Ayatollah Hadavi Tehrani is one of the active scholars and researchers of the Islamic Seminary of Qom. Due to his fluency in several languages, he takes active part in scientific symposia and seminars held outside of Iran. In the scientific arenas especially those related to jurisprudential doctrines, he has presented the “written thought in Islam” theory and in the light of this theory he has propounded highly interesting and noteworthy views. In a dialogue with Andisheh (Thought) Group, he has discussed at length the components and principles of Islamic economy and has made an elaborate comparison between the Iranian and Islamic economies.
In this dialogue, he laments the negligence in theorizing the Islamic economy and says with much regret that the Westerners have superseded Muslims in theorizing the Islamic economy and they have incorporated Islamic economy in their scientific centers to meet the scientific needs of the Islamic countries. They are in fact presenting very hypocritically their own liberal economy in the guise of Islamic economy. The dialogue reads as follows:
Realization of the economic system of Islam in Iran is subject to materialization of Iranian - Islamic development pattern
Q: A very important question that is routinely and always propounded in regards to economy has something to do with the relationship between the economic system of our country as an Islamic country with that of the Islamic economic system. What is exactly the relationship? How far can we consider the Iranian economy to be Islamic?
A: Efforts have been made, in the wake of the Islamic revolution, to make the Iranian economy especially those activities that were conducted openly and under public view compatible with Islamic Shari’ah. For example, riba (usury) was omitted or banned in line with the same policy.
As a matter of fact, there is not any systematic approach towards the Islamic economy nor is there any effort made to establish it. That is, there is no effort taking place to identify and organize the Islamic economic institutions or to define their relationships. It is for the major part because of the absence or lack of theoretical sciences that importance has not been attached to it and that such an effort has been delayed.
If the Supreme Leader, Ayatollah Khamenei (may Allah grant him long life) is discussing the Iranian-Islamic progress pattern now after 30 years, it is because a great many factors were involved in propounding such a pattern. I am of the view that, despite the efforts made, there is a big gap between the reality of our economy and the Islamic economic concepts. In fact, these efforts have not been very serious and I believe that lack of interest is one of the most important factors resulting in our failure in this regard. At times, the Islamic economy was completely denied and at other times, if it were ever accepted, it would not be implemented completely in practice.
In order for this goal to be achieved, it is necessary in my opinion that the Iranian-Islamic progress pattern be realized. Definitely, insofar as the pattern has not been worked out by the people in charge of the affairs, we cannot move towards better management of our economy.
Q: In your opinion how far do the principles of Islamic economy have the potentials to be indigenized in Iran? How far can they meet the temporal and spatial requirements?
A: I do believe that Islam features an economy in the sense of a philosophy, school and economic system. I have explained in the “written thought in Islam” theory that the Islamic economic system must be compatible with the circumstances in which we are living. It should be configured in a way such that it becomes indigenous. In other words, we must design the Iranian – Islamic economy proportionate to our own temporal needs and circumstances.
The Islamic economy in our country should be designed in a way such that it is compatible with the temporal and spatial circumstances
We must design the Islamic economy in a way such that it is compatible and conherent with the circumstances and needs of our country. The Iranian – Islamic economy is definitely different from the Arabic – Islamic economy in the early period of Islam. There is no doubt that the foundations and principles are the same but the mechanisms are different. That is to say, it is necessary that in these mechanisms, the elements of space and time as well as the circumstances in which we are living must be taken into consideration. For example, we have the electronic trade in the ongoing period, something that did not exist during the early period of Islam. Hence, when the Islamic economy is designed, it is necessary that phenomena be taken into consideration. There is another example to give in this regard. We are, for example, faced with new forms of contracts which did not exist in the past and which must be taken into consideration in the economic mechanisms that we are going to build.
I, therefore, underscore the importance of indigenizing the Islamic economy since it is essential and inevitable and we cannot organize or manage the country’s economic situation without it. That is because we are not looking only for the Islamic progress pattern; rather we are looking for an Iranian – Islamic progress pattern. The qualifying term “Iranian” indicates the position and location of our country. Thus the salutations and strategies should be worked out in such a way that they suit the indigenous circumstances.
