Searching for Islamic Economics: A Philosophical Inquiry (original) (raw)

Islamic Economics Revisited: Re-contemplating Unresolved Structure and Assumptions

iefpedia.com

After decades of its birth, Islamic economics has undoubtedly gaining its strength. However, it could not be regarded as yet, inevitably, as being a zero-defect discipline. Although the debate on Islamic economics seems to be almost rather settled, but a revisit to it is still indispensable. This is exactly what this paper intends to do. It attempts to revisit the mainstream Islamic economics and explore two unresolved concerns that are observed to have prevailed in it, so as efforts to overcome them could entail with a more proper development of the discipline. The two unresolved concerns are the untransformed structure of and the remaining of the conventional economics assumptions within the Islamic economics itself. This effort comes with awareness that these two unresolved concerns are not the only unresolved concerns still lingering around the Islamic economics. There are at least five more, viz. an absence of the redefinition of operating concepts, inaccurate ultimate aim, pseudo-Islamic operational mechanisms, erroneous research methodology, and knowledgepractice dichotomy of the Islamic economists themselves. However, due to space limitation, these five unresolved concerns will have to be dealt with elsewhere. The concentration of this paper therefore would only be on the untransformed structure and the remaining of the conventional economics assumptions of the mainstream Islamic economics.

Islamic Economics VS. Conventional Economics: A Critical Review

This article critically analyzes the fundamental theories of Islamic economics and conventional economics, specifically focusing on the well-known theory of “infinite human demand, limited resources” within the context of Islamic thought. It explores how this theory, central to classical economic frameworks, is proven incorrect in light of Islamic economics, which posits that human needs are limited and resources are abundant when utilized ethically and sustainably. Through this examination, the article highlights the key differences between these two economic models, showing that Islamic economics provides a more holistic, ethical and balanced approach to managing economic activity, in contrast to the individualistic growth-driven nature of conventional economics. Additionally, it delves into the foundational aspects of Islamic economics such as the prohibition of interest (riba), the institution of zakat and the emphasis on charity, which underscore its commitment to justice, equity and social welfare.

Islam and the Science of Economics

Economists have generally maintained a rigorous separation between positive and normative economics. In the Muslim world, however, concerted attempts have been made to relate moral conduct to economic institutions and practices. Demands for an alternative theory and practice of development to both modernization and Marxist theories had led to the rise of Islamic economics. But while Islamic economic thinking presents an ideal of development that is based on an Islamic philosophy of life, it is beset by a number of problems which make it difficult to be considered as an alternative to modernist discourse as far as empirical theory is concerned. As such. so-called Islamic economics cannot be considered as presenting a counter-modernist and alternative development theory. As an ethical theory of development Islam offers an alternative to modernization. dependency. and neo-Marxist theories. However.as an empirical theory. so called Islamic economic theory remains within the fold of Western modernist discourse in terms of its theoretical concerns and methodology. This chapter provides a theoretical critique and suggests an exemplar for a political economy approach for the Muslim world.

Islamic and Conventional Economics – Dialogue and Ethics

journal of king Abdulaziz University Islamic Economics, 2019

Dialogue and intellectual trade between Islamic economics and conventional economics has been active and mutually beneficial for more than 40 years. I present some concrete examples of this in the current paper. I then assess recent calls for a complete break of Islamic economics with conventional economics, and find them clearly inconsistent with Islam’s actual approach to culture and institutions in preIslamic Arabia. The Islamic approach shuns blanket acceptance or rejection of any piece of human knowledge, and calls for detailed case by case assessment, then adoption, rejection, or acceptance after modification. The Islamic approach also insists on severability wherever possible, to salvage good parts from a bad whole. One particular argument for total break from conventional economics, is its assumption of selfishness of economic agents. I demonstrate that this is an overreaction by giving specific examples of Muslim jurist’s nuanced view of selfishness (or self-interest): when...

