In my speech at the 2nd International Conference on Islamic Economics and Economies of the OIC Countries the day before yesterday, I highlighted six challenges that have been faced and are still facing by
contemporary Islamic economics.
They relate firstly to the Islamic economics framework (worldview); secondly to the unredefined
western ethno-centric concepts used in Islamic economics; thirdly to the research
methodology adopted in Islamic economics studies; fourthly to the extent of
Islamic system established out of the execution of Islamic economics policies; fifthly
to the ability to establish a real Islamic society from the implementation of
Islamic economics programmes; and sixthly to the knowledge-practice dichotomy
of the Islamic economics scholars themselves.
The gist of my speech is as follows.
SIX
CHALLENGES FOR FUTURE
RESEARCH
IN ISLAMIC ECONOMICS
Centre for Islamic Development
Management Studies (ISDEV)
Universiti Sains Malaysia, Pulau
Pinang
Tel: +6 04 6532656 +6 017400 2866
First of all, let me confess that my field of specialization is not
in pure Islamic economics. Mine is in Islamic-based development, while my
research interest is in Islamic political economy. My apologies if what I am
going to say is not right according to the field of Islamic economics.
As all
of us may agree, after decades of its introduction, Islamic economics has
undoubtedly grown rapidly. But the growth is not a challenge-zero growth.
Definitely Islamic economics has faced, and is facing, and likely to
persistently face, challenges.
In this
presentation, I would like to point out 6 challenges that I have observed, which
I think, simultaneously, need further research. They may appear very basic and
simplistic, but I think they are important.
The
challenges are firstly pertaining to the philosophical framework of the Islamic
economics itself; secondly, to the undefined western ethno-centric concepts
used in Islamic economics; thirdly to the conventional research methodology that
has been adopted in Islamic economic research; fourthly, to the development of
the strength of Islamic system that could have been accomplished out of the
realization of Islamic economics; fifthly, to the construction of Islamic
society entailing from the execution of Islamic economics; and sixthly to the
knowledge-practice dichotomy of the Islamic economic scholars themselves.
In a
nutshell, the challenges relate to the framework, concept, research
methodology, system, society, and the scholars of Islamic economics. The
deliberations on these six challenges are as follows.
In the
first challenge that relates to the framework, we witnessed the growth of the accommodative-modification
and methodologic eclecticism approach that eventually shapes the current mainstream
Islamic economics as a fiqh-based
neo-classical economics. We have compromised on the usage of the western
ethno-centric framework and elements embedded in it, based on a stance that it
is alright to be so as long as it does not contradict Islamic shari`ah and aqidah. So far this issue seems to be quite settled.
But in
contemplation, it is still worth revisiting, for is it true that the western
ethno-centric framework and elements which were adopted into Islamic economics do
not really contradict Islamic shari`ah
and aqidah? The answer could be
positive if it is considered merely at operational level, as many do. But if
epistemological and philosophical levels are taken into account, the answer
might be different. This proof may lie in the deeds of Rasulullah SAW himself. Rasulullah
SAW used to adopt some of the practices inherited from jahiliyah such as tawaf
(circumbulation), marriage, zihar, qisas, inheritance, buying and selling, karam concept, war, social relationship,
slavery and ‘aqilah. However, as
found by Mohd Shukri Hanapi (2012) through his historiography study, they evolved
only around their names and terms, while the structures and its roots have been
reconstructed by Rasulullah SAW based on Islamic aqidah, ibadah and akhlaq.
In
other words, the practices may look similar at operational level, but the whole
worldview (tasawur) of the practices
is different when they are based on Islamic epistemological and philosophical
underpinnings, forming a new kind and meaning of the practices.
So is
the case of Islamic economics. The stance that is in favor of the adoption of
the western ethno-centric framework and elements into Islamic economics has to
be revisited and re-contemplated. Could the western ethno-centric elements
embedded in the western ethno-centric framework be called Islamic when their
epistemological and philosophical underpinnings are different? The answer is
definitely not. The other pivotal question is why could not an Islamic economics
be constructed from within Islamic epistemological and philosophical
underpinnings based on Islamic tasawwur
(worldview) itself? The answer could only be given after a systematic and
serious research.
In the
second challenge, we observed a widespread use of western ethno-centric
concepts in Islamic economics. The concepts have been used arbitrarily without
redefining them according to Islamic teaching. Poverty for instance has been
accepted in its original conventional form, despite the usage of Islamic
institutions such as zakat and awqaf to alleviate poverty. So are the
other concepts such as justice, growth, development, consumer behavior, civil
society, quality of life, wealth management, asset management, corporate social
responsibility, et cetera. The
indicators used to measure their accomplishment are still the conventional
indicators, not Islamic indicators. In consequence, the output or the end
products of the so-called Islamic endeavor are judged according to the
conventional definition, not to the Islamic definition.
The
redefinition of all concepts in Islamic economics according to Islamic
teachings therefore, to my opinion, should become one of the major projects for
research. It is definitely unfair for us to highlight the importance and
effectiveness of Islamic economic instruments, but basing the arguments on the
concepts according to the exogenous western ethno-centric definitions.
The
third challenge Islamic economics is facing relates to the research methodology
that has been used in Islamic economics. In almost all cases, we have been
using conventional research methodology, not an Islamic research methodology. In
so doing, the scholars of Islamic economics are trapped within anti-dogmatic,
value-free, and merely scientific modes of enquiries of the conventional
research methodology.
