Islamic Economics: A Survey of the Literature

A central thesis of this paper is that social science is the study of human experience, and hence strongly conditioned by history. Modern Western political, economic and social structures have emerged as a consequence of the repudiation of religion, and are based on secular principles. Many of these are inimical to Islamic principles, and cannot be adapted to an Islamic society. Muslim societies achieved freedom from colonial rule in the first half of the twentieth century and sought to construct institutions in conformity with Islam. The development of Islamic economics is part of this process of transition away from Western colonial institutions. This paper focuses on the contrasts between Western economic theories and Islamic approaches to organization of economic affairs. Neoclassical theory is centered around the acquisitive instinct of humans, and makes competition the driving force of economic analysis. Islamic approaches foster cooperation and encourage generosity as the fundamental principle for handling economic affairs. Human beings have potential for good and evil, and are free to choose between the two; their behavior is not subject to mathematical laws postulated by neoclassical economic theory. The main message of Islam is that we must strive to achieve the potential for good both at the individual and at the social level. Behavior in the economic realm is also governed by this goal. Islamic law (Shari’ah) provides the framework for all activity within an Islamic society. In the economic domain, Islamic law regulates both methods by which money may be earned and also the ways it may be spent. Acquisition of wealth is permissible only in ways which are just to all parties concerned; exploitation, arbitrary taxation, and individual profit resulting in social harm is not permissible in Islamic law. This puts numerous restrictions on business practices utilized to make profits. For example, polluting the environment, or selling products which lead to moral corruption would not be permissible in Islamic law. Wealth which has been acquired becomes private property, which is both a trust and a test according to Islamic concepts. The “trust” aspect means that property must be used in ways beneficial to the individual and society. The “test” aspect means that those who have more than they need should take care of those who are in need. Ways in which acquired wealth can be spent is also subject to Islamic law. People are expected to strive to be self-sufficient and not ask from others. Thus striving to acquire wealth and spending it on personal and family needs is encouraged by Islamic law. Islam does not preach austerity and encourages a comfortable standard of living. At the same time, it strongly discourages spending on idle desires, luxuries, and ostentation. There is also a strong encouragement to spend what is beyond ones needs on social welfare. These fundamental principles for acquiring wealth, using property (acquired wealth), and spending it impact on all realms of economic activity. Since these are substantially different from Western ideas in all three areas, there are substantial contrasts between Western economic institutions and Islamic ones. The paper traces out these differences in many realms of economic activity. The primary objective of an Islamic state is to provide justice, and Islamic public finance is concerned with tracing the concrete implications of this abstraction in the economic realm. Western financial institutions have the acquisition and multiplication of wealth as their prime objective. Since acquisition of wealth can only be a means to an end, these institutions require modification in an Islamic society. Similarly, Islamic imperatives for social welfare require construction of certain uniquely Islamic types of institutions which do not have counterparts in the West. The paper discusses these issues in some detail.Islamic Economics, Neoclassical Economics

In and Out of Place: Islamic Domestic Extremism and the Case of the "Toronto 18"

In the aftermath of the tragic events of 11 September 2001 a veritable cornucopia of formal, practical, and popular materials have emerged that offer analyses of various dimensions of the phenomenon of Islamitic extremism. Unfortunately, despite the voluminous amount of analytical capital and resources expended, significant advances in our collective understanding of this phenomenon continue to be elusive. This situation is certainly evident when one surveys the current literature available that focuses on the processes of Islamitic extremization. To date, the predominant focus of this important research has been on the micro social relations and structures that make the development of particular subjectivities probable. Although this mode of inquiry is valuable, there is a danger in overly subjectivizing the process of extremization. As demonstrated through an analysis of the so-called Toronto 18—a group of Islamitic social actors apprehended in June, 2006, for activities that contravened the Canadian Anti-Terrorism Act (ATA)—macro social relations and structures served a significant function in creating the conditions through which the process of extremization becomes probable. In the context of this analysis, the macro social relations and structures that made the ideological conditioning and political transformation of these Islamitic social actors probable include, what is referred to as, the following spheres of influence: Transnational, State, and Group. In effect, these spheres of influence formed a network of scales that converged and condensed in the place-specific context of the Greater Toronto Area (GTA) and facilitated the transgression of some of the actors involved from a Dominant to a Subversive discursive formation and concomitant field of action and practice. However, to develop a greater appreciation for the context within which these processes took place required not only a re-evaluation of the conceptual and terminological tools used to apprehend this phenomenon, but an analysis of the historical processes and forces that made the emergence of particular discursive formations possible. If a comprehensive understanding of the processes of extremization are to be reached and effective counter- terrorism policies developed, the macro social relations and structures that make the emergence of particular extremist subjectivities probable need to be given greater consideration. Ignoring these relations and structures will potentially result in the continuation of counter-productive anti-terrorism policies and counter-terrorism practices which contribute to the oxygen of violence rather than facilitating the de-escalation of extremist activities

Gharar in Post-Formative Islamic Commercial Law: A Study of the Representation of Uncertainty in Islamic Legal Thought

