IBN KHALDUN - A GREAT PIONEER ECONOMIST
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
IBN KHALDUN — A GREAT PIONEER
ECONOMIST
BY
RAFIQ AHMAD, M.A.
PUNJAB UNIVERSITY RESEARCH SCHOLAR IN ECONOMICS
BIOGRAPHICAL SKETCH ‘Universal History’. These books,
Abu Zaid’ Abdur Rahman Ibn even to this day, enjoy universal
Khaldun (1332-1406), brilliant fame for acute observations and
Arab historian and sociologist, was profundity.
born in Tunis, descendant of a family In 1382 he accepted first the
which produced distinguished ad- lectureship and later the post of
ministrators and military officers for Chief Justice offered by the Mam-
many hundred years and which luke Sultan of Egypt. He perform-
claimed to originate from Hadra- ed the Haj in 1387 and came back
maut, a fertile region of South to Egypt in the same year. In 1400
Arabia. He was educated at an the Mamluke Sultan took him to
early age, first learning the Quran Damascus, which was threatened by
by heart, then studying grammar, Timur Lenk’s armies. Ibn Khaldun
poetry and jurisprudence. He made met Timur and greatly impressed
his entry into public life at the age him by reading a passage concerning
of twenty, becoming secretary to the him in the Universal History.
Sultan of Fez, in Morocco. But Timur offered him a post but he did
after some time he lost the Sultan’s not accept it.
favour and was put into prison for
two years. On his return to Egypt, Ibn
Ever since his release from the Khaldun once more became Chief
prison till the time of his death, Justice. But, while still occupying
except for a few years, he spent an this post, he died in 1406, and was
eventful and turbulent life. In 1362 buried in Cairo, in the Sufi ce-
the king of Granada appointed him metery outside Bab el Nasr.
as his ambassador to Pedro the
Cruel, king of Castille. Some years Ibn Khaldun’s major work is
later he became the Prime Minister his massive ‘Universal History’ but
of the Sultanate of Bougie in Algeria. his fame rests on the ‘Prolegomina’
In 1375 he retired for four years to to this history. In the latter book
work on his ‘Prolegomina’ and he examines the nature and develop-53
ment of society, as he saw during that the term ‘political economy’ as
his long and agitated career, and the name of a special science, was
lays foundations on which all social first employed by Abu Nasr al-Fa-
sciences, including economics, must rabi, a well-known Muslim philoso-
rest. Further, in the same book, pher and politician of the tenth
he conceives and formulates a century. The very name of his book
philosophy of history which, accord- on economics entitled ‘siyasat-ul-
ing to Toynbee, is ‘undoubtedly madniya’ (Political Economy), which
the greatest work of its kind was written about seven centuries
that has ever yet been created by any before the time of Antoine de
mind in any time or place.’1 This Montchretien, bears testimony to
work of Ibn Khaldun has become a the above fact.
classic.
Before discussing Ibn Khaldun’s There was hardly any notable
contribution to economics, we think Arab thinker of the period referred
it proper to remove one wide-spread above who did not express his
misunderstanding about the Arabs. views on economic problems. We
It is generally believed that nothing are indicating only a few outstanding
was written on economics in the Arab figures if we mention Qadi Abu
period which roughly extends from Yusuf, Ibn Sina (Avicenna), Moham-
the seventh to the sixteenth century. mad bin Hasan Tusi, Ibn Rushd
But this belief is contrary to his- (Averroes), Ibn Tufail, Ibn Baja and
torical evidence which shows that al-Ghazzali. Of all such writers
the Arab scholars of the said period perhaps Ibn Khaldun, whose ideas
gave a good deal of thought to form the subject of this article,
economic problems and wrote seve- contributed most to economic theory.
ral books on economics and its
Source of Ibn Khaldun’s
allied subjects. Their familiar term
Economic Ideas
for economics was ‘siyasat-e-mudun’
which literally meant ‘political eco- The chief source of Ibn Khaldun’s
nomy’. The invention of this economic ideas is his ‘Prolegomina
term is unjustly attributed by eco- to Universal History’, a piece of work
nomic historians to Antoine de which amazes one by its breadth
Montchretien, who was a French and profundity of vision and by
dramatist and economist of early its sheer intellectual power. This
seventeenth century. The fact is book represents the first scientific
attempt to study the nature and
characteristics of human society in
1. ‘A Study of History’ (Vol. III).54
its different forms and the laws expenditure, prices in towns, locali-
governing its development. It zation of industries, reasons for the
contains original and elaborate development and decay of industries,
discussions on a wide range of chief industries in the world, Indus-
subjects such as history, sociology, trial training, agriculture, its prob-
politics, religion, state, public lems and how to solve them, hoard-
finance, economics, geography, ing and monopoly, goods of export
metaphysics, education etc. Equally etc. These topics represent only a
remarkable is the fact that Ibn fraction of what Ibn Khaldun wrote
Khaldun has speculated on what we on economics. To discuss all of
call to-day the methods of social and these topics requires much more
historical researches. Such being space than this article can permit.
