Interrogating the development and conceptual framework of economic thought in the Islamic tradition pertaining to ethical, philosophical, and theological ideas, this book provides a critique of modern Islamic economics as a hybrid economic system. From the outset, Sami Al-Daghistani is concerned with the polyvalent methodology of studying the phenomenon of Islamic economic thought as a human science in that it nurtures a complex plentitude of meanings and interpretations associated with the moral self. By studying legal scholars, theologians, and Sufis in the classical period, Al-Daghistani looks at economic thought in the context of Sharī'a's moral law. Alongside critiquing modern developments of Islamic economics, he puts forward an idea for a plural epistemology of Islam's moral economy, which advocates for a multifaceted hermeneutical reading of the subject in light of a moral law, embedded in a particular cosmology of human relationality, metaphysical intelligibility, and economic subjectivity.
The current rise of Islamism throughout the Muslim world, Islamists’ demand for the establishment of Islamic states, and their destabilizing impact on regional and global orders have raised important questions about the origins of Islamism and the nature of an Islamic state. Beginning with the Iranian revolution of the late 1970s and the establishment of the Islamic Republic to today’s rise of ISIS to prominence, it has become increasingly apparent that Islamism is a major global force in the twenty-first century that demands acknowledgment and answers. As a highly-integrated belief system, the Islamic worldview rejects secularism and accounts for a prominent role for religion in the politics and laws of Muslim societies. Islam is primarily a legal framework that covers all aspects of Muslims’ individual and communal lives. In this sense, the Islamic state is a logical instrument for managing Muslim societies. Even moderate Muslims who genuinely, but not necessarily vociferously, challenge the extremists’ strategies are not dismissive of the political role of Islam and the viability of an Islamic state. However, sectarian and scholastic schisms within Islam that date back to the prophet’s demise do undermine any possibility of consensus about the legal, institutional, and policy parameters of the Islamic state. Within its Shi’a sectarian limitations, this book attempts to offer some answers to questions about the nature of the Islamic state. Nearly four decades of experience with the Islamic Republic of Iran offers us some insights into such a state’s accomplishments, potentials, and challenges. While the Islamic worldview offers a general framework for governance, this framework is in dire need of modification to be applicable to modern societies. As Iranians have learned, in the realm of practical politics, transcending the restrictive precepts of Islam is the most viable strategy for building a functional Islamic state. Indeed, Islam does provide both doctrinal and practical instruments for transcending these restrictions. This pursuit of pragmatism could potentially offer impressive strategies for governance as long as sectarian, scholastic, and autocratic proclivities of authorities do not derail the rights of the public and their demand for an orderly management of their societies.
This book provides an overview of the practice of Islamic finance and the historical roots that define its modes of operation. The focus of the book is analytical and forward-looking. It shows that Islamic finance exists mainly as a form of rent-seeking legal-arbitrage. In every aspect of finance - from personal loans to investment banking, and from market structure to corporate governance - Islamic finance aims to replicate in Islamic forms the substantive functions of contemporary financial instruments, markets, and institutions. By attempting to replicate the substance of contemporary financial practice using pre-modern contract forms, Islamic finance has arguably failed to serve the objectives of Islamic law. This book proposes refocusing Islamic finance on substance rather than form. This approach would entail abandoning the paradigm of 'Islamization' of every financial practice. It would also entail reorienting the brand-name of Islamic finance to emphasize issues of community banking, micro-finance, and socially responsible investment.
A comprehensive guide to Islamic legal scholarship, this Handbook offers a direct and accessible introduction to Islamic law and the academic debates within the field. Topics include textual sources and authority, institutions, substantive legal areas, Islamic legal philosophy, and Islamic law in the Muslim World and in Muslim minority countries.
How do modern Muslims adapt their traditions to engage with today's world? Charles Tripp's erudite and incisive book considers one of the most significant challenges faced by Muslims over the last sixty years: the challenge of capitalism. By reference to the works of noted Muslim scholars, the author shows how, faced by this challenge, these intellectuals devised a range of strategies which have enabled Muslims to remain true to their faith, whilst engaging effectively with a world not of their own making. The work is framed around the development of their ideas on Islamic socialism, economics and the rationale for Islamic banking. While some Muslims have resorted to confrontation or insularity to cope with the challenges of modernity, most have aspired to innovation and ingenuity in the search for compromise and interaction with global capitalism in the twenty-first century.
