11: Islamic Economics A Survey of the Literature Part I
Abstract
A central thesis of this paper is that social science is the study of human experience, and
hence is strongly conditioned by history. Modern Western political, economic and
social structures have emerged as a consequence of the repudiation of religion
associated with the Enlightenment and are based on secular principles. Many of these
are discordant with Islamic principles and cannot be adapted to an Islamic society.
Around the middle of the twentieth century Muslim societies successively
achieved freedom from colonial rule where-after they sought to construct their
collective institutions in conformity with the teachings of Islam. The development of
Islamic economics is part of this process of gaining freedom from the stranglehold of
Western colonial institutions.
This paper is a survey of the literature on Islamic economics which focuses on the
contrasts between Western economic theories and Islamic approaches to the
organization of economic affairs.
1.1 Self-Knowledge and Knowledge of Other
And whoever is granted wisdom has indeed been granted wealth abundant
(Qur’┐n 2: 269).
The treasure of knowledge gathered by our ancestors, which is the collective
heritage of mankind, is vast. It represents the cumulative effort of generations
over centuries.