Introduction

Economic jurisprudence can perhaps be considered one of the most impactful and debated emerging fields of jurisprudence, leading to numerous challenges. Dr. Mohammad Javad Tavakoli, who holds a bachelor’s and master’s degree in economics from the Imam Khomeini Educational and Research Institute and a PhD in the philosophy of economics from Erasmus University Rotterdam, addressed these challenges in an interview with Contemporary Jurisprudence. He also outlined the necessary steps for developing the Islamic economic system.

Contemporary Jurisprudence: Are there sufficient religious sources to derive all economic rulings?

Tavakoli: In the field of economic jurisprudence, various questions have been raised, one of the first being whether religious sources are sufficient for deriving economic rulings. It is important to note that religious sources for economic matters are not limited to the Quran and Sunnah. For example, in economic jurisprudence, we have the capacity for governmental rulings. Additionally, Martyr Sadr, in his book Iqtisaduna (Our Economics), introduced the concept of the “zone of discretion” (mintaqat al-faragh), which allows for a foundational approach to economic rulings. Martyr Sadr provides examples, stating that when the Prophet issued certain economic rulings, he did so not as a lawgiver but as a ruler, based on the interests and capacities of that time. For instance, some narrations state that you cannot withhold surplus water used for irrigating your land from others. Sadr argues that the primary ruling is that you own the water and can use it as you wish, so the Prophet’s prohibition is a governmental ruling. He also considers price-setting during hoarding as an example of a governmental ruling.

Moreover, in the sources of inference, we have reason. According to the principle “Whatever reason rules, Sharia rules” (kull ma hakam bihi al-‘aql, hakam bihi al-shar‘), one can rely on reason for religious rulings.

Given these points, it appears that our religious sources have sufficient capacity to derive religious rulings. However, for new issues, we may need to adjust our approaches. For example, Martyr Sadr proposes the method of “interrogating the texts” (istintaq min al-nusus). He suggests presenting new issues to the Quran and Sunnah to seek answers. In his book Al-Madrasa al-Qur’aniyya (The Quranic School), Sadr attributes this approach to Imam Ali (peace be upon him), who said, “We must seek answers from the Quran.” This indicates that our religious sources, including the Quran and Sunnah, have the capacity to provide responses.

Contemporary Jurisprudence: Can the principles of Jawaheri jurisprudence and its method of inference effectively derive economic rulings, or does establishing an efficient economic system require changes in some evidence and inferential approaches?

Tavakoli: The Jawaheri method of inference is robust and remains applicable, as it systematically utilizes the capacities of Islamic jurisprudential principles to achieve a deep understanding of Islamic sources. This approach has been emphasized by scholars (fuqaha), including Imam Khomeini.

However, to apply this inferential approach to Islamic economics and economic jurisprudence, it needs to be complemented with new methods, such as Martyr Sadr’s discovery method. In this method, Sadr proposes deriving the Islamic economic system or school by considering civil (economic) rulings as the superstructure and the principles governing the Islamic economic system as the foundation. He clearly explains this in Al-Islam Yaqud al-Hayat (Islam Leads Life) and Iqtisaduna, using it effectively. For example, by analyzing various economic rulings related to distribution in Islam, he concludes that labor is the primary source of entitlement to natural wealth, establishing this as a principle in Islamic economics.

For instance, Sadr notes that if a fish jumps into your boat, you do not own it until you catch it, indicating that direct economic labor is the source of entitlement. Similarly, rulings state that if you rent a house, you cannot sell it at a higher price unless you add value to it, reinforcing that direct economic labor creates entitlement.

Using this method, Sadr derives the theory of distributive justice in Islam, stating that justice in Islam means treating each person according to their entitlement. He identifies labor and need as the two sources of entitlement: if you work, you should be compensated, and if you have a need (e.g., disability), your livelihood should be honorably supported through Islamic taxes like khums and zakat.

In Al-Islam Yaqud al-Hayat and other works addressing economics, Sadr combines rational and textual methods. For example, when discussing exchange rulings in Islam, he first provides a historical analysis, noting that transactions were initially barter-based, and later money was invented, leading to issues like hoarding and wealth accumulation. He then turns to religious rulings, explaining that Islam counters usury as a profit from hoarding money and imposes zakat to keep money in circulation. From this historical-rational analysis of economic and transactional systems, he derives principles governing exchange, such as the principle that exchanges should not be parasitic (e.g., speculative trading). Instead, they must create added value to justify profit. For instance, he deems it impermissible to buy a ship at sea and sell it immediately without taking possession, citing narrations and rulings that prohibit selling goods before delivery.

This pertains to Sadr’s method, but I believe we can also adopt foundational methods in these areas.

Contemporary Jurisprudence: Why have jurists (fuqaha) throughout history not presented the Islamic economic system?

Tavakoli: First, it is not accurate to say that jurists (fuqaha) have not presented the Islamic economic system. As I will explain, Martyr Sadr was perhaps the first theorist, about 60 years ago, to outline the Islamic economic system in Iqtisaduna. Since then, these outlines have been refined, moving toward a more comprehensive depiction of the Islamic economic system.

However, if the question is why the various dimensions of the Islamic economic system have been less addressed historically, it seems primarily due to the lack of Islamic governments committed to this vision and the marginalization of religion by caliphs. We have a brief period of the Prophet’s governance, a short five-year period of Imam Ali’s rule (marked by instability and numerous wars), a six-month period of Imam Hasan’s rule, and a brief period of Imam Reza’s governance, where his authority was not significantly recognized.

It appears that whenever governments showed interest in scholars (fuqaha)—even Sunni scholars (fuqaha)—they engaged. For example, Abu Yusuf’s Kitab al-Kharaj was written at the request of some rulers asking about Islamic taxes.

