1. THE MAQASID AL-SHARI‘AH AND THE ROLE OF THE FINANCIAL SYSTEM IN REALIZING THESE By M. UMER CHAPRA Research Advisor Islamic Research and Training Institute Islamic Development Bank Jeddah, Saudi Arabia

2. THE PRIMARY OBJECTIVE OT THE SHARI ‘ AH TO BE A BLESSING FOR MANKIND( وما أرسلناك إلا رحمة للعلمين ) TO BE A BLESSING FOR MANKIND( وما أرسلناك إلا رحمة للعلمين ) THE WORD عالمين INCLUDES EVERYTHING OTHER THAN GOD THE WORD عالمين INCLUDES EVERYTHING OTHER THAN GOD  ALL HUMAN BEINGS OR MANKIND, INCLUDING MUSLIMS AS WELL AS NON-MUSLIMS  ANIMALS, BIRDS AND INSECTS  PHYSICAL ENVIRONMENT HOW TO BE A BLESSING FOR EVERYONE AND EVERYTHING INCLUDED IN عالمين ? FOR THIS PURPOSE WE NEED A VISION AND A STRATEGY HOW TO BE A BLESSING FOR EVERYONE AND EVERYTHING INCLUDED IN عالمين ? FOR THIS PURPOSE WE NEED A VISION AND A STRATEGY

3. VISION AND STRATEGY THE ISLAMIC VISION IS DEFINED BY THE MAQASID AL-SHARI ‘ AH THE ISLAMIC VISION IS DEFINED BY THE MAQASID AL-SHARI ‘ AH THE MAQASID AL-SHARI ‘ AH ARE, ACCORDING TO IMAM GHAZALI, ENRICHMENT OF: THE MAQASID AL-SHARI ‘ AH ARE, ACCORDING TO IMAM GHAZALI, ENRICHMENT OF:  THE HUMAN SELF)  POSTERITY)WELL-BEING OF ALL   FAITH)  INTELLECT)STRATEGY  WEALTH)

4. مقصود الشرع من الخلق خمسة، وهو أن يحفظ عليهم مقصود الشرع من الخلق خمسة، وهو أن يحفظ عليهم دينهم ونفسهم وعقلهم ونسلهم ومالهم، دينهم ونفسهم وعقلهم ونسلهم ومالهم، فكل ما يتضمن حفظ هذه الأصول الخمس فهو مصلحة، فكل ما يتضمن حفظ هذه الأصول الخمس فهو مصلحة، وكل ما يفوت هذه الأصول فهو مفسدة، ودفعها مصلحة ( الغزالي : المستصفي، 1937 ، ج 1 ، ص 139- 140) وكل ما يفوت هذه الأصول فهو مفسدة، ودفعها مصلحة ( الغزالي : المستصفي، 1937 ، ج 1 ، ص 139- 140) (AL-GHAZĀLĪ, AL-MUSTASFĀ, 1937, VOL.. 1, PP 139-40; SEE ALSO AL- SHĀTIBĪ (D.790/1388), N.D., VOL. 1, P.38 AND VOL. 3, PP.46-7). (AL-GHAZĀLĪ, AL-MUSTASFĀ, 1937, VOL.. 1, PP 139-40; SEE ALSO AL- SHĀTIBĪ (D.790/1388), N.D., VOL. 1, P.38 AND VOL. 3, PP.46-7). (Nafs) The human self Human development and well-being (Blessing for mankind) Human development and well-being (Blessing for mankind) (Māl) Wealth (Māl) Wealth (D ī n) Faith (D ī n) Faith (‘Aql) Intellect (Nasl) Posterity (Nasl) Posterity

5. THE HUMAN SELF AND POSTERITY HUMAN BEINGS ARE THE END AS WELL AS THE MEANS OF DEVELOPMENT HUMAN BEINGS ARE THE END AS WELL AS THE MEANS OF DEVELOPMENT  SINCE THEY ARE THE END, THEIR WELL-BEING (FALAH) MUST BE ENSURED  SINCE THEY ARE ALSO THE MEANS, THEY MUST HAVE THE MOTIVATION AS WELL AS THE CHARACTER AND ABILITY TO DO WHATEVER IS NECESSARY FOR ENSURING THEIR WELL-BEING THIS DEMANDS: REFORM OF HUMAN BEINGS (IMPROVEMENT IN THEIR MOTIVATION AS WELL AS THEIR CHARACTER AND ABILITY) THIS DEMANDS: REFORM OF HUMAN BEINGS (IMPROVEMENT IN THEIR MOTIVATION AS WELL AS THEIR CHARACTER AND ABILITY)  HOW TO IMPROVE THEIR MOTIVATION ?  HOW TO IMPROVE THEIR CHARACTER AND ABILITY?  THE THREE OTHER MAQASID ARE INDISPENSABLE FOR IMPROVING THEIR MOTIVATION, CHARACTER, AND ABILITY.