the cements of the ‘Prolegomina’, We can study here only a few of
Ibn Khaldun is universally acclaimed such topics.
as the father of social sciences.1
Definition and Scope of Economics
To come back to our theme, Ibn Ibn Khaldun preferred the word
Khaldun devoted separate chapters ‘ma’ ash’ (economics) to the term
to economics and its theoretical and ‘siyasat-e-mudun’ (political economy)
descriptive aspects in his afore- which was frequently employed by
mentioned ‘Prolegomina’. In those other Arab writers. Unlike con-
chapters he discussed such topics as temporary European writers, he
the subject-matter of economics, conceived of Economics as a science
forces of demand and supply and which stood independently of Ethics
their effect on price, social and and which dealt with a positive
individual aspects of wealth, free and description of economic actions
economic goods, money and its rather than a study of their moral
characteristics, interdependence of implications.
prices, labour and value, productive
and unproductive occupations, ‘Political Economy’ wrote he ‘is
economic factors affecting the size a science which deals with the
of population, economic consequences management of the household or
of oppression, stages of economic de- city according to the dictates of
velopment, rural and urban economic reason as well as ethics (welfare) so
systems, functions of state, rates of that the masses may follow the path
taxation, economic benefits of public that leads to the preservation of
species.’2
1. Charles Issawi, ‘An Arab Philosophy
of History’ (p. 9). 2. Al-Muqaddamah (Vol. I).55
According to Ibn Khaldun the and not of individuals. In other
management of the household words, economics does not study
or city involves such activities as man as an isolated individual but
men perform for ‘exchanging goods as a member of society. It is so
with one another in order to meet because economic and social laws,
their economic requirements’.1 according to Ibn Khaldun, operate
Without meeting these requirements on masses and cannot be signifi-
it will become impossible to pre- cantly influenced by isolated in-
serve human species. Hence ‘man dividuals.3
must make an effort to earn his Strangely enough, Ibn Khaldun
living and to obtain all those things also saw, more clearly than many
which are necessary for his life … later economists, the interrelation
For this purpose he can exploit all between economic, political, social
that God has created in this and ethical factors. As a scholar has
world.’2 It is the study of these put it: ‘Ibn Khaldun perceived that
human efforts for earning lively- the economic sphere could not with-
hood which; according to Ibn out serious consequences for the
Khaldun, forms the subject-matter machinery of society be looked
of economics. upon as segregated from finance,
It should be noted that Ibn army, spiritual culture. They were
Khaldun, in his definition of eco- all interconnected and only if they
nomics, has been careful to point out were in perfect equilibrium on the
the intimate connection between basis of a mutual give and take was
economics and welfare. His em- the State at its best and functioned
phasis on ‘the management of the normally and effectively.’4
household or city according to the Functions of Money
dictates of reason as well as ethics’ Ibn Khaldun’s ideas about the
shows that he does not believe in functions of money can be gather-
knowing the truth only for its own ed from the following passage:
sake but for promoting human
welfare. ‘God created the two precious
metals, gold and silver, to serve
Another thing on which Ibn as the measure of value of all
Khaldun has laid stress is that the commodities. They are also
purpose of the study of economics generally used by men as a
is to promote welfare of ‘masses’
3. Issawi, ‘An Arab Philosophy of His-
1. Al-Muqaddamah (Vol. III). tory’ (p. 7).
2. Al-Muqaddamah (Vol. III). 4. Rosenthal as quoted by Issawi (p. 13).56
store or treasure. For although minerals. It is society, acting
other goods are sometimes stor- through human labour, which
ed it is only with the intention brings them to light and in-
of acquiring gold or silver. For creases or decreases their quan-
other goods are subject to the tity. The quantity existing in
fluctuations of the market from the hand of men circulates and
which gold and silver are is transmitted from generation
nearly immune.’1 to generation. And it probably
Ibn Khaldun thus realized that circulates from country to coun-
precious metals were the best media try and from state to state, ac-
of exchange and store of value be- cording to the price paid for it
cause of the relative stability of and the need of different societies
their prices. for it. Thus if such wealth has
decreased in North Africa, it has
Money is not Wealth not diminished in the land of
Franks or Slavs; and if it has
Ibn Khaldun did not regard
decreased in Egypt or Syria, it
precious metals as wealth but only
has not diminished in India or
as ‘convenient media of exchange
China. For it is social effort,
and store of value’. The real
the search for profit and the use
wealth of a country, in his opinion,
of tools that cause the increase
consisted in the goods produced by
or decrease of the quantity of
its inhabitants. Further, many
precious metals in circulation.’
