Political Jurisprudence: Political Economy (Book)
Political Economy (اقتصاد سیاسی), is the title and subject of the fourth volume of the ten-volume collection of "Political Jurisprudence", written by Abbasali Amid Zanjani. He speaks of the dependence of the Islamic economy on its political system (Imamate) and explains the macroeconomic topics of Islamic political economy within this framework and through the lens of Islamic jurisprudence (fiqh) (Shia and Sunni), while also discussing the legal issues and the constitution of the Islamic Republic as appropriate: poverty and poverty alleviation, population and economy, state subsidies, per capita income and public welfare, state resources and properties, free and state economy, economic development, and foreign trade.
- Abstract
In the author's view, the financial and economic institutions of Islam, which serve as the financial resources of the Islamic state, do not require internal transformation; rather, if placed in a suitable context and updated in terms of executive programs, they will play a highly effective role in economic growth and development.
Structure of the Book
Political Economy is the title of the fourth volume of the ten-volume collection of Political Jurisprudence written by Abbasali Amid Zanjani. The first edition of the book was published in 2004 (1383 SH) by Amirkabir Publications in Tehran.
The book Political Economy consists of thirteen chapters, and after general discussions and the raising of issues (in the first chapter and roughly one-fourth of the book's volume), it discusses macroeconomic topics from the perspective of the Islamic political system: poverty alleviation (in four chapters), population and economy, subsidies, per capita income and public welfare, allocation of state resources and properties, independent and dependent economy, free and state economy, economic development, and foreign trade.
Author
Amid Zanjani (1937–2011 [1316–1390 SH]), the author of the book, was a jurist (mujtahid), legal scholar, university professor, and political science researcher. He had studied in the Islamic seminaries (hawzat al-'ilmiyyah) of Qom and Najaf under masters such as Sayyid Hossein Borujerdi, Sayyid Ruhollah Khomeini, Sayyid Abu al-Qasim Khoei, and Sayyid Muhsin Hakim. The ten-volume collection of Political Jurisprudence is among his famous works in political jurisprudence, which has been reprinted multiple times. He also holds a record of political presence by representing in the Islamic Consultative Assembly (Parliament) and the Assembly of Experts.
The Superiority and Inclusiveness of the Element of Politics over Economy in the System of Wilayah
Amid Zanjani views the Islamic economy and the attainment of the desired economy from within the political system; thus, he believes the system of Imamate (the political management of Islam) encompasses economic management as well, and furthermore, political management possesses superiority and inclusiveness over economic management. As a result, the Imam, who is the principal official of the Islamic system, can also act in accordance with expediency (maslahah) regarding economic regulations. Therefore, in the Islamic system, due to the superiority and dominance of the political element (guardianship or *wilayah), the final decision in economic management is also made at the level of the head of the Islamic state. The definition of Islamic economics from his perspective, considering the superiority of political management, is as follows: "Political economy is an objective and practical viewpoint, method, or approach that, through the Imamate (the Islamic state), demonstrates the path to social justice in the distribution of power and wealth" (pp. 13-14).
The Meaning of Political Economy from the Perspective of Political Jurisprudence
The meaning of political economy in the realm of political jurisprudence is the general policies of the Islamic state, with Islamic objectives, regarding the equitable distribution of wealth, so that instead of wealth accumulation (takathur), boasting (tafakhur), poverty, class conflict, playing with wealth, vain pursuits and worldly attachment, miserliness (bukhl), extravagance (israf), squandering (tabdhir), dependency, and the forgetting of God and oneself, the society is steered toward charitable spending (infaq), brotherhood, equality, detachment, altruism (ithar), poverty alleviation, self-sufficiency, growth, and development, thereby laying the groundwork for the realization of justice (qist).
After defining Islamic economy and political economy within the structure of dependency on the political management of the Imamate system, the author of the book does not overlook the new and scientific issues of economics. He immediately emphasizes that political economy must be able to solve these issues and problems; such as: economic dependency, the dichotomy between traditional and modern economies, the balance between the production and distribution of goods and services, low per capita income levels, "inflation and high prices, population growth rate, capital flight, and overt and covert unemployment" (p. 15).
