Articles

Would Islamic ethics have prevented the financial crisis of 2007 from ever happening? To answer this question, one must first understand what caused the economic crisis. However, this can be part of the problem. The immediate origins of the crisis seem to be the growth of the subprime sector. Unqualified lenders were given housing loans that they would soon be unable to pay. When the housing bubble burst, countries that invested heavily in subprime instruments lost billions of dollars. Now, leaders from many religions are calling for a system that is more just and less greedy.

When an attempt is made to transform a society, it is necessary to evaluate the system being replaced. As drives are put forth to develop new technology, an effort must be made to set up a new economic and social order. This order will not only put forth an Islamic outlook in academia and in social policy, but will also make the social sciences in general more responsive towards the welfare of communities. Islamic economics seeks to achieve a maximum human well-being, and thus promotes economic activity.

It has been estimated that petroleum sales bring into Saudi Arabia, Kuwait, Abu Dhabi, Qatar, and Dubai $42 billion each year. Arabs have shown that they intend to apply thier capital towards increasing stability in the region of the world they live in. Coordination between countries is essential in the fields of trade and finance. Economic interdependence is the condition of the world. Amongst

Ahmad's overall argument is that Muslims need to seek to construct an economy that fits

Economics has developed in three stages since the 19th century. Islamic economics presents a new economic philosophy that focuses on efficient allocation of scarce resources in the context of people's obligation to establish a society run under God''s laws. Islamic economics has three main principles: Tawheed and brotherhood mean that social justice is a goal of

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This piece is a highly technical analysis of Mabid Ali al-Jarhi's mathematical model of an Islamic macro-economy. The authors praise al-Jarhi's calculations regarding Zakah and his sophistication in understanding how it affects the economy. The relationship between equity and growth is very briefly discussed--as equity increases, growth is typically said to decline. The details of the model are scrutinized and criticisms are presented that nearly half of the derivations performed are performed incorrectly. The final review of the model is less than admiring.

The Governors of the Islamic Development Bank (IDB) will have their annual meeting in November 1996. Unlike the World Bank the IDB has been silent about the corruption endemic in many of its member states. The bank must take a lead in setting up a secondary market for Islamic products. Unfortunately the bank is weakened by its dependence on the politics of its important members. Leasing funds and securitization should be an objective of the IDB. The IDB has disappointed many by failing to promote intra-Islamic trade and investment. The IDB is currently endangered by its own inertia.

There is a need for the development of a methodology of Islamic economics.