Islamic Economy Neglected by Scientific and Academic Centers
Q: It seems that in our educational system, the Islamic economy has been neglected by our academic centers and universities. Probably, that is the reason the principles of Islamic economy have gone unnoticed in practice. What can be done to remove this great deficiency?
A: Yes, I see eye to eye with you in this matter but I am sorry to say that even after thirty years from the victory of the Islamic revolution, we do not have a discipline or field in the name of Islamic economy in B.A., M. A. and PhD levels in our universities. Of course, some units are taught in the universities under the title of “Islamic economy” but we do not have an independent Islamic economy field therein.
Westerners are the forerunners of studying and investigating Islamic economy in the contemporary period
This is at a time when the Western countries came to learn, after the victory of the Islamic revolution, that they will be faced with a wave of Islamic awakening and the future world will be further acquainted with Islamic concepts. That was why they tried to prepare themselves for the future world by capitalizing in scientific areas including the Islamic economy in which they began their serious and in-depth scientific studies.
It is interesting to note that now thirty years after the victory of the Islamic revolution there is still a discussion going on whether or not Islam has an economic system. We are talking about the existence and non-existence of something whereas in countries like the United Kingdom the Islamic economy has been established as a scientific discipline for more than a decade now. It is being taught as a field in the heart of Europe and in their universities. They have been teaching and training researchers in this regard for many years while we are in the beginning of the way.
Westerners have taken control of the scientific authority of Islamic economy in the global level
Although the West does not believe in Islam nor is it interested in it, it does believe in Islam’s abilities and capacities as a religion. For this reason, they are making utmost use of these capacities and they have reached a point where they steer the economy of the Islamic countries in the way they wish. Now, they have reached a point in the Islamic economy where they have taken control of the scientific authority of the Islamic economy in the global level. Today, the Islamic economic sources in the international level are not the sources written in our country or in any other Islamic countries. In fact, the sources or, precisely speaking, the reference works in the international arena are produced by Western scientific and research centers.
In universities like Harvard University in the US, more than ten scientific seminars have been held about Islamic economy. They have generated a massive amount of information and ideas in this regard. Of course, it is possible that all the information may be correct and accurate since they are doing this with the purpose of managing and steering the Islamic economy. And today, some of the financial markets in the world have come into being with the support of the Islamic economics which have been produced in Western centers. For example, the financial markets of countries like Malaysia and Indonesia have come into being and set up with the support of the Islamic economics which have been produced in Western center.
When it comes to the theoretical aspect of Islamic economy, we are faced with serious setbacks
Unfortunately, our role in the Islamic economy especially in the theoretical and scientific aspects is very weak. I mean we are practically faced with a serious setback in Islamic economy. And when it comes to the theoretical aspect which is a prelude to application of economic concepts, we are encountering very basic and serious vacuums. We have not scientific authority in this regard. Following the Islamic revolution in Iran, many books and articles were printed and published in Iran about Islamic economy but these works remained inside the country and did not reach foreign scholars. In fact, other countries have not made efforts in this regard as well.
Muslim intellectuals’ views about Islamic economy has not been internationalized
Foreigners or scholars in foreign countries haven no information about the works authored by our scholars in regards to Islamic economy. They have but very little knowledge about for example, “Our Economy” a book authored about 40 years ago by Martyr Baqir Sadr, whereas in fact other books have also been written by Shia scholars but unfortunately we have failed to internationalize our own scholar’s views and opinions about Islamic economy.
One of the main reasons this objective has not been realized is the resistance on the part of some scholars against these concepts. It has caused Islamic economy not be recognized and set up or launched as a discipline in the scientific centers. Unfortunately, those in charge of higher education department are still treating the Islamic economy with some sort of ambiguity.
Theoretically we must accept Islamic economy at first
The things mentioned earlier are considered to be some of the major setbacks facing us. Actually, if we do not accept the Islamic economy theoretically and do not capitalize in this area, we cannot, in practice, attain the Islamic economy in a perfect way. We have helped materialize and actualize the elements of Islamic economy in these three decades in the country but we have not provided the ground for realization of a coherent and well-organized system with necessary theoretical support.
