Islamic economics refers to the economic system derived from the theories and practices of classical Muslim society and is based on the principles of Islamic scripture Quran and traditions. Hence, the primary idea of Islamic Economics depends on the community or collective consciousness. Islamic finance belongs to the category of religious ethical finance depending on zero interest economics. Its theoreticians and authors generally describe Islamic economic system as neither socialist nor capitalist, but as a middle way balancing both spiritual as well as material wellbeing of human kind largely free from the drawbacks of the other two systems.
To reduce the gap between the rich and the poor, Islam encourages trade, proportional wealth tax, discourages the hoarding of wealth and outlaws usury . Wealth is taxed through zakat, but trade is not taxed. Profit sharing and venture capital where the lender is also exposed to risk are acceptable. It implies that the capital return bearing the risk is not outlawed; on the contrary return without risk is strictly discouraged. Through such alternative way of economic management, we could explore more viable methods of finance to encourage the development needs of the emerging economies like India. The center focuses on Islamic education, finance, consumption, elimination of poverty (zakat), Islamic banking, sharia (Muslim personal law) issues, Islamic framework of sustainable business practices, Islamic wealth management and Islamic viewpoint on environmental balance.
- ISLAMIC ECONOMICS VS. NEO CLASSICAL ECONOMICS
Islamic Economic Alternatives: Critical Perspectives and New Directions
Author: K.S. Jomo
The global Islamic resurgence of the last two decades has spawned parallel intellectual efforts to articulate an alternative Islamic way of life. This volume critically assesses much of what is said to be Islamic economics today – its theories, assumptions, concepts and the alternatives it claims to offer. While critical of much of contemporary Islamisation and the interests such economic policies protect, the current relevance of progressive policy alternatives inspired by Islamic economic morality is also analyzed.
- INTEREST FREE BANKING SYSTEM
Islamic Finance Alternatives for Emerging Economies: Empirical Evidence from Turkey
Author:M. Ustaoglu, A. Incekara, Ahmet ncekara, Murat Ustao
Turkey could be considered the most important and leading Islamic country that has implemented the Western economic model successfully mostly because of the modernization efforts since late Ottoman period. As a result of the secularization efforts in the field of economy in early republican era, Muslim people in the country had to deal with non-Islamic practices that contradict with their religious beliefs. Islamic Finance Alternatives for Emerging Economies analyzes the emergence of the Islamic financial institutions in Turkey, by taking into account their history, their operational model, and their legal regulations in the financial field, to discuss the future of Islamic finance. The contributors also consider the ability of Islamic financial institutions and tools to respond to the financial needs of Muslims.
- GLOBALISATION AND ISLAMIC FINANCE
Globalization and Islamic Finance: Convergence, Prospects and Challenges
Author: Hossein Askari, Zamir Iqbal, Abbas Mirakhor
This is an extremely valuable book written by three highly qualified scholars whose credentials for writing such a book are difficult to match. The timing of the book is also perfect, having come at a time when the worst financial crisis in living memory has intensified the quest for reform of the international architecture. The proposals made by the authors should go a long way in not only reforming the system but also in accelerating the move towards financial globalization and convergence of the conventional and Islamic financial systems.