 They recording, share the link, yes sir, taking live sir, alright, okay, this is for me to start off, Bismillahirrahmanirrahim, Assalamualaikum warahmatullahi wabarakatuh, abis orisatri wa yasili amri, Assalamualaikum, thank you everyone, first of all, praise to Allah, the most merciful, the most gracious, and let's send peace be upon our prophet Rasulullah sallallahu alayhi wa sallam. Second, I would like to welcome, I'll put this thing with participant here, welcome brother and sister to the first lecture in this series of new approach to Islamic economics. So Alhamdulillah, we have our professor here joining with us, and this is the first lecture that actually represent and based on the professor's new book that was launched last year with the title Islamic economics, Polar Opposite of Capitalist Economics. So this program is hosted in collaboration of the Gozali Project Indonesia in collaboration with Alnafi Education Platforms. So, before I hand over the platform to professor, I would like to have a glance introduction, but him, and of course most of the already familiar with him, he graduated from a bachelor's statistic and MIT and master in statistics from Stanford University and PhD in economics from Stanford, was the first consultant area from Pakistan Institute of Development Economics. So, as I mentioned that this program is actually part of the Gozali Project and the program that would like to explore how to learn and to implement Islamic economics within your approach. I would like to share a little bit on my journey about the Gozali Project and also a little bit about what is the Gozali Project before I hand over the platform to professor. So, actually, the Gozali Project was initiated by Professor, and my journey to Gozali Project was start when I attend professor's lecture on how to launch an Islamic revival in 2021. And for me this lecture was really insightful and mind-blowing and enable me to self-reflect on how my view was and enable me to get inside about the current problem of the OMA today and the relevance of the IMAMA Gozali approach to our issue today. So, the lecture we recommend for you to be also obtained for you who have not watched the nine-hour lectures. I recommend that I recommend you to just to watch the lecture and also this really help us to identify the useful and the useful knowledge and to acknowledge the most important thing is to acknowledge the superiority of the grind. So, I hope that more people can get inside and benefit so that time I remember I asked permission from professor whether it's possible to disseminate his word to Bahasa. I'm from Indonesia and I'm based in Jakarta and I hope that more Indonesian people can also read professor's work. So, that time I asked whether it's possible to translate the word and Alhamdulillah, we launched the Gozali Project chapter Indonesia in October 2021. This year we would like to translate professor's book as well so that later on can be disseminate to Indonesia, we have more than 800 program in Islamic economics. So, hopefully brother and sister who joining this lecture currently can also join and can also initiate the chapter in your country. It is really a good opportunity for us to get involved in this project and also to be a part of the Islamic revivals and in the development of Islamic economics, inshallah. So, that's my own experience and I hope most of you who currently attend this lecture can also start to initiate the Gozali Project chapter in your country. Okay, so later on today we would like to have a first lecture with the title preditude containment and tracing code or in Arabic we name it Sukur, Konaak, and Tawakul. So actually, as we know as introduction, as we know that the teaching of Islamic economics are radically different from those that we got in our education from its capitalist perspective. But actually, in reality it dominates the world today. So, today we would like to learn how this gratitude containment and tracing code can be implemented in Islamic economics teaching. So, without a bad review, I will hand over the platform to our professor. Please Prof, you can start the lecture. Okay, thank you, salamualaikum everybody, and thank you Lisa for your introduction. I hope that everybody can speak, can hear me clearly. We are going to start. I'm going to share my screen and seem to be working very well. Let me try the Chrome tab. Prof, excuse me, you are still in mute. Okay. Yes, now we can hear you. Okay, so. Bismillahirrahmanirrahim, assalamualaikum warahmatullahi wabarakatuh. We start by making a sincere intention towards Allah that all our life, our living and dying should be for the sake of Allah Subhanahu Wa Ta'ala. And that we should love Allah Ta'ala and fear him as he deserves and not love anyone else or fear anyone else in a comparable way. We ask Allah Ta'ala for guidance before we start this study. So we are going to present a new approach to Islamic economics because mostly in the past Islamic economics has been thought of as a for the past 50 years as a mixture of capitalist economics and Islamic teachings. And this effort has failed because we cannot mix opposites. So, before I start the lecture, there will be one live lecture every month on the first Sundays. Same time, same zoolik. Additional materials will be sent on a weekly basis to the members of the mailing list. These will be recorded lectures or writings. And there's also course materials will be made available on the Al-Nafi portal via online course, which is freely available. So we start with. Bismillahirrahmanirrahim, Allah Ta'ala says to us. Or which of the favors of Allah Ta'ala will be deny. So the first item in this lecture is to develop the feeling of shukr for Allah to understand the blessings of Allah and to be thankful to Allah for them. Allah Ta'ala says. So, one of the elders has said that most of the Amal we do, the rewards are promised for the Akhir in the Jannah. But this shukr is one Amal for which the reward is promised in this dunya. I will increase you in favor. That is, if we give shukr to Allah, He will increase our blessings in this world. We will see the results of our shukr already in this world. So this is the secret for success in this life. To be thankful to Allah for whatever we have been given. Allah Ta'ala says that. We count the blessings of Allah. We can never count them. But this doesn't mean that we should not count. Actually, this means that we should count with the understanding that we cannot ever complete this count. So when we wake up in the morning, we should be thankful to Allah for giving us life after a miniature death. And we should resolve to make use of this day in the best possible way. Because we should think that this may be the last day which is given to us. And we should be grateful for health, security, clear mind. For the security of food and for the time we have been given. And for energy and for all of the blessings that we have. At the same time knowing that we cannot count these blessings. Our Prophet Muhammad SAW is the perfect example for us in all dimensions. So there is a hadith that the Prophet SAW would pray all night until his feet were swollen. So it was said to him that, why do you do this when Allah Ta'ala has forgiven all your past and your future sins? So the Prophet SAW said that, shall I not be a grateful servant? So