Nature and scope of islamic economics

Challenges and future Islamic economics faces some serious challenges for its survival as a distinct academic discipline.

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It lacks theoretical bases, data compatibility with Islamic norms, results are invariably confirmative — reinventing the wheel — model specific and in most cases non-applicative. There is no merit in finding faults with others unless one can demonstrate what one preaches as being superior in competition with the rivals on ground. The Maulana was the pioneer of Islamic economics in the Indian sub-continent. The evolution of the economic ideas enshrined in fiqh muamlat continued to grow as the Islamic renascence movements gathering momentum for freedom from the colonial rule in the Muslim lands. To illustrate capitalism in principle believes in freedom of enterprise, public non-intervention in economic matters, market arbitration and competition as a regulatory force ensuring public good. One distinctive feature of Islam is its candid rejection of asceticism. The subject holds both positive and normative content. It believes in public ownership of productive resources and planning by direction to ensure socially conducive allocation of resources and distributive justice resultant peace and harmony. They worked hard with devotion, earnestness and humility. The frame work consists of economic entities like households, business firms, public institutions, markets and so on. Challenges and future Islamic economics faces some serious challenges for its survival as a distinct academic discipline. In that, it gives more weight to individual liberty and freedom of action compared to societal aspirations and well-being.

This set the stage to the launching of Islamic Economics in a formal way in mid-seventies. This created a lot of difficulty confusion and inconsistency in defining 3 the subject and its nature and scope 4.

Importance of islamic economics

Individual contributions in the area also failed to win approval. Islamic economics no longer remained a pious scholarly pursuit; it increasingly tended to became part of their political ploy. Shinsuke, N. Tolerance, patience, humanism and justice are its guiding principles. These rights that have to be honored. For, these economic ideas provided a handy and non-provoking method to attacking the Western ideologies both of capitalism and socialism as opposed to Islamic ethos, and were labelled as exploitative of the masses. Rahman, M. Thus in Islam societal interest and well-being gets precedence over that of the individual in case there is a clash. Marshall, A. Unlike the IDB annual award, mainstream economics does not make such distinction in awarding the Nobel Prize. It is the most perilous imitation of the Western academic culture. Hussein, K. The subject holds both positive and normative content.

Hasan, Z. Journals there charge hefty publication fees. Redman, D. Siddiqi, and M.

Tools provided by islamic economic system

References Ahmad, K. Economics and philosophy of science, Oxford University Press. These are scarcity of resources, pursuit of self-interest and maximizing behavior of economic agents. Axiomatic differences: Axioms refer to what a system believes as self-evident truths; they emanate from the worldview a society upholds. Methodology Methodology of economics broadly consists of the set of criteria, rules, and procedures which the philosophers of the subject have evolved over the years to examine its nature, scope, and performance given the goals, over time and space. The data needs updating. The subject increasingly ran into so much abstraction and controversy that its study was shifted from the departments of economics to that of philosophy many universities across the globe. It is the most perilous imitation of the Western academic culture. It is cosmopolitan and eternal. Socialism seeks to reverse these priorities. As a point of departure, it is at times contended that mainstream economics is value neutral while Islamic economics is value-based. Rehman, M. In that sense resources are scarce in relation to multiplicity of human wants for Islamic economics as well.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. They worked hard with devotion, earnestness and humility.

Types of islamic economics

Scope and method of political economy, Batoche Books Khan, M. The subject holds both positive and normative content. Since Islam prescribes a way of living in this world, it avoids idle theorizing. There indeed is a rat race for publishing there to win recognition, employment and professional growth. Conditioned in the Western mode of thinking, they want Islamic economics, especially finance, to develop along the road of empiricism knowing full well that Islamic ethical norms and intentions cannot be quantified and the data they use seldom has the needed moral content Hasan It also allows you to accept potential citations to this item that we are uncertain about. A sort of school of thought seemed to have developed in Jeddah Hasan , having common position on the approach content and thrust of Islamic economic ideas. Thus, a substantive part of Islamic jurisprudence, known as fiqh muamlat, deals with issues relating to the treatment of natural resources, land especially, production, consumption, trade, commerce, income, wealth, property, taxation, financing etc. In his footnote 32 he has reproduced without comment the definitions of the subject in the writings of S.

They are constituted and operate according to a set of rules of conduct governed by doctrine or societal worldview. Evaluation of Islamic banking performance: On the current use of econometric models.

objectives of islamic economics

Hasan, Zubair : Islamic banking at the crossroads: theory versus practice, in Iqbal, M. Self-interest must be distinguished from selfishness.

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Nature and significance of Islamic economics