It is
definitely illogical to study about Islam and Muslims using such an exogenous
research methodology. Moreover, the conventional research methodology also
suffers from a lack of tools of analysis. Its tools of analysis are meant only
for the tangibles, not the intangibles, hence the emphasis on the “scientificity”
of the findings per se. Efforts in
understanding Islam and Muslims to the best therefore confines only to the
efforts in “tangiblizing” the intangibles through a process of all sorts of
quantification available in the conventional models and formulas, or through
proxies that are considered able to reflect the so-called real socio-economic
and political realities.
Worst
still, the conventional research methodology that is born out of the western
social sciences is actually endangering the aqidah
of the Muslim researchers. The anti-dogmatic nature of the conventional
research methodology questions all the dogmas of Islam; the value-free stance
of the conventional research methodology direct or indirectly insists us to
detach ourselves from our Islamic values in the name of objectivity; and the
scientific nature of the conventional research methodology locks us up with
observable matters while direct or indirectly denying us from the mechanisms prevailing
in the unseen world.
In such
a situation, it is high time for scholars of Islamic economics to construct an
Islamic research methodology for the purpose of studying Islam and the Muslims.
Such an effort has yet to become a serious endeavor in the real sense. Undoubtedly,
there are already dispersed writings on the critiques of conventional research
methodology and on the deliberations on the philosophy of Islamic research
methodology, but a concrete construction of systematic Islamic research methods
and techniques is much to be desired. This is another area that I think needs
an urgent further research.
The
fourth challenge relates to the question on how far the realization of Islamic
economics has actually strengthened the Islamic economic system. In fact, the
earlier espousal of the Islamic framework, redefinition of concepts, and
adoption of Islamic research methodology actually aims to ensure a strengthening
of the Islamic system. This is based on the observation that the execution of
Islamic economic theories and policies seem to have not been adequately
strengthened the Islamic system.
In
contrary, the endeavors of Islamic economists in actuality have been directly
or indirectly strengthening the western ethno-centric system because of their western
ethno-centric framework and undefined concepts, as well as because of the
adoption of the conventional research methodology. For instance, zakat and awqaf have been said to be able to alleviate poverty, but the
concept and theoretical framework of poverty themselves have not been
deconstructed. Entrenched in them are still those of the western-ethno centric
concepts and theoretical framework. In consequence, the alleviation of poverty
through zakat and awqaf are confined to profit-oriented
capitalistic commercialization, hence strengthening capitalism instead of the Islamic
system.
It is therefore
probably not unfair to conclude that Islamic economics so far has not been able
to establish a strong economic system, let alone in prescribing solutions to
economic problems such has been raised by western economists themselves.
Perkins (2006) for instance has exposed the problems of the maneuvering of the
first world’s economic hit men. There is also the issue of `false economy’ as
has been exposed by Beattie (2010), that leads certain countries to decide
their path to be found later on that it is wrong. Also there is a challenge of
a rather more open and tactical economy as put forward by Harford (2011) which
suggests that in order to build up a rich and rapidly growing country, one has
to fight scarcity power and corruption, correct externalities, maximize
information, get the incentives right, engage with other countries, and most of
all, embrace markets. The Islamic economics so far has not been seen addressing
such an issue as yet.
In
short, a revisit to the impact of Islamic economics on the establishment of an
Islamic economic system vis-à-vis the dominant liberal capitalist system is
necessary. There is a huge room for research in this area.
Another
challenge, the fifth one, pertains to the establishment of Islamic society out
of the realization of Islamic economics. How far the target groups of the
Islamic economics become more Islamic than before?
Observations
have shown that the society that is developed out of the execution of the
so-called Islamic economics system does not differ much from the exogenously
cultured society, characterized by merely consumer and producer-oriented
behavior. So was the society that has been developed by contemporary
utilization of zakat and awqaf and halal institutions, for instance. These institutions as well as the
institutions relating to Islamic finance and banking, in reality have not so
far contributed much to the development of a real Islamic society that is
characterized by Islamic lifestyle. Instead, some members of the society
related to these institutions could be said to have been characterized more by
capitalistic and profit-seeking attitude rather than the Islamic attitude.
Research
on how could an execution of Islamic economics entails with an establishment of
a more Islamic society therefore is pertinent.
6.
Islamic
Economic Scholars
The
sixth challenge, lastly, is the challenge posed by the scholars of Islamic
economics themselves. Undoubtedly, some scholars have successfully come up with
in-depth and high quality knowledge of Islamic economics. But to what extent
the knowledge is being practiced by them?
The
possibility of seeing an Islamic economic scholar suffering from a
knowledge-practice dichotomy is not difficult. One who writes on Islamic
consumer behavior for instance is not necessarily the one who consumes on the
principle of wasatiyyah (moderation). So is the one who writes on
Islamic economic ethics is not necessarily unethical-free; the one who writes
on tazkiyah an-nafs (self-purification)
is not necessarily free of evil attributes; et
cetera.
So far,
some researchers have studied the thinking of some Islamic economic scholars,
but rarely a study has been undertaken on the behavior of these Islamic economic
scholars. It is high time, I think, to balance the study by relating the
thinking of the Islamic scholars with their behavior, so as to allow a fair
analysis that could really contribute to the sacredness of Islamic economics.
Those
are the six challenges to contemporary Islamic economics that to my opinion
necessitates attention, hence further research. If these challenges could be
faced successfully, the Islamic economics that we endeavor to uphold to its
peak would become a reality, InshaAllah.
