Iqtisaduna (Book)

Author: Mahdi Khosravi Sereshki

Our Economics (Iqtisaduna), is an Arabic book written by Sayyid Muhammad Baqir al-Sadr (1935-1980 [1313-1359 SH]), with the aim of discovering the foundations, structure, and methodology of Islamic economics, in opposition to Marxist and capitalist economic schools. Within this framework, concepts such as social justice, ownership, economic freedom, and the role of the Islamic state in regulating economic relations have been analyzed.

Iqtisaduna
Book Information
Author	Sayyid Muhammad Baqir al-Sadr
Subject	Economic Jurisprudence
Language	Arabic
Pages	924
Publication Information
Publisher	Dar al-Ta'aruf

• Abstract

The theory of the discretionary sphere (Mintaqat al-Faragh) is among the concepts introduced in the book, representing the domain lacking a mandatory and immutable ruling in jurisprudence (fiqh). Sayyid Muhammad Baqir al-Sadr asserts that the Islamic state can regulate the economic relations of the Islamic society through legislation in this sphere and respond to the changing and customary needs of the society within the framework of the Sharia. Alongside this, the structure of ownership in Islam is introduced as a tripartite system (private, public, and state ownership), attempting to establish a balance between the individual and society.

The book Iqtisaduna examines economic freedom within the framework of two types of limitations—intrinsic and objective—and considers it restricted by the rulings of Sharia and public interests. Social justice is also elucidated in the form of two principles, "general mutual responsibility" (takaful 'amm) and "social balance" (tawazun ijtima'i), being introduced as one of the main pillars of the Islamic economic system.

In the section on the method of achieving the Islamic economic theory, the author utilizes the "theory of discovery" (kashf) to extract the economic school of Islam and emphasizes synthesizing partial rulings to reach a general theory. The role of economic concepts in jurisprudential deduction (ijtihad), the impact of the jurist's (faqih) personality on the deduction process, and the necessity of simultaneous attention to the scriptural texts (nusus) and the practical realities of the era of the Prophethood are among the other analytical focal points of the book.

About the Author

Sayyid Muhammad Baqir al-Sadr (1940-1980 [1359-1400 AH]), a jurist (faqih), philosopher, and economist, and one of the prominent professors of the Islamic seminary (hawza 'ilmiyya) of Najaf, who authored numerous works in the fields of philosophy, jurisprudence, principles of jurisprudence (usul al-fiqh), and economics. One of his most important books is Iqtisaduna, which he wrote during the period of Marxist influence and the boom of communist parties in Islamic countries. In it, he analyzes the Islamic economic system and presents Islamic solutions to the economic challenges of the contemporary world.

Among his other notable works are Our Philosophy (Falsafatuna) and The Usury-Free Bank in Islam (Al-Bank al-la Ribawi fi al-Islam), in which he addresses the philosophical and economic foundations of Islam. He was also active in the political struggle against the Ba'athist regime of Iraq, and for this reason, he was assassinated in 1980.

Status and Critique of the Book

The book Iqtisaduna was written in two volumes and eight main sections, along with 17 appendices (observations), and each section addresses a fundamental topic in economics. Mahdi Hadavi Tehrani, a Shia jurist, maintains that Sayyid Muhammad Baqir al-Sadr's book Iqtisaduna is the "Quran of Islamic economics" and that the intellectual output of Islamic economics is indebted to this work; a book that attempted to present the model of Islamic economics against capitalist and socialist economics, based on Islamic jurisprudential and principled foundations.

Iqtisaduna, like other similar contemporary Islamic works, was written along with a critique of the capitalist and Marxist economic schools, and in contrast, it articulates the Islamic perspective on alms (zakat), distribution of wealth, production, consumption, labor, and justice. According to Mowaffaq al-Rubaie, an Iraqi Shia politician, one-third of the book is devoted to critiquing and refuting Marxism, and less attention has been paid to critiquing capitalism; because when al-Sadr was writing the book, Marxism had taken root in Iraq and was considered the primary threat from his perspective. He also believes that Iqtisaduna suffers from weakness in its empirical aspect and has only developed theoretically; whether in critiquing and refuting Marxism and capitalism, or in presenting the theory of Islamic economics, which could have been based on articulating the functions, practical programs, and the establishment and management of economic institutions within the state.

