Islamic economics and economic policy formation in post-revolutionary Iran: a critique

Following the Islamic revolution in Iran, it became possible to analyze in real terms the problems that face an Islamic economy. Iran is viewed with an eye toward shedding light on the difficulties other economies might face if they moved toward Islam. One conflict that has made policy decisions difficult is disagreement among liberal and strict Muslims regarding private and state ownership, international commerce, and land reform. In secular societies, a consensus at the root of the economic system exists, typically expressed in a constitution. As an Islamic state, Iran derives legitimacy from the Qur'ân and the Sunnah. These sources are subject to multiple interpretations. Thus, it may take a long time to decide the permissibility of a policy. If a populist Muslim government retains power, the economy will be like a centrally-planned Communist one. If liberals hold power, the economy will be like a Western one.