Q: In view of the fact that the Islamic republic of Iran is the only Shiite government in the world, are Shia scholars’ views different from the views held by Sunni scholars about Islamic economy so that it may hinder the internationalization of our Islamic economic views at least in the Islamic world?
A: No, fortunately, Shia and Sunni scholars have a lot in common and their views about Islamic economy are very close to each other. If there are any discrepancies, they are negligible. I am of the view that Shia and Sunni perspectives about Islamic economy are 99 percent identical. The insignificant jurisprudential differences which do not create any problems are very few and far between.
I have also a personal experience in this regard. In the year 2008 I travelled to Indonesia and I had a meeting with some economic experts and managers of Indonesian banks. When I explained my views about Islamic economy, they welcomed them despite them being Sunnis. There was no Shia – Sunni question. On the whole we had the same view in regards to Islamic economy.
The Islamic economy in the Islamic countries has an Islamic appearance but it is essentially western
Q: What is the situation of other Islamic countries when it comes to implementation of Islamic economy? Are they also faced with difficulties and problems like Iran?
A: They have another kind of problems. The Islamic economy of these countries is based on Western countries’ research and underpinnings. That is to say, the Islamic economy which has been explained and researched by Westerners is implemented in these countries and the Westerners have also tried to present the capitalist economic system in the guise of Islamic economy so that it may get accepted. Their aim is not to expand the Islamic economy but to maintain and expand the capitalist economy with an Islamic color and taint. Unfortunately, they have succeeded in this regard to a large extent. Even we are faced with same problem in our country. We are introducing the Western capitalist economy in an Islamic guise as the Islamic economy. What the West is, in fact, seeking and is also trying to achieve is what we are doing for them. We are implementing an Islamic economy which is outwardly Islamic but it is essentially Western.
Islam has an economic philosophy, school and system
Q: What are the main constituents and distinct features of the Islamic economy? Does Islam possess an economic system?
A: Islam introduces three universal elements in every domain including economy. These elements do not belong to a specific condition or circumstance. One of those elements is philosophy; that is, we have the philosophy of Islamic economy. Another is school in the sense that we have an Islamic economic school. The third element is the system. Islam has an Islamic economic system.
When we speak of the philosophy of Islamic economy, we mean certain ideological elements which become meaningful in economy. For example, Malthus is of the view that the natural resources development is numerical while human resources development is geometrical. Thus, we face lack of resources over time due to population increase. This is Malthus’ principle on whose basis he explains many economic themes.
Contrary to Malthus’ view, we have something in Islamic economy which we call ‘divine sustenance’ which means that God, the Exalted, provides His creatures with sustenance and that every creature receives the appropriate sustenance in this world. This belief is actually considered to be an element of the economic philosophy of Islam.
The economic school of Islam has certain principles and objectives
When it comes to the economic school of Islam, it has two parts: One, the principles i.e. the unquestionable fundamentals which Islam has adopted in regards to economy. The other are the goals. For instance, one of the principles of the economic school of Islam is freedom of economic activities. In Islam, every individual is free to conduct any kind of economic activities except for those activities for which there is a special prohibition.
Another principle of the economic school of Islam is diversity of ownership. That is to say, Islam has accepted both private and state ownerships whereas the capitalist system, albeit the extremist liberal capitalist system, denies state ownership. On the contrary, the socialist economic school denies private ownership.
Eradication of poverty and adjustment of wealth are the goals of the economic system of Islam
As for the goals of the economic system of Islam, we can consider economic justice as one of the most important goals of this system. Justice in the economic system of Islam has two elements: One is eradication of poverty and the second is adjustment of wealth.
Eradication of poverty means that the economic conditions in the Islamic society must be such that all the individuals must have the least means commensurate with spatial and temporal conditions. That is, the economy of Islamic society must be systematized and managed in a way such that all people should have access to the least of what they need for their livelihood.
Adjustment of wealth is another goal of the economic system of Islam. Although the difference in economic benefits (according to which some people have more wealth and some others have less) has been accepted in Islamic society, the gap between the affluent strata of society and the poor and under-privileged people should be in a way such that it is bearable. That is to say the gap between the rich and the poor should be adjusted and it should not be increased to an extreme level.