centuries before Hume and Locke,
he saw that countries received the ‘… Consider, as an example,
gold they needed through foreign the lands of the East such as
trade and that gold-producing coun- Egypt, Syria, Persia, India or
tries were not necessarily the weal- China; or the lands lying north
thiest, as the following memorable of the Mediterranean. Because
passage shows:— social life is flourishing there,
’Such forms of wealth as gold, notice how wealth has increased,
silver, precious stones and things the state has grown stronger,
made out of them are only min- towns have multiplied, trade has
erals and products having an prospered, conditions have im-
exchange-value, like iron, copper proved. For the prosperity and
lead and other metals and luxury we see in the Christian
traders who come to North Africa
1. Issawi, ‘An Arab Philosophy of passes description. The same is
History’ (p. 77).57
true of the traders who come determination of value. Under the
from the East, and still more caption, ‘Prices in Towns’, he writes:
those who come from the Far ‘If a district is prosperous, densely
East such as Persia, India and populated and full of luxury, there
China, descriptions of whose will be a great demand for com-
wealth and prosperity are the modities. Supply, therefore, runs
everyday talk of travellers and short of demand …… The result
are often dismissed as untrue. will be that prices will rise …… But
The common people probably the cost of supply of goods, especial-
think that all this is due to the ly of foodstuffs, also affects their
great store of money they have, value and determines their price, as
or to the abundance of gold and may be seen today in Andalusia.’2
silver in their soil, or to their It is, therefore, safe to assert that so
having inherited, alone of all far as the demand and supply
peoples, the golden treasures of theory of value is concerned, Ibn
the ancients. This is not so, for Khaldun was a forerunner of
the source of the gold we see in Marshall.
these countries is Sudan, which
is closer to North Africa. And Secondly, he states that value of
we notice that, the inhabitants of a commodity is mainly derived from
these countries bring all their the labour embodied in it, as the
goods to foreign markets for pur- following passage indicates: ‘The
poses of trade. If money had income which a man derives from
been so abundant in their own the crafts is the value of his labour
lands they would not have ……… In certain crafts the cost of
brought their goods to others the raw materials must be taken into
to be exchanged for money; in- consideration, for example, the wood
deed, they would have dispensed in carpentry and the yarn in weav-
entirely with other people’s ing; nevertheless, the value of the
money.’1 labour is greater because the labour
plays in these crafts the dominant
Ibn Khaldun’s Theory of Value part. In other occupations than
Ibn Khaldun’s theory of value has crafts, too, the value of labour must
three different aspects. be added to the cost of the produce;
First, he thinks, though not very for without labour there would
clearly, that the forces of demand have been no produce ……… It is
and supply produce influence on the clear then that ally or most, incomes
1. Issawi, ‘An Arab Philosophy of 2. ‘Prolegomina’ (Vol. III).
History’ (pp. 77-78).58
and profits represent the value of them by the king ….’2
human labour.’1 This passage may
be said to contain the kernel of the Industrial Training and Inventions
Marxian labour theory of value. Ibn Khaldun realizes the import-
Thirdly, and this point proves ance of technical training as a
him to be a deep student of econo- means of developing large-scale
mic affairs, he realizes that prices industries. He even goes as far as
are interdependent and that a change to say that when technical education
in the price of one commodity tends spreads, inventions take place and
to communicate itself to that of the culture and civilization make rapid
other. He has given many examples progress.
in this connection, the most import-
Technical training, according to
ant being that of agricultural pro-
Ibn Khaldun, is of various kinds.
