The word economy ( Iqtisaad) is derived from an old Greek term,
which means the planning of home affairs, such that its active members
associate in producing the commodities and performing the services, and all of
its members share in enjoying what they possess. Through time, people extended
the meaning of home until it meant the
community that is governed by one State. It is not intended to use the word
economy (Iqtisaad) in its linguistic meaning, which is saving, or to mean
funds. What is meant is the technical meaning of the word i.e. the management of
funds, either by its increase, and securing of its production, which is
discussed in economic science; or by the manner of its distribution, which is
discussed in the economic system.
Though both economic science and the
economic system deal with the economy, their respective meanings differ significantly.
The economic system is not affected by fluctuations in the amount of wealth.
The fluctuations in the amount of wealth do not affect the form of the economic
system. Therefore, it is a serious error to look at the economy as one subject,
and to discuss it as one topic, as this leads to either error in understanding
the economic problems needing to be solved, or misunderstanding the factors
that increase the wealth in the country. This is because the management of the
community's affairs in respect of the creation of wealth is one issue, and the management
of the people's affairs in respect of wealth distribution is another issue
entirely. So, the subject of managing the economic material must be separated
from the subject of managing its distribution.
The first is related to the
means and the second is connected with the thought. The economic system must be
discussed as a thought that is based upon the viewpoint of life (the creed of a
particular ideology), and economic science must be discussed as a science that
has no relationship with the viewpoint in life. The most important subject in
this context is the economic system, because the economic problem revolves around
mankind's needs, the means of their satisfaction, and utilising these means.
Since the means are present in the universe, their production does not cause an
essential problem in satisfying the needs, but rather the needs drive man to
produce these means. However, the real problem present in the relationships of
people i.e. in the society, results from enabling or restricting people from
utilising these means. This results from the subject of man's ownership of
these means. This is the basis of the economic problem, which must be treated.
So the economic problem results from the subject of possessing the benefits,
not from producing the means that give the benefit. [Taqiyudin An Nabhani]
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