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A Note on Islamic Economics
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2
See Dr. M.U. Chapra, The Future of Economics
, The Islamic Foundation, 2000
(p. 254). This is a valuable book, a valiant effort in framing the past, present, and
future of the discipline. Nevertheless, the appeal here for the development of a common
language of discourse for Islamic economics that can commend consensus among
practitioners remains valid. Meeting the challenging task of removing, or at least
reducing, the present fuzziness is still an imperative for acceleration of development
and growth of the discipline.
for example, the discussions in the recent Roundtable organized by the Islamic
Research and Training Institute (IRTI) of the Islamic Development Bank on May
26-27, 2004, in cooperation with the Kuwait-based Arab Planning Institute (API).
Gratitudes are due to Dr. Fahim Khan who provided copies of some of the papers
presented in the Round Table, including an early draft of his own editorial overview
of the discussion. Coverage of the first current has been limited in this paper since
it has been covered extensively by Dr. Fahim Khan‘s overview of the Roundtable
discussion.
3 See,
Ali Khan in his ―Globalization‖ paper, Islamic Economic Studies, Vol. 8,
No. 1, (p. 52) suggests that ―there seems to be a tremendous anxiety about Islamic
economics and how it may have an adverse effect on globalization.‖ Professor Timur
Kuran, in all his writings on Islamic economics, displays such anxiety. An example is
―Islam and Under-Development: An Old Puzzle Revisited,‖ Journal of Institutional
and Theoretical Economics, Vol. 153, 1997, (pp. 41-71). Despite pretensions of
‗dispassionate analysis‘, the content of this paper and the position taken in other of his
published works on the subject belie the claim. Superficial understanding of Islam,
lack of familiarity with the canonical texts, Islamic history and history of thought
and strong priors lead to ‗a very distorted image of Islam‘, as Professors Ebrahim
and Safadi indicate in their paper ―Behavioral Norms in the Islamic Doctrine of
Economics: A Comment,‖ Journal of Economic Behavior and Organization, Vol.
27, 1995. Distortion by selectivity is rather transparent in Professor Kuran‘s paper
―The Discontents of Islamic Morality‖ in American Economic Review, Vol. 86, No. 2,
May 1996 (pp. 438-442), in which Islamic economics is passionately criticized and a
profoundly absurd claim is made that ―... the main purpose of Islamic economics is not
to improve economic performance..., its real purpose is to help prevent Muslims from
assimilating into the emerging global culture whose core elements have a Western
pedigree.... Its chief instrument for fighting assimilation is the guilt that it fosters by
4 Professor
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