we should worship Allah Ta'ala with the feeling of gratitude that this opportunity has been given to us. As a personal example from my own life, I used to feel very lazy in getting up for Fajr Salat. And then I remembered a verse from Iqbal which says that Hamsikab pyar haineen tumhe pyari haidhar. You do not love me, Allah Ta'ala is addressing us. But you love the comfort of your sleep which has been given to you by Allah. So when I would recite this verse it would motivate me that how what kind of a man am I that I am being in grateful to my Allah for the little command that he has given me when he has given me such huge favors. So there is a hadith which says that if you adopt these two habits you will be counted among the people who are grateful. And the two habits are that in worldly affairs look to those who have less than you and give thanks for all that you have. And in matters of the deen, look to those who have more than you and seek to follow them. If you do that Allah Ta'ala will count you among those who are thankful and also those who are content with what they have been given, those who have sabr. In another hadith, the Prophet SAW told us that we should be grateful for the small things because whoever is not grateful for the little things will not be grateful for the large things. And whoever does not thank the people for the favors they do to him has not thanked Allah Ta'ala. So every day we should be thankful that we have been given this additional opportunity to buy jannah with good deeds. And one must remember that success lies today. We are used to thinking that oh, I will make a long-term plan and when I graduate and then I have a career and then I have a house, this will be success. This is a very false idea. Success we can achieve today if we do the things that Allah Ta'ala wants us to do and we also fail today if we fail to do. So at the end of the day, the record book for the deeds of that day will be closed. And if we have managed to get good things written onto this day, then we have succeeded. And if we have not, then we have failed. Ingratitude, lack of shukr comes from excess. And Allah Ta'ala has given us number of verses that if Allah Ta'ala gives lots of things to the people, they become rebellious. And this is especially the example of the Qarun who has given so many treasures that his servants had to carry them, the keys to them. And he swelled up with pride. And when asked to give zakat, he said that no, I'm entitled to this because I have earned it due to my own knowledge. So this is the lack of gratitude to Allah Ta'ala which we must avoid. And especially if we have been given many blessings, we are prone to fall into neglect because we are so comfortable. And so we must fight this tendency. Allah Ta'ala has also said that do not covet what Allah Ta'ala has given to others more than you. Why we feel if somebody has a bigger house or a bigger job or a bigger title or more money, we feel jealous. This comes from a feeling of deserving that I deserve more. And if you think of yourself as the worst person on the planet, then you will not have kibir. And then you will say that whatever I have been given is more than what I deserve. And if you see somebody who has, who is in the worst condition, you should make dua to Allah Ta'ala that Allah, thank to Allah Ta'ala that Allah Ta'ala has protected you from that even though you deserved worse than that. And if you somebody better off than that, then you should make dua to Allah Ta'ala that Allah Ta'ala make this trial easy for him or her, because access wealth is a difficult trial from Allah Ta'ala. So Allah Ta'ala says in the Holy Quran So Allah Ta'ala says both of these things that if you give a lot of wealth to somebody this is a trial. And people forget and think that Allah Ta'ala has honored me actually having more than what you need is not an honor from Allah Ta'ala. It is a trial. And if you succeed in that trial, this is a great blessing to have access wealth. And if you fail, it is harmful for you. Similarly, having less than what you need is also a trial. It is not a sign that Allah Ta'ala doesn't like you. And people misunderstand this. So the second attitude that we must learn to cultivate is contentment. Abu Huraira narrates that true wealth is not having material, it is the contentment of the heart. So there is a deep strategy for learning how to be content with what you have. And that is that to understand that success lies in obeying the orders of Allah, not in achieving, not in having materials or having titles or having jobs or having wife and children. None of these worldly possessions is success. Success is only in obeying the orders of Allah in the situation that you are. Today we have a lifetime of training which teaches us to think in the opposite way. Only if you have a degree, only if you have a job, only if you are married, only if you have large amount of wealth these are the criteria for success and so we have to work for 5 years or 10 years or 20 years to achieve those states. And then we can be successful. This is a complete illusion and this leads to discontent. We are not happy with what we have because we want more and this leads to lack of gratitude towards Allah. So whatever the external circumstances are, those are the best for us. Allah has put us in these for our benefit and we have to appreciate what we have been given and we have to understand the test that we have been placed in and we have to learn to take the action which will bring us closer to Allah in the situation that we are in. Not try to change the situation for a better situation because there is no better situation. So we have to learn process thinking versus outcome thinking. We are used to thinking in terms of the one who wins is successful but actually it's all about how you play the game. In this game the king and the peasant are equally capable of passing and of failing. Giving a small piece of date as a sabka can bring the reward of mountains of Ahad. And sacrificing one's whole life in Holy Jihad can be useless if you have the wrong intentions. So all circumstances are equally test for us, although some tests are harder and some are easier. So Allah ta'ala has told us the purpose of this life So our goal in life is to collect the best deeds and this ayat was revealed on a very particular situation when Abu Akil Ashabi gave a small handful of dates. So some of the hypocrites marked him that lots of people are bringing so much wealth to this tabuk expedition and you are just giving a little bit so the prophet sallallahu alayhi salam appreciated his efforts because he had worked all night to earn a handful of dates to give for tabuk and Allah ta'ala also revealed this ayat to support this sahabi So even a small handful of dates given a sadqa is worthy of the praise of Allah ta'ala and his prophet sallallahu alayhi salam So it's not that how much we have it's the intention in our hearts and the amal that we can do with it So the smallest of deeds done with sincerity counts heavily with Allah and the greatest deed done without sincerity counts for nothing So the Quran tells us that the life of this world is just a small piece of time there is a specific ayat that the wealth and the sons are the allurements of this life but the rewards for the deeds that we do are those things which