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HUM
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The concept of scarcity and its
influence on the definitions of
Islamic economics
134
A critical perspective
Amir Wahbalbari, Zakaria Bahari and Norzarina Mohd-Zaharim
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Department of Social Sciences, Universiti Sains Malaysia,
Pennag, Malaysia
Abstract
Purpose – The aim of this paper is to reconcile the diverging opinions among Islamic economists
toward the concept of scarcity and to present a holistic model of scarcity and abundance from a Qur’anic
perspective.
Design/methodology/approach – Analyses of both interviews and texts were performed. The
method in studying scarcity from Islamic perspective consisted of semi-structured interview with five
experts in the field of Islamic economics and development.
Findings – One major implication of this study is that the concept of scarcity as it is postulated by
mainstream economics tends to clash with the Islamic worldview, as it does not have any reference in
Islam. Scarcity can act as a phenomenon in economic activities but not as the defining concept in Islamic
economics.
Practical implications – Practically, this paper will contribute to the making of the first lecture of
the course of Islamic economics.
Social implications – Socially, this paper will contribute to the process of transforming the science of
economics and Islamic economics for a sustainable tomorrow.
Originality/value – This paper is a fundamental paper that addresses some aspects from critical
realism and transcendental idealism into the making of Islamic economics. Not only that the discussion
on the concept of scarcity in Islamic economics is limited and seems to be lacking; in addition, this paper
offers a critical discussion on the validity of the concept of scarcity in economics from a critical
perspective.
Keywords Critical realism, Islamic economics, Scarcity, Abundance, Heterodox economics, Qur’an
Paper type Conceptual paper
Humanomics
Vol. 31 No. 2, 2015
pp. 134-159
© Emerald Group Publishing Limited
0828-8666
DOI 10.1108/H-11-2012-0021
1. Introduction
Economics as a social science emerged as a response to the basic questions, which rose
out of the sphere of the economic problem. The economic problem comes in the form of
three questions: what to produce, how to produce and for whom to produce. These are
nothing but a reflection of the concept of scarcity. Therefore, whenever economics is
taught, the concept of scarcity is the preliminary topic. In most contemporary economic
textbooks, the definition of economics stems from the basis of the concept of scarcity
(Fischer et al., 1988).
The authors gratefully acknowledge the funding of Universiti Sains Malaysia under its funding
scheme of USM Fellowship.
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Nevertheless, Islamic economists differed in their attempts to define Islamic
economics from those who were influenced totally by the current mainstream that
follows the scarcity definition of economics to those who totally opposed it. This paper
is divided into seven sections. The second and third sections explore the definitions of
conventional and Islamic economics. The fourth section discusses the influence of the
concept of scarcity on the literature of Islamic economics. The fifth section presents
interviews with five experts in the field of Islamic economics on the concept of scarcity,
abundance and how they are relevant to Islamic economics. The sixth section introduces
a holistic model that explains and demonstrates scarcity and abundance from the
Qur’anic perspective. The seventh section discusses the major findings and suggests
further research on incorporating alternative philosophical orientation into the field of
Islamic economics.
2. Conventional economics: definitions
Marshal, Davenport, Cannon and Beveridge defined economics as follows: Marshal[1]
defined economics as the study of mankind in the ordinary business of life; it examines
that part of individual and social action, which is the most closely connected with the
attainment and with the use of the material requisites of well-being. Davenport stated
that economics is the science that treats phenomena from the standpoint of price.
Cannon’s definition postulated that the aim of political economy is the explanation of
the general causes in which the material welfare of human beings depends. Beveridge
claimed that it is too wide for a definition to speak of economics as the science of the
material side of human welfare. However, economics is the study of general methods by
which men co-operate to meet their material needs (Robbins, 1945).
From the above-mentioned definitions, it becomes apparent that the views of
thinkers, mainly classical economists from the late eighteenth and early nineteenth
centuries revolved around material, wealth and welfare. According to Kirzner (1976),
classical writers expressed themselves about the nature of economics either in defining
it as a subject matter of political economy, or defining it as the science of wealth.
Furthermore, Robbins (1945), in his essay on The Nature and Significance of the
Economics Science, classified the definition of economics into the materialist and scarcity
definitions of economics. Consequently, Robbins attributed the material- and
welfare-based definitions to Cannon and Marshal, who relate economics to the study of
the cause of material welfare. However, Robbins examined the materialists’ definition of
economics critically, and he began with the following statement:
No doubt there are some matters falling outside this definition which seem to fall within the
scope of Economics, but at first sight these may very well seem to be of the order of marginal
cases inevitable with every definition (Robbins, 1945, p. 4).
Furthermore, Robbins incorporated the theory of production by using wage analysis, in
which some wages are the price of work that may be described as conducive to material
welfare. However, some wages, like a member of an orchestra, are paid for work which
does not bear material welfare. Therefore, according to Robbins, one of the main
problems of the theory of production lies outside the materialist definition of economics.
As a result, Robbins defined the science of economics as the science, which studies human
behavior as a relationship between ends and scarce means which have alternative uses[2].
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However, despite the criticisms raised about Robbins’ definition, it became popular,
and it represented the economic point of view of the twentieth century through the
transition from Type (A) definition to Type (B) definition, as it was classified by Kirzner
(1976). The essence of the Type (A) definition has usually been wealth or material
welfare, as it investigates a particular department of affairs, whereas the essence of the
Type (B) definition investigates the reconciliation between the numerous conflicting
ends under the shadow of scarcity (Kirzner, 1976).
Equivalently, the Type (A) definition is equivalent to Robbins’ terminology of the
Materialists’ definition of economics, whereas the Type (B) definition is equivalent to the
scarcity definition of economics. As a result, Robbins’s scarcity definition or Type (B)
definition of economics represents the mainstream or standard definition of the science
of economics. Consequently, most economics textbooks are influenced by Robbins
definition, as it can be seen from the selected works below.
Samuelson and Nordhaus (1985) defined economics as the study of how people and
society choose to employ scarce resources that could have alternative uses to produce
various commodities and to distribute them for consumption, now or in the future,
among various persons and groups in society. McConnel and Bruce (1999) defined
economics as the social science concerned with the efficient use of limited or scarce
resources to achieve maximum satisfaction of human material wants. Kearl (1993)
defined economics as the study of how individuals and groups of individuals deal with
and respond to scarcity. Fischer et al. (1988) defined economics as how society, with
limited scarce resources, decides what gets produced, how and for whom. Ekelund and
Tollison (2000) defined economics as the study of how individuals, experiencing
virtually limitless wants, choose to allocate scarce resources in the best to satisfy their
wants. According to them, economics is a social science, the oldest and the best
developed of the social sciences. As such, it studies human behavior in relation to three
basic questions about the economy: what goods and services are produced? How are
goods and services produced? And for whom are the goods and services produced?
Therefore, these three questions are raised due to the condition of scarcity in economics.
Finally, it becomes obvious that conventional or mainstream economics agreed to define
economics from the scarcity perspective.
3. Islamic economics: definitions
There are several economists who have attempted to define Islamic economics from
different dimensions. Some of them deny scarcity whereas others accept it as a fact and
reality. Let us explore some of the main definitions of Islamic Economics by prominent
scholars in the field of Islamic Economics.
The definitions are presented in chronological order. In 1984, Zaman (1984) defined
Islamic economics as the knowledge and application of the injunctions and rules of
Shariah (Islamic law) that prevent injustice in the acquisition and disposal of material
resources in order to provide satisfaction to human beings and enable them to perform
their obligations towards Allah and society. As a prerequisite for this definition, Zaman
stresses certain features that shape the Islamic economic ways of life. First, economic
activity in Islam should not be affected by human desire and experience alone; it should
be directed by the Shariah (Islamic law) orders and commands. Furthermore, the terms
acquisition and disposal of material resources are suggestive of the subject matter of
economics. Moreover, the Shariah (Islamic law) contains two things: injunctions and
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rules. The injunction is what the person is supposed to do or not do, whereas the rule is
a set of principles that the Fuqaha[3] have derived from the injunction. For instance, no
harm is to be done, nor any to be borne. Apparently, Zaman’s definition does not stress
the nature of the resources, as he assumed it as given, whereas the emphasis was
directed to the Shariah commands and rules pertaining the use of the resources.