It has been stated that in Iqtisaduna, Sayyid Muhammad Baqir al-Sadr employs a special jurisprudential and inferential (ijtihadi) method, different from the traditional method of jurists, and in articulating some concepts of Islamic economics, he speaks not by relying on the explicit statements of verses and narrations, but by deriving from the collection of rulings and the principles governing them. Furthermore, from among the edicts (fatawa) and deductions of other jurists, he selected theories that were consistent with the principles of Islamic economics, even if they were not compatible with his own edict.

Structure, Publication, and Translation

The book Iqtisaduna was written in two volumes and eight main sections, along with 17 appendices (observations). It was first published in 1961 by Dar al-Ta'aruf in Beirut. In addition to multiple publishers, the original text and its Persian translation have also been published by the Sadr Specialized Scientific Research Institute (Dar al-Sadr). The structure of the book is as follows:

Volume One

• Step by step with Marxism (pp. 47-272)
  • Theory of historical materialism
  • The Marxist school
• Step by step with capitalism (pp. 273-318)
  • The main pillars of the capitalist system
  • The capitalist system is not the result of scientific laws
  • Scientific laws in capitalist economics have a doctrinal framework
  • Examination of the fundamental ideas and values of the capitalist school
• The main indicators of the Islamic economy (pp. 319-413)
  • General structure of the Islamic economy
  • Islamic economy: Part of a whole
  • General framework of the Islamic economy
  • Islamic economy is not a science
  • Separation of distribution relations from the mode of production
  • The economic problem from the perspective of Islam and its solutions

Volume Two

• The process of achieving the economic school (pp. 415-474)
  • The economic school and Islam
  • The discovery process and the creation process
• The theory of pre-production distribution (pp. 475-638)
  • Rulings
  • Theory
  • Observations
• The theory of post-production distribution (pp. 637-716)
  • Theoretical basis for the distribution of factors of production
  • Differences between the Islamic and Marxist theories
  • The general law of rewarding the material resources of production
  • Observations
• The theory of production (pp. 717-770)
  • The relationship of the school with production
  • Growth of production
  • Why do we produce?
  • The relationship between production and distribution
  • The relationship between production and exchange
  • For whom do we produce?
• The responsibility of the government in the Islamic economy (pp. 771-807)
  • Social security
  • Social balance
  • The principle of state intervention

The book Iqtisaduna has multiple translations into Persian, and the following three translations under the title Our Economics (اقتصاد ما) are among the most famous:

1. The translation by Sayyid Mohammad Mahdi Borhani (Vol. 1) and Sayyid Abu al-Qasim Hosseini Zharfa (Vol. 2), published by the Islamic Culture Publishing Office (first edition, 1982 [1361 SH]), and the Sadr Specialized Scientific Research Institute (Dar al-Sadr) (first edition, 2014 [1393 SH]).
2. The translation by Sayyid Mohammad Kazem Mousavi, Tehran, Amirkabir, first edition, 1983 (1362 SH).
3. The translation by Mohammad Mahdi Fooladvand, Islamic Sciences Foundation, 1981 (1360 SH).

Foundations of Islamic Economics

In the first section of the book (Volume One), while explaining the main characteristics of the Islamic economic system, and at the beginning of the second section (Volume Two), in detailing the Islamic economic school, al-Sadr acknowledges that Islamic economics is not a science in the sense of the scientific interpretation of economic phenomena and events and the relations among them; rather, it is an economic school in the sense of an economic method. From al-Sadr's perspective, the economic school is a set of general rules for regulating economic life, which is connected with the concept of social justice. Overall, al-Sadr believes that Islam possesses comprehensive and complete theories in the field of economics that can be effective in resolving global crises (pp. 361-365, 417-429).

