ibn khaldun’s thought on sustainable...

International Conference of Global Islamic Studies 2014

156

Ibn Khaldun’s Thought on Sustainable Development

Abdul Ghafar Ismail

Head of Research Division

Islamic Research and Training Institute (IRTI)

Islamic Development Bank (IDB)

Jeddah P.O Box 9201

Kingdom of Saudi Arabia

+96624646330, [email protected]

Raudha Md. Ramli

Phd Student

School of Economics

Faculty of Economics and Management

The National University of Malaysia

43600 Bangi Selangor

+60132881468, [email protected] (Corresponding Author)

Salmy Edawaty Yaacob

Senior Lecturer

Syariah Department

Faculty of Islamic Studies

The National University of Malaysia

43600 Bangi Selangor

[email protected]

Muhammad Tasrif

Senior Lecturer

School of Architecture, Planning and Policy Development

Bandung Institute of Technology

Jl. Ganesha No. 10

40132 Bandung Indonesia

+62222534237, [email protected]

Abstract

Muslim countries have their own principles to guide them achieving sustainable

development. This paper presents on the nature of Ibn Khaldun’s multidisciplinary

and dynamic theory in development which were rediscovered by modern economist.

The author cursorily examines Ibn Khaldun famous work al-Muqaddimah as well as

the interpretation of his work offered by contemporary scholars. This article

concludes and reinterprets on economic growth of Ibn Khaldun’s suggestion in

sustainable development. The main principles of sustainable development include the

integration of economic growth, strong legitimate government participation, good

governance, rule of law and justice. According to Ibn Khaldun, immorality, and

injustice are recognized the indicators of unsustainable development caused fall of the

nations. His perspective on economic and how he organized them can guide Muslim

mailto:[email protected]


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countries in drafting development policy and also can be used to promoting

sustainable development in Muslim countries into an extremely coherent model.

Keywords: Sustainable Development, Ibn Khaldun, Al-Muqaddimah

JEL Classification: B11, B31, I30, O10


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1. Introduction

The challenging branch of the broader disciplines of economics and political economy

is economic development (Todaro, 1997). According to Cebotarev (1989) and Todaro

(1997), development is a term with diversity meanings. A theory of economic

development is not always synonymous to a theory of economic growth (Streeten,

Burki, Haq, Hiks, and Stewart, 1981; Herrick and Kindleberger, 1988; Human

Development Report, 1990 and Streeten, 2000). The evolution measures of the

development from the pre 1970s ensuing the profound change in the perception and

definition of development emphasis on economic growth to later concerns with the

reduction or elimination of poverty, inequality, unemployment, income distribution

and preventing further deterioration in the physical environment within the context of

a growing economy (Human Development Report, 1990; Todaro, 1997; Piasecki and

Wolnicki 2004; Amr, Marshall and Mogahed, 2008). A review of the development

concept has emerged which aptly explained by Todaro (1997):

Development must therefore be conceived of as a multidimensional process involving

major changes in social structures, popular attitudes, and national institutions, as well

as the acceleration of economic growth, the reduction of inequality, and the

eradication of poverty. Development, in its essence, must represent the whole gamut

of change by which an entire social systems, tuned to the diverse basic needs and

desires of individuals and social groups within that system, moves away from a

condition life widely perceived as unsatisfactory toward a situation or condition of life

regarded as materially and spiritually better.

Recent studies incorporated to understand the meanings of development.

Development according to Stiglitz (1998) seeking a broader-based development

paradigm beyond economic growth, which views development as representing a

transformation of society. In his view, Gross Domestic Product (GDP) growth is

necessary but not sufficient to achieve development and freedom from hunger and

poverty, and more equitable income distribution. Salih (2003) also support that

economic growth by itself may not suffice to bring about sustainable development and

the growth and development is not necessary to occur together. National income only

measure growth rather than measuring sustainable development. Stiglitz (1998)

advocates a new development economics and promotes the new development agenda.

The new development strategy will not only raise GDP per capita but also living

standards as evidence by standards of health and literacy. The concept introduced by

Salih (2003) includes wider concerns the quality of life (QOL). The sustainability

suggests that societies need policies aimed at making development sustainable well in

the future (Holmberg, 1992).

The definition of sustainable development has evolved globally at a rapid rate. The

term of sustainable development has been used in many different contexts and

consequently has come to represent many different ideas (Fergus and Rowney, 2005).

