Ibn Khaldun's Theory of Umran: How can Muslim Countries benefit from his thought in development

Stages of economic growth and political association with the stages of growth
and social state:
Ibn Khaldun believes that the State have a lifetimes that often no more than three stages. The first stage is the establishment period where generation of this stage are enthusiastic, zealous, and eagerly intent through what he called Asabiyyah which is occupies central position in Umran theory and has influenced the rise and fall of dynasties or states over history. Asabiyyah refers to the action of one in helping his people or his group against any aggressive action, be angry for the sake of them, and protect them, invites others to help them, combine or league with them in facing those who carry hostility towards them, and closely bound to his group or nation based on the same interest and opinion.
The second stage is when the nation shift from establishment period to the ultimate growth and luxury where people tend to be indolent and sluggish and start to lose Asabiyyah gradually and state members struggling for the sake of ruling ignoring production and instead, imposing high taxes, spending on luxuries which create gap between the large expenditures and the weak income and production which lead at the end to third stage that is the total collapse of the state.
The three stages are quite linked to the economic stages of growth where in the first stages when the state is stable population grow steadily and thus more spending, more division of labor, more outputs, and the whole country boom. Economic start to decline in the second stage when production decline and expenditure on luxuries increased which in turn leads to total collapse of the state and civilization. This in terms of economic growth, its sustainability, and decline can be summarized as: at the beginning, less is spend on army, and tax revenues are saved, and the surplus is spent on state expenditure, State officials and others. These lead to consumption which in turn attracts skilled and professionals. Trade, industry and construction activities increase. As a result, trade craft and industrial produce are promoted, sold and purchased by government officials and other wealthy people. A consumer economy is established which is accelerated by high urbanization, and over-consumption. Then, scarcities develop. This leads to unsustainable city, as prices go up causing slump in demand and thus in less production. The prices of necessities tend to rise faster than those of luxuries, and prices in urban areas rise faster than those in rural areas. The cost of labour also rises and so do taxes. These lead to a further rise in prices, which creates hardship for people and leads to a reversal in the flow of population. Development declines and along with it does prosperity and civilization Ibn Khaldun (quoted by Mohammad, 2010).

Arabic Forum