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The Role of Islam in Human Capital Development A Juristic Analysis
The Role of Islam in Human Capital Development A Juristic Analysis
The Role of Islam in Human Capital Development A Juristic Analysis
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HUM
28,1 The role of Islam in human capital
development: a juristic analysis
Md. Faruk Abdullah
64 Department of Fiqh and Usul Al-Fiqh,
International Islamic University Malaysia, Kuala Lumpur, Malaysia
Abstract
Purpose – The purpose of this paper is to analyze the human capital theory from an Islamic
perspective. It studies the primary sources of Islam to discover its contribution towards human capital
development.
Design/methodology/approach – The paper adopts inductive and analytical method to interpret
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Islamic viewpoints towards human capital development. It studies the classical and modern sources of
Islamic law and analyzes scholars’ opinions.
Findings – In fact, human capital theory has a different understanding in Islam, due to its different
objectives. However, it resembles the conventional theory in the way that it urges the development of
human beings in education, skills and abilities. Islamic teachings contribute a lot to foster development
among the individuals in every aspect of their lives. The way Islam gives incentive to development is
unique; because, with the improvement of education, good skills, work and production, physical health
and perfection, it is concerned about the moral and ethical development of employees, which is no
doubt having a great effect in the development of the organization. Moreover, Islamic society plays an
important role in nurturing enthusiastic and competent individuals.
Originality/value – It is expected that the paper would be of interest to Muslim authorities, as a
means to motivate their employees, as well as to share ideas across the academic disciplines.
Keywords Islam, Human capital, Ethics, Self-development, Primary sources, Morals
Paper type Research paper
Introduction
Human capital development has emerged as the top of the discussion in the chapter of
development. The theory of human capital was introduced in the previous century in
the West. Generally, it focuses on the development of capabilities and skills of human
being as a major part of economic development. People are considered as asset and
investment in it leads to getting better profit. Lots of researches have been done on this
theory in the recent decades. Some critiques are being made on this theory as it
considers human being as a material thing. As human being is a social creature then
investment in it does not assure the same ratio of production in return like the machine.
However, many agree that it is necessary to develop the education, skill and other
abilities of individuals for achieving economic development in the twenty-first century.
On the other hand, the Muslim countries are at the back in economic development
and one of the major reasons for that is the lacking of skilled and competent
individuals. Thus, human capital development has become a notable issue in the
Muslim countries. Therefore, it is necessary to evaluate this theory from Islamic
Humanomics perspective whether the theory of human capital is valid in Islam or not. Actually,
Vol. 28 No. 1, 2012
pp. 64-75 Islam is always having positive attitude towards the development of human being in
q Emerald Group Publishing Limited general. While the conventional human capital theory only focuses on the development
0828-8666
DOI 10.1108/08288661211200997 of institutional education, skills and expertises then Islam is having a comprehensive
model of human capital development which includes moral, ethical, intellectual and Islam in
physical development along with the development of skills and expertises. human capital
This paper elaborates the meaning of human capital development both from
conventional and Islamic perspective. Afterward, it attempts to study the primary development
sources of the Shari’ah to discover and analyze the contribution of Islam in human
capital development.
65
Understanding human capital development
“Human capital” is a theory which was first introduced by the western scholars. After
that the Muslim scholars analyzed this theory and they have different understanding
of this theory. The discussion of this chapter will cover the definition of human capital
development both from general and Islamic context.
Generally, the term “human capital” is understood as the skills, ability, knowledge and
experience of the people to perform their jobs. So, the development of human capital is
improving the skills and competence of the people by investing into them like
providing training, education and by good human resource management. All kinds of
acts which intend to the improvement of the quality, skill and competence of the
employees are the process of human capital development. So, for example, in an
organization its staffs are the intangible assets or capitals of the organization. In order
to improve the human capital of the organization it provides trainings, internships and
so on. A company’s success greatly depends on the quality of its human capital.
Therefore, a company needs to invest into the human capital to obtain profit.
