Economic Welfare from Islamic Perspective

22 Pages Posted: 1 Jan 2010  

Date Written: December 31, 2009

Abstract

As suggested by its title, this paper looks at the subject of economic welfare from the perspectives of Islam. It starts with the definition of economic welfare, and clarifies how this subject is different from “welfare economics.” It further explains that economic welfare means how well people are doing in the economy. And, the Islamic vision is to have a just socio-economic order for society. Using the Quran and Hadith as its main references, three aspects of economic welfare, namely, Eradication of poverty, Equitable distribution of wealth and Environment, are put forward. On the mainstream positions of economic welfare, the paper deduce that the proportion of a nation’s wealth that goes to labour should be the basis of economic welfare, but, the over emphasis on GDP by mainstream economists is not justified. In conclusion, the paper stressed that it is NOT about how-to-achieve the vision but an elaboration of the Islamic positions regarding the well-being of society.

Keywords: Economic welfare, Islamic economics, Poverty eradication, Distributive justice, Sustainable development

JEL Classification: D60, D31, I30, P40

Suggested Citation

Ahmad, Mahadzir, Economic Welfare from Islamic Perspective (December 31, 2009). Available at SSRN: https://ssrn.com/abstract=1530092 or http://dx.doi.org/10.2139/ssrn.1530092

Mahadzir Ahmad (Contact Author)

INCEIF ( email )

Kuala Lumpur
Malaysia

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