If the distance is increased, the incapable people feel poor and it has been stated in the traditions that feeling poor is worse that the poverty itself. He who has such a feeling tends to deviate and commit crimes. In fact, economic security in a society in which people feel poor and discrimination will become non-existent and the society will face crisis.
Besides these elements we believe in the existence of an Islamic economic system. The economic system is something other than the economic philosophy and school of Islam.
When we speak of a system, we mean certain economic institutions which Islam has defined. These institutions can, on the basis of the principles existing in the school, enable the system to reach its economic objects. There are certain institutions defined within the economic school of Islam some of which are bail-out or grant institution such as charity, alms and so forth and loan institutions which have been accepted in Islam. These institutions have special relationships with each other.
These relationships and activities on the part of the institutions, based on the principles which have been defined in Islamic economy, help materialize the goals of the economic school of Islam.
The conditions are also implemented and applied within the economic system of Islam
Considering the above, Islam has economy in the most precise sense of the word. All these aspects of economy show themselves in the Islamic concepts in one form or the other. The concepts are not particular to specific circumstances. In fact, in order for us to apply to specific circumstances, we need to do special activities. We also need to design and define, based on the system which Islam introduces, mechanisms for the circumstances in which we are living. In this respect, if for example we are seeing any difference between Iran’s current economy with the economy of the early period of Islam, these differences are not in the economic system or school; rather it is in the mechanisms. The mechanisms are different with the difference of time.
Q: How far is the economic system of Islam accepted and agreed upon by Muslim scholars and jurisprudents? Do they have any discrepancies in this regard?
A: Some of the elements I mentioned are accepted by majority of Muslim scholars and intellectuals and there is a difference of opinion about some other elements. Of course, the attitude which considers the Islamic economy as a well-organized system is not the idea of all scholars. I have a theory which I call the “theory of written thought in Islam” which is based on the same opinion. However, most of the elements I mentioned are agreed upon by all Muslim scholars. For example, it is unanimously agreed that Islam has accepted various forms of ownership. This is one of the fundamentals of the economic school of Islam which is indisputably accepted by all jurisprudents. Similarly, God is introduced as the Sustainer in the economic philosophy of Islam. This is too one of the accepted principles.
However, when it comes to the gap between the poor and the rich, the attitude that the gap should be bearable may not be underpinned by all. Perhaps, the fact that some Muslim scholars have not said anything in this regard does not imply that it is not accepted by them as it is possible that they may have not noticed the problem in the first place. Scholars like Shahid Muhammad Baqir Sadr have discussed this subject. The latter has raised this discussion in his book “Our Economy”. Similarly transactions, loan, purchase and sale contracts etc. are accepted by all jurisprudents but definitely these have not been looked at as economic institutions with distinct features, status and role. That simply does not mean that they have been denied.
The economic system of Islam is accepted by most of Muslim jurisprudents and scholars
Q: So the fact Islam does have an economic system is accepted by all jurisprudents and scholars but the discrepancy exists around certain concepts of the economic system, doesn’t it?
A: There is no doubt that Islam has a program and strategy for all aspects of human life but when it comes to the extent of these programs, guidelines and strategies and the question whether or not all the details have been mentioned in Islam or there are some generalities, there is a difference of opinion among Muslim scholars.
Most of the Muslim scholars and jurisprudents are of the view that Islam has provided most of the details and specifics and it has not sufficed to giving some general guidelines and relegating the rest to human beings. However, there is a minority group especially some Muslim intellectuals who claim that Islam has no guidelines for certain domains and it has provided general guidelines only. Thus, humans should focus their attention on them and that the details are relegated to the human beings themselves. Of course, those who have such a perspective are more or less under the influence of secular views; otherwise most of the jurisprudents and scholars agree that Islam has guidelines in different areas including economy. Thus, we have an Islamic economic system which is essentially different from other economic systems.
The economic system of Islam has been accepted on the basis of certain the ideological principles of Islam
Q: What theoretical foundations are set forth by those who accept the economic system of Islam and believe that Islam has a special system in respect of economy?