The Jurisprudential Definition of Poverty is Subject to the Conditions and Development of Societies
The author of the book Political Economy has dedicated the second to the fifth chapters (about 50 pages) to the subject of poverty alleviation, which includes the definition of poverty and its causes, poverty alleviation policies and strategies, the calculation of the poverty line, and supportive policies. He initially terms poverty as a political dilemma before being an economic problem (p. 76) and considers its jurisprudential definition to be "lacking the minimum conventional living standard." He believes its criterion is customary ('urfi) and subject to the conditions of society; hence, in some societies, possessing a personal vehicle is among the basic necessities of life, not a luxury (p. 86). Therefore, poverty in the first sense is the deprivation of the absolute minimum essential needs such as shelter, food, and medicine, and in the second sense, it takes on a relative concept and is defined as the imbalance in people's benefit from the available facilities in society (p. 86).
The author then divides poverty from a political dimension into oppressive and normal poverty, and subsequently divides normal poverty into two types: first, poverty arising from the general conditions and shortcomings of society, and second, poverty that, despite social welfare, is chosen voluntarily for spiritual elevation, falling under the concepts of asceticism (zuhd) and "poverty is my pride" (al-faqr fakhri); this should not be considered an economic deficiency (pp. 87-88). The subsequent topics cover the causes of poverty and whether poverty is a cause or an effect (pp. 89-93).
Increasing the Level of National Income; The Duty of the Imamate and Among the Rights of the Ummah
In the fifth chapter, Amid Zanjani has addressed the practical methods of poverty alleviation, including upgrading the level of national per capita income (increasing the public wealth or *tawfir al-fay). In his view, increasing the level of national income is not merely an economic goal; rather, on the one hand, it is among the strategic objectives in the field of politics and national security, and on the other hand, according to the statement of Imam Ali (a), increasing public wealth is among the responsibilities of the Imamate state and the social rights of the nation.
The author of the book Political Economy explains the meaning of increasing the level of national income and its relationship with free capitalism devoid of responsibility or social justice. He points out that asceticism (zuhd) does not mean abandoning the world; rather, its correct meaning is asceticism in consumption, not in production aimed at the quantitative and qualitative development and enhancement of incomes, and the benefiting of all members of society from economic justice (pp. 111-112). He also enumerates seven rational and religious beliefs that support development combined with social justice: the sanctity of work, liberation from dependency, self-sufficiency (which transcends mere non-dependency), the spirit of cooperation, the jihadi and altruistic spirit, the concomitance of knowledge and action, and the concomitance of action with piety (taqwa) (pp. 113-115).
The Accumulation of Wealth and Capital is Not Always Illegitimate
According to Amid Zanjani in the fifth chapter of the book, the hoarding (takathur) and accumulation of wealth and capital resulting from exploitation and the violation of the rights of others is condemned, but capital itself (apart from its owners) is the lifeblood of society and a divine blessing. Therefore, when wealth is not in the hands of capitalists and is in economic circulation by efficient managers, it exits the realm of prohibition and condemnation.
After mentioning this point, Amid Zanjani notes that Islam's emphasis on agriculture over commerce is not because agriculture does not require capital and is solely the product of labor, thereby destroying the accumulation of capital (the Marxist view). Rather, jurisprudentially, in commerce, it is also not necessary for the exchange to take place as capital and by a capitalist; hence, silent partnership (mudarabah), partnership (shirkah), and employment by craftsmen and professionals are also considered commerce and income generation. On the other hand, with the economic rulings and institutions of Islamic jurisprudence (such as endowment [*waqf*], retention [*habs*], alms [*zakat*], the one-fifth tax [*khums*], properties of unknown ownership [*amwal-i majhul al-malik*], public wealth [*anfal*], silent partnership, partnership, and leasing [*ijarah*]), there is the possibility for the circulation of capital and the equitable distribution of profit among all strata of society. Therefore, Islam's negative view toward capital accumulation is targeted and does not encompass all instances of it (pp. 118-120).
Instrumental Use of Religion and the Clergy for Population Control
The sixth chapter of the book is about population and economy, and the author does not consider population control an easy solution to economic and social problems. He analyzes that in the West, this approach has also caused multiple social problems and undesirable economic effects, aside from moral tragedies (such as family dissolution, moral corruption, and abortion). He also refers to a period of policies by the Central Bank of the Islamic Republic, where, based on poverty line statistics, employment levels, and population growth rates, the country's future was depicted with the visage of absolute poverty. Subsequently, by obtaining religious permissions, the sterilization of men and women was publicly and openly propagated and implemented, and even mosques were utilized to promote and advocate this practice. In his view, this action lacked educational and cultural preliminaries and entailed moral and cultural problems; moreover, with the slogan "a better life with fewer children," religion and the clergy were used instrumentally! This is while the teachings of Islam have always been founded on the motto "marry, bear children, and multiply" (pp. 134-135).