6. FAITH GIVES THE RIGHT WORLDVIEW GIVES THE RIGHT WORLDVIEW PROVIDES VALUES OR RULES OF BEHAVIOUR (INSTITUTIONS) PROVIDES VALUES OR RULES OF BEHAVIOUR (INSTITUTIONS)  PROVIDES THE RIGHT MOTIVATION  PROVIDES DIRECTION FOR THE CREATION AND USE OF WEALTH  PROVIDES GUIDELINES FOR PROPER UPBRINGING AND EDUCATION – MORAL AS WELL AS MATERIAL  EMPHASIZES THE NEED FOR GOOD GOVERNANCE

7. INTELLECT RELATIONSHIP BETWEEN FAITH AND INTELLECT RELATIONSHIP BETWEEN FAITH AND INTELLECT HOW TO ENRICH THE INTELLECT? THROUGH HIGH QUALITY OF MORAL AS WELL AS MATERIAL EDUCATION AND AN ENABLING FAMILY, SOCIAL AND INTELLECTUAL ENVIRONMENT. HOW TO ENRICH THE INTELLECT? THROUGH HIGH QUALITY OF MORAL AS WELL AS MATERIAL EDUCATION AND AN ENABLING FAMILY, SOCIAL AND INTELLECTUAL ENVIRONMENT.

8. WEALTH AND FINANCE WITHOUT WEALTH IT WOULD BE DIFFICULT TO REALIZE THE OTHER FOUR MAQASID WITHOUT WEALTH IT WOULD BE DIFFICULT TO REALIZE THE OTHER FOUR MAQASID WEALTH CANNOT, HOWEVER, BE DEVELOPED WEALTH CANNOT, HOWEVER, BE DEVELOPED  WITHOUT STRENGTHENING THE OTHER FOUR, AND  WITHOUT FINANCE AND ITS PROPER UTILIZATION FINANCE HAS A CRUCIAL ROLE TO PLAY IN DEVELOPMENT WITH JUSTICE. FINANCE HAS A CRUCIAL ROLE TO PLAY IN DEVELOPMENT WITH JUSTICE.  THERE CAN BE NO DIGNITY, BROTHERHOOD AND FREEDOM : o IF POVERTY IS NOT REMOVED, NEEDS ARE NOT FULFILLED AND EQUITABLE DISTRIBUTION OF INCOME AND WEALTH ARE NOT ENSURED o A SOCIETY CAN BE VERY RICH AND YET HIGHLY UNJUST

9. THE ROLE OF THE FINANCIAL SYSTEM IN PROMOTING DEVELOPMENT WITH JUSTICE THE ROLE OF THE FINANCIAL SYSTEM IN PROMOTING DEVELOPMENT WITH JUSTICE ROLE OF THE FINANCIAL SYSTEM: FINANCIAL INTERMEDIATION - MOBILIZE SAVINGS FROM SAVERS AND MAKE THEM AVAILABLE TO USERS ROLE OF THE FINANCIAL SYSTEM: FINANCIAL INTERMEDIATION - MOBILIZE SAVINGS FROM SAVERS AND MAKE THEM AVAILABLE TO USERS PURPOSE? ENSURE DEVELOPMENT AS WELL AS JUSTICE THROUGH THIS INTERMEDIATION PURPOSE? ENSURE DEVELOPMENT AS WELL AS JUSTICE THROUGH THIS INTERMEDIATION DEVELOPMENT REQUIRES: DEVELOPMENT REQUIRES:  IMPROVEMENT IN THE MOTIVATION, CHARACTER AND MOTIVATION OF HUMAN BEINGS  PROMOTION OF PRODUCTIVE INVESTMENT, EMPLOYMENT AND DEVELOPMENT  CURBING OF WASTEFUL SPENDING AND CONSPICUOUS CONSUMPTION  PROMOTION OF VENTURE CAPITAL JUSTICE REQUIRES: JUSTICE REQUIRES:  THE SHARING OF RISK BY BOTH THE FINANCIER AND THE ENTREPRENEUR: “ NO RISK, NO GAIN ” – THIS WILL ALSO HELP INJECT DISCIPLINE INTO THE FINANCIAL SYSTEM AND HELP PROMOTE THE HEALTH AND STABILITY OF THE SYSTEM.  PROMOTION OF MICROFINANCE  MORE EFFECTIVE USE OF ZAKAH AND AWQAF

10.  THE PREVAILING ISLAMIC FINANCIAL SYSTEM  IS IT IN HARMONY WITH THE MAQASID?  WHAT IS IT THAT PREVENTS THE SYSTEM FROM BECOMING MORE AUTHENTIC?  NEED FOR INFRASTRUCTURE INSTITUTIONS  THE ROLES OF : THE CENTRAL BANK THE CENTRAL BANK THE SHARI ‘ AH BOARDS THE SHARI ‘ AH BOARDS SHARI ‘ AH AUDIT SHARI ‘ AH AUDIT CONCLUSION CONCLUSION