Isn’t economics a universal science that applies to all human societies regardless of their beliefs and values?

No, economics is not a value-free science. It is based on certain assumptions and worldviews that reflect the values and preferences of the dominant culture or civilization. For example, mainstream economics assumes that human beings are rational, self-interested, and utility-maximizing agents who operate in a competitive market with perfect information and no externalities. These assumptions are not universally valid or desirable. They ignore the moral, social, and spiritual dimensions of human behavior and the role of institutions, culture, and religion in shaping economic outcomes.

But these are simplifying assumptions that help us to analyze complex phenomena and make predictions. They are not meant to be realistic or normative. But they do have normative implications. They imply that the market mechanism is the best way to allocate resources and that any intervention by the state or society is inefficient and undesirable. They also imply that economic growth is the ultimate goal of human endeavor and that material well-being is the only measure of success and happiness. These implications are not compatible with the Islamic worldview, which emphasizes the balance between the material and the spiritual, the individual and the collective, and the rights and responsibilities of human beings.

Islamic economics is based on the worldview of Islam, which is derived from the Quran and the Sunnah of Prophet Muhammad (peace be upon him). Islam provides a comprehensive guidance for human life in all its aspects, including economic affairs. Islam recognizes the diversity and complexity of human nature and behavior and does not reduce them to a single dimension or motive. Islam also acknowledges the interdependence and interrelatedness of all aspects of human life and does not isolate them from each other. Islam also affirms the sovereignty and benevolence of God as the Creator and Sustainer of all existence and does not attribute ultimate authority or power to any human being or institution.

Islamic economics derives its principles and policies from the objectives (maqasid) of Islamic law (sharia), which are to promote human well-being in this world and the hereafter by ensuring justice, equity, welfare, harmony, and sustainability. Some of these principles are:

The prohibition of riba (interest), gharar (uncertainty), maysir (gambling), and other forms of exploitation and injustice in economic transactions.

The promotion of zakat (obligatory charity), sadaqah (voluntary charity), waqf (endowment), qard hasan (benevolent loan), and other forms of social solidarity and redistribution of wealth.

The recognition of private property rights as well as public goods and common resources that belong to all.

The encouragement of productive work, entrepreneurship, innovation, trade, cooperation, and competition as means of earning lawful income and contributing to social welfare.

The respect for environmental resources as a trust from God that should be used wisely and not wasted or abused.

The moderation in consumption, saving, investment, and expenditure as a way of avoiding extravagance or miserliness.

The accountability before God for all economic actions and decisions as well as their consequences.

These principles are not impractical or unrealistic. They are based on sound economic reasoning as well as moral values. They have been implemented in various degrees and forms throughout Islamic history by different Muslim communities and states. They can also be implemented today by reforming the existing economic institutions and policies in accordance with Islamic norms and values.

For example,

To eliminate interest from the financial system, we can replace conventional banks with Islamic banks that operate on the basis of profit-and-loss sharing, fee-based services, asset-backed financing, etc.

To curb speculation and uncertainty in the markets, we can regulate derivatives, futures, options, etc., by linking them to real assets or activities and ensuring transparency and fairness in their contracts.

To reduce consumerism and wastefulness in consumption, we can encourage ethical consumption that is based on need rather than greed, quality rather than quantity, durability rather than disposability, etc.

To address inequality and poverty in society, we can enforce zakat and other forms of taxation and redistribution that ensure a minimum standard of living for all and prevent the concentration of wealth in few hands.

To protect the environment and natural resources, we can implement the principles of conservation, stewardship, and accountability that ensure the optimal and sustainable use of resources for the benefit of present and future generations.

These reforms are not radical or disruptive. They are gradual and evolutionary. They do not aim to overthrow or replace the existing economic system, but to reform and improve it. They do not require the imposition or coercion of any authority or institution, but the persuasion and education of the economic actors and institutions. They do not rely on the external or formal enforcement of rules and regulations, but on the internal or informal compliance with norms and values.

How can you ensure such compliance without enforcement?

By fostering a culture of Islamic economics that is based on knowledge, awareness, commitment, and participation. By educating the economic actors and institutions about the rationale, benefits, and challenges of Islamic economics. By raising their consciousness and conscience about their roles and responsibilities as economic agents in Islam. By involving them in the process of designing, implementing, and evaluating Islamic economic policies and programs. By creating incentives and disincentives that encourage good behavior and discourage bad behavior. By developing institutions and mechanisms that monitor, audit, and report on the performance and impact of Islamic economics.

 I think it is both possible and desirable. It is possible because there is a growing demand and supply for Islamic economics in many parts of the world, especially among Muslims who are dissatisfied with the conventional economic system and its outcomes. It is desirable because it offers a viable alternative that is more compatible with the Islamic worldview and values and more conducive to human well-being in this world and the hereafter.