نشریه معرفت اقتصاد اسلامی
پیاپی 1 (بهار 1389)

In the past few decades, formation of a public and seientific movement towards business ethics has challenged dualistic views about personal and social ethics. Many economic thinkers have realized that contrary to traditional approches, legal pressure and the market’s invisible hand cannot prevent the moral hazards of business. Development of business ethics, instead, can enhance the performance of business by filling legal gaps. Islam goes beyond the purely instrumental approach to business by considering business ethics to be a strategy for development of moral virtues in the market as well as in the Islamic society as a whole. Apart from revealing the need for cultural engineering of the market,this approach can transform prevailing policies with the aim of institutionalizing Islamic business ethics.

The empirical analysis presented in this paper deals with the relation between human resources, in both healthcare and education, and economic growth. This relation is strongly favored in both the Islamic and Capitalist ideologies. Data were gathered from 39 Muslim and non-Muslim third-world countries throughout the period of 1990 to 2006. The empirical model applied was derived from the model introduced by Lee and Hwongusing the compound data method in said period.In this model, human resources include those in the education and health departments. Two indicators were used in the health district and one in that of education. Overall, empirical evidence gathered by this research demonstrates that a variable pool of human resources affects economic growth in this group of countries. However, education has a stronger and more significant effect on economic growth as opposed to healthcare.

Considering the relationship between the real and financial sectors of the economy, one issue that has engaged the minds of economists and financial specialists is discovery of a maximum efficiency financial structure in the relevant economic system. In most countries, including first world countries, the Financial system is the basis of banking /or of market. However, in practice, this distinction has gradually blurred. For this reason, some believe that instead of focusing on this issue, what must be concentrated upon are the legal system and the resultant financial adjustments. This paper aims to demonstrate that, in accordance with Islamic teachings and global experience, a balanced combination of financial structure is appropriate for Iran. Utilizing a specific perspective on money and the market, considering the nature of religious contracts, and drawing on experience gained by Iran’s interest-free banking system, this paper also intends to present a financial model for Iran that may be able to mitigate the problems in the country’s financial system.

Kanz (treasure) is a key concept in islamic economics that is mainely introduced in verse 34 and 35 of surah Tawbah,. The concept has long been variously interpreted by Muslim exegetes, jurisprudents, and economists. This paper aims at reviewing the most important viewpoints about Kanz,presenting a unitary definition of the concept, and analyzing some of its economic functions and effects. The paper’s premise is that, the verse denotes a basic guideline for correcting the motives governing the economic conduct of individuals in accumulating wealth, proper circulation of money, and income allocation. This dictum condemns accumulative approaches to wealth that involve waste, lavishness, or disregard of social interests and of the needs of the poor. Islam intends that wealth and earnings be used for economic activities or in ways approved by God, such as use for current personal needs and social interests or investment for future personal and social interests. Other aims of this paper include analysis of the effects of Kanzon money demand, speculation on the financial market, savings and investment, and some macroeconomic phenomena.

The guiding spirit in the law for intrest-free banking operations is establishment of a just,properly regulated financial system. The most important elements in this law include alteration of the resource management system, introduction of partnership and trade contracts, elimination of usury from the banking system, and replacement of the profit rate. For interest rate. With the enactment of this law in 1984, though the letter of the law was adhered to and its framework was more or less observed in official contracts between banks and their clientele, assignment of a temporary predetermined quaranteed reate of return to deposit, specification of fixed rates on credits, and degeneracy of contracts into mere formalities (e.g. sale by installment, civil partnership, and short sale contracts) are symptoms of the incomplete implementation of the law. In fact, the contemporary banking system, which was formed by the merger of 36 pre-revolution traditional banks, is not suitable for effectuation of the transactions stipulated in the law and therefore assumed a usurious form. This deviation from the law caused a sharp increase in outstanding debts to the bank. Additionally, usury is one of the chief agents of economic crises as well as unemployment and stagnation.

Qard-al-Hasane is one of the methods of establishing the financial system intended by Islam. This system aims at eliminating usury from the banking system in the mobilization and allocation of savings. Besides Qard-al-Hasane, charity and contracts of partnership and trade provide people with the financial resources. Charity must be allotted to those in great need of funds and contracts in order to make profit whereas Qard-al-Hasane is to be distributed to people who are not indigent enough to be entitled to financial assistance or affluent enough to make sufficient profit to benefit others. Despite the special status of Qard-al-Hasane in the interest-free banking system, after 25 years, the banking system of Iran has not yet been able to satisfy this aim. Throughout this period, the banking system has only used about half of the Qard-al-Hasane resources in granting interest-free loans. Also, the proportion of Qard-al-Hasane deposits and loans in the banking system has steadily decreased. Solving the problem is only possible through active participation of banks as well as the central bank, the government, and the people. In order to win the public trust and thus revive the status of Qard-al-Hasane, the banking system must allocate the entirety of Qard-al-Hasane resources to interest-free loans. It seems that decreasing the legal reserve ratio for Qard-al-Hasane deposits and transfer of various government monetary resources to Qard-al-Hasane deposits can facilitate the revival of this honorable tradition.

In the eighteenth century, the science of economics was developed in a backdrop of naturalism, humanism, deism, philosophical secularization, and anti-scholasticism. Though this science was shaped and developed in an ethical setting, moral values were gradually stripped from it. During the evolution of economic theories, economists under the influence of moral philosophers such as Thomas Hobbes and David Hume, mainely Adam Smith, based their theories on individual self-interest. Accordingly, Smith introduced the ‘invisible hand’ as one of the most important economic mechanisms. According to this view, working towards individual self-interest with the help of the invisible hand serves the interests of the society. Neoclassical economists assimilated the concept of hedonic self-interest into their economic models. In this formularization, conventional neoclassical economics embraced hedonistic self-interest as an irrefutable law, like that of gravity in Newtonian physics, thus not only interpreting economic performance as an endeavor to maximize pleasure but also regarding unselfish behavior to be irrational.