12 Islamic Economics: A Survey of the Literature Part II

Fundamentals of an Islamic Economic System

But seek, with the (wealth) which Allah has bestowed on thee, the Home of the

Hereafter, nor forget thy portion in this world: but do thou good, as Allah has

been good to thee, and seek not (occasions for) mischief in the land: for Allah

loves not those who do mischief. (Qur’┐n 28: 77)

As the earlier quote in 2.1 of this article from Muft┘ Mu╒ammad Shaf┘‘

indicates, an Islamic economic system is a means to an end, rather than an end

in itself.1 A defining characteristic of capitalism is the pursuit of wealth, and

the use of wealth as a yardstick to define development and progress.2 This

limited focus has been criticized by Islamic economists. Mawd┴d┘, for

example, writes that difficulties and complexities in understanding economics

arise because

…economic problems, which form a part of the larger problems of human

existence, have been separated out of the collectivity and considered in isolation.

This tendency eventually grew to the extent that economic problem became the

central problem of human existence. This second mistake was even larger than

the first