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How Islamic And Conventional Economics Are Different?

Author: In Am Nabila Binti Mohd Hashim

Economics can be defined as a social science that studies how to utilize the available limited resources to fulfil human needs and wants. It is the art of decision making, involving consumption, production, distribution, and exchange. Economics is a social science that involves a scientific study about behavior of individuals and then economic concerns with the issue of resource scarcity to fulfill human needs. What is the definition of Islamic economics?

Islamic economics can be defined as the shariah based social science aiming at achieving al-Falah given the available resources. In this definition you find that as a social science it is a body of knowledge that is derived according to the Islamic world view.

The objective of Islamic economics is to achieve al-Falah. Al-Falah is defined as an eternal happiness. It can be divided into two parts: happiness in this world and happiness in the hereafter. Al-Falah in this world could mean different things depending on people’s perception, but as far as economical goals are concerned, Islam puts and persists on welfare, fairness and justice, as well as providing opportunities for the individual and the society to achieve progress in this world.

When it comes to happiness or success in the hereafter, it refers to the time when the man is allowed to enter Jannah (Paradise). Entering paradise is the ultimate definition of success.

Is conventional economics different from the definition of Islamic economics?

We can say that both disciplines are under social science, nevertheless for Islamic economics this social science is based on Islamic world view. The next different is in terms of the objective. The objectives of Islamic economics is to bring man to the eternal happiness in the hereafter while the definition of conventional economics would emphasize that men utilizes the limited resources to fulfil his or her unlimited wants, fulfilling human wants become the primary objective under the conventional economics and third difference.

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