will last forever and these are the best and Allah ta'ala says that life of this is just an illusion So when we focus on life of this world and we think of what we don't have then we become ungrateful but if we focus on the hereafter and realize that this life is only for a moment then we will be able to do the deeds with Allah ta'ala wants from us So how can we learn to be content with what we have been given is to never complain about our situation whatever the environment whatever the situation we should give thanks to Allah ta'ala that he has placed us in this situation and imagine that things could be even worse and we should concentrate on doing good deeds and making Allah ta'ala happy and serve the creation of Allah for the sake of love of Allah this is the best of deeds finally the third topic of the qualities that we are taught is trust in Allah ta'ala and there are several ayat in the Quran about trust but perhaps one of the most important is that if we trust in Allah ta'ala Allah ta'ala will be enough for us in all circumstances and Allah ta'ala ask us to trust him if we are believers and Allah ta'ala say that he is in control of the east and the west he has power over everything so we should try to get his help instead of trying to seek other sources for support so one of the consequences of this is that we should never have regrets over what might have been because Allah ta'ala says so everything that bad that happens has already been written there was no way that we could avoid it so to think that oh if I had only done this suppose somebody is in a car accident suppose that I had taken some other route or maybe if I had slammed down the brakes or something like that this is just useless if it's written for you it had to happen and Allah ta'ala says this is so that you do not you do not become sad about what might have been and also if you get something you do not become proud that I have earned this this was written for you also so once we learn to have trust in Allah ta'ala we will not have any anxiety or worry we will carry out the orders of Allah and put our trust in Allah ta'ala he will create the best of situations and even if what happens is very appears very harmful we should learn to believe that Allah ta'ala has hidden great hire in them my father used to tell a story about how he was going for admission to an engineering college and he had a large amount of money with him which had been given to him by father and then some pick pocket picked his pocket and he had no money left and he felt ashamed to go back to his father so he took admission in a very low grade university compared very low ranked English university which the tuition was cheap and that eventually led to a very highly favorable outcome much better than those which the engineers in his batch got to so many times very bad things happen but Allah ta'ala hidden in those bad things very big blessings and there are many stories which teach us this lesson but we should just learn to believe that if something bad has happened Allah ta'ala has hidden some great blessing in this all troubles occur for a reason one of the Allah ta'ala said that sometimes you are put into difficulty and causes forgiveness of his sins and this is a great blessing in the Akhirah because you will not be tested for them and Allah ta'ala mentioned in the Quran that sometimes we give trouble to people so that they will turn towards me so this is also Allah ta'ala is calling you towards him if we are in trouble then we turn to Allah with khulus in our hearts and we ask from the bottom of hearts oh Allah ta'ala help me and this itself is a great blessing and sometimes there are no sins and people are already like the prophets they are also facing great troubles and they are already in close communication with Allah ta'ala so in these cases the trouble is given to elevate their degrees to give them higher status higher rank so in all cases any trouble any problem that comes to us is a source of great blessing for us so there are great promises of Allah ta'ala and we should learn to trust these promises more than we trust money and in power in circumstances today we think that a big doctor will help me and I have a lot of money I can use that no, we should put our trust in the promises of Allah and whoever trusts Allah Allah ta'ala will be enough for him and if we have taqwa Allah ta'ala will find a way for us out of any difficulty and this way will be from where we do not expect this is a very strange thing that we are used to thinking about asbab this means and that means but those are all visible Allah ta'ala will find us a way without the asbab he will create a way just like he created a wafer musa aleyhisselam by parting the waters so this promise is like that it will not seem like there is any way but Allah ta'ala will create a path for us if we have taqwa so this is the end of part 1 on shukr and qanaat and tawakku and now I will go to part 2 anyone who has had a regular course in economics will have many questions about this because even those who are not economists will have problems some questions but economists especially will have a lot of questions and so I will not be able to deal with all of them but I will deal with a few of them so the first question which economists ask when given some lecture like this is that they say that economic theory is positive it actually describes what you are talking about is an ideal which is imaginary, nobody is like that so we are comparing apples and oranges we are comparing a positive theory to a normative theory and that's not fair so actually the truth is that economic theory is not positive as it claims the objection given to our presentation is that it's prescriptive it tells us how one to behave but science is actually positive science just describes reality it doesn't tell us what to do and since modern economics is positive it's complementary to what I'm saying that it describes reality and I'm telling how we should be and modern economics describes how we are so the truth is that modern economics is also normative modern economics tells us that rational behavior consists of maximizing the pleasure we obtain from consumption of goods and services so this is also a theory of behavior is this actually true people behave psychologists who study behavior tested these theories and found that people do not behave like that so what we have done really is say that this is theory of rational behavior this is how intelligent people should behave so it is a normative theory about what economists consider rational and why do they consider rational well it's rational to maximize this world because if you reject God and judgement day and afterlife then you only have this world and of course you should maximize pleasure and that is what they do and that's what they mean by rationality so this is rational for someone who rejects God but it is not rational for someone who does not who believes in Allah and there is overwhelming empirical evidence that all people not just Muslims so there is a specific game very simple which I often carry out in my classes this is a virtual class so I can't do it but you can imagine imagine that there is a large pile of money in front of you and there are two people you are one of them and there is another person the experimenter has given you $1,000 