within the framework of Islamic teachings, in his book Al-ʿAdālah al-Ijtimāʿiyyah fī al-Islām (Social Justice in Islam), first published in 1949.31 He employed 284 verses from the Qur’ān to elaborate this all-embracing concept of justice in Islam.32 Sayyid Mawdudi also found it an indispensable obligation of a Muslim society to establish justice at individual as well as social levels with the objective of eliminating all shades of inequity from human society, creating a balance in all spheres of life and freeing it from extremes and excesses, and enabling all sectors of society to obtain their rights and discharge their responsibilities.33 Bāqir al-Saḍr considered it important for Muslims not only to respond to the Islamic call for social justice, but also to understand fully its diverse implications.34
It is because of this emphasis on justice that jurists have laid down, over the centuries, a number of legal maxims that can help realize the well-being of all in a just and balanced manner.35 Some of these are as follows:
• A private sacrifice or loss may be inflicted to save a public sacrifice or loss, and a smaller benefit may be sacrificed to realize a larger benefit (Art. 26).
• A greater loss may be offset by a smaller loss (Art. 27). The larger interest of the majority should take precedence over the narrower interest of a minority; public interest takes precedence over private interest (Art. 28).
• The removal of hardship and injury should take precedence over the giving of benefit (Art. 30).
• Injury must be removed to the extent possible (Art. 31).
All the above maxims undoubtedly conflict with the concept of Pareto optimum, which does not recognize any solution that requires a sacrifice on the part of a few (rich) for raising the well-being of the many (poor). Hence, this concept cannot, under any circumstances, occupy the prestigious place in the Islamic Economics paradigm as it does in that of conventional economics.
Therefore, the word efficiency in its modern equilibrium and value-neutral Pareto optimum sense has also not appeared in Islamic literature. This does not mean that the concept of efficiency is not recognized. Rather, it has been identified in a number of senses. One of these is in the sense of striving for the best possible results. The Prophet himself, peace and blessings of God be on him, expressed great esteem for quality by stressing iḥsān (beneficence) and itqān (perfection). He said that “God has made iḥsān obligatory towards everything”, and that “God loves that when anyone of you does a job, he does it perfectly”.36 The effort to realize iḥsān may complement as well as moderate the effort to realize itqān, and the two may together help realize the most efficient and equitable use of material and human resources.
Efficiency is also important in a different context whereby resources must not be wasted or misused because of the accountability before God. According to an instruction from Abū Yūsuf to Hārūn al-Rashīd,37 based on a ḥadīth,38 this accountability applies to all resources, including an individual’s entire life span (ʿumr), knowledge and technology (ʿilm), wealth (māl), as well as all capabilities of the human body (jasad). Such accountability requires that all these resources be used in a way that helps maximize human well-being. It applies to all resources, irrespective of whether they are human or material, scarce or abundant, costly or free.39
Thus, while in conventional economics, the most efficient use of resources may be defined in terms of Pareto optimum, in an Islamic economy it may have to be defined in terms of the maqāṣid. Any use that frustrates the realization of the maqāṣid has to be considered as wasteful or inefficient.40 For example, in conventional economics the concept of Pareto efficiency allows the destruction of excess output if this enables the businessman to prevent a decline in his profit without making the consumer worse off through a rise in price. This is not, however, acceptable in the Islamic paradigm because such behaviour leads not only to a destruction of resources provided by God as a trust, but also to an injustice to the consumer. Although the maintenance of prices at the present level may not make consumers worse off, they could have been made better off if the excess output were not destroyed and either the prices were allowed to fall or the excess output was distributed to the poor. Similarly, the time and energy spent on prayers and fasting may appear to be a waste of resources within the framework of materialism because it may lead, though not necessarily, to a decline in output, thus preventing maximization of that output and profit. However, if looked at from the point of view of the rich contribution that character building and spiritual uplift can make in the long-run to output as well as human well-being, prayer and fasting may in fact be positive advantages. It is perhaps for this and other reasons that, as indicated earlier, one of the legal maxims of Islamic jurisprudence allows for the imposition of a small private sacrifice to attain a greater public benefit.41
Scholars have, in general, expressed the view that the Sharīʿah, with the moral values and the strategy it provides to inculcate these values effectively in society, may not only help ensure the justice and well-being of all but also promote human progress and advancement.42 Al-Māwardī indicated that Islamic teachings have proved to be a solid foundation for improvement and stability in this world.43 Ibn Khaldūn also stressed that a country cannot gain prestige and strength except by implementing the Sharīʿah.44
It may have become clear from the previous discussion that, while competition and regulation are both important, they are nonetheless not sufficient. The role of moral values and the reform of all players in the market has, therefore, been emphasized by most Muslim scholars for maintaining sanity and fairness in the market. However, all individuals may not be aware of their moral obligations, and even if they are, they may not be willing to live up to them. It is also possible that they may be simply unaware of the urgent, unsatisfied needs of others, or of the problems of scarcity and social priorities in resource use. Moreover, there are a number of functions which need to be performed in the interest of general well-being, but which individuals may not be willing or able to perform even in a morally-charged society because of market failure and imperfections or the inability to mobilize adequate resources. Under such conditions, moral uplift and the price system, no matter how indispensable, may not be sufficient to actualize the socially-desired goals.
Therefore, an effective role for the state as partner, catalyst and facilitator is indispensable for realizing the Islamic vision. There are a number of sayings of the Prophet, peace and blessings of God be on him, which emphasize such a role: “Anyone who has been given the charge of a people, but does not live up to it with sincerity, will not taste even the fragrance of paradise.”45 In another ḥadīth he says: “God restrains through the sovereign more than what he restrains through the Qur’ān.”46 What is it that the sovereign can restrain but which the Qur’ān cannot? It is all socially harmful behaviour, including injustice, fraud, cheating, and the non-fulfilment of contractual and other obligations.47 The Qur’ān can only provide norms and exhort Muslims to live up to them. It is expected that Muslims will abide by them. Nevertheless, a number of them may not do so, particularly if the general moral environment has deteriorated. The state has, therefore, an important role to play through education, incentives and deterrents. It is in this sense that “the ruler is the shadow of God on earth”.48 If it does not play this role effectively, violation of the Qur’ānic norms may become widespread and not only adversely affect development and general well-being but also lead to social chaos and economic collapse.
This
