THIS ASSIGNMENT IS A PARTIAL FULFILLMENT FOR IE1001 PART 1

CERTIFIED ISLAMIC FINANCE PROFESSIONAL (CIFP)

INCEIF
Student Name: FASHOLA OLAYINKA NURUDEEN Student ID: 1100275

Worldview determines reality, truth and values of existence. Discuss how Islamic economic principles and policies are formulated in the context of the Islamic Worldview.

Every being, society or system is dominated by its own worldview which is based on a set of implicit or explicit assumptions about the origin of the universe and the nature of human life. This worldview controls, in the words of Arthur Lovejoy, "the nature of man's reflections on almost any subject". This phenomenon determines the reality, truth and value of existence, the prevailing economic system is built on the worldview that is secular, materialist and individualistic wherein there is a separation between religion and other aspect of life and less concern with the hereafter. On the other hand the Islamic worldview has its root in the Shariah from which it derives its worldview and its predicated on the concept of human well-being and good life which is the utmost importance of brotherhood and socioeconomic justice and requires a balanced satisfaction of both the material and the spiritual needs of all human beings. Furthermore, the Islamic world view belief that all human beings are equal in being God's vicegerents on earth and His dependents, and cannot feel inner happiness and tranquility until the real well-being of all has been attained through the satisfaction of both spiritual and material needs.

The Islamic economic system is base on 4 principles which are 1. All wealth belongs to ALLAH: 2. The community is the trustee of the wealth 3. Hoarding of wealth is prohibited
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4. Circulation of wealth is a duty. These principles are formulated base on the understanding of tawhid (unity of ALLAH), khilafah (vicegerency), and 'adalah (justice) which are the core principles of the Islamic worldview Tawhid: This is the foundation of the Islamic faith upon which the every other principle derives it bearing same for all the economic principles and polices which recognize the existence of ALLAH as the Supreme Being, Who is One and Unique, and did not come into existence by chance or accident. Thus everything originates from Him and all economic principles must be in line with His dictates. Khilafah: Human beings are the representatives of ALLAH on earth and have been endowed with all the spiritual and mental capabilities as well as material resources to formulate policies that will benefits the entire mankind. Adalah: The establishment of justice and eradication of all forms of injustice have been stressed by the Islamic faith and all human being must be just.

To drive the principles mentioned above, Islamic economics policies such as listed below are all aimed at enforcing the principles in line with the Islamic world view. These policies/concepts includes but not limited to:
1. Zakat: This discourages hoarding of wealth and ensure circulation of wealth. 2. Wafq: This ensures that the community is the trustee of the wealth 3. Takaful: This encourages this principle that all wealth belongs to ALLAH and

communal co-operation within the society. In the light of the above the Islamic economics through its policies and principles ensures that all human being are equal and must be treated equally, its not a case of survival of the fittest but
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rather mutual sacrifice and cooperation to fulfill the basic needs of all, to develop the entire human potential. The earths resources are seen as a trust, and must be distributed equitably. This ensures that people live a humble life style devoid of arrogance, pomp and grandeur, or moral laxity. Such life-styles lead to extravagance and waste and result in unnecessary pressure on resources, reducing a society's ability to satisfy the needs of all. Human freedom is guaranteed through these policies and principles. This does not imply that human beings are free to do anything they want. They are subject to the Shariah, which aims at the well-being of all by subjecting everyone to a discipline. This ultimately ensures that the needs of the people are met, they have a respectable source of income, and there is equitable distribution of income and wealth which ultimately lead to growth and stability on the economy and the human race.