In the same year, Khan (1984) defined Islamic economics as the study of human Falah
achieved by organizing the resources of earth on the basis of cooperation and
participation. According to Khan, Falah is a worldly concept which represents three
things: survival, freedom from wants and power and honor. In the Qur’an, Allah SWT
mentions Falah and its derivations 40 times, which gives it a position at the spiritual,
economic, cultural and political levels. Moreover, the definition tackles the resources and
how human should deal with these resources to achieve Falah. Furthermore, Khan
denies the cause of scarcity based on insufficient resources. However, it appears as a
consequence of a lack of proper utilization of natural resources or imbalance
distribution. Rather, Islamic economics studies the resources from the adequacy point of
view and not on a scarcity basis. Despite the fact that the resources are abundant, the
Shariah has laid down standards of propriety for the acquisition, utilization and transfer
of resources because one is going to be accountable for one’s deeds in the Hereafter. Not
only this, the above-mentioned definition also stresses the issue of cooperation, which is
based on universal brotherhood.
In contrast, Hasan (1996), in his review of Akram Khan’s book An Introduction to
Islamic Economics, commented on Akram’s position pertaining to the discussion of
resources as a little puzzling. According to Khan, the improper utilization of resources
and distribution misbalance are the cause of rise of scarcity. As a result, Islam studies
economics from the adequacy point of view:
But to draw from this, as Akram and others do, the inference that scarcity becomes
nonexistence for economics, whether secular or Islamic, is rather eristic, to put it mildly. The
catch is in the failure to realize that the fact of the existence of ample resources for human
beings and others at all points in time and space is one thing, while their availability to
individual or groups at a given hour and location and in the required quantities is quite
another. It is not the existence of resources per se, but the state of their availability that lends
meaning to the idea of scarcity as a cornerstone of economics. The availability of resources is
an increasing function of knowledge-knowledge of their existence, of the ways to extract or
obtain them, of their use and of their cost (Hasan, 1996, p. 581).
Therefore, Hasan (1996) defined Islamic economics as the study of human behavior
concerning the use of scarce resources for satisfying multifarious wants in such a way as
would maximize Falah.
From another context, Arif (1985) stressed the distinction between the definition of
Islamic economics and its paradigm. According to his view, the definition of Islamic
economics should be the statement of the basic economic problem, and it should not
include elements from the paradigm. As a result, the definition of Islamic economics is
nothing but the statement of the economic problem, which was viewed by an economic
agent in the Islamic society, as an integral part of human life. Consequently, it will lead
the individual to develop a logical approach for its solution that is considered rational
and normal. As a result, the rationality of the economic man represents his behavior
toward the basic economic problem. Likewise, in Islamic economics, there is a need to
recognize human behavior as the basis of the micro foundation of the Islamic economics
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system. Finally, the natural outcome of studying the rational behavior of the Muslim
man will lead to the development of the Shariah paradigm of Islamic economics.
Therefore, according to Arif (1985), Islamic economics is the study of a Muslim man’s
behaviour who organizes the resources that are a trust to achieve Falah.
In addition, Aslinah (2003) cited a number of definitions of Islamic economics in her
research paper, which aims at studying the conceptual approach of Islamic economics.
The definitions are as follows:
• Radiah Abdul-Kader (2001) defined Islamic economics on the framework of
allocation and distribution of economic resources from the Islamic perspective.
• Mannan (1983) defined Islamic economics as a social science, which studies the
economic problem of people imbued with Islamic values.
• Ghanim (1986) states that Islamic economics is the knowledge that discusses
human behaviour individually and collectively in his endeavor to satisfy the
biological and social wants, maintaining a balance between them in using
available resources.
• Eldin Zaim (1989) postulates that Islamic economics is a systematic effort to study
the economic problem and man’s behavior in relation to it from an Islamic
perspective.
• Kurshid Ahmad (1981) considered Islamic economics as a nascent social
discipline whose concern is to reformulate economic principles and propositions
in accordance with Islamic values and ideals.
• Khaf (1987) said: Islamic economics can be seen as a branch of “the science of
economics” which is a study based on the Islamic paradigm (i.e. its axioms,
system of values and ethics), similar to the study of capitalist economics and
socialist economics.
• Siddiqi (1988) viewed Islamic economics as emanating from the Islamic
worldview, dominated by revelation and having a flexible methodology which
combines Western Neoclassical/Keynesian economics with Fiqh.
• Al-Arabi (1986) considered Islamic economics as a collection of general economic
principles that we extract from the Qur’an and the Sunnah and the economic
structures that we construct on the basis of those general principles conforming to
all situations and ages.
• Abul Kalam’s (1991) definition of Islamic economics resembles, to some extent
Marshal’s. He stated that economics is a science and art which deals with the daily
routine of a Muslim’s economic life (i.e. how he earns his income and how he
spends it). It is a science in the sense that it involves many scientific methods in the
production of material goods, their distribution and consumption definition.
• Ahmad (1992) represents Islamic economics as a systematic effort to try to
understand the human economic problem and the human’s behavior in relation to
that problem from an Islamic perspective.
• Aslam’s (1997) definition of Islamic economics can be broadly defined as an
approach to interpreting and solving man’s economic problems based on values,
norms, laws and institutions found in, and derived from, the source of knowledge
in Islam.
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• Al-Sader (1981) postulated that Islamic economics can be viewed as “the way
Islam prefers to follow in the pursuit of its economic life and in the solution of its
practical economic problems in line with its concept of justice”.
• Chapra (1996) viewed economics as the branch of knowledge that helps to realize
human well-being through an allocation and distribution of scarce resources that
is in conformity with Islamic teaching without unduly curbing individual freedom
or creating continued macroeconomic and ecological imbalance.
Finally, it can be seen from the above-mentioned definitions how Islamic economists
differed in their attempts to define Islamic economics. Some Islamic economists are
totally influenced by the current mainstream which follows the scarcity definition of
economics to those who totally opposed it, and between them, there are those who define
Islamic economics from a paradigm perspective. Consequently, it was found that the
Type (B) definition has an influential impact on the definitions of Islamic economics.
Therefore, it is crucial to study the concept of scarcity from different angles, so that we
can determine the significance and legitimacy of such a concept to be reflected in the
discipline of Islamic economics.
4. Scarcity in the literature of Islamic economics
Investigating the mentioned definitions of Islamic economics, the observer will find that
most of the definitions cited tended to be neutral toward the concept of scarcity, except
Khan’s (1984) definition that obviously denies the existence of scarcity. In contrast,
Chapra (1996) and Hasan (1996) used the term scarce resources.
Apparently, the above-mentioned definitions of Islamic economics tend to exhibit a
line with two poles or extremes. The first pole represents Khan (1984) who denies
scarcity, whereas the other pole represents Chapra (1996) and Hasan’s (1996) postulation
of scarcity point of view. However, there are a couple of Islamic economics definitions,
which are neutral in nature and do not express either scarcity or abundance; for
example, Arif (1985) and Ghanim’s (1986) definitions, who view the resources from
availability and trust perspectives[4]. Moreover, there are definitions that view Islamic
economics from Islamic paradigm perspective (e.g. values, norms and justice), in which
this category consists of definitions postulated by Al-Sader (1981), Aslam (1997),
Kurshid Ahmad (1981) and Khaf (1987). The remaining definitions exhibit to some
extent, the mainstream or neoclassical view, and in this category, we find Siddiqi (1988)
who mentioned that Islamic economics should adapt a flexible methodology that
combines Western Neoclassical/Keynesian economics with Fiqh (Jurisprudence).
Nevertheless, there are a couple of Islamic economists who have given their views on
scarcity such as Rosly (2005), Zarqa (2003), and Qahf (1993). In his book, Rosly (2005)
stated that the problem at hand is how is Islamic economics defined? According to him,
scarcity is one of the ways to a better understanding of Islamic economics, as there is no
Islamic objection to such a concept. Furthermore, he argued, scarcity is a fact of life and
to an economist is like gravity to a physicist. Scarcity in Islam is, through and through,
a Tabi’[5] phenomenon which can be used by any discipline regardless whether it is
belief based or not. Not only that, he mentioned that there is a positive attitude from the
Qur’an toward scarcity and resource allocation, in which he cited three verses from the
Qur’an in addition to a Prophetic Hadith that strengthens his position. Among the verses
that he cited are: “Surely man is created greedy and impatient” (Qur’an, 70: 19). Critically
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speaking, Rosly (2005) did not continue with the following verses. In fact, if he
continued, he would find that the Qur’an condemns scarcity, as it will be shown in the
proceeding verses with its Interpretation (Tafsir).