Islamic Economy is a Part of the Whole

In elucidating the fundamental characteristics of the Islamic economy, al-Sadr asserts that the Islamic economy is a part of the whole and is connected with the other components and principles of the Islamic system. It should not be viewed independently and separately from doctrinal affairs (such as monotheism [*tawhid*]), social affairs (the emotions and sentiments of the society), economic affairs (private ownership), and political affairs (the powers of the Islamic ruler). Consequently, the Islamic economy acquires specific characteristics and boundaries (pp. 337-344). Furthermore, in explaining the general framework of the Islamic economy and its distinction from other systems, he points to the consideration of the natural and social interests of the human being, as well as the connection of the world and the economy to God and the hereafter (pp. 347-352); a task that cannot be properly realized solely through human science and effort, thereby justifying humanity's need for religion and the sending of messengers (pp. 352-360).

The viewpoint of the harmony of the Islamic economy with the other pillars of Islam's intellectual and political system has also been proposed among other jurists. Some, including Abbasali Amid Zanjani, stipulate that the Islamic economy must be examined and understood within the political system of Islam, and that political management (the guardian jurist or *Wali al-Faqih) is even superior and more comprehensive than economic management.

The Three Main Pillars of the Islamic Economy

In the book Iqtisaduna, Sayyid Muhammad Baqir al-Sadr has defined the fundamental pillars of the Islamic economy based on three principles: 1. Tripartite ownership, 2. Limited freedom, and 3. Social justice. At the same time, one of the critiques directed at al-Sadr and the book Iqtisaduna is its focus on theoretical foundations and the failure to provide practical solutions and executive programs for the management of economic institutions in the Islamic society.

1. Tripartite Ownership in Islam: Balance Between the Individual and Society

The issue of ownership in the Islamic economy is one of the key topics addressed by al-Sadr in this book. He asserts that Islam, unlike capitalist and socialist systems, simultaneously recognizes the three domains of private, public, and state ownership, which, from al-Sadr's viewpoint, is a symbol of the justice and flexibility of the Islamic economic system in creating a balance between the individual and society.

Al-Sadr believes that in private ownership, individuals only have the right to manage their wealth within the framework of the rulings of the Sharia (without usury [*riba*], hoarding [*ihtikar*], exploitation, or oppression). On the other hand, public ownership, encompassing natural resources such as water, mines, and forests, must serve the entire society according to the Islamic perspective. Furthermore, state ownership, such as the one-fifth tax (khums) and alms (zakat), which is under the supervision of the Islamic state, must be employed to secure public interests (pp. 321-324, 392-395, 488).

2. Economic Freedom within the Bounds of Jurisprudence and Sharia

In al-Sadr's view, economic freedom in Islam is accompanied by two types of limitations; one is the intrinsic limitation rooted in the essence and innate nature (fitrah) of humans and their Islamic character and upbringing, and the second is the objective limitation; meaning external restrictions enacted by the laws of Islam, which are applied in two forms: 1. The framework of Sharia and its rulings, such as the prohibition of usury and hoarding, which have been established to preserve economic health and social justice, and 2. Limitations determined by the ruler or the Islamic state, based on expediency (maslahah) and considering social and economic conditions (pp. 325-329).

3. Islamic Economy Based on Social Justice

Sayyid Muhammad Baqir al-Sadr perceives the form and structure of social justice in the Islamic economy manifested in two principles: 1. General cooperation, and 2. Social balance (p. 331). In expounding social justice, he points to the two attributes of the Islamic economy being realistic and ethical. In his view, the Islamic economy, in terms of its objective, is a realistic economy compatible with human reality, not like Marxism, which is founded upon an imaginary economy and an unrealistic goal. The ethical nature of the Islamic economy from al-Sadr's perspective implies that, unlike Marxism, it does not consider economic goals based on the material conditions of production; rather, it guarantees them based on practical and moral values whose realization is essential (pp. 332-335).

Distribution of Public Wealth Based on Labor and Need

Sayyid Muhammad Baqir al-Sadr defines the system of wealth distribution in the Islamic economy on the basis of labor and need: labor leads to an individual's ownership over the outcome of their action, not its valuation, and need is a human right and a tool for the equitable distribution of resources in the Islamic society.

Human Oppression, the Cause of Economic Problems

According to al-Sadr, capitalism sees the main economic problem as the scarcity of natural resources, while Marxism identifies the contradiction between the mode of production and distribution as the cause of economic crisis; however, in the view of Islam and based on the verses of the Quran, God has placed all the necessary materials for life and the fulfillment of human material needs in this world. In al-Sadr's view, economic problems arise from two types of human oppression and ingratitude (kufr): 1. Oppression rooted in the economic system and the unjust distribution of wealth and natural resources, and 2. Negligence in exploiting these resources and ingratitude toward divine blessings (pp. 379-381).

