The author attempts in the article to explain the philosophical structure and basis of the Islamic economic system in terminology easily understood by non-economists. The author cites and elaborates on the: 1. Principle of Tawheed and brotherhood in the religion; 2. Principle of work and productivity in
A study was undertaken of two Islamic banks, Faisal Islamic Bank of Sudan and Kuwait Finance House, over the period of 1979-1985. The two institutions, which avoid interest in all their dealings in accordance to the dictates of al-
There are over 720 million Muslims on the globe today, and thus the movement amongst them towards Islamic economies are consequential for the world in general. Al-Qu'ran does not promote socialism, but the capitalism permitted in
The author seeks to discuss the notion of international economic co-operation in a general context, in the particular context of the Bretton Woods establishments, and in the case of a number of states within the Muslim world.
The author offers an Islamic approach to development that stands, in his mind, quite a distance apart from the understandings of development that currently dominate the field. He asserts that the general movement towards Islamisation amongst
The field of Islamic economics was nearly totally theoretical for a few decades before the movement beginning in the 1970's to set up Islamic banks in various parts of the world. In some countries such as Saudi Arabia and Malaysia, the religious tax is collected and distributed by the state.
Due to the restriction of riba, monetary management in an Islamic economy differs from the conventional capital system in a basic and important way. Interest is prohibited and considered unjust, because when money is lent, it is used to create either a debt or an asset. If it creates debt, it is not justifiable for the lender to receive a return.
There is a need for the development of a methodology of Islamic economics.
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.