Sustainable development is demanded now because the progress in the last few

centuries has caused depletion of land resources (Mohammad, 2010). Human

Development Report (1994) demonstrates the sustainable development as:

Sustainable human development is development that not only generates economic

growth but distributes its benefits equitably: that regenerates environment rather than


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destroying it: that empowers people rather than marginalizing them. It is development

that gives priority to the poor, enlarging their choice and opportunities and providing

for their participation in decisions that affect their lives. It is development that is pro-

people, pro-nature, pro-jobs and pro-women.

The term of sustainable development initiated a rapid spread with the release of

United Nations (UN) report titled Our Common Future, and generally referred to the

Brundtland Report (World Commission on Environment and Development [WCED],

1987). The sustainable development meant the ability to fulfill the needs of the

present generation, without compromising the ability of future generations to fulfill

their own needs (WCED, 1987). There is an urgent need today to establish a more

integrated, effective and efficient UN development system to promote the worldwide

movement towards sustainable human development (Human Development Report,

1994).

The International Union for Conversation of Nature (IUCN) in the Caring for the

Earth: A Strategy for Sustainable Living defines the term of sustainable development

as improving the quality of human life while living within the carrying capacity of

supporting ecosystem (World Conservation Union, 1991). Quality of life is meant to

represent either how well human needs are met or the extent to which individuals or

groups perceive satisfaction or dissatisfaction in various life domains (Costanza et. al,

2007). Al-Jayyousi (2012) supported the statement by IUCN that, sustainability is the

path that allows humanity as a whole to maintain and extend QOL through diversity

of life. The United Nations Conference on Sustainable Development promotes the

core of mainstream for sustainable development that emphasizes a three dimensions

approach to institutional reform, environmental protection, social development and

economic development (Leggett and Carter, 2012). Figure 1.1 show the three pillars

of sustainability as concentric circles or as interlocking circles to demonstrate the

visual representations of sustainable development need to be better integrated with

action to redress the balance (Adams, 2006).

Figure 1.1: Three Visual Representations of Sustainable Development

According to Al-Jayyousi (2012), the definition from IUCN is broader than the

Brundtland Commission. The definition includes important elements like the

Environment

Society

Economy


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improvement of the QOL and the carrying capacity of supporting ecosystems. The

improvement of the quality of life in the definition seems more aspiring than the meet

of needs’ in the Brundtland definition. The high quality of life and high scores on

measures of human development are not necessarily associated with high GDP per

capita (Adams and Jeanrenaud 2008). The QOL depends on the extent to which an

economy utilizes its resources and achieves its objectives successfully (Salih, 2003). )

elucidated sustainable development as a satisfaction of basic human needs, achieving

equity and social justice, social self-determination and cultural diversity, maintaining

ecological integrity and biodiversity, integrating environmental and economic

consideration.

This article explains the principles of sustainable development by western scholars

and attempts to enlighten and reviews the Muslim scholars by Ibn Khaldun (1332-

1406 AD) which may contain development principles in Islamic perspective. A focus

of the paper is to find out the Islamic concept of development is rooted in the

contemporary Muslim world. The paper comprises three major areas of discussion.

First part is the introduction to concept of development, and sustainable development.

The next section reviews on the Islamic principles for sustainable economic

development and the literature on development with a particular reference to Islamic

concepts and its relevance to development. The third section discuss about Ibn

Khaldun thought and methodology on sustainable development from Muqaddimah.

The final section presents a research conclusion.

2. Islamic Perspective on Economic Development

Development seems to be emerging as a dominant theme in the area of Islamic

economic (Hasan, 1995). Economic development in Islam can be defined as a

balanced and sustained improvement in the material and non-material well-being of

humankind (Sadeq, 1991). He also describes development as a multidimensional

process that involves improvement of welfare through advancement, reorganization

and reorientation of the entire economic and social systems and through spiritual

uplift in accordance on the holistic view of Islamic teaching. According to Sadeq

(2006) and Ibrahim, Basir and Rahman (2011), Islamic economics system emphasizes

the human welfare as the basic concern of development. Thus, the Islamic teaching is

based on Quran and Sunnah provide guidance on all aspects of human life

encompassing social, economic and political (Chapra, 2006; Ahmad, 2006).