Labor and Need: Tools of Distribution in the Islamic Economy

In al-Sadr's opinion, in the Islamic economic system, wealth must be equitably distributed among the individuals of society, in a way that the rights of both the individual and society are realized simultaneously. From his perspective, the Islamic organization of distribution is founded upon two main tools: labor and need, both of which play a shared role in the distribution process.

In this system, labor is the basis of ownership, and ownership resulting from labor is considered a natural human right. Differences in the type of ownership are also shaped by differences in the type of labor; thus, if work is performed individually, the natural inclination is toward individual ownership; and if the work is social in nature, the natural tendency will be toward collective ownership (pp. 382-383, 596).

Furthermore, in elucidating the role of need in the structure of distribution, al-Sadr categorizes the individuals of society into three groups and explains the distribution system based on the principles of Islamic economics as follows:

1. Owners of labor and productive elites: Individuals who enjoy a higher standard of living due to intellectual superiority and practical capacity. In this group, labor is the foundation of ownership and the primary tool of distribution, and need plays no role in the distribution process.
2. Those in need of work and support: People who operate at the level of securing the basic necessities of life. To reach the general level of welfare, this group depends simultaneously on labor and need.
3. Need-based beneficiaries: Individuals who are excluded from productive activities due to physical or mental disabilities. The income of this group is determined solely based on need, and they benefit from the distribution of wealth on the basis of the principle of general cooperation and the moral and religious responsibility of the Islamic society (pp. 385-387).

The Tripartite Structure of Distribution

A significant portion of the second volume of the book Iqtisaduna is dedicated to examining three fundamental issues concerning the distribution of wealth from the perspective of Islam and al-Sadr's theorization:

1. Pre-production distribution: Analysis of the manner of distributing wealth and natural resources such as land, mines, waters, and other natural assets (pp. 475-615).
2. Post-production distribution: Examination of the manner of distributing incomes, the role of material factors and means of production, and the issue of usury (pp. 639-716).
3. Theory of production: Analysis of the foundations and structure of production, the concepts of wealth and commerce, and the relationship of production with them (pp. 717-770).

Al-Sadr's Jurisprudential Method for Extracting the Islamic Economic Theory

Theory of Discovery Versus the Formation of an Economic System

In Iqtisaduna, al-Sadr names his jurisprudential method "discovery" (kashf); as opposed to capitalist and socialist economic systems where the economic system undergoes scientific "formation" (takwin) (p. 431). In the theory of discovering the economic school, he emphasizes the point that Islamic rulings should not be studied in isolation from other sectors; rather, by "synthesizing" partial rulings, one can arrive at a general theory. Therefore, in economic jurisprudence, we need to discover the economic system from the synthesis of the rulings (p. 438).

The Importance of Economic Concepts in Jurisprudential Ijtihad

In the process of economic deduction (ijtihad), al-Sadr points out the key role of economic concepts and believes that these concepts are an important part of Islamic culture and must be given serious attention in the analysis of legislative texts (nusus tashri'iyyah). Accordingly, he examines concepts such as ownership and commerce through an approach of jurisprudential analysis of Islamic texts (pp. 439-443).

Al-Sadr's proposed method involves considering economic rulings and concepts as the superstructure, and discovering the principles and theories of Islamic economics as the infrastructure.

Mintaqat al-Faragh: Fixed and Variable Rulings and the Role of the Islamic State

The theory of the discretionary sphere (Mintaqat al-Faragh) is one of the jurisprudential innovations of the martyr Sayyid Muhammad Baqir al-Sadr, proposed in the book Iqtisaduna as a framework for the flexibility of the Islamic economic system. Since the economy is a variable and dynamic matter directly related to the conditions of time and place, al-Sadr presented the theory of Mintaqat al-Faragh to resolve the challenge of linking the fixed rulings of Sharia with changing economic needs. Al-Sadr raises this theory in two sections of the book:

• Ijtihad and discovering the Islamic economic system: In some economic domains, the Sharia has not provided fixed, definitive, and mandatory rulings, leaving a space for responding to the changing needs of the society and for legislation by jurists (mujtahids) (p. 443).
• In elucidating the role of the Islamic state: Al-Sadr discusses the possibility of legislating in the discretionary sphere (Mintaqat al-Faragh) and asserts that the Islamic state can make economic decisions in line with public objectives. Based on this, the state, by utilizing Islamic and modern financial instruments (such as alms [*zakat*] and taxes), assumes the duty of directing, supervising, and regulating economic relations while observing public interests (pp. 799-806).