in cash notes and you are in complete control you can divide as you like if you take all of it nobody can stop you so when this game has actually been done many people actually divide half and half and almost nobody takes everything although what does economic theory says economic theory says that everyone will take everything because everyone is selfish and they want to maximize their own wealth so they will take all of the $1,000 but very few people only those people who have training in economics do this and even those only a few of them so this automatically proves that the economic theory of behavior that you try to maximize your share and your wealth and your pleasure is not true people care about other people so the empirical evidence strongly rejects the economic theory of behavior so it's not a positive theory this is what I want to say even though it claims to describe behavior it does not actually describe behavior and most people are not like that although a few are so what are the major areas of conflict between how economics describes human behavior and how people actually behave according to economic theory humans are selfish, competitive they calculate the the last element of profits that they can and they are not moved by emotions the reality is that human beings are generous, cooperative and they often take decisions on the basis of emotion which overrides calculations of self-interest so there are many examples of this in the prisoner's dilemma a very famous game if people cooperate, they get good outcome but if someone betrays the other he gets the best possible outcome but the other person is harmed so economic theory says that selfish people will betray the other one and both will end up in a bad position but actual people don't do that and economists have been working for 50 years on how to explain how people cooperate when they are really selfish but this is all silly because the basic axiom of their behavior that people are selfish is false and that's why they're having problems in understanding cooperative behavior so the conclusion of this is that economic theory claims to be positive but it is in fact normative it does not describe human behavior, it prescribes an ideal of rational behavior which is very different from the ideals of Islamic behavior so we are not actually doing different things the economists also have an ideal theory of behavior but this ideal theory of behavior is exactly the opposite of what Islamic ideal theory is and actually there are many papers which show that people who are trained in economics learn how to be selfish whereas people without training in economics are less selfish so this leads to three questions that I will try to answer in the remaining part of the lecture it is well established that utility maximization theory does not work psychologists have rejected this theory overwhelmingly, it is not a descriptive theory but still economic textbook all over the world continue to use this theory nobody teaches micro economics on the basis of behavioral economics and they use this utility maximization theory and so the second question suppose we agree that economics is also normative and Islamic economics is also normative then why don't we go to a positive theory, science is after all positive and the third question which is also related is that even Muslims don't have these qualities so how can we build a theory based on utopian ideals if this doesn't exist in reality then what is the point of such a theory this is just an ideal which can never actually be achieved so let me answer this first question why do economists use so first let me document that there's an article by Romer written recently after the global financial crisis saying that macro economics has been going backwards we used to know more but we have been losing knowledge after the financial crisis the queen of England went to school of economics to ask the economists why did no one see that this was about to happen so there are many many leading economists who said that economics as a whole is in big trouble because no economist could predict this global financial crisis so why is that we are looking at why do economists start keep using failed theories so one of the keys is understanding is the Keynesian Revolution and the Monetist Counterrevolution this graph is a picture of what happened in the 20th century so a classical theory dominated until 1929 when the Great Depression took place after the Great Depression which took classical economists by surprise nobody had foreseen that that would happen and the theory said that it could not happen and then there was long unemployment and again economic theory says that that cannot happen because the labour market will equilibrate there will be no unemployment free market will automatically create full employment so one of the key points of Keynesian theory was that the free market does not create full employment and the government must intervene to create full employment so this was done and the banks were regulated there was a about a 50 year period of prosperity when the masses the share of income of the masses increased the bottom 90% and the share of the top 1% which is in the middle of this graph started to decrease so the top 1% plotted the counter revolution when I was studying in the 1970s school was considered a school of crack parts they did not do serious economics they were ideologs but now the opposite is true Keynesians are considered crack parts and the Chicago schools are firmly dominant throughout the profession so there was a coup that was engineered against Keynesian economics and this had the desired effect if you look at the blue line the share of the top 1% and it is at very high levels today with less than 50 people owning half of the wealth of the planet so the main insight here is that capitalism works by not by forcibly exploiting laborers but by making the laborers agree to their own exploitation and this agreement is created by education into false economic theories modern economic theory is a tool of propaganda which is built to create the impression that our extremely bad economic system is the best for all peoples so there are many many different techniques which are used to carry out this propaganda and one of these is the deceptive now the thing is that economics is still a branch of moral philosophy but this has been hidden under the that economics is an objective description of reality it is actually trying to say how things should be but it says that this is actually how things are which is false so one very specific example of how economics is deceptive is the production function there is a very nice article by Bergman and she writes that when economists study the behavior of bottlenose dolphins they spend hundreds of hours watching what bottlenose dolphins actually do but if you look at economic theory of the firm it is based on zero study of real world firms economists just use pencil and paper and just make up these theories without ever actually looking at any real world firms there is a book Alan Blinder which has a survey of real firms asking about prices and he says that what we learn by asking the firms about how you set prices contradicts everything that you find in the textbooks in particular in the theory of supply and demand for firm one of the key