Fretful when evil touches him; And niggardly when good reaches him; Not so those devoted to
Prayer; Those who remain steadfast to their prayer; And those in whose wealth is a recognised
right. For the (needy) who asks and him who is prevented (for some reason from asking); And
those who hold to the truth of the Day of Judgment; And those who fear the displeasure of their
Lord, For their Lord’s displeasure is the opposite of Peace and Tranquillity; And those who
guard their chastity, Except with their wives and the (captives) whom their right hands
possess, for (then) they are not to be blamed (Qur’an, 70: 20-31).
The nature of mankind is such that it inherits neither patience for the worldly test nor is
it thankful to their God for His bounties sent to them. In addition, if they face calamities,
they immediately give up. However, if they are given bounties, they behave in a
niggardly manner. Nevertheless, those who establish prayer are an exception from the
previous negative attributes of impatient human behavior (Al-Sabouni, 1981)[6]. In
addition, Rosly (2005) cited another verse to support the scarcity proposition.
“Fair-seeming to men is made the love of desires, of women and sons and hoarded
treasures of gold and silver and well-bred horses and cattle and tilth: (Al-Qur’an, 3: 13).
However, the following verse convincingly condemns scarcity:
Say: Shall I give you glad tidings of things Far better than those? For the righteous are Gardens
in nearness to their Lord, with rivers flowing beneath; therein is their eternal home; with
companions pure (and holy); and the good pleasure of Allah. For in Allah’s sight are (all) His
servants (Qur’an, 3: 14).
People tend to love their desires for women, children, hoarded gold and silver, in
addition to the best and finest pedigree horses, cattle, means and symbols of good
farming. However, Allah has the best return and reward in comparison to all these
terminate desires. Accordingly, God ordered His messenger to say to the people: for the
righteous people on the Day of Judgment, paradise over rivers in which they will be their
residence forever with their pure wives and Allah’s pleasure upon them (Al-Sabouni,
1981). In fact, God undermines the value of these worldly desires as compared to what
He has reserved for the believers in the Hereafter. Consequently, by undermining
worldly desires, God condemns scarcity, as it should not be the stimulating and
motivating factor for human behavior in pursuing economic activities.
Furthermore, Qahf (1993, p. 4) stated:
The quantity of natural endowments, including labor abilities and services, that God gave to
any human being in any society is limited. God says: “And there is not a thing but its (sources
and) treasures are with Us, but We only send down thereof in due and ascertainable measures”,
[15:21] and “Verily, all things have We created in proportion and measure” [54:49]. This is the
seed of the idea of scarcity in economics. Scarcity means the resources given by God to any
person or society are measured and limited. Therefore, human beings have to exercise their
utmost wisdom and rationale in deciding what, how and for whom scarce resources are to be
used.
In contrast, Zarqa (2003, pp. 18-19) has different views on scarcity, despite that he had
cited the same verses as Qahf. But from the below quotation, it is apparent that they are
different in their interpretation of verses 15:21 and 54:49.
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However, if we take our starting point the Qur’anic verses. Verily, we have created every thing
by measure (54:49).We have honoured the sons of Adam (17:70). It is We Who have placed you
with authority on earth and provided you therein with means for the fulfillment of your life
(7:10). And there is not a thing but its (sources and) treasures (inexhaustible) are with Us, but
We only send down thereof in due and ascertainable measures (15:21). It is He Who hath
created for you all things that are on earth (2:29). I say that if we take the above, and other
similar verses, as our departure point, we will reach the assumption that earth and all that is on
it have been made, by God’s will, serviceable to man (16), and that the quantities of any natural
resource endowment on earth are deliberate and not haphazard; in endowing them, God has
taken into consideration fulfilment of the needs of the honourable life He accepts for his
servants throughout their predetermined lifespan on earth. The only source of incompatibility
that might arise between human desires and the quantities of natural resources available
would be man’s misbehaviour and his deviation from the norms of production and
consumption that have been ordained by God. The only solution to this problem of
incompatibility would be through the correction of these deviations. Hence, the research plan
and the assumptions to be given on the basis of the aforementioned basic assumption would
concentrate on study of the possible relation between certain deviations in the human
economic and social behaviour and the impact of such deviations on the depletion of resources.
Consequently, the question that will arise is why these two prominent scholars disagree
on their stand toward the concept of scarcity? The best answer will lie on the
interpretation (Tafsir) of Al-Quran. Let us cite verses (15:21) and (54:49) with their
interpretation from the Qur’an. “And there is not a thing but its (sources and) treasures
(inexhaustible) are with Us; but We only send down thereof in due and ascertainable
measures” (Qur’an, 15:21). Whatever sources of provisions and resources of various
creatures are with Us but We (God) sent it in accordance with their need and benefit
(Al-Sabouni, 1981). “Verily, all things have We created in proportion and measure”
(Qur’an, 54:49). We have created everything in a determined measure as it has been
written in the Luh Al-Muhafuz (Al-Sabouni, 1981).
From the above interpretation, it is apparent that there is neither reference for the
existence of scarcity nor any inference that the resources are limited. Therefore, the
above two verses reflect abundance. In fact, the word Qadar in Arabic (‫ )ﻗﺪﺭ‬does not
mean limited. Investigating the English translation of the word (‫ )ﻗﺪﺭ‬in the Qur’an, the
observer will find that there are several English words that have been used to mean
(‫)ﻗﺪﺭ‬. For example, in Yusuf Ali Qur’anic translation, you will find that he has used
power, fate, proportion, measure, ascertainable measure, due measure and ordained
laws to mean the word (‫)ﻗﺪﺭ‬. Obviously, the coming verse shows how does God (‫)ﻗﺪﺭ‬
lead to a sustainable life for human being on the earth. “That sends down (from time to
time) rain from the sky in due measure; and We raise to life therewith a land that is dead;
even so will ye be raised (from the dead” (Qur’an, 43: 11). It means, sending rain in a
proportional measure from the clouds in accordance with the need, neither huge so it
voids the earth nor little for the trees to get sufficient water. But, it is made sustainable
in the earth, so that it can benefit its creatures. However, God can let it flow inside the
earth, so no one can get it, and consequently, this would lead to thirst, drought and death
(Al-Sabouni, 1981).
From an overall analysis, it has been found that the concept of scarcity, as it is
apparent in the Type (B) definition of conventional economics, does not only influence
the definition of contemporary economics but has also influenced Islamic economists to
follow the same type of definition. Consequently, Islamic economists indirectly adopt a
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mainstream or neoclassical approach in defining economics. In one of the articles,
Haneef (2005) stated that:
I discovered that there was also a “mainstream school” among those writings on Islamic
Economics, modeled along neoclassical lines, working almost within the boundaries of
neoclassical theory, with some adjustments to incorporate teachings/norms/values that
reflected certain requirements of Islam.
As a result, it is important to investigate the reason behind such scarcity influences
among the Islamic economists. In this paper, we argue that such influences are
attributed to the methodology of the science of economics. The current school of
mainstream economics subscribes to positivism that restricts knowledge enquiry only
to a quantifiable observation. From the first instance, such epistemological stand seems
to be problematic to be the philosophical foundation for Islamic economics or for any
economics that is based on religion. Therefore, it is crucial to explore the concept of
scarcity from several dimensions to determine its position in Islamic economics. In
doing so, this paper presents perspectives of five Islamic economists and scholars who
teach the subjects of Islamic economics and development.
5. Scarcity, abundance and Islamic economics
Scarcity and abundance are two contrary aspects, and there have been numerous
discussions about them in the field of economics. In this section, scarcity and abundance
will be viewed critically from the Islamic perspective. Our method in studying scarcity
from Islamic perspective consisted of semi-structured interview with five experts in the
field of Islamic economics and development. In exploratory research, it is desirable to
have small number of respondents so that they represent the population from which
they are drawn (Sayer, 1992). The five experts were asked to elaborate on scarcity,
economics with its reference to Islamic economics. The five experts are well-known in
their field, and they had at least 10-20 years of experience of teaching Islamic economics.
The profile of the experts consists of Professor Dr Syed Abdul Hamid Aljunid[7],
Professor Dr Muhammad Syukri Saleh[8], Professor Dr Mohamed Aslam Haneef[9],
Professor Dr Ahmed Kameel Mydin Meera[10] and Dr Mustafa Omer[11].
