A New Methodology for Islamic Economics (90 minute Lecture delivered in 17th IRTI DL Course on Islamic Economics , 28th May 2013)– Written transcript of lecture available from L10: Deification of Science
It is widely believed and asserted that social science as developed in the West is no different from Physical Science. Thus the law of supply and demand is just like the law of gravity. This is wrong. While the law of gravity will continue to operate regardless of how human beings behave, economic laws are quite different in cooperative societies and in competitive societies. The radical differences have been spelled out in a large number of books – for example, the Great Transformation by Karl Polanyi. The collection of essays listed below focuses on showing the Western Social Science is not a science – it is not concrete, objective and factual, with validity independent of the observers point of view. Rather it is full of hidden assumptions, biases, and value judgments which conflict with Islam.
link to an earlier page gathering this material (with some ideas for extensions): {Nature of Social Science}
Deification of Science and Its Disastrous Consequences: Paper shows that production of knowledge requires different approaches in different areas. In particular, radically different methodologies are suitable for mathematics, science, and humanities. Mathematics requires an axiomatic and deductive approach, while science requires an inductive and empirical approach. Historical events in Europe led to a conflict between science and religion, and a consequent attempt to use science to replace religion. The attempt to prove that science leads to certainty led to the mistaken understanding that scientific methodology is mathematical. The assumption that science is the only valid body of knowledge led to the mistaken attempt to apply this wrong understanding of scientific methodology to the social sciences. These two mistakes have crippled the development of our understanding of human beings and societies. The failure to understand the basic realities of human experience has led to many disasters, and needs to be rectified by correcting this double mistake.
“Origins of Western Social Science”. Journal of Islamic Economics, Banking and Finance, vol 5, number 2, May-August 2009, p. 9-22
This paper argues that Social Science in the West emerged after bloody and violent religious battles convinced Europeans that religion was not a good basis on which to structure society. Then they sought to create economic, social and political systems on a secular basis, without any reference to religious principles. In a secular society, it was necessary to allow maximum freedom to all possible sects, and so freedom became a cherished value. This freedom was translated into all realms of human action, and resulted in principles contrary to both Christian and Islamic ethics. Thus rejection of religion is built into certain fundamental principles widely accepted in modern social science. This is built into the framework, and not recognized as such by Muslim scholars. Therefore, there is a great need of caution and care when we seek to adapt Western scholarship in social sciences for use in Islamic societies. -- see also - Lecture 2 of CIIE - Current Issues in Islamic Economics
“Improving Social Science Education in Pakistan,” Lahore Journal of Policy Studies Vol. 2 No. 1, June 2008.
This article argues that social science extracts lessons from human historical experiences. The economic, political and social experiences of western secular societies have been dramatically different from those of Islamic societies. Therefore the lessons that they have learned from their experience are not immediately applicable and relevant for us in Pakistan. This means that instead of blind imitation, we must make the intellectual effort to study our own historical experience and derive our own lessons from our own history.
“Corruption: Measuring the Unmeasurable,” (joint with Faiz-ur-Rahim) Humanomics, Vol 25, number 2, June 2009, p 117-126.
One of the consequences of the attempt to convert humanities into a science has been the idea that we must quantify and measure everything in order to make progress in knowledge. This is because scientific knowledge concerns only the measurable and quantifiable. At a general level, this paper makes the point that not everything is measurable, and not every thing needs to be measured. More specifically, we point out defects in corruption measures, and how they reflect political goals more than any aspect of reality.
“The Limits of Market Economy,” entry in Encyclopedia of Islamic Economics,to appear.
This article is a highly condensed and simplified presentation of Karl Polanyi’s idea that the Market Economy first emerged in England, and created a Market Society. There are certain ways of thinking and acting which are demanded by Market Economies. These also impact on the economic theories that are believed in such economies and societies. The paper analyses the historical background of the Market Economy and the economic theories that prevail in such societies. Again this relates to the historical origins of the social sciences, (in particular economics) in the west.
“The Rise and Fall of Market Economies,” Review of Islamic Economics, 2010, Vol. 14, No. 2.
This paper is a detailed and lengthy presentation of Karl Polanyi’s theme of the great transformation. It presents the peculiar historical circumstances that led to the emergence of market economies. It shows how Market ideas prevailed in the struggle between market society and traditional society. The bad effects of these ideas, which involved monetarization and marketing of things previously considered beyond price, have led to disasters on all fronts. This phenomena needs to be understood and reversed to save human beings and the planet.
“Anti-Poverty Policies and Anti-Poor Philosophies,” Journal of Business and Economics Vol 2 Number 2 July-December 2010
One of the requirements of a Market Economy is that there should be poor people who would then agree to be part of the labor force required to maintain a market society. This means that market economies will generate philosophies designed to reconcile people to poverty and to the existence of poverty. This article provides details of a number of such philosophies.
“Power/Knowledge and Economic Theories,” Lahore Journal of Policy Studies. 2011
Once we understand that social science theories are not objective and factual as they claim to be, the question arises: what are these theories and how do they emerge? The naïve answer that these represent a search for truth can easily be rejected, as shown in this article. The more satisfactory answer is that these theories reflect the interests of the powerful, and are adopted because they serve these interests well. This article illustrates the relationship between power and economic theories.
8. Directions for Muslim Scholars in Social Sciences, to appear in Proceedings of Third Arab-Turkish Congress of Social Sciences, May 2013, Istanbul'
The European Enlightenment led to the development of several views which are incompatible with Islam. This article discusses and rebuts three of these views. The first is the Enlightenment Myth, according to which light of reason first dawned in Europe in the sixteenth century. The second is the Deification of Science, according to which scientific knowledge is the most certain and superior type of knowledge. The third is the myth that European have progressed to the apex of civilization, and the rest of us must imitate them to succeed. It is an urgent need for Muslim scholars to develop alternative methods and subject materials for the education of Muslim children.
Methodological Mistakes at heart of Economics & Econometrics - Islamic WorldView Blog Post with links to Islamic Methodology Videos
L2 Origins of Western Social Science - main page - L2 of CIIE on this topic
Economics for the 21st Century - Fundamental Flaws at the heart of Western Social Science -- removal of heart & soul from humans -- lie at the deeply defective approach to economics