CONCEPT OF SUSTAINABLE DEVELOPMENT FROM ISLAMIC PERSPECTIVE

Abstract

Nowadays the issue of sustainable development are being discussed seriously around the world. This is because to ensure that the need for the future generation is not neglected during the process development of economics. Therefore, this paper attempts to re-look the role of Islamic's element in the sustainable development. This paper using qualitative research as a method of this study. The researchers suggest that the element of Islam must be consider as one of the element to measure the sustainable development.

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Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM)
31st October - 1st November 2016, 978-967-0850-61-0
221
CONCEPT OF SUSTAINABLE DEVELOPMENT FROM ISLAMIC PERSPECTIVE
Mohammed Rizki Moi
Faculty of Management and Muamalah,
International Islamic University College Selangor (KUIS), Malaysia
Email: rizki@kuis.edu.my
Muhammad Hakimi Mohd Shafiai
Faculty of Economics and Management,
Universiti Kebangsaan Malaysia,
Email: hakimi@ukm.edu.my
Bayu Taufiq Possumah
School of Social and Economics Developemen,
Universiti Malaysia Terengganu,
Email: bayu@umt.edu.my
ABSTRACT
Nowadays the issue of sustainable development are being discussed seriously around the
world. This is because to ensure that the need for the future generation is not neglected during
the process development of economics. Therefore, this paper attempts to re-look the role of
Islamic’s element in the sustainable development. This paper using qualitative research as a
method of this study. The researchers suggest that the element of Islam must be consider as
one of the element to measure the sustainable development.
1. INTRODUCTION
Over the past decade, there has been growing recognition that sustainability is an important
factor in investment success. This is driven by awareness that investing for the long term
produces better results and that material environmental, social and governance (ESG) issues
directly affect financial performance (Roy & Gitman, 2012). Sustainable urban development
should be carried out taking into account the ability cope; consumption of resources,
distribution of waste and pollution that is triggered on the city and surrounding areas. (Stren
et al., 2015). In addition, World Commission on Environment and Development (Brundtland,
1987) defines sustainable development as development that allows the current generation to
meet its needs without conceding the capability to meet the future generations own needs.
A major emphasis in the policy recommended sustainable development is that the
world community must live within the limits of capacity (carrying capacity) planet earth
While there are several different definitions but in all these definitions there is a theme that is
shared with the environment (environment), the future (futuristic) and equality (equity)
(WCED, 1987). Even though there are several different definitions for the matter, yet in all
these definitions there is a theme that is shared namely environment, future and equality.
The concept of sustainable development can be seen by referring to statistical
measures step that should be noted and action today to ensure that environmental issues are
global in nature such as the exchange of weather, the greenhouse effect, and social pressure

Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM)
31st October - 1st November 2016, 978-967-0850-61-0
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endured this day would never affect and threaten the lives of future. Sustainable urban
development must take into account social justice, basic human needs, public health,
environmental awareness in space and time. One way to achieve sustainable development is
through the city's economic health. However, the current theory of sustainable cannot achieve
it aims because there are many problem of conventional sustainable theory. Therefore, this
paper will study the role of Islamic’s element in the issue of sustainability development
2. CONCEPT OF SUSTAINABILITY FROM CONVENTIONAL PERSPECTIVE
In understanding the consept of sustainability, clear definition need to be identify. Previous
study define sustainability concept as the the normal functioning and longevity of a nested
hierarchy of ecological and socioeconomic systems, ordered according to scale (Munasinghe,
2002). Other point that need to be consider is joint sustainability linkage between and co-
evolution of socioeconomic and ecological systems. As a broad understanding, what
ecological (and linked socioeconomic) systems need is improved system health and the
dynamic ability to adapt to change across a range of spatial and temporal scales, rather than
the conservation of some ideal static state (Munasinghe, 2002).
Munasinghe (2002) emphasized on human potential in social system where he
believes that the durability of social systems and governance could be improve by enhancing
human capital and strengthening social values, institutions and equity. The long-term changes
and effects are often overlooked in socio-economics analysis since the harmful events are
occur gradually. It is crucial to preserve cultural capital and diversity across the world.
Futhermore, biodiversity and cultural diversity play similar roles in protecting the
durability of ecological and social systems, and the interlink ages between them
(Munasinghe, 2002). Understanding the links that radiate out from poor communities, and
their interface with agencies and government is critical for building connections and
distribute resources directly to make social development more sustainable. In several
succeeding reports from international organizations, UNESCO (2001) emphasize cultural
diversity as the requirement to strenghthen social cohesion and networks of relationships, and
to reduce destructive conflicts, which are also essential elements of this approach
(Munasinghe, 2002).
To sum up, the sustainable paradigm consists of three pillars, namely economic
growth, environmental protection and social dimension (Sydorovych & Wossink, 2008;
Dantsis et al., 2010) (see Fig 1). According to Kessler et al. (2007), quoted by Bertule and
Degn (2009), highlighted two indicators in economic dimension which are per capita gross
domestic product and employment rate. For social dimension, Bertule and Degn (2009) and
Kessler et al. (2007) outlined food security, child mortality, poverty index, the conflict of a
land and inequality. Food security may be negatively affected due to the replacement of food
crops. Besides that, this sector also will decrease a poverty index (Zin, 2014). Furthermore,
for environmental dimension have many criteria such as air, water, biodiversity, soil and
agro-ecological management which is each criteria have own indicator. The indicators such
as soil fertility status, greenhouse gas emissions, water quality and many more. Sustainability
is seen as an approach and property of the agriculture sector. The approach leads the
development a set of of strategies to make sure the sustainable could be achieved.

Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM)
31st October - 1st November 2016, 978-967-0850-61-0
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Figure 1: Model of sustainable development from conventional perspective
Source: Sydorovych & Wossink (2008); Dantsis et al. (2010)
2.1 Sustainability Development
Conventional economic system has shown a lot of weakness and failure. The system will not
solving the economic problems of the world, but creating and adding to the economic
problems. There are many of the problems of the world have to face such as:
i. Economic crisis
Foster and Magdoff (2009) mentions that the crisis happened (Capitalis Monopoly Finance),
due to monetary inflation that cause the economic tends to lead to a stagnant. Krugman
(2009) mentions, this crisis will create financial inflation will only accumulate more debt and
make economic bubble. Krugman (2009) also state that conventional economic theory was
dead and always confronted with a crisis.
Within the framework of Islamic economics, Khan (2012) saw the crisis was coming
from a fundamental error of economic practices that protect the financial and banking
institutions to speculating in the financial markets. Therefore, the best way out is to remove
the speculating, riba and maysir activity.
ii. Poverty
Crisis and poverty are interconnected with each other. When a crisis problem arises there are
also will have a problem of poverty.
iii. Unfair distribution
Adelman and Morris (1973) mention that unfair distribution are because of inflation and
import substitution industrial policy implementation that resulting in higher prices of goods
industry to protect economics of the capitalist. Therefore, source of wealth will only
concentrated only on rich people.
3. ROLE OF ISLAMIC ECONOMICS AND FINANCE IN THE ISSUE OF
SUSTAINABILITY DEVELOPMENT
There is no simple or direct relationship between financial development and sustainable
development but there are often indirect linkages. Most of the literature focuses on the role of
public shareholders when it comes to changing corporate policy and performance in a more
sustainable direction (Scholtens, 2006). However it neglects the potential impact of credit
channels such as financial institutions on the company’s non-financial policies and
performances. It is only US that net financing by bonds is almost equal to the size of loans

Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM)
31st October - 1st November 2016, 978-967-0850-61-0
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via bank lending. Elsewhere bank loans are much more than the funds rise through bonds and
stocks etc. (Scholtens, 2006). The financial sector includes different actors that play an
important role in sustainable development i.e. shareholders, financial institutions such as
Banks, NGOs etc. In order to overcome the economic stability issue, financial institutions
such as banks and microfinance institutions can play an important role.
In the world where population is growing uncontrollably and environmental health is
degrading continuously with the problems of draught and desertification especially in less
developed country, Islamic finance can play an important role in fostering bigger and more
efficient production by financing agriculture to increase food supply. This idea has been
realised from the statement of Badawi cited in (Gulaid, 1995).
3.1 Element of Islam in Sustainability Development
Narayanan (2013) state that are role of religion can be play to achieve economic
sustainability. The three ways in which religion may play a role in sustainable development
are through the values it offers, through its potential for ecological, social and political
activism (based on those values) and through its capacity to enable self-development. The
idea was supported by Hossain (2014) by his research finding that the concept of sustainable
development is accurately according to religious beliefs. That finding also was supported by
Becchetti and Borzaga (2010) that mention religious can increase economic growth and also
environment and economic sustainability.
Abdulrachman (2011) proposed a model of sustainable development that was made up
by five indicators of sustainable development, namely: (1) socio-cultural development, (2)
economic development, (3) political development, (4) environment protection, and (5)
spiritual development. This model shown in Figure 1. The difference between model of
sustainable development from Islamic perspective is spiritual development also was taking
off.
Figure 2: Proposed model of sustainable development from Islamic perspective
Source: Abdulrachman (2011)
Spiritual
Developmant
Socio-Cultural
Dev
Economic Dev
Environment
Protection
Political Dev

Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM)
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4. CONCLUSION
Previous study show that there many problem occur due to the conventional theory and
immediate action must be taken to solve this problem. As alternative, Islamic theory of
sustainable development can be adopt as a solution to that problem and can help economic
achieve sustainability.
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