Slides for this lecture available from: bit.ly/IE2024L4 For a lecture on an Islamic Approach to Sustainable Development, which invokes the same methodology for social change espoused here, see: Islamic Principles for Local Empowerment and Environmental Stewardship
Lecture 4: Critical Lessons for the Way Forward
This lecture dives into critical insights and methodologies for reforming the current state of economics by examining the Islamic perspective. The aim is to present Islamic economics as a distinct and morally grounded alternative to the capitalist framework, focusing on deeper social, historical, and metaphysical foundations. The lecture is particularly informed by Ibn Khaldun’s methodology, which emphasizes the importance of long-term causes of social change and the concept of Umran (social organization).
Ibn Khaldun, often regarded as the father of sociology and historiography, introduced a unique approach to understanding society and history through his concept of Umran—the study of people living together in cities. His methodology contrasts sharply with modern Western social sciences, which are largely static and equilibrium-based. Ibn Khaldun's approach offers a dynamic view of society, always in flux and driven by deeper underlying factors. This methodological foundation can provide a fresh perspective on how we analyze and influence societal changes today.
The discipline of Uloom-ul-Umran—Islamic humanities—emphasizes long-term, structural causes of societal change, as opposed to short-term, surface-level phenomena. For example, in contrast to modern economics, which studies equilibrium states (where no change is occurring), Uloom-ul-Umran sees change as a constant. The rise and fall of empires, for instance, cannot be explained by isolated historical events but must be analyzed in light of these deeper causes.
A key theme of the lecture is that social theories are produced within specific historical and societal contexts. Western social science, for instance, emerged as a response to religious wars in Europe, with a goal of removing metaphysical (religious) explanations and replacing them with secular theories. As a result, Western social theories, including economic theories, are often entangled with secular, materialistic assumptions that are in conflict with Islamic values.
Theories are not universal truths but are shaped by the historical experiences of those who create them. As human beings actively shape history, they use these theories to guide social policies, often aligning them with class interests. Hence, it is vital to critically examine the historical roots of these theories to understand their limitations and biases.
According to the Khaldunian approach, a major driver of social change is class struggle, powered by Asabiyya (social cohesion). Theories, often crafted by the powerful classes, influence which policies are enacted, further shaping social change. Wrong theories can lead to catastrophic outcomes. Therefore, it is crucial to base policies on sound theories, grounded in a deeper understanding of societal dynamics.
Additionally, external circumstances beyond the control of individuals or classes can also drive social change. Recognizing this multiplicity of factors is essential for developing a nuanced approach to societal transformation.
The rise of Western Social Sciences (WSS) was deeply influenced by Europe's religious wars. Thinkers like Hobbes, who emphasized the need for a social contract to prevent societal collapse, shaped early Western political thought. However, this focus on secular solutions led to a widespread rejection of metaphysical explanations (including religious morality), which had profound consequences for the structure of Western knowledge.
The dominance of Newton’s laws in physics during the Enlightenment era further entrenched the idea that the world operates according to fixed, observable laws. This scientific materialism carried over into social sciences, leading to a deterministic and mechanistic view of human behavior and societal change. However, these scientific laws—rooted in specific historical and cultural experiences—cannot be universally applied to the study of human societies.
One of the critical mistakes of the Enlightenment was the rejection of metaphysics—the domain beyond observable reality. As Newton’s laws gained prominence, European intellectuals began to believe that human knowledge could be derived solely from observations and logical reasoning, without recourse to metaphysical or moral frameworks.
This shift in thinking led to the banishment of morality from public life and scholarship. Secularization created a void, replacing religious values with individualistic, materialistic values. In economics, for example, this led to the dominance of scarcity-based theories, where human welfare is equated with consumption, and individuals are seen as inherently self-interested.
A key theme in the lecture is the criticism of the influence of Newtonian determinism on Western social thought. Newton's laws were taken as absolute truths in both the physical and social sciences, leading to the flawed belief that human behavior, like physical matter, follows predictable, deterministic patterns. However, this ignores the free will and moral agency of human beings, which are central to the Islamic worldview.
In social sciences, the denial of metaphysics led to deterministic models that ignore the role of human choices and moral considerations in shaping history. This mechanistic view of human behavior has been extremely detrimental, as it reduces complex human motivations to simple materialistic causes, thereby ignoring the moral and spiritual dimensions that are integral to Islamic thought.
Islamic epistemology emphasizes the role of both the mind and the heart in acquiring knowledge. Unlike Western thought, which focuses solely on the observable world and logic, Islamic epistemology accepts that certain truths—especially moral and metaphysical ones—are known through the heart. This understanding aligns with the Qur'anic concept of Ahsan-e-Amal (best deeds), where actions are guided not merely by logic or material interests but by spiritual and moral imperatives.
Imam Al-Ghazali, for instance, reached a profound realization that true certainty comes not from logic alone but through spiritual illumination granted by God. This insight is crucial for reorienting our approach to knowledge and social change, particularly in the realm of economics and governance.
The lecture critiques the concept of scarcity as the foundation of modern economics. In Islamic thought, scarcity is a construct that stems from particular property rights, social norms, and misconceptions about welfare. By adopting more communal and socially responsible conceptions of ownership, and focusing on spiritual and social well-being, scarcity could be eliminated.
For example, while Western economics views happiness as derived from the consumption of goods, Islamic economics sees true welfare as stemming from generosity, social bonds, and the cultivation of good character traits such as Sabr (patience) and Shukr (gratitude).
The lecture concludes by stressing the need for theories of social change to be grounded in historical and societal realities, not abstract laws. Social change is always contingent on a multitude of factors, including class dynamics, historical contexts, and moral values. Islamic economics offers a profound alternative to Western models by integrating metaphysical and moral considerations into economic theory, thereby providing a more holistic approach to human welfare and societal progress.
The ultimate goal of Islamic economics is not merely material prosperity but the cultivation of moral and spiritual excellence through Ahsan-e-Amal, where individuals strive for the best in deeds, guided by the teachings of the Qur'an and Sunnah.
The discussion begins with exploring alternative histories, focusing on how human agency shapes history and how different choices could have altered the course of history.
The contrast between materialistic determinism (the belief that history is fixed) and the idea that human free will creates multiple possible futures.
A detailed exploration of the consequences of the secular worldview, including the loss of internal moral compass and its societal effects.
The impact of Newton’s laws on European intellectuals, leading to the birth of naturalism and the rejection of metaphysics.
A comparison of Islamic and Enlightenment epistemologies, focusing on the belief in the unseen and the consequences of rejecting metaphysics and morality.
A discussion of how to bring about social change in the Islamic context, emphasizing the importance of understanding present realities before striving for utopian ideals.
A critique of modern economic theories, including supply and demand, and why these flawed theories continue to dominate despite being proven wrong.
An Islamic critique of consumerism and utility maximization, presenting alternative views on human welfare and social responsibility.
How Islamic concepts like property as a trust and simplicity can eliminate scarcity and promote social welfare.
A final discussion on the three-dimensional process for social change: analyzing present realities, setting goals, and implementing transformative actions based on Islamic principles.