5.1 What does scarcity mean?
The concept of scarcity postulates that resources are insufficient to meet the unlimited
human wants. Nevertheless, according to the Oxford English dictionary, scarcity is the
state of being scarce or in short supply; shortage: a time of scarcity, growing scarcity of
resources. Historically, the English word “scarcity”, according to Xenos (1989), is of
medieval origin, it has been derived from the old northern French word escarceté. It was
used to indicate a period of insufficiency and shortage. Looking at the historical and
linguistic definitions of scarcity, we will find that scarcity is linked with a certain period
or point of time. It is always common to hear and read in the news about scarcity of
water, scarcity of energy and so on. Nevertheless, such kind of scarcity whether it is in
water or any other type of resources is not universal and permanent. It might vary in its
extent from one place to another place and from one time to another time. Convincingly
and according to Haneef:
[…] scarcity might be relevant in the short run; even without taking into consideration the
aspect of unlimited human wants, resources appear to be scarce upon one point of time in
relation to our needs […].
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Furthermore, Aljunaid has presented scarcity from positive and negative dimension.
According to him:
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[…] scarcity is related to efficiency and efficiency shows how to use the resources wisely.
Scarcity helps you in rationalizing how to achieve efficiency. If there is no such thing called
scarcity, then there will not be prioritization. Scarcity makes you prioritize, value what is
important and what is less important.
However, mainstream economics consider scarcity as universal, and it determine the
conditions of human behavior. Nevertheless and critically speaking, scarcity is
subjected to certain places and periods of time. Water might appear scarce in Saudi
Arabia, but it is abundant in Malaysia; the US economy experiences scarcity in jobs,
which was not the case during the 1990s. Therefore, scarcity appears to be a temporary
condition, and it varies in its extent from one place to another place and from one point
of time to another point of time.
Furthermore, several conceptual studies have linked between scarcity, human
thinking and perceptions. Scarcity thinking means that there is not enough for everyone
to go around and that only a select few will be rewarded with jobs, love, power, money,
talent, promotions, gifts, recognition or other rewards (Covey, 1989, p. 219). In our daily
life, we observe such kind of scarcity thinking. For example, people tend to think that
there are limited jobs in the market. As a result, a person thinks unconsciously in such
a way that if he/she shares the information about a job opportunity with his or her
friends, the possibility for him or her to be selected and hired will be less, as there will be
high competition. Such kind of thinking is the result of what is known as the scarcity
thinking.
Relevantly and according to Omer:
Scarcity has several dimensions, material-spiritual dimension, micro-macro dimension and
present-future dimension. Looking at the material-spiritual dimension, a person will find that
this dimension is tied to the person’s interpretation of what scarcity is. Such dimension reflects
differences in the interaction with scarce things from one person to another person. Spiritual
dimension of scarcity goes beyond the material dimension as it is reflected in the perception
toward scarce things either in the optimistic or pessimistic way. The material dimension
perceives scarcity as lack and limitation of things while the spiritual dimension; perceive
scarcity as a kind of divine test.
Moreover, Saleh attributed the existence of scarcity to the perspective of the viewer.
According to him:
If a person views the resources from the physical perspective, then he/she will realize
scarcity.
Similarly, Aljunaid demonstrated the negative aspect of scarcity when it affects the
behavior. In his words:
[…] however, when you already have what you have and you are keeping the extra rather
than investing and distributing it, then scarcity in this sense means that a person is
thinking in his/her self interest. This creates more selfish and less altruistic behavior.
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Therefore, the concept of scarcity has some sort of implication on human’s thinking.
Nonetheless, the discourse on the concept of scarcity without referring to the concept of
abundance seems to be lacking. In the next section, the concept of abundance will be
explored deeply to formulate a comprehensive understanding on the concept of scarcity,
abundance and its connections to Islamic economics.
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5.2 How about abundance: does it exist?
Usually, abundance is contrasted with scarcity. The Oxford English dictionary offers
several definitions of the term “abundance”. Originally, abundance is derived from Latin
abundaantia and abundant “overflowing” from the verb abundare. Abundance is the
state or condition of having a copious quantity of something, plentiful of the good things
of life and prosperity. Technically, it is crucial to elaborate on the meaning of abundance
before going deeper in the analysis. According to Dugger and Peach (2009), abundance
does not mean free lunch and goods are unlimited. Instead, abundance means adequacy
and sufficiency in which such adequacy is related to the state of human knowledge.
Moreover and according to Meera:
[…] abundance is relative to human knowledge, the more knowledge we have, the more
abundance we will realize. For example, the windmill is one of the sources that generate
electricity. However, with knowledge advancement and technology know-how, windmill
doesn’t only generate electricity, but it also creates drinking water through condensing the
wind that is generated from it.
In contrast, Al-junaid doubts the meaning of abundance as limitless means:
No matter that resources are abundant, a person still needs to prioritize and make choices as a
person cannot do everything at the same time. In this context, abundance has the same
implications as scarcity as both of them require making choices. Scarcity and abundance come
interchangeably as both of them require making choices due to the lack of means in the context
of scarcity, and the lack of time in the context of abundance.
Omer explained further on abundance into two aspects. The first aspect is the individual
interpretation of abundance, and the second aspect is the religious interpretation of
abundance or how religion wants us to look at abundance. Something may be abundant,
but our concept of this abundant thing may not be abundance in absolute term. For
example, a person has a large amount of money. If he/she looks at it from his/her current
need, then he/she considers it abundant. But if he/she looks at it from religious
perspective that whatever excess beyond his/her needs belongs to the society, then
abundance in its individualistic sense does not arise in this context. Unfortunately,
whenever abundance is mentioned, it is always trapped with material and self-interest
definition; it is rare to find people talk about abundance in relation to the echo system
and future generation.
Relevantly and according to Al-junaid:
Abundance is more on the disposal of extra resources and the disposition depends mainly on
the value system. If the person keeps the extra, his/her behavior will be considered scarce in
that sense while if he/she disposes it to the community in terms of investment or social
contribution, his/her behavior will be considered abundant in that sense. Therefore, as far as
abundance is discussed, it does not refer to the physical sense; rather it refers to the attitudinal
sense on how the person can dispose what is beyond his/her needs.
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5.3 Scarcity, abundance and the Islamic perspective
In the previous sections, we have discussed about scarcity and abundance from a
neutral or face value perspective without taking into consideration the normative
aspect. There are many Islamic economists who refer to verses from the Qur’an to
postulate abundance and refute scarcity. On the other hand, there is a group of Islamic
economists who have interpreted some of the Qur’anic verses from different angles, so
that they advocate some sort of scarcity.
The above contrary positions among Islamic economists imply a research gap in the
field of Islamic economics pertaining the meaning of scarcity and abundance. This
paper endeavors such crucial role in studying the concept of scarcity with deep
interpretation of the Qur’anic verses that have reference to scarcity and abundance.
There is no doubt that God has created this universe with abundance, as there are many
verses in Al-Qur’an that indicate so:
It is Allah Who hath created the heavens and the earth and sendeth down rain from the skies,
and with it bringeth out fruits wherewith to feed you; it is He Who hath made the ships subject
to you, that they may sail through the sea by His command; and the rivers (also) hath He made
subject to you* And He hath made subject to you the sun and the moon, both diligently
pursuing their courses; and the night and the day hath he (also) made subject to you* And He
giveth you of all that ye ask for. But if ye count the favours of Allah, never will ye be able to
number them. Verily, man is given up to injustice and ingratitude (Qur’an, 14: 32-34).
Nevertheless, God swears in the Qur’an that He is testing human being in such a way
that causes on them hunger, limitation of foods and money:
Be sure we shall test you with something of fear and hunger, some loss in goods or lives or the
fruits (of your toil), but give glad tidings to those who patiently persevere. Who say, when
afflicted with calamity: “To Allah We belong, and to Him is our return”: They are those on
whom (Descend) blessings from Allah, and Mercy, and they are the ones that receive guidance
(Al-Qur’an, 2: 156-157).
Therefore, this worldly life is a combination of a great test from God on human beings to
determine those who do the best deeds from those who do not. “He who created Death And
Life, that He May try which of you Is best in deed” (Qur’an, 67: 2). The previous verses show
that God is the ultimate and absolute rich who have created the universe with abundance.