Subsidies and Their Negative and Non-Economic Roles
The author speaks about subsidies in the seventh chapter and cautions that the goal of subsidies is not solely to combat poverty; sometimes, they are a mechanism for price stabilization. Furthermore, production, distribution, service, export, import subsidies, etc., are forms of government intervention in the economy and have different objectives in developed and developing countries. Sometimes they are allocated to basic goods, and other times they are organized with political and even security objectives. By evaluating the negative and positive effects of subsidies, he points out that in contemporary global economic policies, we are witnessing a reduction in subsidies, but in Islamic Iran, the policies do not indicate a cessation or reduction of subsidies.
The author does not provide a jurisprudential discussion on the subject of subsidies but refers to global conditions and the imposition of common models, such as consumption patterns, which turn extravagance (israf) into a public culture. He also states that, unfortunately, third-world countries are moving toward adopting Western models, and in the future, Iran must also expect the imposition of more subsidies on the government, meaning the country's economy (pp. 137-148).
The Government's Role in Employment and Determining Fair Wages
In the eighth chapter of the book, titled "Enhancing Per Capita Income and Public Welfare," Amid Zanjani considers the creation of jobs and the determination of fair wages as among the important duties of the state. He then briefly examines the conditions of work and income from five aspects: 1. Unpaid work for the benefit of others; 2. Income without work (consuming wealth in falsehood or *akl mal bi al-batil* in jurisprudential and Quranic terminology); 3. Healthy income and welfare; 4. Creation of new jobs; 5. Harmful work and income (the prohibition of unlawful earnings).
After discussing work and income, the author proceeds to the topic of profit and capital, raising four issues: 1. Illegitimate profitability; 2. Usury (riba); 3. Capital without work: silent partnership and partnership without labor; 4. Bank deposits (usury-free banking operations). Then, in the discussion on enhancing per capita income to increase public welfare, he speaks about the culture of consumption and welfare, describing them as among the most difficult cultural issues of society. In his view, the model of sufficiency (kafaf) and the measure of need (qadr-i hajat) mentioned in Islamic texts articulate a relative and fluid concept of welfare, which is defined at any given time in accordance with economic, social, and political conditions. Hence, absolutizing welfare, as seen in Marxist and sometimes liberal interpretations, represents a disregard for social justice, and he presents the orientation toward social justice as a strategic principle (pp. 149-160).
Islamic Economy Amidst Free and State Economies
According to Amid Zanjani's belief, both free and state economies hold a special place in the Islamic economic system, and the acceptance of one does not imply the negation of the other. Also, state intervention in restricting economic freedoms and applying laws beyond primary rulings (ahkam awwaliyyah), in the form of secondary and expedient rulings (ahkam thanawiyyah* and *maslahati), are all confined within the rulings of the Sharia and the general criteria governing society. Emphasizing these points, Amid Zanjani enters the discussion of free and state economies and the nature of the Islamic economy.
It can be said that the most important jurisprudential discussions of the book lie in the chapter on free and state economy (chapter eleven). He first presents and critiques the theory of Islamic economic liberalism (Islamic free economy) under the motto "people have dominion over their properties" (al-nasu musallatun 'ala amwalihim). Then, he proposes the theory of Islamic socialism with the motto "wealth belongs to God" (mal Allah) and articulates the views of its critics. Finally, he briefly outlines the moderation theory (nadharia al-ta'dil), whose opponents consider it anti-development and a barrier to economic growth. He warns against the inclination towards free markets and privatization in Iran's development plans, which is incompatible with the spirit of the constitution, and asks the Guardian Council to prevent it (pp. 190-200).
Methodology of Islamic Political Economy and the Questions and Challenges Ahead
By providing a fourfold classification and mentioning the disputes over methodology in economics, Amid Zanjani attempts to answer whether these four domains of Western economic methodology can also be posited and debated regarding Islamic economics. He finds obtaining the answer difficult, but setting aside the prejudice regarding the conflict between these two schools, he briefly reviews important aspects and raises questions; including:
- Can one use induction and experience conforming to custom ('urf) in rulings where there is no explicit textual evidence (ma la nass fih)?
- Can Sunni jurisprudents also rely on analogical deduction (qiyas) in economic matters?
- Can inflation influence the norms and values of the Islamic economy, such as alimony (nafaqah), fair wages, and the validity and permissibility of usury?
- In traditional inference (ijtihad) for the methodology of Islamic economics, do the exigencies of time and place have a profound impact on the evaluation and understanding of texts?
