributed to welfare such as educational and health services.
Afterwards, Marshall defined it as the study of human behavior in his practical life. Many economists embraced Marshall's definition until the advent of Robbins who defined economics as the science that studies behavior in the relation between unlimited needs and scarce means.
At this point, the positive economic definition of the economic problem is evident. On one hand, the means are scarce as related to limited natural resources. On the other hand, the aims are endless as linked to the unsatisfied human greed. These statements were taken for granted in the economic theories which produced the consumptive behavior theory aiming at the greatest amount of enjoyment. Also the theory of production seeks the greatest amount of profit. Hence, the economic theories are value-free, disregarding good or bad consumption, as long as the consumer can pay the price. Furthermore, regardless of how the profit was obtained by exploitation or equality, honesty, or dishonesty, profit should augment the capital with whatever means. It is to be noted that the economic theories which is summing up the economic problem in the limited resources of the earth and man's unlimited needs is actually based on a mere fallacy from the Islamic point of view. God provides His creation with sufficient needs and this fact is supported with scholarly findings of economists. They have also proven the fallacy of the population control theory. God says in the Glorious Qur'an "He increases in creation what He wills. Indeed, Allāh is over all things Competent."
4.1 The Economc Reality of the Islamic World
This is besides the fact that God has promised human beings that their providence is in the heaven and more; "And in the earth are signs for those who are certain (of God). And in yourselves can't you see. And in the heavens is your providence and what you were promised" (al-Zariyyat: 20-22)
Evidence of these ayas (Quranic verses) is found in urbanization, constant construction and usufruct of the earth's riches as a sign of modern advancement and civilization. No doubt, this thrust forward is due to increase in human resources and availability of laborers. It is Allah's sunnah for His slave-worshippers. Certainly you will not find from Allah's way any deviation or replacement. If it had been for that, the earth would have been dry, abandoned and turned into large expanses of dust and desert. Urbanization would have ceased, death would have replaced life in every aspect, countries would have lost the power of self-defense and protection against foreign invasions. This is besides many Qur'anic verses which are stressing the fact that God ensured for every creature his provision. In fact, God the Almighty, the Omnipotent, is indeed total Sustainer and Manager of People's living. Allah says: "Indeed We have created everything according to measure" (al-Qamr: 49).
4.1 The Economc Reality of the Islamic World
And he says " And there is no creature on earth but that upon Allah is its provision," (Hud: 6).
Allah condemned the polytheists killing their children because of fearing poverty. This act includes many crimes as killing "a soul" while violating Allah's injunction prohibiting such acts. Placing one's self above Allah's wisdom and management of His Universe is a crime in itself. God the Almighty says: "Do not kill your children out of fear of poverty, We provide them and you. Indeed their killing is a grievous sin" "Do not do what you have no knowledge of, indeed hearing, vision, and mind all those are responsible (for one's deeds)" Therefore, from the Islamic viewpoint the economics may be defined as "The Science which discovers economic facts which are then guided by religious values and Shari'ah regulations."
The Muslims world stretches over a vast expanse of nearly eleven million square miles embracing a fifth of the world’s total land mass, and comprising almost a sixth of the world’s population. It is very rich in terms of natural resources, oil and raw material. However, inequality in the distribution of these natural resources creates a disparity in the income of the Islamic world.
4.1 The Economc Reality of the Islamic World
Inconsistencies in population distribution, making States suffers from increasing population and surplus labour, such as: Egypt, Bangladesh, Pakistan, and this would overburden the resources in these countries, so as to increase labour force on demand, then lead to a reduction in the standard of living and high poverty rate, while populations in some States lack the necessary labour force, as oil countries in particular.
Lack of balance between production and consumption is one of the major factors affecting the economy of many Muslim states. The great number of population in many Islamic countries is in many cases unbalanced with economic growth, as the population increase consumes all increases in production leading to deterioration in the standard of living and high poverty rate. And you might get the contrary.
The low level of technical knowledge, the scarcity of a scientific research centres, and poor opportunities to provide for those centers led to delay the progress of the Muslim Ummah. The Muslims did not take advantage of advanced production methods; this is beside the fact that the lack of capital needed for huge projects which is characterized by its large size, is very poor in Islamic countries.
Among the other factors which diagnosis the economic crises of the Muslim Ummah is the lack of planning, and as a result, lack of coordination between economic plans and productivity, and the absence of clear plans which outlines the way of progress, and set priorities, to the benefit and interest of the whole Islamic nation are among the major factors of the Muslim economic backwardness. Lack of coordination between economic policy and trade, both among Islamic States with each other, or the external world, because on certain economic conventions would facilitate the flow of labour and capital among signatories. Moreover, the lack...