However, He tests human beings to determine the extent of their belief on Him.
In contrast to such religious perspective, Malthus questioned: “How can a God who is
good, omnipotent and wise will scarcity for his creatures” (Malthus, 1798, pp. 110-111). Not
only that, he ended his first essay with a sanctimonious appeal to religion and God’s Will.
Life is, generally speaking, a blessing […]. The partial pain, therefore, that is inflicted by the
supreme creator, while he is forming numberless beings to a capacity of the highest
enjoyments, is but as the dust of the balance in comparison of the happiness that is
communicated, and we have every reason to think that there is no more evil in the world than
what is absolutely necessary as one of the ingredients in the mighty process (Hunt, 1979, p. 68,
quoting Malthus).
Similarly, Robbins did not differ much from Malthus, as he claimed that nature is
niggardly.
Here we are, sentient creatures with bundles of desires and aspirations, with masses of
instinctive tendencies all urging us in different ways to action. But the time in which these
tendencies can be expressed is limited. The external world does not offer full opportunities for
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their complete achievement. Life is short. Nature is niggardly. Our fellows have other
objectives. Yet we can use our lives for doing different things, our materials and the services of
others for achieving different objectives (Robbins, 1945, p. 13).
Observing these above-mentioned perspectives, both Malthus and Robbins were
pessimistic about the resources, as Robbins said that nature is niggardly, despite his
reference to scarcity in its relative sense. In fact, they shared the same perspective on the
nature of resources and the tendency of unlimited human wants and desires. Examining
such perspectives from the Islamic point of view, Al-junaid stated:
[…] if scarcity is defined in terms of limited resources in relation to unlimited human wants, then it
clearly goes against the worldview of Islam. Religion tells the person what he/she should do and
how to make use of what he/she has. Religion is nothing but it is a comprehensive test in which it
postulates moderate life style that helps to reduce the effect of scarcity.
Moreover, Meera mentioned:
[…] that the Divine test is the status qua of this worldly life in which God tests human beings
by restricting the resources to appear scarce, but in actual fact, it is not scarce. It appears scarce
in a certain context, so that God tests human being to see how will they think and behave. God
grants and provides knowledge to human beings and knowledge determines abundance
creation through making the best use of the resources.
Furthermore, Omer narrated:
[…] […] looking at scarcity from the aspect of unlimited wants, I wouldn’t really agree with
that word because unfortunately conventional economics tends to define the entire concept of
man at looking at things from that wants perspective and wants definitely are unlimited.
Whenever you talk about wants, then the aspect of contentment disappears because wants has
no limit. So if it has no limit, whatever you have in relation to wants will always be scarce. But
defining things in terms of needs that religions define, then things should be enough, and there
should be an element of contentment. I hold the view of the existence of resources as God gives
everything in due proportion. Nevertheless, because of man’s wants that are beyond his needs
and his perception towards the resources as not sufficient, then scarcity will be created. If a
person use his/her income wisely and properly, it will be sufficient to his/her needs but human
wants make resources not enough.
Similarly, Haneef confirms the above perspectives:
We don’t accept the claim of limited resources as it goes against the teachings of the Quran.
Nevertheless, the aspect of unlimited human wants might have reference to reality as human
by nature has the tendency to be greedy. But human wants has to be regulated and moderated
as there are numerous verses in the Quran that condemns excessive human wants and greed.
Therefore, the concept of scarcity, as it is postulated by mainstream economics,
contradicts the religious teachings that postulate abundance, provisions and creations.
One of God’s names is Al-Qader which means the Power, and accordingly, one of His
attributes is Al-Qudra which means the Powerful. “There is no power But from Allah!”
(Qur’an, 18: 39). The previous verse shows God’s Power in creating and expanding the
resources and provisions. Likewise, He also has the power to restrict them based on His
complete wisdom. “See they not that Allah enlarges the provision and restricts it, to
whomsoever He pleases? Verily in that are Signs for those who believe” (Qur’an, 30: 37).
Furthermore, He also has the power to create lands which are different in terms of
fertility and bearing fruits, despite being similar in shape and in water irrigation:
And in the earth are tracts (diverse though) neighbouring, and gardens of vines and fields
sown with corn, and palm trees - growing out of single roots or otherwise: watered with the
same water, yet some of them We make more excellent than others to eat. Behold, verily in
these things there are signs for those who understand! (Qur’an, 13: 5)
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God is full of knowledge and wisdom. In addition to that, God is watchful and
well-acquainted. Therefore, God enlarges and restricts the provisions to His servants.
He has the full knowledge and wisdom about the behavior of His servants if they are
given the resources abundantly and freely:
If Allah were to enlarge the provision for His servants, they would indeed transgress beyond
all bounds through the earth; but He sends it down in due measure as he pleases, For He is with
His servants Well-acquainted and, Watchful (Qur’an, 42: 27).
If God would expand the provisions and sustenance to people, they would behave
arrogantly and transgresses which would lead to corruption and chaos. As a result, God
only sends the provisions according to what He sees; it is beneficial to the servants based
on His Wisdom. This goes consistently with what is known in the Holy Hadith, which
states the following:
[…] among my servants are those who do not complete their belief except richness so I make
them rich and if I made them poor, it would affect their belief. And among my servants are
those who do not complete their belief except the poverty and if I make them rich, it will affect
their belief (Al-Sabouni, 1981, p. 140).
As a result, when God restricts the provision, He does not intend scarcity for his
creatures. Malthus claimed that: “How can a God who is good, omnipotent and wise will
scarcity for his creatures”. Indeed, God is good, omnipotent and wise, but He never
intends scarcity for His creatures and servants. Nevertheless, He sends the provision in
a quantified proportion for the betterment and benefit of His creatures to work, innovate
and civilize the world. Interestingly, scientific studies showed that abundance might
have negative consequences. As it was mentioned by Tamas (2001), resource abundance
can distract overall policy on the environment, leading to less investment, lower
accumulation of human capital, persistent income inequality, an unsustainable path of
resource usage, lower levels of social capital and “factional” political patterns that erode
institutional capital. Furthermore, Tamas (2001) on (Sachs and Warner, 1995) stated
that abundance of resources might distort innovation and that, in turn, distorts
economic growth due to great dependence on resources. As a result, God does not
provide and send the resources on a lump sum basis, as He has the sources of all the
resources. However, He sends the provisions of the resources based on a quantified and
measured proportion to make human beings work and innovate. “And there is not a
thing but its (sources and) treasures (inexhaustible) are with Us; but We only send down
thereof in due and ascertainable measures” (Qur’an, 15: 21).
The discourse of abundance in the Qur’an implies that God is rich, as He continuously
creates the sources of provisions and resources. Nevertheless, the being of abundance, as
it is stated in Al-Qur’an, does not mean that human beings realize it in absolute sense in
which the resources are realized freely without cost. Nevertheless, the servants of God
will realize absolute abundance in the Hereafter in paradise if they succeed in the divine
test of this worldly life. The divine test of this worldly life requires the belief in God and
the Hereafter. As far as abundance is mentioned in the Qur’an, it implies the belief in
abundance and in the Power of God to expand the provision and restrict it. The
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expansion and restriction of the resources does not depend on weather conditions or
climate changes. It is God who expands and restricts it because He tests the human
being. “And We test you by evil and by good by way of trial. To Us must ye return”
(Al-Qur’an, 21:35).
The Qur’an is classified into two types known as Al-Qur’an Al-Maki and Al-Qur’an
Al-Madani. Al-Qur’an Al-Maki stresses on establishing and strengthening the faith and
belief in God, whereas Al-Qur’an Al-Madani focuses on the establishment and
institutionalization of the divine rules, orders and commands (Al-Sabouni, 1981). The
previous Qur’anic verses are of the Qur’an Maki type, in which it shows God’s
abundance creation in addition to God’s power in providing, expanding and restricting
the resources. In contrast, the divine rules of obligation, recommendation, moderation,
abhorrence and prohibition are the characteristics of Al-Qur’an Al-Madani (Wahbalbari,
2010). For instances, God forbids the believers to follow their excessive human desires
and wants. Instead, He ordered His servant to adapt moderate life style such as moderate
expenditure, neither extravagant nor niggardly. “Those who, when they spend, are not
extravagant and not niggardly, but hold a just (balance) between those (extremes)”
(Qur’an, 25: 67).
