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Rethinking the Distribution Model in Iran’s Economy with Emphasis on the Perspective of Muhammad Baqir al-Sadr

    Author

    • mohammad parsaiyan

    Faculty Member, Jihad-e Daneshgahi (Academic Center for Education, Culture and Research - ACECR), Tehran

,

Document Type : Promotional scientific article

10.30471/iee.2025.11006.2517
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Abstract

Extended Abstract
 
Introduction and Objectives: Islamic economics, grounded in its monotheistic foundations, offers a distinct model from conventional economic schools-one that is justice-oriented and efficiency-driven. In this framework, “distribution” is not a post-production process but rather the starting point for organizing the economic system. The three-stage theory of Muhammad Baqir al-Sadr (1935-1980) - also known as al-Shahid al-Khamis, was an Iraqi Islamic scholar and philosopher- holds a special place here, as it divides distribution into pre-production, post-production, and redistributive stages, emphasizing the critical importance of pre-production distribution (the ownership and utilization of natural and public resources) as the foundation for economic justice.
In contrast, mainstream economic schools, particularly neoclassical economics, treat initial ownership as a given and focus their attention on post-production distribution or on correcting its outcomes through redistribution. While these approaches have proposed tools to reduce inequality, their neglect of the legitimacy and justice in the origin of resource ownership has facilitated the reproduction of structural inequalities.
The central question of this paper is: Can a just model for reforming Iran’s economic structure, based on the theoretical and jurisprudential foundations of Sadr, be proposed-one that begins at the level of resource ownership and curbs root inequalities from their source? The significance of this question is heightened by the challenges Iran’s economy has faced in recent decades, including the rentier concentration of resources, inequality of opportunities, institutional monopolies, lack of transparency in resource allocation, inefficiency of the tax system, and the marginalization of authentic Islamic economic instruments such as Zakat, Khums, and Waqf in the economic structure.
This research aims to rethink the model for distributing resources and opportunities, identify the flaws in the existing structure, and propose reform measures based on Sadr’s theory. It seeks to suggest practical strategies for transitioning towards a just, transparent, and efficient system aligned with the Constitution of the Islamic Republic of Iran and the teachings of Islamic economics.
Methodology: This research employs a descriptive-analytical method. After examining the theoretical and jurisprudential foundations of distribution in Islamic economics-particularly within the framework of Sadr’s three-stage theory—it critically and comparatively analyzes the distribution structure in Iran’s economy.
Research data is drawn from two main sources: first, Islamic sources including the Holy Quran, narrations from the Infallibles, and jurisprudential-economic works, especially Muhammad Baqir al-Sadr’s “Iqtisaduna” (Our Economics). The second source comprises scientific studies and official reports on Iran’s economic structure, including laws and regulations, documents from the Parliamentary Research Center, reports from the Court of Audit, data from the Central Bank, and domestic and international academic research on distributive justice and resource ownership regimes.
In the first stage, the theoretical foundations of Islamic economics and the views of mainstream economic schools on distribution and resource ownership are reviewed and compared to reveal their fundamental differences. Subsequently, Sadr’s theoretical framework, with its emphasis on the pre-production stage of distribution, is explained, and its key components-including the criteria of labor, legitimate appropriation (Hiyaza: i.e. possession of immovable/movable property without ownership)), need, prohibition of monopoly, and equality of opportunity—are identified.
Next, the distributive structure of Iran’s economy is analyzed across four dimensions: pre-production distribution, inequality of opportunities, redistribution, and market structure. Issues such as the rentier concentration of resources, institutional monopolies, unfair credit distribution, information rent, and the inefficiency of the tax system are examined.
In the final stage, using a comparative analysis between the current situation and the ideal model based on Sadr’s theory, a set of reform measures is designed. These measures possess both theoretical-jurisprudential grounding and potential for practical policy implementation at the national level. They focus on revising the ownership regime for public resources, integrating Islamic instruments with conventional taxes, enhancing transparency in resource and opportunity allocation, and establishing anti-monopoly and justice-oriented mechanisms.
Results:The research findings indicate that a significant portion of economic inequalities and structural inefficiencies in Iran’s economy stem from weaknesses in pre-production distribution—that is, at the very stage where ownership and utilization of natural resources, economic opportunities, and key information are determined.
Despite constitutional emphasis on the public ownership of Anfal (natural resources) and the necessity of regional justice in resource utilization, practices have emerged that lead to the rentier concentration of resources in the hands of limited groups, the granting of monopolistic privileges, and the deprivation of less developed regions. This situation not only conflicts with the principles of Islamic economics but also reduces economic efficiency and hinders balanced and sustainable growth.
Data analysis reveals that institutional rents in areas such as mines, energy, land, and banking credit, coupled with information rent in the capital market and macro-economic decision-making, have distorted equal opportunities and fostered monopoly, discrimination, and economic corruption. Furthermore, the national tax system, instead of playing a role in mitigating inequality, has tended to pressure fixed-income groups, while a significant portion of large incomes and wealth has remained effectively outside the tax net.
The results show that authentic instruments of Islamic economics, such as Zakat, Khums, Waqf, and Sadaqat, lack a systematic and impactful position within the economic structure and are not fully coordinated with the tax system and supportive policies, even at the redistribution stage. These deficiencies have prevented redistributive policies from sustainably reducing inequality.
Based on the findings, implementing the principles of Sadr’s theory at the pre-production stage, alongside a restructuring of the tax system and increased transparency in resource allocation mechanisms, can simultaneously enhance both justice and economic efficiency.
Discussion and Conclusion:The discussion in this research is based on a central proposition: Unless economic justice begins at the pre-production stage of distribution, no redistributive policy or post-production reform will be able to sustainably address structural inequalities. Iran’s economic experience in recent decades demonstrates that relying solely on supportive and subsidy policies, without revising the methods of initial ownership and resource allocation, has only provided temporary palliatives and has sometimes even led to the reproduction of rent and corruption.
Sadr’s three-stage model, emphasizing “legitimate ownership,” “labor as the primary criterion for the right to benefit,” and “considering need alongside labor,” provides a framework that can simultaneously address justice and efficiency. This approach contrasts with the logic of capitalism, which assumes private ownership of natural resources as a given and unquestionable.
In practice, implementing this model requires reforming laws and procedures concerning public ownership, establishing transparent mechanisms for utilizing Anfal and national resources, and eliminating institutional and informational monopolies. The research results indicate that in the realm of natural resources, non-transparent concessions, rent-seeking privileges, and neglect of regional capacities have led to the deprivation of resource-rich regions and the formation of deep economic disparities. Furthermore, the lack of integration between tax instruments and Islamic tools like Zakat and Khums has reduced the efficiency of the redistributive system.
The main proposal of this research is to move beyond isolated policies and towards a comprehensive justice-oriented policy package. This package should include restructuring the ownership system, integrating Islamic and tax instruments, ensuring transparency in resource allocation, and establishing a system of public oversight. Only within such a framework can economic justice be achieved in an integrated manner—from the initial stage of property formation to the final stages of income distribution.
Acknowledgements: I am deeply grateful to the esteemed scholars in the field of Islamic economics, whose introduction and elaboration of the foundations and theories of this school of thought—particularly the profound and innovative ideas of al-Sayyid Muhammad Baqir al-Sadr—played a crucial role in shaping the research perspective of this article. I also extend my thanks to all the professors whose critiques and suggestions facilitated the completion of this scholarly work.
Conflict of Interest: The author declares no financial, personal, or organizational conflicts of interest in the preparation, writing, or publication of this article.

