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The Dimensions Of An Islamic Economic Model

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  • NAQVI, SYED NAWAB HAIDER

    (former Director of the Pakistan Institute of Development Economics)

Abstract

The paper answers in the affirmative the question about the need for an Islamic economic model, and then proceeds to delineate its dimensions. The distinguishing characteristic of such a model is to highlight the ethical dimension of the economic calculus - i.e., that without ethical moorings individual economic behaviour remains unpredictable. It shows that rational utility-maximizing behaviour will be helped by an ethically-oriented reorganization of present-day economic systems in Muslim countries. Formally, the Islamic economic system is presented as an ‘optimum regime’. On the methodological plane, such a regime gives due prominence to both value judgments and positive judgments in making generalizations about an idealized Islamic economy. At the theoretical level, it is a way of transforming their refutable ethical principles into refutable statements about the behaviour of economic agents in a typical real-life Muslim society. In practice, for such a regime to reflect Islam’s overarching ethical vision of economic processes, it would take assigning top priority to the needs of the least-privileged people in a growing economy. This implies giving greater weight to the wage-goods in total output, minimizing the production and consumption of wasteful luxuries, and redistributing income and wealth from the rich to the poor.

Suggested Citation

  • Naqvi, Syed Nawab Haider, 1997. "The Dimensions Of An Islamic Economic Model," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 4, pages 1-23.
  • Handle: RePEc:ris:isecst:0096
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    References listed on IDEAS

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    1. Myrdal, Gunnar, 1989. "The Equality Issue in World Development," American Economic Review, American Economic Association, vol. 79(6), pages 8-17, December.
    2. Timur Kuran, 1995. "Islamic Economics and the Islamic Subeconomy," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 155-173, Fall.
    3. Kuran, T., 1995. "Islamic Economics and the Islamic Subeconomy," Papers 9505, Southern California - Department of Economics.
    4. Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, vol. 59(5), pages 817-831, December.
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    Cited by:

    1. Dina M. Abdelzaher & Amr Kotb & Akrum Helfaya, 2019. "Eco-Islam: Beyond the Principles of Why and What, and Into the Principles of How," Journal of Business Ethics, Springer, vol. 155(3), pages 623-643, March.
    2. repec:abd:kauiea:v:30:y:2017:i:4:p:89-102 is not listed on IDEAS
    3. Hafas Furqani, 2017. "Consumption and Morality: Principles and Behavioral Framework in Islamic Economics الاستهلاك والأخلاق: المبادئ والإطار السلوكي في الاقتصاد الإسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(SI), pages 89-102, April.

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