The humanomic structure of Islamic economic theory: a critical review of literature in normative and positive economics

Early attempts toward the formulation of a humanistic political economy within Islamic societies and the principle of ethical endogeneity are reviewed. This principle demonstrates that society maximizes its social welfare through a consensus of decisionmakers reached within the framework of a choice of goals and policy variables. The goals are set according to shari`a , Tawheed/ Brotherhood, and through work, production, and distributive equity through Zakat. The abolition of interest and the idea of profit-sharing are also considered and discussed.