A Comparison of Islamic Economics and the Sufficiency Economy Philosophy Asst. Prof. Saran Sarntisart, Ph.D. 1 www.sudsesc.nida.ac.th
Motivation • Continuous growth but vulnerable and increased inequality • Alternative economics: Islamic Economics and the Sufficiency Economy Philosophy • Sustainable development in Muslim communities 2 www.sudsesc.nida.ac.th
Islamic Worldview ISLAM Practice & Faith & Belief Moralities & Ethics Activities (Aqidah) (Akhlaq)) (Shariah) Man to God Man to Man Relationship Relationship (Ibadah) (Muamalat) Political Activities Economic Activities Social Activities 3 www.sudsesc.nida.ac.th
Sources of Islamic Economics • Quran • Hadith • Sunnah 4 www.sudsesc.nida.ac.th
Theory of Islamic Economics • Economic well-being and morality • Universal brotherhood • Justice: social and economic • Prohibition of taking interest • Zakat • Ownership • Economic freedom within reason 5 www.sudsesc.nida.ac.th
Islamic VS Conventional Economics • Limited resources but unlimited needs? • The role of ethical and moral values • The Afterlife • Rational economic man • Pareto optimum 6 www.sudsesc.nida.ac.th
The Theoretical Model • Present life and Afterlife utility • Income, time, and religious constraint • Halal, Haram, and Zakat + 𝐹 { 𝑉 𝑏 𝐵 ( 𝑑 𝑏 , 𝑢 𝑏 ) } 𝑑 𝑞 , 𝑑 𝑏 , 𝑢 𝑞 , 𝑢 𝑏 𝑉 𝑞 ( 𝑑 𝑞 , 𝑢 𝑞 , 𝐵 𝑑 𝑏 , 𝑢 𝑏 Max ) (1 + 𝑠 ) 𝑚 s.t. 𝑑 𝑞 + 𝑑 𝑏 = 𝑍 and 𝑢 𝑞 + 𝑢 𝑏 = 𝑈 7 www.sudsesc.nida.ac.th
Sufficiency Economy Philosophy Source: Action for Climate Thailand 8 www.sudsesc.nida.ac.th
The Comparison • Economic freedom • Regulated behavior • Source • Values • Knowledge • Consumption • Application 9 www.sudsesc.nida.ac.th
Guidelines for Muslim Communities • The promotion of values • Islamic finance for financial inclusion and SMEs • Haram consumption, health issues, and government burden • The environment • The dissemination of knowledge and the catalyst for change 10 www.sudsesc.nida.ac.th
ou Th Thank Y You 11 www.sudsesc.nida.ac.th
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