The First Islamic Conference of Environment Ministers 2002 identified the major

challenges faced by the Islamic world in the field of sustainable development,

materialized mainly in the poverty, illiteracy, accumulation of foreign debts,

degradation of economic and social conditions, disequilibrium between population

growth and available natural resources, the weakness of technical capabilities, the

lack of expertise and skills in environment management, along with the negative

impacts left by regional conflicts, and foreign occupation. The conference provided

general framework for an Islamic agenda sustainable development known as the

Islamic Declaration on Sustainable Development which revolves around the following

major areas economic growth, poverty eradication, population, and urban

development, health and environment, and natural resources (United Nations, 2002).


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Lewis (2002) blames Islam for lack of development. Certain Middle East institutions

rooted in the regions dominant religion continuing obstacle to economic development

Kuran (2004). Recent empirical study by Palani (2008) and Rees (2009) stated that

the relationship between religion and its socio-economic demonstrated that countries

with higher levels of religiosity are characterized by higher levels of income

inequality. However, Elgin, Goksel, Gurdal and Orman (2013) argue that the problem

occurred is due to the lower level of government services demanded in more religious

countries. The religion motivates individuals to engage in charitable giving and this

leads them to prefer making their contributions privately and voluntarily rather than

through the state (Elgin et. al., 2013). Study by Pryor (2007) found that there is no

special Muslim economic system. Moreover, a few economic institutions are uniquely

Muslim. He used regression analysis and found that the presence of Islam has

relatively little influence on most economic or social performance indicator and

religion does not appear to be a useful explanatory variable.

However, Khan (1991) outlined the basic concepts of Islamic economics and argued

that Islamic economics has the potential and would lead the world to benefit from it in

the future. Islam encourages the economic development which underlined with a mere

application of morality, ethics, and social justice, equitable and fair development

(Khan, 1991; Chapra, 1993; Hasan, 1995, 2006; Dar, 2004; Chapra, 2009;

Mohammad, 2010; and Ibrahim, Basir and Rahman, 2011). Development with justice

is not possible without moral and ethical development (Hasan, 1995). Holy Quran

introduces a wide range of ordinance on socio-economic justice, equality, and equal

distribution of wealth in an unrelenting approach. Holy Quran says:

“…so that it (the wealth and resources) may not circulate only between the

rich among you…” (Quran 59:7)

“Indeed We have sent Our Messengers with clear proofs, and revealed with

them the Scripture and the Mizan that mankind may keep up justice. And We

brought forth iron wherein is mighty power, as well as many benefits for

mankind, that Allah may test who it is that will help Him (His religion) and

His Messengers in the unseen. Verily, Allah is Powerful, Almighty” (Quran

57:25)

Hasan (1995) enlightened the concept of development centers around two broad

aspects of its belief system the Divine and the human. The primary function of Islam

is to guide human development on correct lines and in the right direction (Ahmad,

2006). According to (Chapra, 1993), the Islamic world-view is based on three

fundamental concepts consist Tawhid (Oneness and Unity of God), khilafah

(vicegerent of human beings) and ‘adalah (justice). Tawhid is the most important of

these concepts and implies the universe consciously designed and created by the

Supreme Being. The human being is the Supreme Beings’s khalifah or vicegerent on

earth. Allah S.W.T says:

“Those who remember Allah standing, sitting, and lying down on their sides,

and think deeply about the creation of the heavens and the earth, (saying):

"Our Lord! You have not created this without purpose, glory to You! Give us

salvation from the torment of the Fire” (Quran 3:191).


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“And (remember) when your Lord said to the angels: "Verily, I am going to

place (mankind) generations after generations on earth.'' They said: "Will You

place therein those who will make mischief therein and shed blood, while we

glorify You with praises and thanks and sanctify You.'' He (Allah) said: "I

know that which you do not know” (Quran 2:30).

Salleh (2013) outlined Khurshid Ahmad’s four philosophical underpinnings of the

Islamic approach to development are:

i) Tawhid, which refers to God’s unity and sovereignty which lays down the

rules of God-man and man-man relationships (Hablum-minAllah and Hablum-

minAnnas respectively)

ii) Rububiyyah, which refers to Divine arrangement for nourishment, sustenance

and directing things towards their perfection. The fundamental law of universe

which throws light on the Divine model for the useful development of

resources and their mutual support and sharing. It is in the context of this

Divine arrangement that human effort take place.

iii) Khilafãh, which refers to man’s role as God’s vicegerent on earth. It defined

the status and role of man, and specifies the responsibilities of man as a

Muslim.

iv) Tazkiyah, which refers to purification plus growth. It is the mission of all the

Prophets of God to perform the tazkiyah of man in all his relationships with

God, man, natural environment, society and the state.

