ECONOMIC BEHAVIOUR IN ISLAMIC PERSPEKTIVE - Islamic Economic Couse by Mr. Ahmad Syaiful Affa

Summary

This presentation discusses economic behavior from an Islamic perspective, covering key topics such as the human relationship with the economy, the shift from *homo economicus* to *homo ethicus*, and the role of human nature in Islam. It explores the distinction between needs and wants, Islamic views on consumption and production, and the concept of *maslaha* in economic activities. The discussion emphasizes the importance of ethical, moral, and spiritual values in economic behavior, highlighting the need to balance material and societal well-being. The presentation aims to offer insights into how Islamic principles guide economic actions for the benefit of individuals, society, and the environment.

Takeaways

• 😀 Humans are the main drivers of economic activity, and their relationship with the economy affects both individual and societal well-being.
• 😀 The concept of *Homo Economicus* (economic man) assumes individuals act rationally and selfishly to maximize personal profit, which is evolving towards *Homo Ethicus* that incorporates ethical considerations.
• 😀 Islam teaches that humans are created by Allah with intellect and free will, distinguishing them from other creatures and granting them responsibility to manage resources ethically.
• 😀 Needs and wants are distinguished in Islamic economics, where needs are essential for survival, and wants are supplementary desires.
• 😀 Islamic economic thought divides human consumption into three levels: basic needs (Alur), necessities (Ala), and luxury consumption (Hotat Tanu).
• 😀 Consumption in Islam is seen not only as fulfilling worldly needs but also as a way to enhance spiritual and moral quality, in line with worshiping Allah.
• 😀 Production in Islam focuses on creating goods that benefit humanity while adhering to ethical values and prioritizing societal welfare.
• 😀 In Islamic production, it is important to ensure that goods produced are halal, useful, and do not harm religious values or cultural identity.
• 😀 The concept of *Maslaha* in consumption and production emphasizes societal benefit, focusing on five key elements: religion, life, intellect, offspring, and property.
• 😀 Economic decisions in Islam must be guided by moral principles to achieve a balance between individual and societal well-being, ensuring actions are beneficial for all.
• 😀 The Quran portrays humans as the best of Allah's creation, and Islamic economics emphasizes making ethical, responsible choices that support the common good.

Q & A

What is the main focus of the presentation?

The main focus of the presentation is to explain economic behavior from an Islamic perspective, discussing various concepts such as human relations with the economy, the shift from Homo economicus to Homo ethicus, and Islamic views on consumption and production.

How does human behavior relate to the economy in Islam?

In Islam, humans are seen as the primary drivers of economic activity. Their decisions and actions have significant impacts on both individual and collective economic outcomes. Human relations with the economy are also interconnected at a sectoral level between different countries.

What is the difference between Homo economicus and Homo ethicus?

Homo economicus is a concept from classical economics where individuals are assumed to act rationally and selfishly to maximize personal utility. Homo ethicus, however, reflects a shift towards ethical and moral decision-making, emphasizing values and societal welfare in economic activities.

What is the Islamic view on human nature and its role in economic behavior?

According to Islam, humans were created by Allah with intellect and free will, allowing them to make ethical choices and manage resources responsibly. They are seen as stewards of the Earth, entrusted with the task of balancing worldly needs and moral responsibility.

How does Islam define needs versus wants?

Islam differentiates between needs and wants by categorizing them into three levels: basic needs (alur), which are essential for survival; necessary needs (ala), which balance survival and desire; and luxury desires (hotat tanu), which are non-essential and focused on entertainment and indulgence.

What is the role of consumption in Islamic economics?

Consumption in Islamic economics is viewed not only as a means to fulfill basic human needs but also as a way to enhance spiritual and moral well-being. It emphasizes that consumption should align with ethical and religious values while addressing both material and spiritual needs.

How is production viewed from an Islamic perspective?

In Islam, production is seen as an effort to process natural resources to create goods and services that benefit society. It should follow ethical guidelines, focusing on moral values and the well-being of society, and not just on profit maximization.

What is the concept of Maslaha in Islamic economics?

Maslaha refers to the concept of achieving human benefit by considering five key aspects: religion, life, intellect, offspring, and property. This concept guides both consumption and production, ensuring that economic activities benefit individuals and society without compromising ethical standards.

How does Islamic economics address the balance between individual and societal welfare?

Islamic economics promotes a balance between individual desires and societal welfare by ensuring that personal economic activities align with ethical principles, such as fairness, social justice, and the collective good. It encourages economic decisions that not only benefit the individual but also serve the broader society.

What are the key ethical principles in Islamic production?

Key ethical principles in Islamic production include producing halal and useful goods and services, avoiding harmful practices that damage social and religious values, considering moral and educational aspects in production, and maximizing the utility of human and natural resources while benefiting society.