Introduction: Hujjat al-Islam wal-Muslimin Sayyed Hossein Mirmoezzi was born in Tehran in 1961. After receiving his high school diploma, he was accepted into the Mechanical Engineering program at Polytechnic University. After leaving the university, he entered the Qom Seminary in 1983. After completing the intermediate level (saṭḥ), he attended the classes of Ayatollahs Tabrizi, Vahid Khorasani, Zanjani, and Mousavi Ardebili. His university education continued in the field of economics at Mofid University up to the master’s level. Collaboration with the Fiqh and Economic System group at the Islamic Culture and Thought Research Institute, directorship of the Economics department, presidency of the Research Center for Islamic Systems, as well as teaching advanced-level seminary courses are among his academic and research activities. Several books and articles have been published by him, examples of which include Islam and Economic Challenges, Philosophy of Islamic Economics, Macroeconomics with an Islamic Perspective, and The Macro-Structure of the Islamic Economic System. He is currently a faculty member of the “Islamic Economics” department at the Islamic Culture and thought Research Institute and the director of the Research Center for Strategic Studies of the Seminary and the Clergy. We spoke with him about economics and its impact on the Islamic lifestyle, the full text of which follows:

How do you assess the manner in which economics and economic issues affect lifestyle?

The Supreme Leader has introduced lifestyle as the software component of the Islamic-Iranian model of progress. The term “lifestyle” has a history in Western literature. Various definitions of it have been presented, and different views have been put forth in the discussion of lifestyle. As far as I know, lifestyle has been discussed in psychology, social sciences, and matters related to culture. In sum, lifestyle is about the method and style of human behaviors in various spheres of life, which is shaped based on an individual’s insights and values. The Supreme Leader did not define lifestyle in the form of a scientific term, but the issues he enumerated as lifestyle are all related to these same discussions; that is, the behaviors and relationships of man in different scenes of life, in marriage, in work, in consumption, and in the various spheres with which man is in contact. The intersection of lifestyle and economics is in the economic behaviors and relationships of man; meaning the behaviors and relationships of man in the sphere of consumption, in the sphere of production, in the sphere of trade, and in the sphere of work and the like are influenced by a style and method of life. It has even been said in lifestyle discussions that the consumption pattern is the external manifestation of lifestyle. Because consumption includes the consumption of goods and services. On the other hand, the consumption of goods and services also has different instances; for example, cultural goods and services are also part of consumption. Based on this, the consumption pattern has been considered the external aspect of lifestyle in some of these definitions. Various behaviors emerge from man in the sphere of consumption, which are the external manifestations of lifestyle. The subject of the science of economics is also economic behaviors and relationships; that is, behaviors and relationships that are related to the consumption, production, and distribution of goods and services, which includes a significant portion of human lifestyle.

In Islamic economics, how is the process of reaching the desired point in lifestyle depicted?

Islamic economics has various meanings. Sometimes it means the analysis of economic phenomena, behaviors, relationships, and variables in society. In this sense, the causes of economic actions and reactions are explained; for example, for what reasons does inflation increase in a country? Then, based on that identification, it predicts that if in the future the rates increase by a certain amount, economic behaviors will also change in this way. This is a prediction about the future. But there are other categories that can be discussed under the science of Islamic economics, such as the Islamic economic system and school of thought. In sum, if we consider the suffix “Islamic” for the science of economics, the science of Islamic economics, based on Islamic sources, has four responsibilities:

1. It presents the system of desirable behaviors and relationships in the economic sphere. The science of Islamic economics, in this role, explains what desirable consumption is, what the desirable behavior of the producer, the labor force, the investor, and even the government is. In other words, it depicts the desirable state of the economic life of society.

2. It describes and explains the existing economic situation of society; in other words, it describes and explains the system of existing behaviors and relationships in the economic sphere.

3. It diagnoses the problems of the existing situation and shows the gap between reality and the desired point.

4. It provides a strategy for reaching the desired point.

The science of Islamic economics has these responsibilities: on one hand, to describe and explain the desirable situation, and on the other hand, to diagnose the gap between the existing situation and the desired point, to see what voids exist and how one must move from the existing situation to the desired point. Islamic economics depicts the fourfold tasks: explanation, description, analysis, and strategy presentation, based on the foundations of Islamic insight, values, jurisprudence, and ethics. It can be said that in a way, Islamic economics organizes the economic part of lifestyle so that people’s economic behavior moves towards becoming Islamic.

If we take the discussion a little beyond economics, this question arises in a wider circle: what is the duty of Islamic human and social sciences in general? It seems these sciences are responsible for analyzing and regulating the behaviors and relationships of society in various spheres towards the desirable Islamic state. The Islamic human sciences are sciences that show the way for educating man and administering human society towards the desirable Islamic state, and thus they have a close connection with lifestyle. This is the very demand of the Supreme Leader, that lifestyle must be guided towards becoming Islamic.

Islamic economics, like any other science, must know its sources of knowledge. What sources do you consider valid for Islamic economics, so that based on them, we can claim an economic life in the Islamic style?