In this pioneering work Siraj Sait and Hilary Lim address Islamic property and land rights, drawing on a range of socio-historical, classical and contemporary resources. They address the significance of Islamic theories of property and Islamic land tenure regimes on the 'webs of tenure' prevalent in the Muslim societies. They consider the possibility of using Islamic legal and human rights systems for the development of inclusive, pro-poor approaches to land rights. They also focus on Muslim women's rights to property and inheritance systems. Engaging with institutions such as the Islamic endowment (waqf) and principles of Islamic microfinance, they test the workability of 'authentic' Islamic proposals. Located in human rights as well as Islamic debates, this study offers a well researched and constructive appraisal of property and land rights in the Muslim world.
How religious barriers stalled capitalism in the Middle East In the year 1000, the economy of the Middle East was at least as advanced as that of Europe. But by 1800, the region had fallen dramatically behind—in living standards, technology, and economic institutions. In short, the Middle East had failed to modernize economically as the West surged ahead. What caused this long divergence? And why does the Middle East remain drastically underdeveloped compared to the West? In The Long Divergence, one of the world's leading experts on Islamic economic institutions and the economy of the Middle East provides a new answer to these long-debated questions. Timur Kuran argues that what slowed the economic development of the Middle East was not colonialism or geography, still less Muslim attitudes or some incompatibility between Islam and capitalism. Rather, starting around the tenth century, Islamic legal institutions, which had benefitted the Middle Eastern economy in the early centuries of Islam, began to act as a drag on development by slowing or blocking the emergence of central features of modern economic life—including private capital accumulation, corporations, large-scale production, and impersonal exchange. By the nineteenth century, modern economic institutions began to be transplanted to the Middle East, but its economy has not caught up. And there is no quick fix today. Low trust, rampant corruption, and weak civil societies—all characteristic of the region's economies today and all legacies of its economic history—will take generations to overcome. The Long Divergence opens up a frank and honest debate on a crucial issue that even some of the most ardent secularists in the Muslim world have hesitated to discuss.
Compelling and original, this book offers a unique insight into the modern Islamic corporation, revealing how power, relationships, individual identities, gender roles, and practices - and often massive financial resources - are mobilized on behalf of Islam. Focusing on Muslims in Malaysia, Patricia Sloane-White argues that sharia principles in the region's Islamic economy produce a version of Islam that is increasingly conservative, financially and fiscally powerful, and committed to social control over Muslim and non-Muslim public and private lives. Packed with fascinating details, the book is essential reading for anyone with an interest in Islamic politics and culture in modern life.
Challenging the Secular State examines Muslim efforts to incorporate shari’a (religious law) into modern Indonesia’s legal system from the time of independence in 1945 to the present. The author argues that attempts to formally implement shari’a in Indonesia, the world’s most populous Muslim state, have always been marked by tensions between the political aspirations of proponents and opponents of shari’a and by resistance from the national government. As a result, although pro-shari’a movements have made significant progress in recent years, shari’a remains tightly confined within Indonesia’s secular legal system. The author first places developments in Indonesia within a broad historical and geographic context, offering a provocative analysis of the Ottoman empire’s millet system and thoughtful comparisons of different approaches to pro-shari’a movements in other Muslim countries (Saudi Arabia, Iran, Pakistan). He then describes early aspirations for the formal implementation of shari’a in Indonesia in the context of modern understandings of religious law as conflicting with the idea of the nation-state. Later chapters explore the efforts of Islamic parties in Indonesia to include shari’a in national law. Salim offers a detailed analysis of debates over the constitution and possible amendments to it concerning the obligation of Indonesian Muslims to follow Islamic law. A study of the Zakat Law illustrates the complicated relationship between the religious duties of Muslim citizens and the nonreligious character of the modern nation-state. Chapters look at how Islamization has deepened with the enactment of the Zakat Law and demonstrate the incongruities that have emerged from its implementation. The efforts of local Muslims to apply shari’a in particular regions are also discussed. Attempts at the Islamization of laws in Aceh are especially significant because it is the only province in Indonesia that has been allowed to move toward a shari’a-based system. The book concludes with a review of the profound conflicts and tensions found in the motivations behind Islamization.