Even in Buddhism, human wants can be deflated through the ethical practice of the
Modus Vivendi of Material Simplicity [12], as it enables the people to make their material
resources abundant relative to their wants (Daoud, 2011). Similarly and from the Islamic
perspective, Saleh looks at the concept of scarcity from the dimension of unlimited
wants. According to him, the focus should be directed into analyzing the types of soul
(nafs) and their relation to human wants. In contrast with relative scarcity, Daoud (2010)
demonstrated that relative abundance is the condition in which resources are relatively
abundant to human wants. Interestingly, Haneef has commented on abundance from the
Christian perspective. He has shared his reading about the book of German Genius in
which one part of it highlights the Protestant ethics. In that book, there was a story about
a group of American pilgrims who migrated to America to escape from the persecution
of the Catholic Church in Europe. These groups of people were pious and religious, as
they wanted to reinterpret the Christian teaching through the act of simplicity, and such
simplicity was better manifested through the act of giving charity. Another part of the
Protestant ethics is hard work, as it was considered a crucial part of the being. As a
result, hard work and simple life style will create surplus. However, Haneef questions,
what would they do with the surplus, as he did not find in the book anything that shows
how the surplus would be utilized. According to his discussion with the faculty’s
academicians, the surplus might be channeled and surrendered to the members of the
society.
Relevantly, the implied divine rules that are postulated by Al-Qur’an Al-Madani offer
answers on how the surplus might be utilized. Besides moderation, God orders the
believers to spend for obligatory and recommended charity in various verses in
Al-Qur’an Al-Madani:
Alms are for the poor And the needy, and those employed to administer the (funds): For those
whose hearts Have been recently reconciled (To Truth); for those in bondage And in debt; in
the cause of Allah. And Allah is full of knowledge And wisdom (Qur’an, 9: 60).
Besides the above-mentioned obligatory charity (Zakah), God recommended the
spending on His path to the needy and the poor:
The parable of those who spend their wealth In the way of Allah is that Of a grain of corn: it
groweth Seven ears, and each ear Hath a hundered grain. Allah giveth manifold increase to
whom He pleaseth: And Allah careth for all And He knowth all thing (Qur’an, 2: 261).
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[…] abundance is more on the disposal of extra resources and the disposition depends mainly
on the value system. If the person keeps the extra, his/her behavior will be considered scarce in
that sense while if he/she disposes it to the community in terms of investment or social
contribution, his/her behavior will be considered abundant in that sense. Therefore, as far as
abundance is discussed, it does not refer to the physical sense; rather it refers to the attitudinal
sense on how the person can dispose what is beyond his/her needs.
Convincingly, Al-Qur’an Al-Maki postulates the belief in abundance, whereas Al-Qur’an
Al-Madani stresses on the attitude and behavior (Wahbalbari, 2010). Similarly, upon
breaking the concept of scarcity into two components, we will observe that limited
resources refer to the belief of the niggard nature, whereas unlimited human wants
imply the behavior of maximizing utility and satisfaction. According to Daoud (2010),
Malthus and Robbins tend to postulate that scarcity is natural and universal, but they
ignore the possibility of both the state of abundance and sufficiency. In addition,
Matthaei (1984) considered scarcity as a social product that can be abolished through
social, economic and change process. Such economic and social changing process
requires religious belief and behavior. The ethics of economic simplicity is not enough to
motivate individuals to make their resources relatively abundant to their wants.
Moderating or deflating (the extreme) human wants require the belief in God and His
power to create abundance, provide resources and send provisions to human being.
5.3 Scarcity! Is it relevant to Islamic economics
In the mainstream economics, the concept of scarcity is inevitable, and it acts as the
central concept in mainstream economics. According to Al-Junaid, scarcity is not a
central concept in the discourse of Islamic economics. He narrates:
We don‘t start with scarcity in the first lecture. We start with the explanation of who we are,
what we want in this life and how can we go about achieving what we want in the life through
exercising the best choices. I don’t think we should start with the premise that we have
unlimited wants.” The focus is more on the world view, goals, nature of man and the nature of
his relationship with God.
Similarly, Omer and Meera shared the same views as Al-junaid on the position of
scarcity in Islamic economics. According to them, Islamic economics is much bigger
than scarcity. The entire economy is a means to achieve success in this world and in the
Hereafter. Islamic economics is not driven by scarcity; it is driven by values that
overcome the so-called scarcity. In the first lecture of Islamic economics course, Omer
does not talk about scarcity; rather, he introduces the concept of Islam, faith, man’s
perception toward God’s resources, world view, how the person looks at himself, his aim
in life and his position as a vicegerent of God on earth. In his attempt to define Islamic
economics, Omer defines Islamic economics as the study of man’s behavior in relation to
his economic activities toward achieving success in this world and in the Hereafter and
that success is interpreted by his/her religion.
At the same context, Haneef does not approach his students in the first lecture with
the discussion of limited resources versus unlimited human wants. According to him, as
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far as Islamic economics is concerned, it looks at scarcity differently from conventional
economics. According to him:
[…] the focus is more on the fact that a person needs to make the best choices based on the
guidelines of Islam. The focus is not so much on limited resources versus unlimited human
wants but on the need to make good choices. The Islamic worldview and its discussion are
considered the central theme in Islamic economics.
Finally, Saleh discusses several principles in the discourse of Islamic economics.
According to him:
[…] the primary principle in Islamic economics stems from the Islamic world view and
philosophy. The timeline of human life has started before this worldly life in what is known as
Alam Al-Azal. In that world, all human beings had attributed to the Lordship of Allah on them.
Therefore, human beings should implement their contract with their Lord in order to gain the
pleasure of Allah SWT in the hereafter.
To summarize and conclude, mainstream economics define economics on the basis of
scarcity. Consequently, many Islamic economists are influenced by the scarcity
definition and tend to consider scarcity as the central concept in Islamic economics.
Nevertheless, the lack of proper philosophical and methodological stand in approaching
the study of Islamic economics causes ambiguity in the adopted views, approaches and
methods among Islamic economists. As a result, the concept of scarcity acts as one of the
unresolved issues in Islamic economics. Ideologically, the concept of scarcity appears
and tends to be non-religious-compliant concept, as it does not have a reference in
Al-Qur’an. Scarcity can act as a phenomenon in economic activities but not as the
defining concept in Islamic economics. The interviews with the five experts in Islamic
economics have shown that they are sharing the same perspective toward scarcity and
abundance. According to them, scarcity is relative to the individual interpretation of
looking at things, in which the interpretation is based on the value system. Know-how
knowledge and technology advancement promote abundance creation. As far as
abundance is concerned, it is more on the state of belief, thinking and behavior that
promote disposition and spending that enhances the process of social provisioning. The
scarcity postulate of limited resources in relation to unlimited human wants goes
against the worldview of Islam. Scarcity is a phenomenon, but it is not an issue in
Islamic economics, as the focus is more on how to make best choices to achieve success
in this life and the Hereafter. Finally, the concept of scarcity, as it is postulated by
mainstream economics, tends to clash with the Islamic worldview, as it does not have
any reference in Islam, and therefore, it should not define Islamic economics.
6. Toward a Qur’anic model of scarcity and abundance
The previous section highlighted the power of God in creating and providing the
resources and provisions in absolute abundance. Nevertheless, God tests human being
through expanding and restricting the resources to them. The outcome of such
expansion and restriction of resources make individual and society to form the
perception of either scarcity or abundance. Whether the perception on the resources
reflects scarcity or abundance, the given resources are considered available. In addition,
God imputes needs and wants on human being. Needs are considered biological, as
humans need to eat, drink and shelter to fulfill the condition of their being. Nonetheless,
wants by nature are unlimited but can be regulated. Given the capacity of human beings
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to regulate their wants, God tests them to curtail and moderate their desires and
expenditure, respectively.
In Figure 1, two scenarios will be presented. The first scenario demonstrates human
wants to be unregulated and unlimited. In such scenario, whether the available
resources are abundant or scarce, the resources are considered not enough to satisfy the
unlimited human wants. This scenario creates scarcity thinking, as there is not enough to
go around. Scarcity thinking means that people believe in scarcity, and that they
evaluate their life in terms of what it lacks. With scarcity thinking, the focus is on what
a person does not have, and this continues to be his or her experience of life. With
scarcity thinking, people tend to consume more than what they need and to become
protective of what they have. If the object is believed to be scarce, it will be valued, kept,
hoarded, sought and consumed. With scarcity thinking, no matter how much a person
has, it is never enough, even if he/she has it in abundance (Johnson, 2005; Thomas, 2007).