elements is that firms are price takers but Alan Blinder finds that most of the firms are price setters and economics textbooks do not apply to most of the firms in the real world so again we come up with the same questions why do economists persist in presenting false theories to students all over the world so that's because the real arguments that the economists are trying to make are concealed behind a wall of mathematics Marx argued that but when you look at the production function which is a big mathematical thing and nobody understands what is actually being done but basically what is being done is that the production function teaches us that both the capitalist and the laborers earn their own marginal product the laborers earn the marginal product of labor and the capitalist earn the marginal product of capital which means that they both get their just reward they are getting what they deserve because of their contribution to the output now as I've said this works only when you have a competitive market and not when capitalists are big and laborers are multiple and have no power but also the mathematics that is done is actually wrong you can find mistakes in the error mistakes because the total product cannot actually be attributed to both laborer and it doesn't adapt the marginal product of labor and the marginal product of capital does not adapt in many different real world cases so by a lot of hocus pocus economists have convinced students that capitalists are getting a fair share and laborers are getting a fair share mainly by hiding this behind a wall of mathematics which nobody understands so basically you find that there are norms hidden underneath and there is a pretence that the concept is objective so scarcity which is the foundation of modern economics is also one such concept scarcity arises when you confuse needs and wants as economists do they say that the goal of economics is to fulfill all the needs and the wants but actually if you look at Islamic teachings Islam encourages the fulfillment of needs so eat and drink and wear your nice clothings so a lot of consumption which is useful is permissible but and he says that in the Quran if you follow your ideal desires you will go to Jahannam so you cannot follow your wants so if you follow the Quranic prescription if you have more than what you need you should give that access to those who have need and this was done in the Islamic civilization for a thousand years the Waqf used to actually give the rich people took their access money and created Waqf and the Waqf was used to provide social services to the society so today what happens when a rich person has access wealth he puts it in the bank and he gets more wealth which is a useless thing to do so the fundamental economic problem is not scarcity the fundamental economic problem is greed which is created by capitalism and the antidote to this problem is these qualities which you have discussed if we develop and contentment and gratitude to Allah then we will not be always wanting more and more and then we will be happy to give from our wealth to those who do not have because that is a great amal which is something which is pleasing to Allah so i have discussed this issue in scarcity east and west about how western treatment of scarcity is very different from the eastern security treatment and this is eastern because it is more than Islamic this is how all civilizations have viewed the matter except for the western capitalism which arose only recently so the second issue that the second question that would like to address is that we might say that science is positive not normative so Islam has one set of ideals and capitalism has another set of ideals and they are opposites but both of them are ideals but science should be about what really happened in the real world so there we have an interesting problem that actually when we use science science starts with physics chemistry, biology so these things are subject to laws man has free will and so you can write a law of motion for a planet but you cannot write a law of motion you cannot write down an equation which describes the behavior of a real human being you can only describe the behavior of robots by calculation but you cannot describe the behavior of real human beings in fact this is fairly obvious to prove that you cannot apply the method of physical science to the study of human beings and many people have written books and essays about why this is true I have listed some of these books in my essay which is linked here and this is more or less obvious but this is not a deep and difficult mistake actually if you think a little bit about it what is social science it tells you how to organize society but which society well social science comes from lessons that Europeans learned from their own historical experience about how to organize European society so that's fine Europeans can apply this to the European society why do they say the word science there is a claim that this is universally applicable and this is simply not true the reason for this mistake is fairly deep and I cannot cover it here in this essay, in this lecture but basically it happens because there were many methodological mistakes which were made in European intellectual tradition there were wars between protestants and Catholics for more than 100 years so that led them to reject Christianity as a basis for organizing society and that led them to create social science as an alternative to Christianity for organizing society and so basically if you ponder over the implications of this you get to understand that social science is really the religion of Europe that came into existence after the rejection of Christianity so once you understand it represents certain beliefs it represents the rejection of God judgment after life and then it thinks of life as a meaningless thing we will all die and so there is no meaning to our lives and so life is then a jungle of competition and rival of the fittest is the only morality and so this is all what social science has built on these are the moral foundations of modern social science so the third question is that and we are coming to the end of our lecture that okay I accept that social science is bad and economics is bad but what will it gain us how do we understand the world if we talk about these qualities shukr davakul even most muslims don't have that and in the world we are looking at even in muslim countries there are lots of non muslims so if you want to understand the world we have to go outside of these boundaries so we can't develop a theory of economics on the basis of these qualities that we have talked about so that's actually we need to the social science methodology is completely failed and it has not produced the social science which has been helpful in fact this social science has led to continuous wars and war against the environment climate catastrophe breakup of families all sorts of difficult concentration of wealth in a few hands so this social science if you judge by the outcomes it has produced has been very much a failure so we have to rethink the whole process we can't build on the same ground, we have to reject this whole social science and rebuild from scratch so after looking on to this more deeply we find that actually Ibn Khaldun laid down the foundations for how