The Islamic sources are the same sources of ijtihad, that is, the Quran, the Sunnah, and reason. Of course, when we say reason, it also includes empirical reason. It is reason that perceives experience; that is, reason’s perceptions differ at each level, a part of its perceptions is related to experiences. In epistemology, even the perception of sensibles is with reason; sense does not perceive. Sense transmits a series of external impressions to the reason. It is reason that perceives it. In any case, that we say the Islamic sources consist of verses, narrations, and reason means that each of these is effective in its own measure in depicting the desirable situation, describing and explaining the existing situation, diagnosing its problems, and presenting a strategy for change. A portion of the verses and narrations and a share of the perceptions and judgments of reason are effective in depicting the desirable situation; of course, the share of verses and narrations in this case is very large, the share of reason is less. But in analyzing the existing situation, verses and narrations may have a smaller share, and the share of reason may be greater. This discussion is a very technical and complex discussion in the philosophy of Islamic economics, but in short, the answer to your question is that the sources of Islamic economics are verses, narrations, and reason.

With this description, in Islamic economics, are only the narrative and rational methods used, or does experience also come into play?

Experience in conventional human sciences is used to describe, explain, and predict the existing situation. We must see what science does in examining the existing situation. In the science of economics, in the sphere of consumption where the existing state of consumption and its relationship with income is analyzed, they consider a series of assumptions about consumption and theorize based on those assumptions. Then it is time to test the theory with external data, where it is either falsified or the theory is established. This is the method of conventional economics. We do not negate this method to say that this method is entirely invalid. This is also a method. However, we say that the discovery of truth in the external world is not limited to this tool. Some truths are provable by reason and rational demonstration, and a part of these same truths has been stated by revelation, and we, with the sum of these, proceed to explain and analyze economic phenomena.

If someone is not devoted to revelation and is not religious, how can they accept the model derived from that method and source?

We have no way other than discovery through revelation. The discussion is not of devotion in the sense that you say. If we see man as material and are heedless of the non-material aspect of man and believe that non-material things have no role in it, and if we do not see at all that guardianship and lordship of God over this world, we will certainly see phenomena as material too, and we will analyze the causal relationship between phenomena as material as well. But if you said that man has both a non-material dimension and a material dimension, these non-material and material dimensions are intertwined, and the world has a non-material and material causal system, and God, through non-material things, manages and acts in the material world, then economic phenomena will find non-material dimensions. The non-material dimensions are not even perceptible by reason. For example, one of the very, very famous discussions of economics, which is among the goals of economics, is the elimination of poverty. This poverty in an individual’s life or in social life is an economic phenomenon. What are its causes? If we are materialists, we say it has material causes, and based on that same empirical method, we analyze the causal relationship between poverty and other phenomena. But when we turn to revelation, we see that God Almighty says: “And whoever fears Allah – He will make for him a way out, and will provide for him from where he does not expect…” (Quran, 65:2-3). This means that from the Quran’s perspective, one of the causes of expansion in a person’s sustenance is piety (taqwā). God says if someone does not sin, We will open the dead ends, We will also provide his sustenance. In the end, can lack of piety be one of the causes of poverty or not? Can you prove this with your experience? It is mentioned in the narrations that the night prayer eliminates poverty. Charity increases sustenance, as do good character and maintaining kinship ties. If there were no revelation, if there were no people connected to revelation, could man understand these connections? In the social dimension too, He says: “And if only the people of the cities had believed and feared Allah, We would have opened upon them blessings from the heaven and the earth…” (Quran, 7:96). If the people of the lands had faith and piety, We would have opened the doors of the blessings of the heavens and the earth to them. Some have said that the blessings of the heavens mean spiritual things and the blessings of the earth mean material things. If there were no revelation, you could not diagnose this. I say one of the causes of poverty in society is the lack of faith and the prevalence of sin, and any development strategy that causes a decrease in faith and an increase in sin, that strategy is not Islamic. This can be understood from revelation. If there were no revelation, one could not make a rational argument. Now we can analyze the existing situation of society; one of the causes of poverty in society can be the lack of faith and the increase of sin. Whether you are a believer or not, a Christian or a Muslim, you must perceive the realities correctly. If you perceive a material and non-material reality as material, well, you have perceived it incorrectly, and I cannot say because you have made a mistake, I must also perceive it incorrectly like you. Fundamentally, Islamic economics is not just for Muslims. In the discussion of the science of economics, I have written various articles; one of the discussions is this, whether the science of Islamic economics is a global economic science, or a science specific to Islamic society.

That is correct, but your words are in light of description, not the “why.” If someone asks why this specific way of life leads to poverty, if you say in response, “Because the Quran says so,” in this case, the audience can accept your words if they are devoted to the Quran. And if you want to prove it with an empirical methodology, you have acted like others and you need to test a hypothesis.