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Figure 1.
Toward a Qur’anic
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Convincingly, a number of research in social psychology have found that people tend to
desire scarce commodities more than comparable available commodities because the
acquisition of scarce commodities reveals feelings of personal uniqueness (Brock, 1968).
Similarly, Cialdini (2001) has found that perceived scarcity has an effect on human
judgment, as items and opportunities become more desirable to people as they become
scarce. As a result, scarcity has the tendency to create a sense of urgency among buyers
that stimulate an increase in the quantities purchased, shorter searches and greater
satisfaction with the purchased products (Aggarwal et al., 2011). Regardless of whether
the resources are scarce or abundant, if the resources are believed to be scarce, this will
enhance the human wants to be unlimited. Consequently, relative scarcity will prevail
because of the unlimited human wants.
In contrast, the second scenario reflects on the obedience of Muslims to God’s order of
moderation. As a result, the available resources fulfill the moderated and regulated
human wants, and as a consequence, relative abundance prevails as a product of
obedience to God’s orders and commands. Relative abundance creates abundance
thinking, in which abundance thinking means that there is more than enough to go
around. According to Covey (1989, p. 220) abundance mentality means that “there is
plenty out there and enough to spare for everybody”. Moreover, according to Solomon
(2007), abundance mentality gives birth to the co-operative mindset that inspires our
blended, extended family members to work together. Furthermore, Johnson (2005)
postulates a philosophy of shared abundance that teaches that a world of giving is a
world of receiving; a key principle of shared abundance is that all resources are available
to all, and the more you give, the more you will receive; and the more you share, the more
you will receive. Therefore, obedience to God’s order of moderation realizes
relative abundance. Relative abundance stimulates abundance thinking, in which
abundance thinking promotes cooperation. Cooperation appears in the form of sharing,
caring, donating and spending charity for the poor and needy. Several verses in the
Qur’an obligate and recommend spending charity and donation for the poor and needy.
Besides charity and donation for the poor and needy, heterodox economics presents
an alternative form of surplus utilization. From their perspective, relative abundance
creates surplus and that surplus plays a vital role in enhancing the process of social
provisioning. Heterodox economics view economics as nothing but a historical science
of the social provisioning process. It inquires the factors that are part of the process of
social provisioning. The structure and use of resources and the structure and change of
social wants are among the factors that are inquired by heterodox economics.
Consequently, the resulted abundance creates a surplus to be used for social
provisioning, that is for consumption, private investment, government usage and
exports (Lee, 2011). Therefore, relative abundance with abundance thinking promotes
cooperation through sharing the realized surplus out of the moderated human wants in
relation to the available resources.
7. Discussion
This paper discussed the concept of scarcity from the perspective of Islamic economics.
Apparently, mainstream economics define economics on the basis of scarcity. However
and so far, there is no clear stand among Islamic economists toward the position of
scarcity. Many Islamic economists have been influenced by the scarcity definition and
tend to consider scarcity as the central concept in Islamic economics. Nevertheless, the
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lack of proper philosophical and methodological stand in approaching the study of
Islamic economics causes ambiguity in the adopted views, approaches and methods
among Islamic economists. As a result, the concept of scarcity acts as one of the
unresolved issues in Islamic economics. In contrast to mainstream economics,
Heterodox economists consider the objects of study of mainstream economics, such as
preferences utility, marginal products, demand curves, rationality, relative scarcity and
homogeneous agents, are ill-defined and have no real-world existence (Lee, 2011).
Despite the huge gap between mainstream economics and heterodox economics, still
both of them are secular and inspired by the capitalist economic system. Nevertheless,
they are far enough in their approaches and methods of studying economics. Such
divergence in the methods and approaches could be attributed to the differences in their
philosophical foundation, in which mainstream adapts positivism, whereas heterodox
economics adapt realism and critical realism.
This paper integrates basic views from critical realism and transcendental
idealism in discussing the concept of scarcity from the Islamic perspective. Critical
realism claims that an entity can exist independently of our identification of it.
Saying that an entity can exist independently of its identification implies it can exist
without someone observing, knowing and constructing it (Fleetwood, 2005).
Furthermore, critical realism prioritizes and emphasizes ontology over
epistemology (Fleetwood, 1999). According to Lawson (2012), mainstream
economics often commits the error of the epistemic fallacy. Epistemic fallacy means
that the statement about ontology can always be reduced to the statement of
epistemology. As a result, Robbins (1945) who advocates the concept of scarcity
committed the error of epistemic fallacy by claiming and asserting the nature to be
niggardly:
Here we are, sentient creatures with bundles of desires and aspirations, with masses of
instinctive tendencies all urging us in different ways to action. But the time in which these
tendencies can be expressed is limited. The external world does not offer full opportunities for
their complete achievement. Life is short. Nature is niggardly. Our fellows have other
objectives. Yet we can use our lives for doing different things, our materials and the services of
others for achieving different objectives Robbins (1945, p. 13).
Analyzing the above-mentioned statement critically, Robbins tends to reduce the
state of being (ontology) into the state of sensible observation (epistemology)
through describing nature as niggardly. Therefore, Robbins has committed the
error of the epistemic fallacy by reducing the being of nature into his sensible
observation, which he saw it as niggardly. However, critical realism claims that
access from an entity to our mind is always mediated. Whenever we reflect upon an
entity (or a state of affairs), our sense data are always mediated by a pre-existing
stock of conceptual resources, which we use to interpret, make sense of and
understand what it is and take appropriate action (Fleetwood, 2005). Therefore, the
attribution of niggardliness to nature is nothing but Robbins’ idea about nature, in
which such idea might be influenced by his pre-existing stock of conceptual and
discursive knowledge. As a result, Robbins’ scarcity is derived from his proposition
that claim nature to be niggardly. As a consequence, mainstream economics
considers Robbins’ scarcity as a universal condition for the science of economics to
exist.
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Nonetheless, critical realism distinguishes between the existence of an entity and our
identification of it. Consequently, nature acts as an entity which exists independently
from our sensible observation to identify, observe or construct it. Incorporating the
Islamic perspective, several verses in Al-Qur’an describe nature as abundant
(Al-Qur’an, Ibrahim: 32-34). The ontological orientation of abundance in nature does not
necessarily implicate explicit (apparent) abundance. Rather, abundance could be
implicitly imputed in nature. Such claim that we make derive its root from the concept of
the seen and unseen world. In his explanation of the Islamic worldview of the seen and
the unseen world, Al-Attas (2003) interprets the following Qur’anic verse. “So I do call to
witness what ye see, And what ye see not” (Qur’an, 69: 38-39). According to him, in
Islam, the worldview is not merely the mind’s view of the physical world and of man’s
historical, social, political and cultural involvement. However, the Islamic worldview of
the universe which, according to him, is not based upon philosophical speculation
formulated mainly from observation of the data of sensible experience and of what is
visible to the eye; nor is it restricted to universe, which is the world of sensible
experience, the world of created things. Consequently and according to Wahbalbari
(2010), Robbins falls into the error of imputing scarcity and niggardliness to nature
because he depends only on the seen world and excludes the unseen world from his
conceptual framework.
Similar to the notion of the seen and unseen perspective, Immanuel Kant in his
postulation of transcendental idealism has distinguished between things and their
appearances. According to him, human beings experience only appearances, not
things in themselves. Meaning that a thing in itself is a noumena, whereas
appearance acts as a phenomenon (Rohlf, 2010). In Kant’s demonstration, the
phenomenal world is the world as it appears to us through our senses, whereas the
noumenal world is the way that the world is in itself when no one is looking at it. The
distinction between the phenomena (appearance of things) and noumena (things in
themselves) might reconcile the conflicting opinion among Islamic economists
toward the concept of scarcity. As it was mentioned in Section 2, Islamic economists
diverge in their opinion toward the concept of scarcity, in which a group of them
accept scarcity in its relative sense, whereas others deny it. Those who deny
scarcity, they deny it on the basis of the numerous verses in Al-Qur’an that postulate
abundance, in which scarcity, according to them, is attributed to the excessive
unlimited human wants and greed. In contrast, there is another group that does
recognize scarcity in relative term due to lack of human’s knowledge, skill and time
limitation.