4.1 The Economc Reality of the Islamic World
...of accurate information about the available natural resources in many Islamic countries, even in the developed states in the Muslim world is among the other important elements. This not to mention the other factors such as:
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The failure to identify problems and obstacles that hinder production in some Islamic countries even may |
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be encountered in the framework of a comprehensive plan for countries of the world. |
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Frequent disputes between some Islamic States, hampering economic development and standing in front |
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of the possibility of economic cooperation and unity of the Muslim Ummah. |
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The lack of extensive land for expansion of arable and farmland. |
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Non-extensive pastures. |
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Lack of taking advantage of the extensive water sources effectively, in fishing and other economic and |
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Different economic systems prevailing in Islamic countries, some of which follow the Western capitalist |
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system and others follow the Socialist system. |
Those are the main factors responsible for the problem of poverty and underdevelopment of the Muslim Ummah. To conclude this point, the major cause of poverty and underdevelopment is the lack of proper exploitation of material and human resources, which is reflected in lower standard of living and corruption.
4.1 The Economc Reality of the Islamic World
With the exception of Turkey and Malaysia which succeeded to achieve an economic progress, the Islamic countries are still lagging behind, and even some oil-producing countries are still suffering from economic backwardness because it did not support optimal economic policies in the employment of oil revenues out of underdevelopment, especially those in population growth, which has a large geographical region, which falls below of Algeria, Iraq and Libya.
Here are some proposed solutions to the current economic crises of the Muslim Ummah. The economic dependence and foreign labour on Islamic world economy should be controlled. There should be an economic policy to apply the principle of economic integration in the Muslim world. The gap in the distribution of natural resources and human resources among Islamic countries should be bridged. The misuse of the available resources in the Islamic countries must be immediately stopped. The debts of the Islamic countries to foreign states and World Bank must be scheduled and repaid to avoid political and economic subordination to these foreign countries. A policy should be adopted to achieve this goal. A common market among the Islamic countries must be established. The Islamic capitals should be invested in the Muslim world, especially the poor countries in order to raise the standard of livings in these countries through creating job opportunities and meeting their basic needs.
All scholars agreed on one point, namely that development should mean the elimination of poverty and hunger and destitution. That is to say to search for means through which absolute poverty is eliminated as quickly as possible so that men and women can look to a life free from poverty, hunger, ignorance and disease, if not for themselves, at least their children or grandchildren, but new strategies also contain implied values and...
4.1 The Economc Reality of the Islamic World
...objectives in line with the idea that development was not only things, but also to humankind, and to all men and women fully develop their intellectual, social and aesthetic, economic independence of States which suffer from economic dependency problem.
All facilities to achieve economic integration of the Muslim Ummah must be provided. All obstacles and constraints, during the implementation process, must be eliminated. Establishing institutions and means of coordination and standardization to support, and help achieve this integration. An optimal allocation of available resources to use them for the benefit of Islamic countries must be adopted.
Capital investment in poor countries of the Muslim world will help solve the economic problem, but there may be obstacles, found in some countries, can be classified into five groups as follows:
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Structural constraints. |
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Legislative and legal constraints. |
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The political and social constraints. |
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The economic and financial constraints. |
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Regulatory and administrative constraints. |
The Islamic world has diversified asset and great natural resources, this is will be seen clearly in the light of the following facts: as far as agriculture in the Muslim world is concerned, Islamic world has a large footprint...
4.1 The Economc Reality of the Islamic World
...nearly 2,935 million hectares, this area represents some 22% of the world, 13,392 million hectares, representing half of arable area. Of this area is about 2,525.00 hectares, which represents approximately 4% of the arable area in the Islamic world, this means that there is a large amount of arable area, estimated 2,572 million hectares are disabled, and could have a role in securing the Islamic world need of food, that are imported from foreign countries.
In oil, the Middle East alone owns 40 % of world's total production of oil. The potential resources are estimated at 60 % of the world's total compared to only 14 % of the U.S.S.R., and 7 % of the U.S.A. If the Algerian, Nigerian, Libyan and Indonesian resources are added to those of the Middle East, the potential of the Muslim World approaches a monopoly.
The Muslim Stats Based on what we offer, it - the sentence-the Islamic world has many natural resources and those resources are characterized, in principle, with abundance of resources, if the assumption that the production of a resource is scarce, as is the case for iron for example, there is the possibility to import resources from producing States without a total balance vain of Islamic States.
Finally ... The reality of poverty – based on the foregoing-origin lies not in the scarcity of resources but due to poor distribution of wealth and income between the peoples of the globe, and studies have shown that 23% of the world population live in developed countries — countries of the North – and get almost 82% of world income, while 77% of world population in developing countries – or what is known as the South – and only 18% of global income, the only shows poor distribution of wealth and income between peoples.
