Islamic Economics and Theology (Kalam)

Saiful Azhar Rosly, Ph.D

International Center For Education in Islamic
Finance (INCEIF), Malaysia.
22nd August 2008

In Islamic economics, it is agreed in principle, that the

knowledge one applies in making choices is primarily derived
from revelation (wahy). But it is interesting to find out how this
(i.e. choices based on revelation) has been adopted as the
fundamental principle in Islamic economics. To explore further,
theology (‘ilm kalam) provides an interesting introspection.

According to ahlul sunnah jamaah (i.e. the Islamic orthodoxy)

value derived from revelation is superior to value derived from
reason. There is no conflict between revelation and reason. In
this manner, Islamic economics has subscribed to ahlul sunnah
jamaah in matters of espitomology. But the question is why God
has given man reason (‘aql) if revelation is the one man must
obey? What is role of reason? Can reason determines what is
good and what is evil? Can one discover Truth by way of
reason?

For example, the Quran says that riba is haram. Can reason
lead to the same conclusion? Honesty is a good value i.e.
nobody of a right mind would like dishonesty. But do we need
the Quran to say that honesty is good? Isn’t reason good
enough to imply the same? Can reason explain that God exists?
Or do we need the Quran to prove that God exists? These are
the questions that theologians have been attempting to answer.

In theology, two groups of people, namely the Mu’tazilites and

the Asaharites hold contrasting views on the above. These are
explained the following:

1) The Jabarite school of theology:: They say that man’s

actions are determined and predestined by God. Man has no
will of his own. He could do nothing on his own choice.
Jabarites thinking is also called determinism. Good and evil are
all God’s own making.. Believing in the jabarites doctrine will
make an individual docile and living without hope of improving

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his life as everything had been decreed by God. In this manner,
the jabarites are also known as the fatalist The Mutazilites
protested against this belief by saying that God has given man
complete power over his actions as he is free to act any way he
liked. It was this freedom of choice between good and evil that
man responsible for his deeds. They also say that is man’s
actions were predestined, why should God exhort man in the
Quran to acquire virtue. Thus determinism of man’s action is
not line with the Quranic teaching.

2) The Mu’tazilites school of theology: they are guided by

reason and say that man has absolute freedom of will. Man has
the power to build his own character, whether to lead a virtuous
or vicious life. They maintained that human reason was
competent to know the verities of the universe and was
completely free to go searching after the Truth. They applied
reason to all truths contained in the Quran and explained away
those passages that they did not find conforming to reason.
They even speculate about the duty of a believer in that if he is
incapable of knowing truth by reason, they would be doomed to
the hell fire.

2) The Asharite shool of theology: Asharism is a movement

against the Mu’tazilism. It aims at compromising between
reason and revelation. It wants to reconcile the dictates of
reason with the dogma of faith. The Asharites gave authority to
God and advocates the view of predestination and
predetermination of man’s past activities. Man has no freedom
of will, no liberty of action but has been given the power of
acquisition

One good example to see the differences between the Mu’tazila

and Asharites is one concerning God:

1. The existence of God

2. The obligation to worship God

The Mu’tazila argued that reason can prove the existence of

God. But Asharites then asked: can reason lead people to
worship God? Can reason make it obligatory for man to worship
God? According to the Asharites, only through revelation that
man will oblige to worship God. Reason is inadequate to do so.

In Islam, reason and revelation are inseparable. This is the

Islamic orthorodoxy. The interrelation between reason and
revelation are best explained below (unquoted source):

a) Without revelation (shar’), reason will not rightly guided

and without reason, revelation will not be made explicit.

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b) Reason is the foundation, revelation the edifice, and no
edifice can rise except on a sound foundation.
c) It is impossible that he who does not apprehend the
objects of reason should apprehend the truths of
revelation.
d) It is impossible that revelation should enjoin that reason
prohibits or that reason should be deferred to in matters
prohibited by revelations. That is why revelation is
addressed to people with sound reason/mind only.

Based on the above discussion, understanding the conception

of choice in Islamic s will require students to examine in greater
detail the study of Islamic theology (‘ilm kalam). It tends to show
that Islamic economics is no longer merely fiqh oriented but
demand intimate knowledge about theology as well as
philosophy.