duction about which he writes: ‘A
Form the point of view of period of
persistent cheapness in agricultural
training, there are two types, simple
goods will lead to a deterioration in
and complicated. The former re-
the condition of all those engaged
lates to industries producing neces-
in agricultural operations; for their
saries of life, and the latter to
profits will shrink or disappear, and
industries producing high class
their capital will cease to grow, or
goods. From the point of view of
grow only very slowly; indeed, they
occupation, there can be three more
may have to spend out of their
types of technical training, economic
capital which will soon lead them to
cultural and political. The first
poverty. And this will be followed
type includes general industries
by a deterioration in the condition
such as weaving, carpentry etc.; the
of those engaged in operations con-
second is related to fine arts like
nected with agriculture such as
music, painting, education etc.,
milling, baking and the other in-
and the third is concerned with
dustries which transform agricul-
political and military activities such
tural produce into foodstuffs. Simi-
as the training of soldiers, the pro-
larly the position of the army will
duction of war materials etc.3
deteriorate in cases where their
income is derived from taxes on the The above discussion shows that,
agricultural population alloted to
2. Issawi, ‘An Arab Philosophy of
1. Issawi, ‘An Arab Philosophy of History’ (p. 75).
History’ (pp. 71-72). 3. ‘Prolegomina’ (Vol. III).59
unlike Adam Smith and his follow- country which has the space,
ers, Ibn Khaldun regarded services which in towns in lacking, for
such as painting, teaching and even fields, pastures, plantations, and
singing as productive. so on. Such people must there-
fore necessarily pursue a nomadic
Stages of Economic Development life and for that reason they will
Ibn Khaldun clearly understands unite and co-operate in econo-
the differences between pastoral, mic matters, and have food,
agricultural and industrial societies. dwelling and shelter only to the
He appears to be more clear sighted extent which answers the bare
than the Mercantilists and the necessities of life, without any of
Physiocrats when he says that as the superfluities.
civilization progresses the relative Should their standard of living,
importance of agriculture declines, however, rise so that they begin
while that of industry increases. He to enjoy more than the bare
writes:— necessities, the effect will be to
‘The differences between people breed in them a desire for repose
arise principally from the differ- and tranquility. They will,
ences in their occupations; for therefore, co-operate to secure
their very union springs out of superfluities, their food and
the need for co-operation in the clothing will increase in quan-
securing of a livelihood. tity and refinement; they will
Before comforts and luxuries enlarge their houses and plan
come those occupations which their towns for defence.
deal with the bare necessities of A further improvement in their
life. Hence some men devote condition will lead to habits of
themselves to agriculture, sowing luxury, resulting in extreme re-
and planting, and some tend finement in cooking and the pre-
animals such as sheep, cows, paration of food; in choosing
goats, bees and silkworms with rich clothing of the finest silk;
a view to using their produce. in raising lofty mansions and
And those who devote themselves castles and furnishing them lux-
to agriculture and animal hus- uriously and so on.
bandry are compelled by neces-
At this stage the industries
sity to go out into the open60
develop and reach their height. hoard the sums derived from
Lofty castles and mansions are taxation or otherwise, or should
built and decorated sumptuously, he not have any money to spend,
water is drawn to them and a the amount of money in the
great diversity takes place in the hands of his courtiers and offi-
way of dress, furniture, vessels cials would decrease, as would
and household equipment. also the amount available for
their retainers and dependents.
Such are the townsmen who earn
Their expenditure would conse-
their living in industry or trade.
quently fall off, and as they
Their gains are greater than of
constitute the most important
those working in agriculture or
group of buyers, business would
animal husbandry and their
slacken and the profits of traders
standard of living higher, being
would diminish; tax revenue
in line with their wealth. We
must necessarily also contract,
have shown, then, that both the
for taxes are levied principally
nomadic and the urban stages
on transactions, market purchases
are natural and necessary.’1
and profits. The state will
State Expenditure and suffer owing to the diminution
Economic Activity of taxation ……
Economists have only recently Wealth, then, keeps on circulat-
appreciated the close relation which ing between the king and his
exists between state expenditure and subjects, from him to them and
national income. But Ibn Khaldun from them to him. If, therefore,
was not unaware of this relation as the king should hold back money,
the following remarkable passage the loss would fall on the
points out:— subjects.’2
‘A decrease in the expenditure of The above discussion reminds
the king leads to a decrease in one of the ‘deficit spending’ technique
the amount collected in taxation. as advocated by Keynes.
The reason is that the state and
the court represent the greatest Conclusion
market for the world and conti- We have discussed only a frac-
nued increase of civilization. tion of Ibn Khaldun’s economic
Should the king, therefore, ideas, owing to limited space at our
1. Issawi (pp. 80-81). 2. Issawi (p. 91).61 disposal. These ideas do not economics but tried to give it a body always indicate advanced economic of homogeneous ideas, discussing thinking but, from the point of view them systematically and scientifi- of history of economic thought, cally. His views on the theory and they occupy tremendous importance. practice of economics fully earn him From their study we come to know the title of ‘pioneer economist’; and that Ibn Khaldun treated economics no history of modern economic as a special science many centuries thought can claim to be complete before the arrival of the Mercan- without assigning him a proper place tilists and the Physiocrats. He not in its lay-out. only made an attempt to define
You can also read