- How will the jurisprudential understanding of concepts such as poverty, wealth, justice, oppression, truth and falsehood, marginalization (istid'af), and arrogance (istikbar), which appear in Islamic texts, be under specific temporal and spatial conditions?
- Is rationality, which plays an effective role in neoclassical economics, also an acceptable method in Islamic political economy? Considering the benefits and corruptions inherent in the rulings, as well as the difference and expansiveness of Islamic rationality compared to Western rationality.
- Since the system of Islamic political economy is dependent on the Islamic political system (Imamate), what is the role and intervention of the Imamate? Planning, determining general policies, and political economy strategy considering the immutable principles of the Sharia and the exigencies of time and place? Here, he introduces jurisprudential expertise (faqahah) and erudition as the solution to the dichotomy of the Islamic economic and political system.
- Since the goal and ultimate end of the Islamic economy is nothing but justice (the very purpose of prophethood and the revelation of the Sharia), how is this principle preserved in the selection of economic methodology?
At the end of this discussion, he presents and reviews the political economic thoughts of Imam Khomeini (pp. 201-231).
Satisfaction as the Alternative to Freedom in Islamic Political Economy
At the end of the eleventh chapter (free and state economy), the book's author raises the important discussion of freedom in Western and Islamic economies. Freedom is the main pillar of a free economy, but in Islamic political thought, freedom is always accompanied by responsibility, and the human being is introduced as a free and responsible entity, and based on this, acquires rights and duties. In the Islamic economy as well, freedom and responsibility are not separate or absolute. The author's hypothesis is substituting "satisfaction" (ridamandi) for "freedom." In the concept of satisfaction, there are two essential elements: choice (not coercion and reluctance) and the criterion of choice, which can be formed based on religious teachings, responsibilities, and obligations, and does not rely solely on mere rationality.
In comparing freedom and satisfaction, Amid Zanjani defines satisfaction in a way that encompasses freedom as well, and subsequently touches upon the satisfaction of the people in Islamic political thought, which plays a central role. The author explicitly states that in the relations between production and services, worker and employer, the nation and the country's economic system, and labor and capital, as well as economic contracts and other economic issues, the satisfaction of the individual and society plays the principal role. At the conclusion of this discussion, Amid Zanjani states that the relationship between free choice and satisfaction is akin to that of Islam and faith (iman), and he then takes a glance at the texts concerning satisfaction (rida) and divine displeasure (sakhat) (pp. 235-244).
Islamic Financial Institutions Do Not Need Internal Changes
The twelfth chapter of the book Political Economy encompasses the subject of economic development. In this section, the author addresses the role of expediency (maslahah) in development and states jurisprudentially that expediency in Islamic jurisprudence has a regulated relationship in two forms:
- Benefits and corruptions (masalih* and *mafasid), which are the infrastructure of Islamic political economy. Here, he looks at two jurisprudential methods of Shia and Sunni (such as the objectives of Sharia).
- Expediency and governmental rulings, which are in the nature of executive directives, not primary or secondary rulings. These rulings are issued by the Imam and leader of the Islamic society when dilemmas cannot be resolved through ordinary means. Here, he cites the ratification of the labor law in the Islamic Republic as an example.
Furthermore, Amid Zanjani addresses the relationship between development and financial institutions, ultimately emphasizing that Islamic financial and economic institutions (such as spoils of war, *khums*, *zakat*, poll tax [*jizyah*], barren lands [*mawat*], land tax [*kharaj*], public wealth [*anfal*], and financial taxes) can play a highly effective role in development whenever placed in a suitable context. Also, these institutions, which are the financial resources of the Islamic state, do not require internal changes; rather, what must undergo change and transformation are the executive programs of these institutions, which must continually be updated (pp. 245-257).
Governing Islamic Principles in Foreign Trade
The final chapter of the book Political Economy is about foreign trade and Islamic political economy. Initially, Amid Zanjani enumerates ten jurisprudential and Islamic principles governing foreign trade and provides a brief explanation: mutual respect, economic independence, negation of oppression, negation of consuming wealth in falsehood, non-reliance on foreigners, protection of the oppressed and marginalized, defense of the rights of all Muslims, non-commitment to the arrogant, and mutual peace with non-belligerent countries.
The author continues the discussion of Islamic economy in the field of foreign trade by debating whether foreign trade is free or restricted, as well as its relationship with international issues. He addresses and explains the principles of the constitution of the Islamic Republic of Iran, such as Article 44 (the state ownership of major and mother industries) and Article 112 (the Expediency Discernment Council) (pp. 259-270).