Methodology of Islamic Economics: From Islamic Teachings to Islamic Economics

Abstract

The existing literature on Islamic economics has not undergone any of the processes of verification or falsification. It is mostly restatement of the postulates as found in the Qur'an 2 or hadith. 3 The literature on methodology of Islamic economics is either superfluous, or ambiguous or confusing. It does not help in transforming the Islamic economic teachings into a social science. For developing Islamic economics as a social science, we must understand the primary sources in a contemporary context; formulate hypotheses based on that understanding and present these hypotheses for validation through testing. The paper illustrates the proposed methodology with some examples. For making this methodology a going concern, several basic steps would be required. The paper enumerates those steps also.

Local Humanitarian Leadership and Religious Literacy: Engaging with Religion, Faith, and Faith Actors

“…84 In fact, however, many humanitarian principles overlap in many respects with the religious values that guide LFAs-values that have been in existence since long before the humanitarian field was born. 85 Such stakeholders suggest that it would serve all interests if international actors attempted to translate the principles into language that LFAs will understand and if they speak with some humility, not presuming that these are new or foreign concepts to religious people around the world. 86 There is a separate question around the perception of partiality of local faith actors: several interviewees reported that potential beneficiaries are sometimes scared, reluctant, or uncomfortable with receiving assistance from an FIO if they are of another or no religious affiliation.…”

The Utilitarian Decision Making from Islamic Perspectives: Review and Settlement Attempt

“…See the verse number 10 of Surah Al-Hujurat where Allah says "he Believers are but a single Brotherhood: So make peace and reconciliation between your two (contending) brothers" [17]. Seemly, impossible to debate altruistic behaviours in Islam and that explains why egoism strictly criticized by Muslim scholars particularly the authors in [12] and [24] when they consider selfish assumptions as sufficient reason to reject the conventional utility model.…”

“…2) Utility Maximization: From secularly point of view and in harmony with egoism, human is full with desires and greed that heavily stimulated to be fulfilled in different ways. Satisfying those desires considered a primary human motive toward advancement in this life and a visible indicator for self-welfare [24]. Consequently, and in order to be in a better situation, each individual seeks to maximize his level of satisfaction by owning more payoffs in a form of money for instance or any other type.…”

“…In a broad sense, there is a misconceived impression in which anticipated that conventional maximization assumption is Islamic harmonic believe because of Islamic authorization of acquisition behaves as have been briefly introduced in Section A.2. In fact, indiscriminate desires satisfaction is arguable from Islamic point of view because of the conflict with Islamic succession principle and the purpose of life [24]. Clearly, Islam believes in the hereafter as the real life compared to the temporary life i.e.…”

Is it necessary to have Islamic economics?

“…Some progress has also been made in macroeconomics. There has been a considerable discussion of the Islamic vision (Ahmad and Awan, 1992;Khan, 1994). There is, however, no theoretical macroeconomic model that would show how the Islamic values and institutions, and different sectors of the economy, society and polity would interact to help realize the vision.…”