The objective of Islamic economic development is to achieve a comprehensive and

holistic welfare for people to live a balance life in this world as well as in the

Hereafter (Akheerah) (Khan, 1991; Chapra, 2009; Ul Hassan, 2010; Anto, 2011 and

Ibrahim et al. 2011). It is called as Falãh. Falãh refers to inclusive state of spiritual,

cultural, political, social and economic well-being in this world and God’s pleasure in

the Hereafter (Khan, 1991). Tazkiyah appears to be the focal point of Khurshid

Ahmad philosophical in Islamic development concept which the result of tazkiyah is

Falãh-prosperity in this world and the Hereafter Salleh (2013). Salleh (2003) defined

the right ultimate aim of Islamic development is Mardhatillah (the pleasure of Allah

S.W.T) instead of Falãh. According to him, only one who gains the pleasure of Allah

S.W.T will likely to have Falãh. Salleh (2003, 2013) suggested seven philosophical

foundation that more comprehensive. There are mould, actors, time-scale, framework,

methods, means and ultimate aim. The established in earlier writing by Salleh (2003),

the mould of Islamic development is Islamic worldview (tasawwur), the actors of

Islamic development are human beings (‘abdAllah, or servant of God and

khilafatullah or vicegerent of God), the time-scale covers three worlds of pre-birth

(malakut), present (ad-dunya) and Hereafter (Akheerah). The framework is the

Islamic obligatory knowledge (fard ‘ain), the methodology is the worship (ibadah) of

God, the means is the natural resources, and the ultimate goal is the pleasure of God

(mardhatillah) as illustrated in (Figure 2.2).


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The primary purpose of Islamic development is to ensuring the human well-being of

all mankind and it should be consistent with the objectives of Shariah or Maqasid

Shariah (Sadeq, 1987; Dar, 2004; Hasan, 2006; Chapra, 2006, 2009; and Anto, 2011).

The Quran and Hadith reveal an overriding interest in the overall welfare of mankind

and need to balance between this world and the Hereafter:

“And of them there are some who say: "Our Lord! Give us in this world that

which is good and in the Hereafter that which is good, and save us from the

torment of the Fire!” (Quran 2:201)

“But seek, with that which Allah has bestowed on you, the home of the

Hereafter, and forget not your portion of lawful enjoyment in this world; and

be generous as Allah has been generous to you, and seek not mischief in the

land. Verily, Allah likes not the mischief-makers” (Quran 28:77)

Figure 2.2: The Integration between Knowledge of Fardhu Ain and Knowledge of

Fardhu Kifayah in Islamic Development

Allah S.W.T

Revealed knowledge

(Fardhu Ain)

Acquired Knowledge

Monotheism Ethics/Virtue Islamic

jurisprudence

(Fiqh)

Business (Muamalat)

Marriage

(Munakahat)

Lower Level

of High Level

of

Knowledge

Development

Human beings and Vicegerent

Goals: Pleasure of God

Balance life in this world as well as in the Hereafter

Ibadah


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Source: Salleh (2003)

Thus, development in Islam can be defined as a balance and sustained improvement in

the material and non-material well-being of man, and development as a

multidimensional process which involves improvement of human welfare through

advancement, reorganization and reorientation of entire economic and social systems

in accordance with the norms and values of Islam (Sadeq, 1987). Aforementioned on

definition and objective of Islamic development can be concluding in Kurshid

Ahmad’s fundamental principles and values. Kurshid Ahmad delineated five essential

features of the concept of Islamic development in Salleh (2013) as follows:

i) The Islamic development concept is comprehensive in character and includes

moral, spiritual and material dimensions. Development becomes a goal and

value-oriented activity, devoted to the optimization of human well-being in all

these areas, for their welfare in this world and the Hereafter.

ii) The focus for development effort is man. Development, therefore, means

development of man, his attitudes and ambitions, his behavior and lifestyle

and his physical and socio-cultural environment. Man is act as the premium

mobile, not merely in a mechanical sense, but in the fullness of the human

potential.

iii) Economic development is looked upon by Islam as a multi-dimensional

activity, with different factors and forces, which have to be balanced,

harnessed and mobilized.

iv) Economic development involves a number of changes, quantitative and

qualitative. It has to be balanced between each other.

v) Islamic development involves two dynamic principles of social life. Firstly,

the optimal utilization of resources that God has endowed to man and provided

in his physical environment. Secondly, the equitable use and distribution for

the promotion of justice amongst all human relationships.

