by Ahmed E. Souaiaia *
Abstract:
This article reexamines economic justice through the lens of Islamic civilization, contrasting its moral and labor-centered foundations with the capital-driven structures of modern Western economies. Prompted by a significant current event—newly announced sweeping tariffs imposed by the U.S. administration on all imported goods, some at historically high rates—this analysis considers how tariff policy is far from a technical matter. Instead, it has widereaching consequences for labor, equity, global trade, and the distribution of wealth. At the center of this inquiry is the work of 14th-century Muslim thinker Ibn Khaldun, whose al-Muqaddima presents a powerful critique of exploitative economies and offers a visionary alternative: one that places human labor, not capital, at the heart of value creation. Unlike modern capitalist systems that privilege accumulation through ownership, speculation, and monopolization, Ibn Khaldun’s framework emphasizes ethics, productive work, and economic structures that serve the common good. By revisiting the role of tariffs and taxation in both Islamic and Western contexts, this article argues for a more equitable model—one that sees economics not as a cold science of capital flows, but as a vital domain for ensuring justice, dignity, and sustainability in society.
The economic landscape of civilizations has long been shaped by the philosophies and structures that underpin them. One of the most notable differences between Islamic civilization and modern Western economic systems lies in the foundational principles that guide their fiscal policies—particularly tariffs—and their broader economic ethos. At the heart of this divergence is a crucial philosophical difference: where modern Western capitalism privileges capital, Islamic economic thought—most strikingly articulated by Ibn Khaldun—elevates work as the true source of wealth and social cohesion.
This essay explores the historical application of tariffs in Islamic and Western contexts, and how Ibn Khaldun’s unique economic vision challenges the dominant capital-centric paradigm by advocating for a more equitable model rooted in labor and moral economy.
In Islamic civilization, tariffs—often referred to in classical texts as maks or ushr—were tightly regulated under Sharia law. These charges were not meant to generate profit for rulers or enrich the elite, but rather to serve public welfare. Trade taxes were generally minimal, applied primarily to non-Muslim merchants or specific goods crossing borders, and always within the bounds of justice (adl). Arbitrary taxation was prohibited, and the Prophet Muhammad himself condemned unjust levies, emphasizing fairness in commerce and trade.
In contrast, the use of tariffs in modern Western world serves geopolitical and capital-accumulation goals. Tariffs today can be protectionist tools—defending domestic industries not necessarily for the public good but for maintaining monopolies and ensuring profit margins for powerful corporations. Tariffs in the modern West are frequently structured to serve the interests of capital over people, sometimes exacerbating global inequalities, rather than alleviating them.
In Islamic civilization, economics was not treated as a standalone discipline—an insight that speaks volumes about the integrated nature of knowledge in that era. Rather than being isolated from ethics, law, and society, economic thought was embedded within a broader moral and social framework. It was only toward the latter stages of the Islamic civilization that more formalized economic theories began to emerge, most notably in the seminal work of the 14th-century thinker Ibn Khaldun.
Ibn Khaldun (1332–1406 CE) was a towering intellectual figure of the Islamic Golden Age, widely regarded as a pioneer in multiple disciplines including historiography, sociology, political science, and economics. Born in Tunis and educated in the rich scholarly traditions of the Maghreb and Andalusia, Ibn Khaldun served as a jurist, diplomat, and statesman, all while developing a uniquely systematic and critical approach to understanding human society. His work reflects a deep concern for justice, moral integrity, and the rise and fall of civilizations, making him not only a historian of the past but a thinker with enduring relevance. Ibn Khaldun’s insights anticipated many ideas that would only emerge in Western thought centuries later, earning him recognition today as one of the earliest forerunners of modern social science.
Ibn Khaldun’s magnum opus, al-Muqaddima (translated as The Introduction), was originally conceived as the prologue to a much larger historical work. However, it quickly gained recognition as a groundbreaking and self-contained treatise, offering profound insights into history, economics, education, politics, and the dynamics of civilizational change. In al-Muqaddima, Ibn Khaldun presents an integrated theory of society, one that interweaves economic activity, social cohesion (‘asabiyya), governance, and the moral order. Of particular note is his economic theory, which departs radically from the later European tradition by centering work—not capital—as the true engine of wealth and societal vitality. This holistic approach challenges modern assumptions and invites contemporary readers to reevaluate the ethical foundations of economic life. The enduring power of al-Muqaddima lies in its ability to speak across centuries, offering a vision of civilization grounded in justice, labor, and social responsibility. It is one of the most profound premodern works on social theory, historiography, and economics.
In Book One, Chapter Five—Making a Living—Ibn Khaldun lays out his economic philosophy with a clarity and foresight that challenges many contemporary assumptions. In the newly translated edition of al-Muqaddima, the translator underscores Ibn Khaldun’s revolutionary premise: that work—not land, gold, or capital—is the true source of wealth.
According to Ibn Khaldun, human labor is the origin of value. Whether it be the work of the farmer, the artisan, or the merchant, wealth is generated through effort, skill, and contribution to the common good. Capital, in this schema, is not inherently productive; it is only through work that raw materials are transformed, services are rendered, and value is added.
This vision stands in stark contrast to the dominant capitalist model, where wealth can be accumulated through ownership alone—often through exploitative means such as colonization, slavery, speculation, or monopolization. Ibn Khaldun warned of such moral decay, noting that when rulers and elites shift away from supporting productive labor and toward the hoarding of wealth and imposition of unjust taxes, civilizations decline.
Ibn Khaldun’s theory privileges the ethical over the material. A just society, in his view, is one in which economic structures reward work and discourage rent-seeking behavior. His critique of oppressive taxation aligns with his broader concern that when wealth is separated from work, society becomes stratified and corrupt.
In modern capitalism, the privileging of capital leads to systemic injustices: billionaires multiply while essential workers struggle to meet basic needs. The system rewards those who inherit wealth or manipulate markets, rather than those who build, heal, teach, or cultivate. Under such conditions, inequality becomes entrenched, and social mobility diminishes.
Islamic economics, as reflected in Ibn Khaldun’s thought, seeks to reverse this trend. By rooting wealth in labor and limiting exploitative taxation, it promotes a model of economic justice where dignity is tied to contribution—not to capital accumulation.
Revisiting Ibn Khaldun’s insights offers a compelling challenge to modern economic orthodoxy. In privileging work over capital, he offers not only a critique of unjust economic structures but a roadmap for a more ethical and sustainable economic future. His vision affirms that a civilization thrives not through hoarded wealth or imperial conquests, but through honoring the dignity of work and ensuring that economic policies—from tariffs to taxationserve the common good.
As global inequality deepens and capitalism faces mounting critiques, the relevance of Ibn Khaldun’s thought is undeniable. His voice, echoing from the 14th century, calls us to imagine an economy where equity is not a slogan but a structure—and where the laboring hands, not just the owning class, hold the keys to a just global order.
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* Dr. Ahmed E. Souaiaia has taught and written about human rights for over 20 years in two U.S. universities. His recent works focus on Ibn Khaldun’s economic thought and the concept of rights.
