Theoretical explanation of the poverty line from the perspective of Islamic economics; based on statistical standards of the Iranian economy

Abstract

Economic justice is one of the principles of Islamic economics and researchers in this field have made extensive theories and studies to base economic policies recommendations on this important principle. The purpose of this article is to introduce "the limit of sufficiency" instead of the poverty line and to provide a criterion for measuring the limit of sufficiency in Islamic economics. By basing the theory of economic justice on "entitlement" it demands that this type of research focus on explaining this idea in Islamic economics as accurately as possible. Economic justice in Islamic teachings requires the fulfillment of at least four entitlements, namely sufficiency limit, balance, contribution of the factors of production, and moderating-conventional rights. In this paper, by the descriptive-analytical method and using mathematical methods, we will explain the subordinate limit of the sufficiency and provide solutions for its estimation, while comparing it with the poverty line in the conventional economy. The result of this paper is that the poverty line and the bottom line of the sufficiency are two completely separate criteria, and policy-making based on the bottom line of sufficiency rather than the poverty line makes greater prosperity for society.

Keywords

• economic justice
• criteria of justice
• entitlement
• the limit of sufficiency
• the poverty line