Fundamentally, the Islamic science of economics is based on correct insights and values. It is not even limited to Islamic society, but American society is also analyzable with these same foundations. I ask you a question: did Imam Khomeini (may he rest in peace) analyze the situation of the Eastern Bloc and the communist world or not? Did he not predict the future situation of that society? Was his prediction correct or not? Meaning, the Imam analyzed their situation, he also stated the cause of their problems, and he also stated the way to solve their problems, which was not to lose God. “Go towards God, your problems will be solved, otherwise you will join the dustbin of history.” The discussion of analyzing society and the economy is not specific to Muslim society. We analyze global society. We analyze nations, but with an Islamic worldview. The Islamic worldview says the causes of the fall and progress of nations are not only material; a series of non-material causes are at play. With this view, all societies can be analyzed. The exact same issues are in economics. We analyze the economy of America, but with our own view, just as they say the science of economics is global. Is not that science of economics based on special insightful and value-based foundations? How do they analyze the world with it? Now this conventional science of economics that is taught in our universities, do they not claim their science is global? Do they not say this knowledge that we have produced can be applied in all Islamic and non-Islamic countries? Why do they say this? Because they, with a material worldview, when they look at Iran, they see it the same way. When they look at their own country, they also look at it the same way. They perceive the causes, factors, and effects as the same. Our view is both material and non-material. With this material-non-material view, we go and analyze the society of America and the Soviet Union too. We also analyze Iran and Islamic societies. In the literature of Islamic economics, there is a distinction. We have a science of Islamic economics and a science of global economics with an Islamic perspective; we have both. Meaning, the science of Islamic economics studies Islamic society and states the way of development and progress, and the science of global economics is based on Islamic foundations, and by means of it, we can also analyze the economic situation of the country of America.

If the science of Islamic economics determines the desired points, what is considered as the motivator for individuals to move towards the desired point?

For any behavior you want to understand and state its model, including economic behaviors, you must state a few points: one, what is the motivation for this behavior? Two, what are the constraints of this behavior? And three, what are the behavioral rules? Meaning, if a person, with this motivation within the framework of the constraints he has, wants to make a decision, what are his decision-making rules? If you can state these three things, you have been able to state the behavioral model. For example, suppose in consumption and the consumption pattern, what is the motivation for consumption? Pleasure-seeking? Or satisfying a need? This becomes the motivation. When we go to the constraints, we see that in the type and amount of clothing and food, there are religious constraints. This is a model. With this explanation, in reality, jurisprudence and law come and state behavioral constraints, they state the legal and religious constraints, they say in what way consumption is forbidden or prohibited. Ethics comes and states the motivation and behavioral rules, because ethics cause a person, of his own volition, to make decisions based on them. Fundamentally, this is the discussion of the rule of modeling; it makes no difference whether it is in the school of pleasure-seeking and profit-seeking or any other school, we must build a model this way. That is, the motivation, constraints, and behavioral rules must be analyzed. The behavioral rules and motivation are derived from ethics, and the constraints from religious and legal limits. Because our ethics and laws are different from the ethics and laws of Westerners, in this case, our behavioral model will also be different from their behavioral model; for example, our consumption pattern is different from their consumption pattern. In reality, what is the spirit of lifestyle is that same ethics and law, which in Islamic literature we say is ethics and jurisprudence. Behavioral models are built within the framework of ethics and jurisprudence. The difference in lifestyles in 90 percent of cases goes back to ethics and law.

I will present an example regarding the view you have in the discussion of Islamic economics. In the discussion of Islamic contracts that are now carried out in banks, for instance, a bank, by buying and selling a car within a contract with all the limits and boundaries related to profit and penalties, receives the car’s amount from the borrower in installments. This is while by adding the “Islamic” qualifier to banking transactions, no change is made in solving the problems of banking facilities, and the borrower, according to the regulations, must return more than seventeen percent of the principal to the bank. If we enter purely with a jurisprudential and legal approach, this bank contract is completely Islamic, but its result is that same twenty percent profit with a late payment penalty.

Look, do not go from the discussion of lifestyle, which is related to behaviors and relationships, to institutions. A bank is an institution that wants to direct a part of the behaviors and relationships, and according to what the Supreme Leader said, it is the hardware part of the Islamic sciences. Lifestyle is the behaviors part, but institutions and organizations are not the software aspect of the model of progress, they are the hardware aspect of the model of progress, which is outside of lifestyle.

But in any case, Islamic contracts are a model for economic relationships; can they not be established between two individuals?

It is related, but the discussion of system-building and institution-building is another discussion. There, other problems exist. We have Islamic contracts, but to build an institution based on Islamic contracts, the goals and foundations of the system must be considered. The value system must be considered. One time you want to define a bank or another institution; one of the important issues is that it be in line with the goals of the Islamic system. You say what is the goal, the first goal is justice, you must build the institution in such a way that it is in line with justice. A desirable institution is not just an institution that is in accordance with our jurisprudence and contracts. An institution is desirable when it is both within the framework of our jurisprudence and in line with the goals of our system, and also based on the foundations of our system. You want to install an institution within a system; this is different from wanting to state a model that describes behavior. I said you can state the model by means of jurisprudence and ethics, but if we want to build an institution, if we want to build an institution called a stock exchange, one aspect of it is the jurisprudential framework, another discussion is the ethical frameworks, but other matters such as goals and foundations must also be considered.

Source: Mahfel Quarterly, Issue 8.