Regarding Shiite jurists (fuqaha), they were often not consulted and were marginalized, which limited their engagement in governmental jurisprudence. However, whenever Shiite jurists (fuqaha) were given opportunities or felt obligated, they participated. Several examples illustrate this:

First Example: During the Safavid era (circa 1501 CE), when Safavid rulers invited Shiite scholars (fuqaha) from Jabal Amil to assist in establishing an Islamic government, they made contributions to introducing the Islamic economic system, though not extensively.

Second Example: In the late Qajar era, the movement of Isfahan’s scholars (fuqaha) against British colonialism exemplified resistant jurisprudence. They pursued both theoretical and operational models. Figures like Aqa Najafi established the Islamic Company, which entered the textile industry and performed so effectively that the British ambassador urged the governor of Isfahan to stop the scholars’ (fuqaha) economic interference. Unfortunately, political turmoil in Iran at the time—where the north was controlled by Russia, the south by Britain, and regions like Isfahan were in between—caused the movement to falter. When Russia faced internal conflicts and withdrew from northern Iran, Britain took control, leading to the decline of the Islamic Company.

During this period, scholars (fuqaha) issued a famous statement resembling an economic resistance manifesto, declaring they would not pray over a corpse shrouded in British cloth, would not wear foreign clothing, and would not consume tobacco, reflecting their resistance against British influence.

Third Example: Martyr Shahabadi’s model for establishing mukhammas (one-fifth tax-based) companies, which combined cooperation, worker participation in profits, equality, and interest-free loans, represents an operational model of Islamic corporate governance.

Fourth Example: Martyr Sadr’s efforts to outline the Islamic economic system in response to communist influences in Iraq. In Iqtisaduna, he presented the Islamic economic system as an alternative to Marxist and capitalist systems.

Fifth Example: After the Islamic Revolution, when universities were temporarily closed, the Office of Cooperation between Seminary and University was established, bringing together scholars (fuqaha) from both domains. Figures like Ayatollah Shahroudi, Dr. Davoudi, Dr. Derakhshan, and Hojjat al-Islam Nazari worked on textbooks like Foundations of Islamic Economics, still used in various academic levels. After universities reopened, the training of Islamic economics researchers continued through institutions like the Imam Khomeini Educational and Research Institute, the Research Institute for Islamic Culture and Thought, Mofid University, and others. These centers established Islamic economics programs, published numerous books, and, since the 2010s, introduced the philosophy of Islamic economics for advanced studies. Currently, the Islamic Economics Association of the Seminary has 100 members who have studied at the advanced dars-e kharij level and hold at least a master’s degree in economics, with many also holding PhDs.

Thus, the claim that jurists (fuqaha) have not engaged in economic jurisprudence is incorrect. In my view, the general framework of the Islamic economic system has been outlined by figures like Martyr Sadr, and we are now working on subsystems, such as banking, taxation, social welfare, and budgeting systems.

Another point is that the capitalist economic system has a 230–240-year history since Adam Smith’s The Wealth of Nations (1776). Numerous thinkers have developed its various dimensions. If we consider Martyr Sadr the father of Islamic economics, who presented a systematic Islamic economic system around 1961 in Iqtisaduna, the Islamic economic system is about 60 years old, with much work still needed for its completion.

Contemporary Jurisprudence: What are the main challenges in researching economic jurisprudence?

Tavakoli: One of the primary challenges is the lack of precise issue identification in economic jurisprudence. A clear example is Islamic banking, where complex issues like money creation have not been adequately analyzed. Recently, when the issue of money creation and its destructive effects was thoroughly explained to Ayatollah Makarem Shirazi, he issued a fatwa declaring money creation impermissible.

Additionally, precise issue identification requires accurate methodology. Different experts may offer varying opinions on issues like money creation, so we must address this challenge.

Some challenges in economic jurisprudence are methodological. When moving from individual to governmental and system-building jurisprudence, we should shift from a rule-based approach to a purpose-based (maqasidi) approach. However, as Martyr Sadr notes, the purpose-based approach risks excessive reliance on reason, which requires careful management.

Another challenge is clearly delineating the boundaries between economic jurisprudence and Islamic economics. According to Martyr Sadr, jurisprudence and civil law are the superstructure, while Islamic economics or the Islamic economic school is the foundation. However, this view is debatable. If we adopt a governmental and system-building perspective on economic jurisprudence, the boundaries between Islamic economics and economic jurisprudence may blur.

Another challenge is the need for an interdisciplinary approach to address economic jurisprudence issues. Many educational institutions focusing on economic jurisprudence emphasize either jurisprudence or economics, as training researchers proficient in both requires years of effort, which is challenging. Thus, economic jurisprudence researchers typically specialize in either economics or jurisprudence, not both.

Contemporary Jurisprudence: What steps are needed to establish an effective economic jurisprudence?

Tavakoli: To establish an educational and research field in economic jurisprudence and utilize all the capacities of Islamic knowledge, we need to take the following steps:

First Step: Conduct precise issue identification, which some centers in Qom have begun.

Second Step: Develop appropriate jurisprudential principles and precise methodologies for this branch of jurisprudence. Martyr Sadr’s discovery method and ideas from other scholars (fuqaha) can serve as starting points.

Third Step: Train specialized mujtahids (jurists) in economic jurisprudence.

Fourth Step: Engage in theorization. By training specialized mujtahids (jurists) in areas like banking, taxation, social welfare, and budgeting, we can begin theorizing in Islamic economics.

Fifth Step: After developing theories, create and model economic systems, such as Islamic banking, social welfare, taxation, and budgeting models.

Sixth Step: Implement these models. For example, some have proposed establishing an Islamic bank at the proposed level, testing it, identifying issues, and revisiting theories and rulings for necessary revisions.