to do social science which are very different from modern social science so in particular I have proposed the name Ulumul Umran in honor of Ibn Khaldun and also to signal that we are rejecting the western approaches by using the Arabic word we are going back to our own traditions which we need to do not just in economics but in all of the social sciences and I have discussed this in greater detail in a number of articles reference in the link but I'm going to for this purpose of this lecture the framework of social science if we do it in Ulumul Umran is a three dimensional approach we have a positive dimension which describes what things are like and this will include all sorts of failure of Muslims to live up to Islam that's the descriptive part but we also have a normative part the prescript part how we want the ideal that we want to work towards and then we have a third part which is the transformative part it tells us about how we can take the actual observed reality and move it towards the normative ideal so all three parts are essential to social sciences and actually if you look closely at economics modern economics it also talks the ideal is a perfectly competitive market but it recognizes that the world is not perfectly competitive and then it provides some strategies for how you can regulate monopolies and how you can do things to move things towards the competitive ideal so all social science has to follow this because human beings have to when you look at a society and you're trying to describe it it's always with the reference to some ideal it refers to where you want to go so we have described an ideal behavior and this is unattainable but this is not a problem our prophet Muhammad sallallahu alaihi wa sallam is ideal for us in all dimensions but we know that we cannot be like him we cannot achieve his excellence in all dimension so does that mean his seerah is useless of course not basically it gives us the direction for our struggles it tells us in which way to go even though we will never get to the final destination if we walk along this path then we will achieve the hasanat so we will describe an ideal society according to Islamic ideals and then we will work to create such a society but we are not discouraged if we never get to that perfect ideal as long as we work as long as we struggle Allah ta'ala looks at our struggle and he has given us guidance on how we should struggle but he does not look for the outcome whether you are Shahid or whether you are Ghazi it doesn't matter the outcome can be failure of success in worldly terms but you are always successful if you join the struggle so I think this is the final slide almost there is a deeper issue but which lies at the bottom of all of this in the west they have a theory of knowledge which emphasizes the knowledge of the external world what is out there, what is objective but our Islamic tradition combines the objective and the subjective it says that we cannot understand the objective except in relation to the subjective and so the primary basis for learning is experience my experience which I am telling you about although I have described it in abstract terms if I was to do different type of lectures I would illustrate all of these qualities that we have discussed in abstract by explaining my own experience with them how I learned the struggles that I had to go through and what are the problems that face me so that you can identify with my experience and learn from it and maybe improve upon it and the experience that we have is based on our hearts and our spirit and the nafs which is the desire and our minds which is the akhal now this is a four dimensional model for Islamic psychology which originates with Imam Al Ghazali and today Islamic psychologists are making a lot of progress by building on these because western psychology does not include the heart and the soul it only includes the desires and the akhal and so those by including these we get a much deeper understanding of human psyche and understanding the human psyche is the basis for all social science so we have the opportunity in front of us to launch a revolution not just in economics but in all fields of social sciences because we have an intellectual tradition which has a much deeper knowledge of human beings then what the economic theory tells us that human beings simply solve a mathematical formula to learn how to act and they maximize utility which is a completely absurd theory of human behavior so having much deeper and much more profound theory allows us to build a much more solid superstructure so let us conclude with the dua ilman nafim ilman nafim ilman nafim ilman nafim ilman nafim so we ask Allah for His guidance and His blessings which will lead us to the knowledge that we seek that is the end of my lecture masha'Allah jazakhallah for the insightful lecture now we are coming to the question and answer session previously there were several names here of the restaurant now we can proceed to the question and answer so I invite here we have Dr. Henry what is that? go ahead can you unmute yourself go ahead and ask yes Henry we cannot hear your voice okay we are waiting for is there anyone yes hello now we can hear you this is very interesting topics I am looking for actually for 10 years after completing PSD from Islamabad now I am joining Indonesian Wakaf Board Sir so when you describe about Wakaf and its role I think we should explore more about Wakaf and also the impact of Wakaf in economic development thank you Sir yes definitely is the central financial institution in Islamic economy just like the bank is central to western economies because when you have access wealth in a capitalist economy you invest it and try to make more but in an Islamic economy when you have access wealth you give it to the others as per orders of the Quran okay thank you thank you yes we have brother Muhammad yes brother Muhammad okay I think Faisal at Kordia I see Assalamualaikum oh Muhammad Hassan Tariq Sir my English is not good I can speak in Urdu okay but make it quick because Sir I wanted to ask you that I do trading I started my career trading and it's going well I want to ask you but these questions please ask separately because that's your personal question I would like to do this lecture okay Sir just just tell me a little please and let's give a question to others because this is about the lecture what about your personal issues Sir Assalamualaikum I will take the next question to you Sheikh Zahan yes a fantastic quotation from Quran and your analysis of the economic theory today as well as the solutions that Islam provides one of the realities we're facing is that while we do all of this we look at the outcome that Allah provides we try our best and we trust in him so while that is going on we do know that and Quran teaches us that we should change our condition if we have a man we should strongly physically get involved in changing the condition if we are weak in a man we should speak against what is unjust so we as Muslims who want to do what is right we have a big challenge in the economic situation while we do what you are saying and that is the Bretton Woods institutions like the World Bank and IMF and UN they have the banking structure impose on the entire world and how do we go about changing it so from South Africa, India and