According to Becker (2009):
Schooling, a computer training course, expenditures on medical care, and lectures on the virtues
of punctuality and honesty are also capital. That is because they raise earnings, improve
health, or add to a person’s good habits over much of his lifetime. Therefore, economists regard
expenditures on education, training, medical care, and so on as investments in human capital.
They are called human capital because people cannot be separated from their knowledge,
skills, health, or values in the way they can be separated from their financial and physical
assets.
So, according to Backer human being’s education, training and values are the capital
and these are called human capital as it cannot be isolated from people like their
physical assets.
The theory of human capital dates back to Smith’ s (1993) classification of the fixed
capital. He divided the fixed capital into four categories which were:
(1) machines and instruments;
(2) buildings;
(3) land; and
(4) human capital.
He stated that human capital is the acquired and useful abilities of the members of the
society which can be achieved through education and apprenticeship which cost a real
expense. He compared this skills and abilities as a machine or instrument which
provides facilities and abridges labour which has certain expense but the expense
HUM is paid back with the profit. So, according to Smith to invest in human capital is same
28,1 like investing in the machine for obtaining profit.
According to the previous definitions the aim of human capital development is to
achieve economic growth. Human being is a field of investment which can lead to the
maximum profit by a well mode of investment. This concept is having criticism as some
countries even though they are having strong human capital but lacking economic
66 growth comparing with the low level of human capital. The investment in human capital
does not guarantee the presumed productivity and gain. Furthermore, Smith considered
human being as machines but human being is a social animal that cannot work as
machines and have complicated dimensions. Moreover, this theory calls for individualism
as it only evaluates the individual abilities and skills and does not consider the welfare of
the people. Marshall (1998) mentioned that in the Marxist renaissance of the 1960s, it was
attacked for legitimating so-called bourgeois individualism, especially in the USA.
Moreover, its goal is attaining economic development and sometimes neglects the
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welfare of people. But it is necessary to remember that the development is for the sake
of human being but human being is not for the sake of development. Meaning to say,
we need development for the welfare of human being but human being is not created
for the sake of development.
On the other hand, this theory does not emphasize on the development of moral
values. Though Becker mentioned moral values as a part of human capital but in Smith’s
definition it is absent. There is no doubt that moral values have great contribution to
achieve success as corruption is one of the major obstacles to achieve economic growth.
the Earth which will not be accomplished except preparing human being as competent to
carry out these duties adequately and potently, qualifying him and raising his abilities and
releasing his powers and capabilities in different physical, intellectual, psychological and
spiritual aspects (International Islamic Jurisprudence Academy, 2007).
So, in Islamic context the meaning of Human capital is the ability and experience of
human being to fulfil his objective and responsibility on this earth. The verses
mentioned above depict the objective and responsibility of human life which are to be
the successor of Allah on the earth and carry out the orders of Allah in the world.
Therefore, human capital is the ability of human being to fulfil his duty as a successor
and slave of Allah on this Earth.
Therefore, there is difference in the theory of human capital in Islam. While in the
general context, the objective of human capital development is to achieve economic
growth then in Islam, the aim of human capital development is to achieve the quality
and competence to fulfil the responsibilities and duties of human being which is
ordained by Allah (s.w.t.). The development of human capital in Islam covers all kinds
of physical, intellectual, psychological and spiritual aspects of development. So, Islam
conversely with the general theory of human capital takes care of the spiritual parts of
human being and considers human being as a social animal. As the objective of the
development of human capital is to achieve the quality to fulfil the responsibilities
which is ordained by Allah (s.w.t.) then it always focuses on social welfare and
collectivism due to Islamic laws calls for welfare and collectivism.
Moreover, Islamic economic theory is mostly equity based. It focuses on collective
development. Social welfare is one of the key points of this economic system but it is
dissimilar with communism as it also appreciates the work and proficiency of every
individual. Imady and Seibel (2006) stated:
The principles of Islamic finance are laid down in the Sharia’h, Islamic law. Islamic finance,
comprising financial transactions in banks and non-bank financial institutions formal and
non-formal financial institutions, is based on the concept of a social order of brotherhood and
solidarity.