A: The guidelines existing in Islam and the concepts which we have in the ideological arena lead us to this attitude. If we accept that Islam is the last religion and a perfect religion as well, then we will believe that this religion has guideline that man needs. Therefore, there must the guidelines necessary for every aspect of human life including economy.
We conclude therefore that we accept this system in terms of ideological principles especially when we refer to these Islamic doctrines, we come across a huge amount of economic data about in different areas. When these data are organized, they form the economic system of Islam.
There basic differences between the economic system of Islam and the social and capitalist systems
Q: What are the differences and commonalities between the economic system of Islam and other economic systems in the world?
A: The Islamic economy is different from the capitalist or socialist economy in terms of philosophical and school foundations as well as the elements which form the systems. In terms of philosophical concepts the socialist and capitalist economies have non-religious attitudes some of which are secular and even anti-religious. Conclusively, those schools want to manage their economy by denying and ignoring God whereas the Islamic economy in its entirety becomes meaningful in the light of belief in God; it is actually on this belief. Islam bases the entire economy on the basis of belief in God and acceptance of monotheism. Our perspective towards the economy is that economy is supposed to build our world in a way such that it guarantees our prosperity in the afterworld whereas there are no such concepts in the capitalist or socialist economies.
When it comes to the elements of a school, as I mentioned earlier, the extremis socialist economy denies private ownership and the capitalist system rejects state ownership whereas Islam allows and recognizes both forms of ownership.
The commonalities between economic system of Islam and other economic systems are very limited
When it comes to accepting private and individual ownership, there are some similarities between Islam and the capitalist system but the capitalist system’s approach is different from that of Islam. In the capitalist system, individual ownership is accepted because individualism has been introduced as a principle in its philosophy. In fact, capitalism believes in the principiality of individualism. Therefore, private ownership is accepted on the basis of the principiality of the individual and the place he enjoys in the liberalist philosophical system.
In Islam, private ownership is accepted and considered as a divine gift bestowed on man on the basis that God has created man and has placed living and economic facilities at his disposal. This ownership entails certain responsibilities also. For instance, we cannot spend our property and wealth in any way we want whereas in the capitalist system, an individual has the right to invest and use his property in any manner he wants. Nothing restricts him from doing so. Our commonality with the socialist system is in the state ownership. However, the concept of state in Islam is very different from state ownership in the socialist system.
The socialist system does not accept individual ownership because of the fundamentals it has in the dialectic materialism. It is inclined to state ownership whereas in Islam which is based on monotheistic principles, we accept government as a trust and since the government is in charge of some social affairs, therefore certain properties are left at its disposal. Hence, there are basic differences between Islamic economy and other economic systems. Even in the areas where Islam has something in common with other economic schools, again the approaches and fundamentals of Islam are different from those of other economic schools.
Dialogue abstract
Ayatollah Mahdi Hadvi Tehrani speaking in this dialogue criticized the delay in launching the discipline of Islamic economy in the universities and academic centers even three decades after the victory of the Islamic revolution in Iran. He said, “This is at time when in Western countries Islamic economy has been established as a discipline and taught for many years in universities and in scientific centers. He believes that it is necessary in the first place that the scientific centers should theorize about Islamic economy so that then the theories may be implemented in the concrete external world. He added, “For the time being, the West has taken control of the scientific authority of Islamic economy in the global level. They are presenting these doctrines to Muslim countries with an Islamic appearance but with Western content.”
Ayatollah Hadavi Tehrani also pointed out the distinct features of the economic system of Islam and said, “Islam has an economic philosophy, school and system of its own.” According to him, the Islamic economic school is basically different from the dominant socialist or liberalist economic school. The most important difference is in the monotheistic attitude of the Islamic economy. Ayatollah Hadavi stressed, “We must endeavor towards realizing the Iranian-Islamic progress pattern in line with implementing Islamic economy in the country because indigenizing the Islamic economy is very important and essential and implementation of the economic system of Islam in Iran is not possible without taking the spatial and temporal circumstances and exigencies into consideration. [i]
Office of Ayatollah Mahdi Hadavi Tehran
[i] - Takenfrom Khurasan Daily issue No. 17809 date 24/01/ 1390 Tuesday.