a few countries we need to try and have the veto in the United Nations Security Council neutralized or at least become fair I mean they claim democracy and equality but it's not there so my question to you is while we do what you are saying can we not in parallel have our 57 Muslim countries and alliance with the African Union Arab League, ASEAN the whole of the millennia region move for a new UN change in the Bretton Woods rules that gives the United States and the UK the veto over everyone else this is a very good question and many people will have similar questions so let me answer it in a very different from what the standard answers would be the work of Wail Halak on the impossible state shows that this nation state itself is a creation of the west it did not exist we think that there is a continuity but it is not our qualities were structured in different way from very differently from modern nation states this nation state is actually highly an Islamic and it is incompatible with Islamic because basically it was created to divide the Ummah these states were created specifically to divide Muslims and keep them fighting and that's what we're doing so one cannot use un Islamic means to create Islamic outcomes so this doesn't mean of course we have to struggle the struggle should be on in different dimensions and in fact there are many open dimensions for us to struggle on the basis of the collectivity of the Ummah but we're not looking because our eyes are seen trained by western social science to think in terms of nation and united nation and world bank and IMF we can create our own institutions which are very different from anything conceived of by western scholars because they are looking at their own history they created their own institutions we have our own history, we have our own institutions and we have our own methods of bringing social change watching these lectures recently with this historian and he said you know these early Muslims they were amazing they took on the empire of Persia and of Rome both of them thousand year old empires old and they took them on both at the same time and they defeated them and they completely they disappeared from history an incredible event, it could not have happened it just hard to believe how this could happen so basically Allah Ta'ala is all powerful these entities that we think of as powerful the IMF, the World Bank they do not have the power to kill a fly or to take back a grain of sugar if a fly steals it from them they do not have the power that is in a skin of a date a seed as the Quran says so this is an illusion the Asa of Musa defeated the thousands of magicians so as long as we struggle along the right lines and we trust in Allah so today the problem is that we are struggling on the wrong dimensions the ones that Allah Ta'ala does not want and we are not making the struggle in the right dimensions which will lead us to the which will give us the help of Allah so Allah Ta'ala says if we are divided among yourselves then Allah Ta'ala help will not come to you so we have to work on creating the bonds of Ummah we have to build this bond and this bond can be built without the help of nations in fact the nations will be very harmful because when you start thinking about Pakistan and Iran you're thinking of Pakistan as an entity you're saying okay I will work for Pakistan and let the Turkish Muslims work for Turkey and so this is actually dividing the Ummah and reducing our strength and as the Quran says then your strength will go away from you if you start dividing the Ummah so there are ways out of the box today we are not thinking out of the box because we are thinking within the boxes created by social science of the west so this is just a beginning like if you look at all of the textbooks of economics throughout the world including those written by Muslims and including those mentioning Islamic economy you will not find these qualities at the heart of your you will not find any mention of these qualities even though these are the at the heart of consumer theory so until we decolonize our minds we cannot think clearly to learn what the instructions of Allah Ta'ala and how we can implement them and if we just the instructions of Allah Ta'ala and how we implement them Allah Ta'ala will solve the other problems that we seem to face yes so can we take the next question now I ask Giani IC on my screen so Assalamualaikum Waalaikumsalam so and more than one but I just ask my first question and maybe that's all you have time for so when it comes to our own eschatological narrative we have that on the day of judgement everyone will be going nafsi nafsi just about themselves and I mean so that there is actually the bottom of our you know make up our psychology that greed actually is or I mean selfishness actually is very fundamental and the only difference being not one of rationality but the fact that western economics is not taking into account that they will be here after as well and if we took that into account rationality might actually work well I think that the descriptions in the Quran and the Hadith if we had no desires if we had no greed if we had no evil temptation towards evil so there is a struggle our soul is attracted towards the high things and our nafs is attracted towards the low things and this is a battle and in this battle winning means to uphold the high and avoid the low and both of these tendencies are present western economics is about nafs-e-amara and islamic economics is about how we can change the nafs-e-amara to nafs-e-labwama and nafs-e-muthma-inna and I've described this in one of my papers which is called islam's gift an economy of spiritual development so let me ask Umbreen Sultan My question is that the normative ideal that we want to envision can it will it be a static run or like it can be an evolving one because to accommodate the modern needs for example I read the latest book by Steve Keane new economics he says that if I am asked how much to take of the new ecological economics I'll say I don't want to take anything from it like it's useless so can you please yes sure on the individual level we know that there are different stages of spiritual progress and so different strategies for spiritual development apply to different people and so definitely on an individual level there is a lot of variation at all times there are people at very different stages of spiritual development and they will be doing acting behaving in different ways and their strategies will be different and similarly for the society as a whole there will be different stages of development and different strategies to use at different stages next Assalamu'alaikum terima kasih Dr. Saab ini adalah lektur informasi dan saya sangat menghargai perniagaan Anda pertanyaan saya adalah pertama kali saya mendapatkan informasi tentang ekonomi islamik tapi saya telah memperkenalkan bankan islamik selama 20 tahun jadi apa yang Anda bilang tapi saya menghargai yang kita menghargai bankan islamik sangat berbeda karena motivnya adalah untuk mendapatkan profetibilitas disini Anda mengatakan kita harus mengawasi Orang-Orang Allah dalam cara atau pelajaran dan kita tidak harus mendapatkan keputusan atau profet bankan islamik yang kita lihat dan yang kita menghargai dengan melakukan semua keputusan dan perniagaan motivnya adalah untuk