This study analyzes the conception of gharar , which is generally translated as either risk or uncertainty, in post-formative Islamic commercial law. According to Muslim jurists, gharar arises from uncertainty in commercial transactions. However, unlike other areas of the Islamic intellectual tradition in which uncertainty engenders errors, the uncertainty associated with gharar enables jurists and counterparties to make informed legal and financial decisions. Nevertheless, gharar is not structurally a form of certainty. In order to understand this interesting paradox and reach a better understanding of representation in general, this study employs discourse analysis to trace the concepts, reasoning methods, and descriptive techniques that Ibn Hazm (d. 1064), Baji (d. 1081), Shirazi (d. 1083), Sarakhsi (d. 1090), Ibn Qudama (d.1223), and Ibn Rushd (d. 1261) use in order to represent gharar . First, this study details how jurists conceptualize the types of uncertainty that engender gharar in commercial transactions. Second, it examines the ways that jurists employ these forms of uncertainty to analyze commercial transactions. This study demonstrates that gharar arises from a privation of thought. This privation mimics the relationship between the identity of thought and referent that produces certainty. Gharar thus indicates how knowledge creates and subsumes uncertainty

World History for International Studies

Studying change in the course of human history, in different places, through the lens of a diverse set of core themes, World History for International Studies offers readers a set of windows into different debates historians have been conducting. Key themes, such as communication, trade, order, slavery, religion, war, identity, modernity, norms and ecology, are linked to specific world regions, which tell a story about how local ideas and individual contacts developed, started to overlap and became globally understood and used by ever larger groups of people. These themes are brought to life by a diverse set of key primary sources, such as a book, a letter, a medal, a temple and an epic, to showcase how historians have used sources to tell these stories and conduct debates. The book provides an introductory resource into the study of history and includes detailed suggestions for further study

World History for International Studies

Studying change in the course of human history, in different places, through the lens of a diverse set of core themes, World History for International Studies offers readers a set of windows into different debates historians have been conducting. Key themes, such as communication, trade, order, slavery, religion, war, identity, modernity, norms and ecology, are linked to specific world regions, which tell a story about how local ideas and individual contacts developed, started to overlap and became globally understood and used by ever larger groups of people. These themes are brought to life by a diverse set of key primary sources, such as a book, a letter, a medal, a temple and an epic, to showcase how historians have used sources to tell these stories and conduct debates. The book provides an introductory resource into the study of history and includes detailed suggestions for further study

World History for International Studies

Studying change in the course of human history, in different places, through the lens of a diverse set of core themes, World History for International Studies offers readers a set of windows into different debates historians have been conducting. Key themes, such as communication, trade, order, slavery, religion, war, identity, modernity, norms and ecology, are linked to specific world regions, which tell a story about how local ideas and individual contacts developed, started to overlap and became globally understood and used by ever larger groups of people. These themes are brought to life by a diverse set of key primary sources, such as a book, a letter, a medal, a temple and an epic, to showcase how historians have used sources to tell these stories and conduct debates. The book provides an introductory resource into the study of history and includes detailed suggestions for further study

World History for International Studies

Studying change in the course of human history, in different places, through the lens of a diverse set of core themes, World History for International Studies offers readers a set of windows into different debates historians have been conducting. Key themes, such as communication, trade, order, slavery, religion, war, identity, modernity, norms and ecology, are linked to specific world regions, which tell a story about how local ideas and individual contacts developed, started to overlap and became globally understood and used by ever larger groups of people. These themes are brought to life by a diverse set of key primary sources, such as a book, a letter, a medal, a temple and an epic, to showcase how historians have used sources to tell these stories and conduct debates. The book provides an introductory resource into the study of history and includes detailed suggestions for further study

Muhammad Hamidullah and His Pioneering Works on Islamic Economics

Muhammad Hamidullah was a genius and a prolific writer. Anyone who has interest in the Qur'an's translation, Hadith literature, the Prophet's (peace be upon him) biography, international Islamic law, Islamic politics and archival heritage of Islam, cannot ignore Dr. Muhammad Hamidullah's contributions. But very few may be aware that he was one of the pioneers of modern Islamic economics. Hamidullah started his writings on Islamic economics in 1930s. In fact, it is not easy to get records of some of his early writings. Some of his articles were published in journals that discontinued publication. This may be one of the reasons why his contribution to Islamic economics could not be fully known. The editor's three papers - “Hamidullah: Life and Works”, “An Introduction to Hamidullah's Contributions to Islamic Economics”, and “Zakah as the State Finance: A Critical Study of Hamidullah’s Views” - give plenty of information about Dr. Hamidullah’s personality and multifaceted achievements in Islamic sciences in general and Islamic economics in particular. The book also contains collection of Dr. Hamidullah’s papers with useful notes and editing and corrections

Muhammad Hamidullah and His Pioneering Works on Islamic Economics

Muhammad Hamidullah was a genius and a prolific writer. Anyone who has interest in the Qur'an's translation, Hadith literature, the Prophet's (peace be upon him) biography, international Islamic law, Islamic politics and archival heritage of Islam, cannot ignore Dr. Muhammad Hamidullah's contributions. But very few may be aware that he was one of the pioneers of modern Islamic economics. Hamidullah started his writings on Islamic economics in 1930s. In fact, it is not easy to get records of some of his early writings. Some of his articles were published in journals that discontinued publication. This may be one of the reasons why his contribution to Islamic economics could not be fully known. The editor's three papers - “Hamidullah: Life and Works”, “An Introduction to Hamidullah's Contributions to Islamic Economics”, and “Zakah as the State Finance: A Critical Study of Hamidullah’s Views” - give plenty of information about Dr. Hamidullah’s personality and multifaceted achievements in Islamic sciences in general and Islamic economics in particular. The book also contains collection of Dr. Hamidullah’s papers with useful notes and editing and corrections