ESTABLISH ISLAMIC ECONOMICS

Signs of economic development, are simply the result of growth that causes the increased range of choice in goods and services or improvements in material conditions. This marks the development of thinking about development, can be coupled with another, or more detailed, such as the erosion of mass poverty (which, among others, characterized by illiteracy, disease, infant mortality, poor nutrition and so on). Changes in the composition of the material inputs and outputs or results that occur simultaneously with the shifting of production structure away from agriculture toward industry and services, expanding employment opportunities to all levels and segments of society and the growing participation include the wider community in making decisions about the direction of economic progress toward prosperity is higher.

Kaldor-Pasinetti income distribution proves that the Islamic economic system that contains the distribution of income instrument, capable of generating a steady economic growth. the basis of the model is as follows:

Y = W + P ...............(1)
where:
Y = aggregate income
W = total wage
P = total profit

Above equation illustrates that income consists of two main components, namely the total wages and total profits. In other words the income consists of wages and non-wage income and profits derived from the so-called ownership of assets, either profit or rent. furthermore, wages may be split into two, namely the wage received by workers who receive alms and who do not accept charity, with the following equation:

W = Wn + Wz .............(2)
where,
Wn = wages received by workers who are not entitled to receive zakat
Wz = wages received by workers who are entitled to receive zakat

With the distribution of Zakat, then the whole society is divided into three functional groups, owners of capital, workers and workers receiving zakat that is not entitled to receive zakat. Other charity recipients who are not workers, are classified into groups of recipients of this charity. The definitions contained in the assumption that workers are not receiving alms or property owners of capital resources. all these assumptions can be summarized as follows:

A = Ac + An .............(3)
K = Kc + Kn ............(4)
where,
A = total assets are exposed to charity
Ac = zakat owned assets affected by the capital
An exposed zakat = assets owned by the workers who did not receive zakat
K = total capital resources in the economy
Kc = sources of capital owned by those who do not receive zakat
Kn = sources of capital owned by workers who did not receive zakat

In the equation is sometimes assumed that the capital assets to differentiate. Sources of capital K is the (sub-set of) total assets may consist of gold, silver, cattle, stock, trees and all affected property zakat mal, both productive and nonproductive nature.

The next assumed that Islamic society it is the people who like saving money. There are two sources, namely the owners of capital and labor are not entitled to zakat (because they are capable of saving), which produces the following equation:

S = Sc + Sn ..........(5)
Where,
S = the total savings
Sc = savings by the capital
Sn = savings by workers who are entitled to receive zakat.

There assumed that only the owners of capital and workers who did not receive zakat who save and invest, while workers receiving alms or zakat recipients others do not. Investment that can be invested through a financial intermediary, such as for example the Islamic Bank which operates on the principle of profit sharing or directly infuse capital to the ownership of shares in the form shirkah who theorized as economic institutions according to the Islamic system.

With the division that then can be split into two, the first accepted by the other owners of capital and to workers who did not receive zakat. Equation is:

P = Pc + Pn ................(6)

where,

P = total profit
Pc = profit received capital owners
Pn = profit received workers who do not receive zakat.

Islamic society is a society payer of zakat, which is the transfer of which receive more income or wealth to the poor and needy. This certainly is not charity, but perhaps a kind of welfare funds that are already in advanced industrial societies. here zakat is defined as a function of all the affected charity.

Z = f @ * A ..................(7)

Where,

@ = percentage of zakat

A = total assets

Because the set is assumed are owned by the owners of capital and workers who did not receive the zakat, then its result is the amount of zakat different results from each group, so the equation is:

Z = Zc + Zc + Zn .................( 8)
where,
Zc = the alms of the owners of capital
Z = total charity
Zn = zakat of workers who did not receive zakat

Zakat imposed on the assets, but are paid from revenues received by the owners of assets, other than by workers who are not entitled to receive zakat, although no assets.

Equation (1) to equation (8) describes the basic structure of the system being built, based on assumptions drawn from Shari'a law, especially concerning zakat here. Similar studies carried out also by Ali Al-Jahri Mabib trying to make a model that includes macroeconomic variables zakat to prove the impact of the economic system, but differ in some theoretical assumptions and therefore produce different models of econometrics. Others such as Anas Zarqa, investigating the effect of charity on the aggregate consumption function.