Economics and Philanthropy in Islamic Economic Framework

M. Fahim Khan

Abstract


Economics is conventionally concerned with economic activities in the market. Substantial economic activities in every economy take place outside the market. Conventional economics ignores them. They are considered as charities or philanthropy but not an economic activity. This paper takes the position that these activities, in Islamic economic system, are as much an economic activity as how exchange in the market is. The paper identifies these activities as beyond market activities, not charity or philanthropy, and considers them an integral part of the Economic System in Islam. This is because these activities are required to develop an economy where growth, free of Faqr and Maskanah (not, growth with full employment) is the macroeconomic objective. Faqr and Maskanah is the Islamic terminology to describe poverty. The market in Islamic Economic system takes care of the growth and the so-called charity and philanthropy take care of Faqr and Maskanah. The paper uses the term ‘beyond market exchange’ to give an economic meaning to what conventional economics has for philanthropy.

Keywords


Capitalism, Islamic Economics, Market Economy, Growth

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References


Khan, M.F. (2016). Islamic Social Finance: Inclusive Financial Development. Paper presented in International Conference held in Makkah on 5-8 March 2016 under the auspices of Ummul Qura University, Makkah.

Shirazi, N.S., & Amin, M.F.B (2009). Poverty Elimination through Potential Zakāt Collection in the OIC-member Countries: Revisited. The Pakistan Development Review, 48(4), 739–754

Shirazi, N.S. (2006). Providing for Resource Shortfall for Poverty Elimination through the Institution of Zakah in Low Income Muslim Countries. IIUM Journal of Islamic Economics and Management. 14(1), 1–27.


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