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Scarcity self-interest and maximization from Islamic angle

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  • Hasan, Zubair

Abstract

This paper clarifies some misinterpretations of three foundational concepts in mainstream economics from Islamic viewpoint. These are scarcity of resources, pursuit of self-interest and maximizing behavior of economic agents. It argues that stocks of resources that God has provided are inexhaustible. But important is the availability of resources out of stocks to mankind. Availability is a function of human effort and the state of knowledge about resources over time and space. In that sense resources are scarce in relation to multiplicity of human wants for Islamic economics as well. Self-interest must be distinguished from selfishness. The motive operates on both ends of human existence: mundane and spiritual. Its pursuit does not preclude altruism from human life. Counter interests keep balance in society and promote civility. Islam recognizes the motive as valid. Maximization relates to quantifiable ex ante variables. Uncertainty of future outcomes of actions makes maximization a heuristic but useful analytical tool. The concept is value neutral. What is maximized, how and to what end alone give rise to moral issues. Modified in the light of Shari’ah requirements the three concepts can provide a firmer definition for Islamic economics centered on the notion of falah.

Suggested Citation

  • Hasan, Zubair, 2014. "Scarcity self-interest and maximization from Islamic angle," MPRA Paper 57848, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:57848
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    References listed on IDEAS

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    1. Ronald H. Coase, 2022. "Adam Smith's View of Man," Econ Journal Watch, Econ Journal Watch, vol. 19(2), pages 329–348-3, September.
    2. Addas, Waleed A.J., 2008. "Methodology of Economics: Secular Versus Islamic," MPRA Paper 8264, University Library of Munich, Germany.
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    Cited by:

    1. Zubair HASAN, 2016. "Nature and Significance of Islamic Economics," Journal of Economic and Social Thought, KSP Journals, vol. 3(3), pages 400-416, September.
    2. Hasan, Zubair, 2016. "Evolution of Islamic Economics:Definition, nature, methodology, problems and challenges," MPRA Paper 71858, University Library of Munich, Germany.
    3. Aydin, Necati, 2013. "Redefining Islamic Economics as a New Economic Paradigm," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 21, pages 1-34.
    4. Ahmed Mohammed, Abdullahi, 2023. "Essay on the Philosophy of Islamic Economics," MPRA Paper 119630, University Library of Munich, Germany, revised 20 Dec 2023.
    5. Tarik AKIN & Abbas MIRAKHOR, 2016. "Efficiency with Rule-Compliance: A Contribution to the Theory of the Firm in Islamic Economics," Journal of Economics and Political Economy, KSP Journals, vol. 3(3), pages 560-574, September.
    6. Murat Çokgezen, 2016. "Islamic economics in real life: Do Muslims give more than the others?," Working Papers hal-01349872, HAL.

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    More about this item

    Keywords

    Islamic economics; scarcity; self-interest; maximization; falah;
    All these keywords.

    JEL classification:

    • B11 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Preclassical (Ancient, Medieval, Mercantilist, Physiocratic)
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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