Therefore, many scholars have been oriented towards a multidisciplinary approach

that considers economic development to be a part of overall human development

(Chapra, 2006). They take into account the most relevant variables, socio-economic

and political environment affects human well-being. The greatest Islamic scholars

namely Ibn Khaldun (1332–1406 AD), have discussed the principles of development

including the component affect to rise and fall of civilizations within the

multidisciplinary model and framework. This paper is intended to show the

contribution made to the discussion by Ibn Khaldun more than 600 years ago to

explain the causes of the Muslim decline during his lifetime. Though most of what is

written by Ibn Khaldun become part of the conventional wisdom and studied by many

scholars of various diciplines, it is still relevant to implementing a new economic

model. A public policy maker can learn and review the paradigm of mainstream

economic and consider a new economic paradigm as an antidote to the current

economic problem propounded by Ibn Khaldun.


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3. Ibn Khaldun’s thought on Growth and Development

The intellectual legacy of Ibn Khaldun is unique among the works of Muslim thought.

According to Spengler (1964) and Essid (1987), Ibn Khaldun’s contributions to

economic theory have been referred to as “economic thought of Islam”. Ibn

Khaldun’s Muqaddimah known as Prelegomena is a model of a distinguished and

remarkable work of scholarship that defined the socio-historical realities and

intellectual progress of its time (Agil, 2010) and it was published four centuries earlier

in 1377 (Spengler, 1964). The origin theory of economic growth is traced to Ibn

Khaldun (Boulakia, 1971). The Muqaddimah was the first promulgated the economic

theories put forward by Adam Smith in his Wealth of Nations (Spengler, 1964; Agil,

2008). This substantial body of economic knowledge was rediscovered the virtues and

the necessity of a division of labor theory before Smith, Karl Marx in necessary and

surplus labor, and the principle of labor value before Ricardo. He elaborated a theory

of population before Malthus and insisted on the role of the state on the economy

before Keynes though Ibn Khaldun may not be clear as Karl Marx and Ricardo

(Boulakia, 1971).

The Muqaddimah of Ibn Khaldun also focuses on the relationship between religious

factors and the economic explanation in his ideas compared to the Wealth of Nation

(Agil, 2008). The main economic concepts discussed by Khaldunian’s thought are the

division of labor, economic growth, population growth, poverty, inflation,

unemployment, business cycles, crime, environmental degradation, migration and

urban growth and decline cities that are also economic issues and contemporary social

relentless impact of modern man (Agil, 2008), value, distribution, development,

money, prices, benefits of trade (Soofi, 1995) and political economy (Boulakia, 1971).

Ibn Khaldun’s theory of economic growth is based on his theory of man and society

integrated within the Islamic Weltanschauung (Agil, 2008). The focus for

developmental effort and the development process is man and Islam insists the area of

operation relates to man (Ahmad, 2006). Ibn Khaldun’s conclusions are based on real

facts of his time and were molded by Islamic way of life (Mohammad, 2010). Ibn

Khaldun uses religious texts, logical reasoning, historical facts and empirical

observation to explain economic problem and phenomena during his times and proof

his economic propositions (Agil, 2010).

Religion in The Muqaddimah is a one of the factor in improving economic growth,

business activity and entrepreneurial growth in the formulation of public policies

based on the business-friendly, fairness, economic justice and freedom (Agil, 2008;

2010). Current debates by Patrick, Welch and Mueller (2001), and McCleary and

Barro (2003, 2006) believe that economics are religious matters. A study by Barro

and McCleary (2003) used an international survey on religiosity for a broad panel of

countries to investigate the effects of church attendance and religious beliefs on

economic growth and has a two-way interaction with political economy (McCleary

and Barro, 2006). Religion viewed as an independent and dependent variable. A

central question in religion as a dependent variable is viewed as how the economic

development and political institutions affect the religious participation and beliefs.