The Impact of the Intellectual Personality and Jurisprudential Method of the Mujtahid

From al-Sadr's perspective, the intellectual personality and jurisprudential method of the jurist (mujtahid) are considered among the fundamental issues and even obstacles in the process of discovering the economic school of Islam. In this process, the jurist (faqih) must take into account a collection of texts (nusus) and evidence (adillah), but these texts are often not explicit and unambiguous and are accompanied by doubts and difficulties in many cases. Under such circumstances, *ijtihad* to properly understand the texts becomes a more complex matter, and different jurisprudential methods can lead to different results.

Al-Sadr cautions that, considering our chronological distance from the era of the issuance of the texts, the influence and interference of the personality and taste of the *faqih* and *mujtahid* in discovering the Islamic economic theory can be even more dangerous. In this regard, he points out four fundamental problems and then explains each one: 1. Justifying reality, 2. Confining the text within a limited framework, 3. Removing religious evidence from its conditions and exigencies, and 4. The jurist's predispositions when confronting the text (pp. 445-448).

To resolve this problem and achieve the Islamic economic school, al-Sadr sees the solution in selecting one type of *ijtihad* among various types of *ijtihad*; an *ijtihad* that is distanced from the personal impressions of the *faqih* and is carried out on the basis of established, definitive, and proven rulings within the framework of a coherent inferential apparatus and method. Such an *ijtihad* must have the utmost reliance on the Book (Quran) and the Sunnah and be closer to the reality of legislation (p. 459).

Misunderstanding the Practical Aspects of the Prophetic Era

Al-Sadr believes that in the process of discovering the Islamic economic system, in addition to the theoretical problems in the operation of *ijtihad* from legislative texts, the issue of comprehending the practical and economic aspects of the prophetic era is also of importance. Sometimes, the *mujtahid* considers these practical aspects independently and separately from the texts, an approach which al-Sadr deems incorrect. Hence, one must simultaneously pay attention to legislative texts and the practical and historical realities of the Islamic economy to be able to reach a correct and coherent theory. For instance, some individual freedoms or a specific type of private ownership that existed during the era of the Prophethood might mistakenly be perceived as a sign of Islam's alignment with the capitalist school, whereas such an interpretation is incompatible with the theoretical foundations of Islam (pp. 468-474).

Sources

• Al-Rubaie, Mowaffaq, "Iqtisaduna fi al-Alfiyyah al-Thalithah" [Our Economics in the Third Millennium], Markaz al-Abhath wa al-Dirasat al-Takhasusiyyah lil-Shahid al-Sadr.
• Amid Zanjani, Abbasali, Political Jurisprudence (Fiqh-i Siyasi): Vol. 4: Political Economy, Tehran, Amirkabir, 2005 (1384 SH).
• Amiri Tehranizadeh, Sayyid Mohammad Reza, and Emad Afrough, "Critique of the Methodology of Islamic Economics of Martyr Sadr from the Perspective of Critical Realism," *Methodology of Social Sciences and Humanities* Quarterly, No. 78, Spring 2014 (1393 SH).
• Hadavi Tehrani, Mahdi, "Iqtisaduna is the Quran of Islamic Economists," *Sadra Islamic Humanities* Magazine, Spring 2016 (1395 SH), No. 17.
• Jedari Aali, "Critique of the Book Iqtisaduna," *Islamic Economics* Quarterly, No. 1, Spring 2001 (1380 SH).
• Zahedi Vafa, Mohammad Hadi, and Ali Bagheri, "An Analysis of the Theory of Value and Distribution in Iqtisaduna," *Studies in Islamic Economics* Biannual Journal, No. 13, Fall and Winter 2014 (1393 SH).