Gaps in the Theory and Practice of Islamic Economics

Al-Jarhi, Mabid (2013): Gaps in the Theory and Practice of Islamic Economics. Published in: JKAU: Islamic Econ. , Vol. 26, No. No. 1 (2013): pp. 243-254.

Abstract

After a generation of non-professional writers in Islamic economics, professional economists entered the stage with an important ambition, which has been to introduce a third alternative to humanity in addition to capitalism and socialism that would answer some of the inadequacies of each. Moreover, the analysis of human (individual and collective) behavior towards scarcity under the teachings of Islam was itself worth pursuing. The intellectual effort is yet to produce significant practices of Islamic economics. The exceptions include some application of Islamic finance that raises many questions, and a few applications of zakāh and awqāf. The most serious challenge of Islamic finance is the rise of products of ill repute that result from determined refusal to adhere to the decisions of the International Islamic Fiqh Academy. This paper identifies several gaps in Islamic economics and proposes ways to fill them, placing such responsibility squarely on Islamic economists.

• Item Type: MPRA Paper
• Language: English
• Keywords: economics, finance, Shari'ah, securitization, Sukuk, monetary policy
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit

References

1. Al-Jarhi, Mabid Ali (1976) the relative Efficiency of Interest-Free Monetary Economies, the Fiat-Money Case, Institute of National Planning, Cairo, April. Also in: Khurshid Ahmad, ed., Studies in Islamic Economics, Center for Research in Islamic Economics, Jeddah and the Islamic Foundation, London, 1980; Mohsin Khan and Abbas Mirakhor, eds., Theoretical Studies in Islamic Banking and Finance, IRIS Books, Houston, Texas, 1987.

2. Al-Jarhi, Mabid Ali (1983) “A Monetary and Financial Structure for an Interest-Free Monetary Economy: Institutions, Mechanism and Policy”, presented to Seminar on Monetary and Fiscal Economics, Islamabad, Jan., 1981, in Z. Ahmad, M. Iqbal and M.F. Khan, eds., Money and Banking in Islam, Center for Research in Islamic Economics, Jeddah, and the Institute of Policy Studies, Islamabad.

3. Al-Jarhi, Mabid Ali (1999) “Islamic Finance in the 21st Century: the Way Ahead,” Inaugural Speech, The International Conference on Islamic Economics for the 21st Century, the Islamic Research and Training Institute, IRTI, and the International Islamic University, IIU, held in Kuala Lumpur, Malaysia, August.

4. Al-Jarhi, Mabid Ali (2003) “Islamic Banks & Universal Banks: Need For Leveled Playing Field,” A paper presented to the International Seminar on Islamic Banking: Risk Management, Regulation and Supervision, organized by: the Ministry Finance Indonesia, the Central Bank Indonesia and the Islamic Research and Training Institute (Member of Islamic Development Bank Group), Jakarta, Indonesia, September 30 - October 2.

5. Al-Jarhi, Mabid Ali (2007) Institutional Tawarruq as a Products of Ill Repute, Workshop on Tawarruq: A Methodological issue in Shari`ah-Compliant Finance, Harvard Law School & London School of Economics February 1.

6. Al-Jarhi, Mabid Ali (2012) “proposed amendments to the Central Bank Law in Egypt,” unpublished memo presented to the Economic Committee of Majless Al-Sha‟ab.

7. The International Islamic Fiqh Academy (2009) resolutions of the 19th Meeting, Sharjah. http://www.fiqhacademy.org.sa/

8. The International Islamic Fiqh Academy (2012) resolutions of the 20th Meeting, Algeria. http://www.almeshkat.net/vb/attachment.php?s=8157407334f3cd907bb484988dac983c&attachmentid=11026&d=1364070304