The key issue in religion as an independent variable looks into how the religiosity

affects individual characteristics such as work ethics and honesty, which thereby

influence the economic growth and performance (McCleary and Barro, 2006).


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Ibn Khaldun was the first economist to link religious in orders with economic justice,

economic growth and development, tax revenue and population growth (Agil, 2008).

Weber (1905) was among of the scholars to argue that religion plays a significant role

in economic development. He analysed the role of Protestantism on Europe

economies during the industrialization (Pryor, 2007). Injustice to Ibn Khaldun is

contrary to religion and it can cause a contraction in the economy. Ibn Khaldun

stressed that the factors religion strengthens the group feeling or unity because it

creates good qualities in themselves and bring a member of the group for shared one

insight. It reduce the tendency into self interest and other reprehensible which can

cause disunity and conflict and finally, political and economic become failure.

Khaldunian’s thought was discussed economic growth and development as one of the

foundations for rise and fall of civilisation (umran) (Spengler, 1964; Agil, 2010;

Mohammad, 2010).

3.1 Ibn Khaldun’s model of economic development

Chapra (2006) has interpreted a multidisciplinary model with dynamic character of

The Muqaddimah. The entire Muqaddimah of Ibn Khaldun links all important socio-

economic and political variables including the development (g) and justice (j),

sovereignty (al-mulk) or political authority (G), belief and rules of behavior or the

Shariah (S), people (ar-rijal) (N), wealth (al-mal) or stock resources (W), in a circular

and interdependent manner. Each variables influence the others and in turn being

influenced by them (Figure 3.1). Chapra (2006) summarize his views relating to the

model as follow:

The development or decline of an economy or society does not depend on any one

factor but rather on the interaction of moral, social, economic, political, and historical,

factors over a long period of time. One of these factors acts as the trigger mechanism

and, if the others respond in the same direction, development or decline gains

momentum through a chain reaction until it becomes difficult to distinguish the causes

from the effect.

Figure 3.1: Interrelationship of variables of economic development and the chain

reaction.

Source: Chapra (2006)

Chapra (2006) extended Khaldunian’s model to the sovereign:


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i) The strength of the sovereign (al-mulk) does not materialize except through

the implementation of the Shariah.

ii) The Shariah cannot be implemented except by the sovereign (al-mulk).

iii) The sovereign cannot gain strength except through the people (al-rijal).

iv) The people cannot be sustained except through development (al-imarah).

v) Development cannot be attained except through justice (al-adl).

vi) Justice is the criterion (al-mizan) by which God will evaluate mankind.

vii) The sovereign is charged with the responsibility of actualizing justice.

Mohammad (2010) simplified and reinterpreted the model by Chapra (2006). A strong

economic development according to Mohammad (2010) requires (Figure 3.2):

i) Collective entity (state)

ii) Rules and regulations

iii) Law enforcement institutions

iv) People

v) Wealth or economic empowerment

vi) Development

vii) Justice

viii) Moral legitimacy

Strong Economy/

Society

People

Wealth

Development

Justice


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Figure 3.2: Core interdependent components of economic growth

Source: Mohammad (2010)

Human being or theory of man (N) plays a central analysis of Ibn Khaldun and cause

of economic growth if they have incentive to participate in the economy (Rosenthal,

1967). The rise and fall of civilizations is closely depends on their well-being or

misery of the people (Chapra, 2006). People occupy a unique position in social and

economic thought of Ibn Khaldun. He begins his analysis by referring to human

nature in the development of human society and civilization. Human ability to think

and sociability of human nature, aggressive and desires power is important in the

evolution and development of the community and be an impetus for change (Agil,

2008). Ibn Khaldun contends that God gives man the power in the form of the ability

to think not only to achieve the necessary requirements of life, but also to fulfill a

higher goal to perform his role as His representative on the earth. Ibn Khaldun sees

the primary role of man to ensure that man does what is good and avoids what is

harmful (Agil, 2010), for instance, corruption, criminal violence and others. Ibn

Khaldun defines corruption as unethical practices of making a living and these bad

qualities become traits of character and habits for most of the urban people (Agil,

2010). It has been clearly acknowledging that corruption, criminal, violence practices

are un-Islamic and specifically condemned in Islam (Rehman and Askari, 2010). The

Divine scheme of life as enunciated in the Quran views fasãd (corruption) with great

displeasure as it abhors zulm (injustice) in the society (Zaman, 1999).

