Redefining Islamic Econmics

SHORT LINK TO THIS PAGE: http://goo.gl/vnMyws -- this is the central page for this paper

PREVIOUS page (now redundant)

This paper was presented at the workshop on “Basic Concepts and Thoughts in Islamic Economics” held in Istanbul during 1-3 March 2013. The papers presented at the workshop will be published in a volume of proceedings of the workshop: -- to be published as

Asad Zaman, "Re-Defining Islamic Economics", Chapter in Islamic Economics: Basic Concepts, New Thinking and Future Directions, Cambridge Scholars Publishing, 2014

Zaman, Asad (2015) "Re-Defining Islamic Economics", Chapter 3 in Basic Concepts, New Thinking and Future Directions in Islamic Economics, ed.'s Taha Egri & Necmettin Kizilkaya, Cambridge Scholars Publishing, UK p58-76 ISBN-10: 1443874566

This volume has also been published in TURKISH: " İslam Ekonomisini Yeniden Tanımlamak"

Name: İslam İktisadını Yeniden Düşünmek

Editors: Taha Eğri, Necmettin Kızılkaya, Oğuz Karasu

Publisher: İktisat Yayınları

Publication Date: March 2017

Pages: 327

The Title and pages of your paper: İslam Ekonomisini Yeniden Tanımlamak, pp 81-107.

with translations of all papers into turkish. Turkish translation of my paper is attached at the bottom of this page

.

https://azprojects.wordpress.com/2018/03/04/the-second-crisis-of-knowledge-among-muslims/

Also presented in Working Session 1, Day 1 of the 9^th International Conference on Islamic Economics & Finance, 9-11 September 2013. in Istanbul, Turkey.

Please see A GUIDE TO ISLAMIC ECONOMICS for an introduction to my many writings on this topic, thematically organized.

ABSTRACT:

There is a huge number of definitions of Islamic Economics available in the literature. The vast majority take existing definitions from the western literature and modify them to incorporate an Islamic angle. This leads to the widespread belief that Islamic Economics is a variant or a branch of conventional economics. We argue that something can be called “Islamic” only if it is based on the Quran and Sunnah. In this paper we propose a new definition based purely and directly on Islamic ideas and sources. We show that this definition differs radically from any available in the West, as well as the vast majority of definitions proposed by Islamic Economists. It creates entirely new ways of looking at and organizing the subject matter of Economics. This paper discusses ten dimensions of contrast, where our new definition suggests that the methodology of Islamic Economics is directly opposed to western methodology.

Zaman (2012, Crisis In Islamic Economics) describes the current crisis in Islamic Economics, widely acknowledged by leaders in the field. Conventional views are that Islamic Economics must be a compromise between Islamic ideals embodied in homo islamicus, and realistic views embodied in homo economicus. However, there is substantial disagreement on the nature and extent of the compromise required. Consensus on defining “Islamic Economics” appears to be a pre-requisite for progress. I believe that a definition which can be justified purely and directly from Islamic sources will be able to command consensus that compromises cannot. Furthermore, this definition opens the way to radically new approaches, which can fulfill the promise initially held out by Islamic Economics. This (now largely forgotten) promise was that Islamic Economics will provide justice, and eliminate oppression and inequities associated with capitalist, communist and socialist economic systems.

Contents

Introduction

Contrast 1: Differing theories of knowledge. 3

Contrast 2: Neutrality and Detachment not permitted by Islam.. 4

Contrast 3: Transformative Versus Normative/Positive. 5

Mistake 4: Conventional Economics is also Transformative. 5

Mistake 5: Misunderstanding the Quran. 6

Contrast 6: Islamic Microeconomics: Consumer Theory. 7

Contrast 7: Islamic Microeconomics: Producer Theory. 8

Contrast 8: Islamic Meso-Economics: Cooperation. 10

8.1 Building Communities. 11

8.2 Cooperation Versus Competition: Guilds. 12

Contrast 9: Islamic Macroeconomics: Ummah versus Nation. 12

Contrast 10: Focus on Process Not Outcomes. 14

Goody, J. (2012). The theft of history. Cambridge University Press.

Karacuka, Mehmet and Asad Zaman: “The Empirical Evidence Against Utility Theory” to appear in International Journal for Pluralism in Economics Education Vol. IV (1) March 2013

Kirchgässner, Gebhard (2005) (Why) are economists different? European Journal of Political Economy, 21(3), pp. 543-562.

Morgan, M. H. (2008). Lost history: the enduring legacy of Muslim scientists, thinkers, and artists. National Geographic.

Saglam, Ismail and Asad Zaman (2012) “The Conflict between General Equilibrium and theMarshallian Cross,” ERF Working Paper 1219, Koc University.

Siddiqui, Shamim (2011) “Defining Economics and Islamic Economics” Review of Islamic economics : journal of ,the International Association for Islamic Economics, Vol. 15, 2, p. 113-142

Asad Zaman (2012) “Principles of An Islamic Education,” Lecture 1 of a textbook on Islamic Economics under preparation.

Asad Zaman, “Logical Positivist Methodology and Islamic Economics,” prepared for 2nd International Conference on Islamic Economics and Economies of Muslim Countries. Organized by IIUM and IRTI at Kuala Lumpur, Malaysia, held 29-30 January 2013. Download from:

Asad Zaman “An Islamic Critiqueof Neoclassical Economics,” Pakistan Business Review, April 2012,

Asad Zaman “Islamic Economics: A Survey of the Literature,” Part I: Islamic Studies 48:3 (2009) pp. 395–424

Asad Zaman (2012). “Death of aMetaphor: The Invisible Hand”, International Journal of Pluralism and Economic Education

Asad Zaman:“The Normative Foundations of Scarcity,” Real-World Economics Review, issue no. 61, 26 September 2012, pp. 22-39. Download from: <http://www.paecon.net/PAEReview/>

Asad Zaman: “Crisis in Islamic Economics: Diagnosis and Prescriptions,” Discussion Paper, Journal of King Abdulaziz University: Islamic Economics, 25: 1 ,(April/May 2012)

Asad Zaman (2013) “Islamic Approaches to Fundamental Economic Problems” Chapter 3 of Oxford University Handbook on Islam and the Economy, edited by Kabir Hassan and Mervyn Lewis.

< https://sites.google.com/site/azcurrentresearch/home/islamicecon/islam >

Zuboff, S. (2009) “The Old Solutions have become the New Problems,” Bloomberg Business Week, July 2, 2009. Available at: http://www.businessweek.com/managing/content/jul2009/ca2009072_489734.htm