mendapatkan profetibilitas jadi bagaimana Anda memberikan dan mengatakan yang ini bankan islamik yang diperkenalkan di Pakistan dan di seluruh dunia menurut sistem ekonomi atau tidak ya ini adalah pertanyaan yang baik hari ini kita hanya berbincangkan abc bankan islamik akan diberbincangkan saya ada beberapa leksis di bankan islamik dan saya mengatakan vision baru untuk bankan islamik yang mengatakan bagaimana kita bisa membuat profet-bankan islamik untuk mengalami dan itu harus dilakukan dengan yang Anda bilang yang bukan membuat profet-bankan di dunia ini kita bisa belajar untuk menggunakan firm islamik pada pilihan servis untuk mankind ketika memastikan cukup profet-bankan untuk memastikan instruksi bisa menggunakan komfortnya bukan memaksa profet-bankan Anda memastikan cukup profet-bankan untuk memastikan servis yang diberbincangkan dan pengalaman yang diperkenalkan dan Anda mempunyai cukup pengalaman untuk membuat pengalaman dan memperbaiki servis Anda tetapi Anda tidak memaksa profet-bankan tetapi Anda memaksa servis Anda jadi itu bagaimana itu harus dibuat tapi itu sangat berbicara mungkin kita akan mempunyai baiklah kemudian Muhammad Faisal Assalamu'alaikum warahmatullahi wabarakatuh Waalaikumsalam Anda sudah berbicara bahwa profet-bankan bisa diubah ke institusi kontemporari bagaimana kita memastikan profet-bankan yang digunakan di Singapura di Thailand bagaimana kita memastikan profet-bankan di Pakistan ada perjalanan yang berlaku basically yang pertama currently the Waqf laws you see when the British came they seized all the Waqf and made sure that the government can control their expenditure and this is the same law today and it has not been changed so the Islamic law of Waqf is very different from what the government has put so today to create a Waqf in Pakistan requires change in laws and there are people who are working on doing this but otherwise proper Islamic Waqf cannot be created within the legal framework provided by the government but there are ways to get around this you can do this informally and you can create another corporate types of structures which can sort of substitute for the Waqf but anyway there is a problem and this problem needs to be solved next, Ahmad we will be finished in 7 minutes at 3.30 yes Ahmad Assalamualaikum I read your book The Polar Opposites and I see Darul Amana and the Waqf what's the difference between the two and your presentation on human behavior send it via the mailing list yes, I'm going to send the lecture and links via the mailing list and as far as Darul Amana those are any concepts we want to enter into the banking sector then we need to separate the two characteristics which are merged in western banking when somebody puts in money some people want deposits they just want to get their money back other people want to invest their money into business so these two things are done simultaneously in western banking and we need to separate these functions we have to have a separate bank which is for safekeeping and that is what I call Darul Amana in that book and then we have investment banks or banks where you put in money and you participate in business and then you participate in the risk of business so these two have to be entirely separate institutions and what doctor means by creating more services so the bank would obviously earn the money and set an amount to pay the seller is via services and not from the interest on the deposits absolutely I think we have time for one last question Samin at 807 thank you very much sir for providing an opportunity to ask the question you have said that social sciences is wrongly may included as science so my question is where we can place social sciences how we name social science or what else category we can assign social science social science is a religion of Europe that's what we should assign it this is the current religion of Europe which because of the use of the deceptive word of science has spread all over the world the theories used to shape society and these come from European historical experience and they basically inflict European patterns so all over the world by learning social science we are trying to create our societies in the pattern of European societies and this is causing vast amount of damage and so recognize it for what it is it is Eurocentric social science or it is just European religion and then we can build our own methods for social organization alright i think we still have time for one more question Astralikum sir thank you so much i am from Pakistan and i am an economics professor what is the possible and realistic roadmap to change the rational behavior that is mostly leads to selfishness of oneself to have more and to have more to more on oneself what is the realistic roadmap ya so actually this is a very important question because actually part of the reason that greed and selfishness is spreading is because in economics we are teaching that national behavior so if we stop teaching that this is the western theory of behavior and we don't believe it and we don't agree with it and we think that human being should behave differently and actually you can show evidence that people who behave selfishly they are not happy people because human beings happiness depends on social relationships so if you are greedy and selfish nobody will care for you and you will be unhappy but if you are generous and kind people will care for you and love you and you will get much more happiness than you could by just consuming more goods so this is what we need to teach and we need to economics teachers have a special responsibility because they are continuously teaching false theories which are in conflict with Islam we are at 328 Dure Ayman Assalamu'alaikum I am from Pakistan currently I have studying in international Islamic university I have question about that in Pakistan the caste system is not well defined, well established so how can improve that what of that is a caste system it's not well established second question is also that interest is haram in Islam so teachers, economics teacher especially teach about the interest and monetary policy also based on interest so how can teachers teach about the interest when we talk about the monetary policy well as far as the caste is concerned this is a very practical question very important question but it's not something I can answer these steps that need to be taken to improve and revitalize the caste system and as far as the other question about the interest, yes I have lots of work on how to do Islamic monetary policy if you look up Islamic monetary policy on my you will be able to find this so that's I think all for today we have come to the end of the time I'm leaving a link in the chat box for the mailing list and from this mailing list yes if you are on the I will send the materials the lecture notes and the video link and and also weekly updates on what to do the next live lecture will be on the first Sunday of March but in the middle we will have lots of additional video lectures and trainings and readings basically on a weekly basis until that next live lecture so that is all for today may Allah make this video and and and and I mean okay that's the end okay thank you and everyone see you in the next month please join our mailing list for further information Wassalamu'alaikum warahmatullahi wabarakatuh