The unity among the Muslims is established through their every day social interaction
and through performing religious duties. Islamic social theory is based on sharing and
caring.
HUM However, Islamic concept is similar to the western idea in a sense that it also
28,1 emphasizes on the development of the knowledge, skills and experiences of human
being rather it calls for the improvement of human competence more extensively. In
fact, Islam is a unique religion that contributes much to motivate the people to improve
their knowledge, skills and competence. It urges mental, physical, intellectual and
ethical development of human being or in a word the comprehensive development of
68 human being.
(of time). Nowise did Allah create this but In truth and righteousness. (thus) doth He
explain His Signs In detail, for those who understand.) (10: 5).
Furthermore, the family is the most important social foundation to build up a highly
qualified human being. In Islam, parents are advised to bring up their children with
good education and tarbiyyah. Tarbiyyah is the combination of manners, values and
characters which the family will seed into the mind of their children. Family is the first
institution which provides fundamental religious, moral and ethical education to their
children which has a great impact on the future life of the children (Siddiqi, 1984).
life, intellect, progeny and property. Al-Ghazali (1997) mentioned in this regard, “the
objectives of the Sharia’h on the creations are five which are protecting their religion, life,
intellect, progeny and property.” So, after the protection of religion, the protection of
life is the main objective of Islamic laws.
Therefore, Islam prescribes all kinds of rulings which lead to the protection of life
and forbids the things which cause harm for life. Allah said in the Quran: (And spend
of your substance In the cause of Allah, and make not your own hands contribute to
(your) destruction; but do good; for Allah loveth those who do good.) (2: 195). This
verse depicts that Muslims should not destroy their lives by their own hands.
Therefore, to take care of the physical body is obligatory. Though eating pork is not
permitted but when someone does not get any food without this and his life is near to
death then it is obligatory for him to eat pork to save his life. Moreover, taking
medicine to cure the diseases is also prescribed in several prophetic traditions. Several
means of cleanliness like ablution and taking bath is prescribed in Islam so that the
body is clean and free from diseases.
Finally, Islam always encourages physical exercises to develop the physical
strength. Prophet (pbuh) mentioned: (Everything which is not having the remembrance
of Allah the Almighty is diversion or inadvertence except the four things: a person’s
walking between the two destinations (meaning throwing the arrow), learning horse
riding, joking with his family and learning how to swim) (Al-Tabrani, 1985, no. 1760).
This Hadith is an inspiration to do physical exercise which has a significant role in
the physical development of the people. Moreover, five times obligatory prayer is a
good physical exercise too for a Muslim which is a means for physical and spiritual
development.
Conclusion
It is realized through this study that human capital theory has a different understanding
in Islam. While the objective of the conventional theory is achieving economic growth
then Islamic goal of human capital development is improving the abilities and skills of
human being so that they can provide better services for the society to reach the final
goal of human being which is fulfilling the obligation of stewardship on this Earth and
worshiping the Almighty Allah (s.w.t). While development is the final goal of the
conventional theory then in Islamic theory development is a means for reaching the goal.
HUM However, likewise the conventional theory, Islamic human capital development theory
28,1 urges the improvement of education, skills and abilities of human being rather Islamic
theory is more comprehensive in this regard as it covers every aspects of development of
a human being. Moreover, Islamic society plays an important role for the development of
human capital. Furthermore, Islam nurtures moral behavior of the people which is
undoubtedly a major factor of development.
74
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Further reading
Bowles, S. and Gintis, H. (1975), “The problem with human capital theory – a Marxian critique”,
The American Economic Review, Vol. 65 No. 2, pp. 74-82. 75
Olaniyan, D.A. and Okemakinde, T. (2008), “Human capital theory: implications for educational
development”, European Journal of Scientific Research, Vol. 24 No. 2, pp. 157-62.
Corresponding author
Md. Faruk Abdullah can be contacted at: faruk_7738@yahoo.com
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