CONTEMPORARY ISSUES & DEVELOPMENTS IN ISLAMIC ECONOMICS

az-zahra, 2024

In the name of Allah, the Most Gracious, the Most Merciful. With great appreciation, we present this book, Contemporary Issues & Developments in Islamic Economics, which has been carefully compiled to address the expanding interest and critical need for scholarly exploration in Islamic economics today. As Islamic economics moves forward on the global stage, this work aims to guide readers through the foundational concepts and contemporary developments shaping this field. The book opens with a clear introduction to the fundamentals of Islamic economics, establishing a foundational understanding of its principles and goals. This section provides readers with a valuable context to appreciate the distinct framework that Islamic economics presents as a comprehensive system of thought. Following this, readers are introduced to the historical context and the evolution of Islamic economic thought. By exploring this progression, the book aims to show how Islamic economics has maintained its core values while adapting to societal shifts, offering a dynamic perspective on economic justice and ethics.

The Methodology of Islamic Economics

his paper investigates the conformity of market participants' decisions with the Islamic codes of conduct from the economic and philosophical perspectives. At the outset, the contributions of the renowned contemporary Muslim philosophers on the epistemological issues between the "is" and the "ought" are presented. Subsequently, a synthesized construct that would resolve the dichotomy between the normative and positive economy is outlined. The approach and the conclusions of this paper are expected to alleviate the dissatisfaction expressed by many Muslim economists for the sole application of the normative or positive economic methodology in the field. Furthermore, the paper validates arriving at conclusions in line with Islamic ethical norms by an empirical study of the actual economic behavior of market participants. The conclusions of this paper are not limited to economics but are expected to be applicable to all Islamic social sciences where similar issues are disputed.

Method and Substance of Islamic Economics Revisited

journal of king Abdulaziz University Islamic Economics

This paper provides fresh deliberations on the method and substance of Islamic economics by relying on the structure and contents of Nienhaus (2013). Introspective arguments are furnished to soundly argue that Islamic economics is still a widely disregarded field; it is an integrated science; its normative dimension is not a deterrent element; ‘Islamic economics light’ studies are one inseparable part of the discipline; and Islamic economics is a political economy. On the aforementioned issues, we essentially make further elaborations on our Islamic economics definition, ‘Qur’ānic framework’, Islamic epistemology and Islamic criteria originating from our paper Mahyudi and Abdul Aziz (2017). The elaborations are extended to expound on their positive impact to the ‘Islamization of Knowledge’ agenda. We also utilize Bakar (2016) to reduce the observed tension between Sharīʿah scholars and Islamic economists that is triggered by issues surrounding legal form and economic reasoning of Is...

Thesis of Religion: Normative Basis of Islamic Economics

Islamic Economics, Vol 1-4, 2011

This paper discusses the ethical void in Capitalism which does not look prominent in welfare societies and states. But, its effects become more eminent in tough economic conditions. Unbridled pursuit of self interest, moral relativism, incentive-led economic choices and apathy to communal responsibilities would lead to a society where economic interests become the sole basis of maintaining and sustaining relationships. This inner void of identity and purpose at individual level and social void in the form of a stratified society bound together only for economic interests can be better filled with incorporating religion. Humans are much more than utility driven species, they are capable of using both instrumental and critical reasons to differentiate right from wrong and need reinforcement to adopt virtues influenced by an inner urge other than material interests as in Capitalism. This inner urge can be rekindled by looking beyond utility maximization to re-acknowledge the fundamental identity that humans are moral being than just an instrument for material advancement. Other sections of the paper provide an outline and salient features of Islamic Economics on different economic themes and perspectives for a comparative study. These provide a unique introduction to Islamic Economics in a mainstream framework.

Contemporary Perspectives in Islamic Economics

2018

While all this development in the discipline of Islamic Economics is promising, it has not come without challenges. Despite newer researches, a considerable gap still exists in certain dimensions of the field and the newer ideas have helped to create diametrically opposing opinions within the field instead of bringing existing ones closer. Resultantly, a unified definition of the discipline of Islamic Economics is yet to appear and a new learner gets trapped in the labyrinths of contending opinions before getting an idea of what Islamic Economics is. It must hence be worthwhile to present before the readers an overview of contemporary perspectives in Islamic Economics in order for them to have a general understanding of the discipline of Islamic Economics.