Islamic View on Scarcity

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As for efficiency, there are ways thought in Islam to achieve efficiency in the market. First is to allocate all of the resources fairly especially to those who are in need. In Islam, it is interested in protecting the human right, among others, to wealth and income generated in the process of production where this is consistent and compatible with efficiency. Ideally, Islam provides a systematic mechanism through which economic agents, as well as the disabled, receive their due share in the wealth and income of a community. This mechanism has provisions for reasonable equity, but it does not deny, rather it advocates, efficiency. Allocating resources in an Islamic economy is important. Islam advocates a beautiful balance between growth and distribution based on justice and efficiency, instead of only growth as under capitalism or only equity rather than efficiency as under socialism.

Secondly, in order to achieve efficiency, there are some ethical values that need to be followed in business. The relationship between notions of Islamic ethics and market efficiency is mostly direct and straight forward. An attempt to ensure Islamic ethics would, in general, lead to enhancement of efficiency. The Islamic ethical norms of freedom from riba, gharar, ghubn, jahalah, najas, ihtikar etc. are all clearly identifiable with notions of efficiency.

Last but not least, Islam emphasizes cooperation among human beings. Co-operation, from an Islamic viewpoint, appears more in line with the broader cosmic phenomenon of the entire universe. Nature makes a magnificent display of harmony and cooperation. Human beings are conceived to be like the organs of a body, so that the whole body should sense pain if any organ suffers from discomfort. Islamic social norms prescribe a high level of personal sacrifice for others and cooperation among them in all economic needs. It was this spirit of „participation‟ that the Prophet (peace be upon him) tried to inculcate when he exhorted people to share their surplus food, housing, mount and land with others. He praised the tribe of Ash’ar because they used to pool their foodstuff and distribute them in times of food shortages. His decision to distribute 114 the funds of fay and poll-tax among the people is also an indication of the Prophet’s strong preference for participation of the people in the resources.

All in all, Islamic teachings have provided us with clear and complete guidelines about the economic systems. These principles of the Islamic economic system have to be publicized in the mass media and taught to students particularly at secondary and post- secondary educational institutions. The successful application of Islamic economics will depend on exploring the particular problems of each phase and suggesting the right solutions to them from the Islamic perspective.