Nevertheless, the above-mentioned diverging opinions can be reconciled if the
resources are viewed from noumenal and phenomenal perspectives. From the
perspective of the noumena, God has created the resources in abundance, despite that
our senses do not possess the capability to sensory abundance in the resources. The
evidence of noumena can be cited from Surah Isra “The seven heavens and the earth,
and all beings therein, declare His glory: there is not a thing but celebrates His praise;
And yet ye understand not how they declare His glory!” (Al-Qur’an, 17: 44). This verse
indicates that everything (including heavens, earths, animals, plants and so on) praises
to God, but we (human being) do not have the capability to hear and make sense of their
praise.
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In contrast and from the perspective of phenomena, resources might appear to be
either in restricted or expanded form, depending on the nature of the divine test. The
following verse demonstrates that kind of test. “See they not that Allah enlarges the
provision and restricts it, to whomsoever He pleases? Verily in that are Signs for those
who believe” (Qur’an, ar-Rum: 37). As a result, those groups of Islamic economists who
deny scarcity view the resources from a noumenal perspective, in which God has created
everything in abundance, but we do not see and realize them. In the contrary, those who
accept relative scarcity view the resources from the phenomenal perspective, despite
that they believe in God’s creation of abundant resources.
In Islamic economics, the resources should be viewed from the noumenal perspective
and the phenomenal perspective. The noumenal perspective explains the ontological
orientation of the resources, which is abundant and unseen because it is beyond the
senses and rational of human being to realize it, whereas the phenomenal perspective
explains the appearance of the resources to the senses of human being either in surplus
or shortage forms. Therefore, scarcity and abundance are social products that are
constructed by human beings. Such construction of scarcity and abundance are nothing
but phenomena that appear to human being through their senses and they do not reflect
the reality of the resources in themselves.
To conclude, the concept of scarcity, as it is postulated by mainstream economics,
tends to clash with the Islamic worldview, as it does not have any reference in Islam.
Scarcity can act as a phenomenon in economic activities but not as the defining concept
in Islamic economics. The perspectives of noumena and phenomena can reconcile the
diverging opinions among Islamic economists. Those Islamic economists who advocate
some sort of scarcity look at the resources from the phenomenal perspective, whereas
those who deny scarcity look at the resources from the noumenal perspective. Therefore,
the conflicting opinions among Islamic economists will disappear if they look at the
resources from the noumenal and phenomenal perspectives. Finally, this paper suggests
more research on situating philosophical and methodological discourse such as critical
realism and transcendental idealism into Islamic economics. Adapting an alternative
philosophical and methodological foundation in Islamic economics might help Islamic
economists to develop a common ground in the methods and approaches that formulate
the discipline of Islamic economics.
Notes
1. For further explanation on the concept of material wealth and welfare, refer to Kirzner (1976).
2. This is Robbins’ definition which has become the standard definition of the science of
economics.
3. Fuqaha is an Arabic word which refers to Islamic Jurists.
4. The neutral definitions of Islamic economics are not limited to the three scholars mentioned.
However, there are many who take the same position, and for further reading, see Aslinah,
2003 for more discussion on the definitions of Islamic economics.
5. According to Rosly (2005), Tabi’ means natural. It is a universal value that can be used by all
people irrespective of their faith and belief.
6. The commentary is cited from Al-Sabouni, Muhammad Ali. Safwat Al-Tafasir: Tafsir
Al-Qur’an Al-Karim. Bairut: Dar Al-Qur’an Al-Karim, 1981, and it will be used whenever
commentary is mentioned.
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7. Professor Dr Syed Abdul Hamid Aljunid is currently the Head of Economics and Governance
Department at the International Centre for Education in Islamic Finance. His area of academic
interest includes economic thoughts, ethics and economics, business ethics, corporate
governance, leadership and values.
8. Professor Dr Muhammad Syukri Saleh is the Founding Director of Centre for Islamic
Development Management Studies (ISDEV), School of Social Sciences, Universiti Sains
Malaysia. His areas of academic interests are Islamic development management, Islamic
political economy, Islamic revivalism, development studies and rural development. He has
published several books both in English and Malay language. Among them are Philosophy of
Islamic Development’s Knowledge, Islamic-Centered Development and the Concept and
Implementation of Islamic Development.
9. Professor Dr Mohamed Aslam Haneef is currently Professor at the Department of Economics,
International Islamic University Malaysia. He teaches economics and Islamic economics. He
was a Fulbright Visiting Scholar at the Center for Muslim-Christian Understanding,
Georgetown University, USA, from September to October 1996, and held a Commonwealth
Fellowship at the Oxford Centre for Islamic Studies (1999-2000). He has published books and
articles and conducted research in various areas of economics and development studies
specializing in Islamic economics and contemporary development issues.
10. Dr Ahamed Kameel Mydin Meera is a Professor in the Faculty of Economics and
Management Sciences, International Islamic University Malaysia. He is currently the Dean of
the Institute of Islamic Banking & Finance, International Islamic University Malaysia. His
areas of interest and expertise include financial markets, investment analysis,
macro-economics, economics of social issues and quantitative methods. He has wide
experience in teaching, training, consultancy and research in the above areas. His works have
been published in local and international journals. His current research interest is in money
systems that includes the gold dinar. He is the author of the books The Islamic Gold Dinar and
The Theft of Nations.
11. Dr Mustafa Omer is currently an Assistant Professor at the Department of Economics,
International Islamic University Malaysia. Among the courses that he teaches are foundation
of Islamic economics, economics of Qur’an and Islamic banking and finance.
12. For further discussion on Modus, see Daoud (2011).
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About the authors
Amir Wahbalbari is a Research Fellow and a Doctoral Candidate at the School of Social Sciences,
Universiti Sains Malaysia (University of Science Malaysia). He holds a master’s degree of Science
in Finance (2009) and a Bachelor of Economics (2006) from International Islamic University
Malaysia. He reads Islamic economics, heterodox economics, social psychology and philosophy of
economics. He writes several papers on the concept of scarcity and from various dimensions of
mainstream economics, heterodox economics, social psychology and Islamic economics. His
Master’s Dissertation was entitled “The Concept of Scarcity and its Implication on Human
Behaviour: Searching the Quranic Perspective” under the supervision of Professor Mohamed
Aslam Haneef, in which part of it was published later on in the Review of Islamic Economics. He is
a member of Association of Heterodox Economics. Currently, he is finalizing and concluding his
PhD thesis, “Scarcity Thinking and Human Wants among Muslims. Amir Wahbalbari is the
corresponding author and can be contacted at: [email protected]
Dr Zakaria Bahari is currently a Senior Lecturer at Economics Section and Islamic
Development Management, School of Social Sciences, Universiti Sains Malaysia (University of
Science Malaysia). He holds a PhD (Economics) and Master’s of Economics from the Faculty of
Economics, Universiti Kebangsaan Malaysia (National University of Malaysia) and Bachelor’s of
Development Economics from Universitas Hasanuddin, Republic of Indonesia. He teaches Islamic
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economics, development economics and bank and finance at the undergraduate level and financial
economics and Islamic asset management at the graduate level. Currently, he is a Deputy Director,
Centre for Islamic Development Management, Universiti Sains Malaysia (University of Science
Malaysia). Currently, he is engaged in a research project related to Awqaf instrument and social
corporate responsibility. He was an Associate Research Fellow at Sport Research Institute of
Ministry of Sport and Culture, Malaysia. He has edited books and has published chapters in books
and journals.
Norzarina Mohd-Zaharim is a Senior Lecturer at the School of Social Sciences, Universiti Sains
Malaysia(University of Science Malaysia) in Penang, Malaysia. She holds a PhD in psychology
from the National University of Singapore (2007), an MA in social sciences from the University of
Chicago (1997) and a BA in psychology and Near Eastern languages and civilizations from the
University of Chicago (1996). She teaches developmental psychology and counseling and
conducts research on child development, family dynamics, resilience, stress and coping,
psychology of religion and participation in higher education. She is a member of American
Psychological Association (and its Division 7: Developmental Psychology), Association
for Psychological Science, Asian Association of Social Psychology, European Association
for Developmental Psychology, International Association for Cross-Cultural Psychology and
International Association for Relationship Research. She also serves on the Editorial Boards of
Kajian Malaysia (Malaysia) and Frontiers in Educational Psychology (Switzerland).
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