Father of economics: Ibn Khaldun or Adam Smith?

Whenever the history of economics is discussed, one name almost automatically appears: Adam Smith. Students across the world are taught that Smith is the 'Father of Economics,' and his famous book, The Wealth of Nations, is often presented as the foundation of modern economic thought.
But is the story really that simple?
As readers, we should always ask questions. History is often written by those who possess influence, power, and institutions. Sometimes important contributions from other civilizations remain in the shadows. This brings us to an intriguing question: Was Adam Smith truly the first economist, or should that title belong to the great Muslim scholar Ibn Khaldun?
I must confess that for many years I knew very little about Ibn Khaldun's economic ideas. Like many students educated in modern institutions, I was exposed primarily to Adam Smith, capitalism, free markets, and the Industrial Revolution. I read books praising Smith. I also encountered books criticising him. Yet rarely did anyone mention that almost four centuries before Adam Smith, Ibn Khaldun had already written extensively about trade, taxation, labor, production, wealth, and the rise and fall of economies.
His masterpiece, Al Muqaddimah, is generally known as a historical and sociological work. However, many scholars argue that hidden within its pages are some of the earliest systematic discussions of economics.
What exactly did Ibn Khaldun write?
One of his most important ideas was that labor creates value. According to him, wealth does not simply appear from nowhere. Human effort, skill, and work are essential in creating economic prosperity. This sounds surprisingly familiar to modern economic theories that emerged centuries later.
Ibn Khaldun also emphasised the importance of specialisation. He observed that when individuals focus on particular skills and occupations, productivity increases. A society in which people specialise, and exchange goods becomes more prosperous than one in which everyone tries to do everything themselves. Long before modern economists discussed division of labor, Ibn Khaldun had already recognised its significance. Perhaps his most remarkable contribution concerns taxation.
In Al Muqaddimah, Ibn Khaldun argued that excessive taxation discourages economic activity. When taxes become too high, businesses reduce their investments, entrepreneurs lose motivation, and economic growth slows down. Conversely, moderate taxation can encourage trade and increase overall government revenue.
Many economists today note the similarity between Ibn Khaldun's observations and what later became known as the Laffer Curve. The fascinating part is that Ibn Khaldun wrote about this relationship nearly six hundred years before modern economists gave it a formal name.
Another area where Ibn Khaldun demonstrated remarkable insight was economic cycles. He believed that civilizations, like human beings, experience birth, growth, maturity, and decline. Prosperity often creates comfort; comfort can lead to complacency; complacency weakens institutions; and eventually decline follows. This cyclical view of society remains relevant today.
When we examine modern economies, we can still observe elements of his theory. Nations rise, flourish, accumulate wealth, and sometimes struggle to maintain the very success they once achieved. His analysis was not merely economic; it was deeply philosophical.
This raises an interesting question. If Ibn Khaldun discussed labor, specialization, taxation, economic growth, and business cycles centuries before Adam Smith, why is Adam Smith universally known as the Father of Economics? The answer may lie partly in historical circumstances.
Smith wrote during a period when Europe was experiencing profound transformation. The Industrial Revolution was beginning. Printing, universities, and political institutions helped spread European ideas globally. Smith's work became influential because it emerged at the right place and at the right time.
This observation does not diminish Smith's contributions. On the contrary, The Wealth of Nations remains one of the most influential books ever written. Smith explained market mechanisms, competition, self-interest, and the functioning of commercial societies in a comprehensive and systematic manner. His influence on modern capitalism is undeniable.
However, acknowledging Adam Smith should not require us to ignore Ibn Khaldun. Perhaps the debate itself is misplaced. Instead of searching for a single 'Father of Economics,' we should recognize that economic thought evolved through contributions from many civilizations. Human knowledge is rarely the achievement of one individual alone. It is a long conversation stretching across centuries and continents.
Ibn Khaldun contributed insights that were far ahead of his time. Adam Smith transformed economic thinking and helped shape the modern discipline. One laid important foundations; the other built a grand structure upon them.
As readers and scholars, perhaps our responsibility is not to choose one over the other but to appreciate both. In doing so, we gain a richer understanding of intellectual history and recognise that wisdom has emerged from many corners of the world.