Keywords

  • Islamic Economics
  • Distribution Model
  • Muhammad Baqir al-Sadr
  • Pre-Production Distribution
  • Natural Resources
  • Iran’s Economic Structure
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Journal of Economic Essays: an Islamic Approach
Volume 22, Issue 46 - Serial Number 46
June 2025
Pages 89-114
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APA

parsaiyan, M. (2025). Rethinking the Distribution Model in Iran’s Economy with Emphasis on the Perspective of Muhammad Baqir al-Sadr. Journal of Economic Essays: an Islamic Approach, 22(46), 89-114. doi: 10.30471/iee.2025.11006.2517

MLA

mohammad parsaiyan. "Rethinking the Distribution Model in Iran’s Economy with Emphasis on the Perspective of Muhammad Baqir al-Sadr". Journal of Economic Essays: an Islamic Approach, 22, 46, 2025, 89-114. doi: 10.30471/iee.2025.11006.2517

HARVARD

parsaiyan, M. (2025). 'Rethinking the Distribution Model in Iran’s Economy with Emphasis on the Perspective of Muhammad Baqir al-Sadr', Journal of Economic Essays: an Islamic Approach, 22(46), pp. 89-114. doi: 10.30471/iee.2025.11006.2517

VANCOUVER

parsaiyan, M. Rethinking the Distribution Model in Iran’s Economy with Emphasis on the Perspective of Muhammad Baqir al-Sadr. Journal of Economic Essays: an Islamic Approach, 2025; 22(46): 89-114. doi: 10.30471/iee.2025.11006.2517

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