The Muqaddimah examines the relationship between division of labor, specialization

and creation of wealth which cause a nation’s prosperity. Ibn Khaldun believes that

division of labor results in economic surplus, generates wealth and spur the growth

which eventually leads to beneficial impacts of an increase in population, prosperity,

urbanization, advancement of scientific knowledge and technology, innovation,

education, the emergence of the wealthy class and improvement in the quality of labor

and skill, growth of the cities (Agil, 2010) and as a source of value added (Weiss,

1995). Division of labor and specialization are necessary for the accelerated

development of any economy (Rosenthal, 1967: I. 89-92). Ibn Khaldun explains how

man depended upon division of labor and specialization, and indicates a measure to

the accumulation and protection of wealth (Spengler, 1964; Chapra, 2006). The

greater the specialization, the higher will be the growth of wealth (Chapra, 2006).

Wealth of people can be gained through productivity and sustained while participate

in the development (Mohammed, 2010). Wealth is an incentive for people to

participate in the development activities. By specialization of labor, some producers

are able to generate surplus products and through exports to other communities and

satisfying the luxury wants of the consumers and these are the great deals of wealth

(Soofi, 1995).

Development (g) and justice (j) become the most crucial links in the chain of

causation. Khaldunian’s thought on development model does not refer to economic

growth (Rosenthal, 1967: I. 39 and II. 243-249) but it compasses all-around human

development enriches the others (S, N, G, W, j and g) and contributes to the well-

being or happiness of people and component to raise of civilization (Chapra, 2006).

The rise and fall of civilization according to Ibn Khaldun depends on strong State and

implementation of law through institutions and rule of law, people, wealth,


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development and justice (Mohammad, 2010). Economic development needs moral,

social, political and demographic support and it may not be sustainable if these

supports do not available. The role of moral value is clearly recognized by Ibn

Khaldun (Mohammad, 2010). Development with justice is not possible without moral

and ethical development (Hasan, 1995). Holy Quran introduces a wide range of

ordinance on socio-economic justice in an unrelenting approach. Holy Quran says:

“Indeed We have sent Our Messengers with clear proofs, and revealed with

them the Scripture and the Mizan that mankind may keep up justice. And We

brought forth iron wherein is mighty power, as well as many benefits for

mankind, that Allah may test who it is that will help Him (His religion) and

His Messengers in the unseen. Verily, Allah is Powerful, Almighty” (Quran

57:25)

Thus, Ibn Khaldun emphasizes clearly and unequivocal that religion promotes justice

with prohibits unfair and unjust by the government. He saw clearly positive

relationship between religion, economic justice, business motivation, economic

growth, tax revenues (Agil, 2010) and a balance in human society can be achieved

based on justice (Ahmed, 2002). The interdependence of states, law, people, wealth,

development and justice is the recipes of economic model successful where free

market can be thrive (Mohammad, 2010). According to Ibn Khaldun, injustice causes

the ruining of civilization (Spengler, 1964).

Thus Ibn Khaldun is clear and unequivocal statement that religion promotes justice

with public policy prohibits unfair and unjust by the government. Therefore, the

Muslim countries like other developing countries looking for a development strategy

that would help them accelerate growth with justice and reduced instability (Chapra,

1993). Muslim countries need to rebuild an idea of classic Islamic civilization which

includes justice, integrity, tolerance and the quest of knowledge (Ahmed, 2002).

Ahmed (2002) suggest to West countries to put pressure on Muslim government to

ensure justice and provide clean administration. Justice according to Chapra (1993,

1995) makes the well-beings and principal goal of Islam. The well-being of human

means a balanced between materialization and spiritual needs. Chapra (1993)

highlights the development with justice could be considered to have been realized if

dictates of khilafah and ‘adalah are satisfied through the need fulfillment of equitable

distribution of income and wealth, full employment and environmental protection.

The primary basis in Muslim society is the Shariah (S) (Chapra, 2006). Hasan (1995)

assert that there are two broad aspects in development centers; its belief system the

Divine and human. The Divine Laws command the doing of good and prohibit the

doing of what is evil and destructive (Rosenthal, 1967; II. 142) and for the good of

human beings and serve their interests (Rosenthal, 1967; I. 292). The Shariah can

only give rules of behavior and it is a responsibility of the political authority (G) to

ensure compliance through incentive and deterrents (Rosenthal, 1967; I. 262-263).

