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Macroeconomic Objectives from an Islamic Perspective, Siti Nur Athirah…
Macroeconomic Objectives from an Islamic Perspective
Social Justice
Social justice aims to achieve spiritual salvation to human happiness
It is based on the principle that all existence in the universe belong to Allah
Since Islam considers mankind as one family, therefore all members in this family are alike in the eyes of God
There is no difference between the rich and poor, between the high and the low, or between the white and the black
There is to be no discrimination due to race, colour or position.
The only criterion of a man's worth is the character, ability and service to humanity
Equitable distribution of income
Islam insists on a powerful built-in income redistribution mechanism; nevertheless some income inequality is allowed since it promotes individual initiative
A man of faith has to do the justice
Income redistribution, voluntary or compulsory, is not only an economic necessity, but also a means to spiritual salvation
In Islam, happiness is not derived from the possession of material goods, but from contentment and gratitude
Universal Education
Acquisition of knowledge is obligatory in Islam
Man's claim to superiority over all creations is based on this superior knowledge
In an Islamic economy, the government must subsidize or provide free education to ensure that education is available to all, regardless of one's financial standing and possession of properties
Optimal rate of economic growth
Growth in an Islamic economy is comprehensive and includes the moral, spiritual, and material aspects of a man's life
In terms of capital formation, it includes human capital and material capital
This consideration should influence the composition of investment because the expenditure on education is regarded as investment
Maximization of employment generation
An Islamic economy must ensure that economic growth results in maximum contribution to the creation of new employment opportunities
The objective is, however, not to attain full employment at the cost of economic efficiency
Additional employment in the long run must be generated in a technically efficient manner with suitable technology, in line with resource endowment
Ensuring sufficient employment also includes the need to provide educational and training opportunities in the specific fields
Siti Nur Athirah binti Mohd Kamal
2019831738
KBA2462A