According to Ibn Khaldun, political authority has the same relationship to a

civilization and it is not possible to conceive of political authority without civilization

and civilization without political authority (Rosenthal, 1967; II. 291 and 300). One of

the most important contributions of Ibn Khaldun to theory of economic growth is his

idea on the role of government and public policies (Spengler, 1064; Boulakia, 1971;

Chapra, 2006; Mohammad, 2010 and Agil, 2010). Ibn Khaldun emphasizes and


170

characterized the role of the state in development as good governance (Chapra, 2006).

The survival of the political authority depends eventually on the well-being of the

people to ensure by providing a proper environment for actualizing development as

well as justice through the implementation of the Shariah (Chapra, 2006). Therefore,

Ibn Khaldun viewed State to be accountable and transparent, responsible for its

permissive to participate in decision making according to the principle of shura

(Chapra, 2006 and Mohammad, 2010).

In the endogenous model, government can promote growth by implementing

appropriate policies and Ibn Khaldun considers economic freedom as a necessary

condition to spur growth as well as increase the government revenue (Agil, 2010).

Sen (1999) described the national growth or individual incomes can be important as

means to expanding the freedoms enjoyed by the member of society. Development

should be seen as a process of expanding freedoms. But freedoms depend on the other

determinants such as social and economic arrangement as well as political and civil

rights. For instances, facilities for education, healthcare and liberty to participate in

public discussion and scrutiny. He argues to achieve development, requires the

removal of poverty, tyranny, social deprivation, neglect of public services, and the

machinery of repression. Amr et. al (2008) support the statement by Sen (1999) that

human development embraces the concept of human freedom and development of the

human spirit, as well as good governance. Khaldunian mind prefers the introduction

of fiscal policy which inclined towards moderate taxes and moderate government

spending to spur economic growth and increase revenue (Nagarajan, 1982; Chapra,

2006 and Agil, 2010). Ibn Khaldun emphasis the potential of government spending

and taxation will influence the aggregate demand, thus, the lower tax imposed by

government, government spending continue, market economy can be sustained (Agil,

2010; Mohammad, 2010).

Karatas (2006) listed main point of Ibn Khaldun mind on growth, political stability

and the rise of the nations must be:

i) The establishment of private property rights and freedom of enterprise

ii) Rule of law and the reliability of the judicial system for the establishment of

justice

iii) The security of peace and security of trade routes

iv) Lower and less taxation in order to increase employment, production and

revenues

v) Less bureaucracy and much smaller efficient army

vi) No government involvement in trade, production and commercial affairs

vii) No fixation of price by the government

viii) A rule that does not give monopoly power to anyone in the market

ix) Stable monetary policy and independent monetary authority that does not play

with the value of money


171

x) A larger population and larger market for greater specialization

xi) A creative education system for independent thinking and behavior

xii) The collective responsibility and internal feeling for the setting up of a just

system to encourage good deeds and prevent vice.

Conclusion

Sustainable development should be carried out in a way that brings betterment to the

current generation without depriving the future generations. Many scholars have been

oriented towards a multidisciplinary approach to sustain the economic and

development. This paper enlightens and reviews the Muslim scholar’s principles of

sustainable development by Ibn Khaldun (1332-1406 AD) which may contain

development principles in Islamic perspective. Ibn Khaldun discovered a great

number of fundamental economic notions and consequence on evolution of economic

thought a few centuries ago. He divided his writing into the causes of development

and the causes of fall in civilization. The main principles of sustainable development

include the integration of economic growth, strong legitimate government

participation, good governance, rule of law and justice. Immorality seems to be the

root cause for economic problems in the world. The role of religion promotes the

economic growth. Khaldunian mind viewed state as neither a laissez faire state nor a

totalitarian state. The state ensures the prevalence of the Shariah and serves as an

instrument for accelerating human development and well-being. The function of state

comprises people, human rights, principle of justice, morality and ethics. Unjust

public policy causes the economy to decline. Thus, Khaldunian mind encompasses the

time dimension and still relevant with the current economic condition. A public policy

maker can learn and review the paradigm of mainstream economic and consider a

new economic paradigm as an antidote to the current economic problem propounded

by Ibn Khaldun.

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