Weber and Baqir as-Sadr: The Paradox of Economic Development in Islamic Societies

Reda, Ayman

doi:10.1111/ajes.12069

Cited by 7 publications

(9 citation statements)

References 26 publications

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“…The main aim of society becomes the broad provision of freedom as a means of satisfying individual interests. This goal is based on the capitalist belief that by providing the necessary conditions for fulfilling individual claims, the achievement of these goals will directly or indirectly achieve social interest (Reda 2014). The developing capitalist system finally expresses itself in glaring tragedy through various forms of greed and oppression.…”

Section: The Role Of Eastern Capitalists In Building An Islamic Econo...mentioning

confidence: 99%

The Controversy of Muhammad Baqir Ash-Sadr's Thoughts (Eastern Capitalist) with the Thoughts of Karl Marx and Max Weber (Western Capitalists) in the Context of Global Islamic Economic System

Desky

2022

Int. J. Ihya’ ’Ulum al-Din

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The fight in the globalization field between Eastern business people and Western industrialists shows strength for both. This article examines the improvement of Islamic financial matters in light of the contemplations of Muhammad Baqir Ash-Sadr, Karl Marx, and Max Weber in the humanistic perspective by taking a gander at the standards of worldwide Islamic financial matters in helping out a few non-Muslim nations. This research method uses library research, namely, taking information from books and scientific articles relevant to the problem to be answered. The consequences of this study show that the reasoning of Marx and Weber about the Islamic monetary framework encountering a decay was gone against by Muhammad Baiqr Sadr. That's what sadr censures if Marxism denies things connected with a powerful way of thinking; without anyone else, Marxism has isolated itself from things not related to science. The standards of Islamic lessons as the principal reason for making progress in business are demonstrated to have the option to contend worldwide. For instance, Saudi Aramco organizations, Islamic Development Bank (IDB), Qatar National Bank (QNB), Ooredoo, and the Fly Emirad Company are clear confirmations that they are huge organizations and impact financial backers in Western nations.

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Section: The Role Of Eastern Capitalists In Building An Islamic Econo...mentioning

confidence: 99%

The Controversy of Muhammad Baqir Ash-Sadr's Thoughts (Eastern Capitalist) with the Thoughts of Karl Marx and Max Weber (Western Capitalists) in the Context of Global Islamic Economic System

Desky

2022

Int. J. Ihya’ ’Ulum al-Din

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“…As Sadr’s theory postulates, social equity is the fair distribution of benefits among social groups ( Reda, 2014 ). Accordingly, an equitable system allows people from all walks of life to gain wealth ( Fahlevi, 2019 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“… Sadr’s theory of justice Social justice comprises two primary principles, reciprocal responsibility and social balance among various classes of society. Sadr deemed that these principles result in social harmony and unity ( Reda, 2014 ). Generally, Sadr’s theory of justice is based on social balance and the maximization of distributable benefits.…”

Section: Problem Description and Formulationmentioning

confidence: 99%

“…Furthermore, the results related to Sadr’s theory are in line with the theory’s intent. As mentioned, Sadr’s theory of social equity attempts to create social balance among different classes of society and maximize welfare ( Reda, 2014 , Behbahani et al, 2019 ). In a broader perspective, we find that Sadr’s theory opens more DCs compared to the other social equity theories to cover all social groups efficiently.…”

Section: Numerical Experimentsmentioning

confidence: 99%

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Social equity-based distribution networks design for the COVID-19 vaccine

Dastgoshade

Shafiee

Klibi

et al. 2022

International Journal of Production Economics

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“…1, p. 54). The crucial theme underlying Sadr’s theory is that the economic doctrine of Islam is distinguished by the religious framework (Reda, 2014; Sadr, 1987, p. 76). A pure philosophical approach was developed by Mojahedi Moakhar (2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Providing an Islamic approach of monetary systems

Moakhar

Esavi²,

Khademalizadeh³

et al. 2022

IMEFM

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Purpose The purpose of this paper is organized as follows. Section 2 reviews the literature on the subject matter, focusing on western economic literature and the Islamic economic paradigm, including the Quran, Sunnah, jurisprudence and Islamic philosophy thinking, to illustrate the origins of the Islamic approach to monetary systems. The money interest rate and its studies are explained, and the role of money and credit in the production function is considered. Then, it is shown that money maintains the demand for money in the overlapping generation model, as well as the consumption behavior of households. It is followed by an explanation of general Pareto optimality and the role of the money interest rate in inefficiency and nonoptimality for households and firms. Finally, Section 4 concludes the paper. Design/methodology/approach This paper studies the effects of money issuance and bank creation on Pareto optimality. In explaining the origins of the Islamic approach to monetary systems, the literature review, it focuses on western economics’ literature and Islamic economics paradigms such as the Quran, sunnah, jurisprudence and Islamic philosophy thinking. In modeling section, the authors show how banks’ fractional reserve credit is profitable. The authors also examine how the introduction of the money interest rate can change the Pareto optimality. In this regard, the comparison between two situations, namely, financing by the stock of money and borrowing in the credit market, indicates that welfare is reduced by the creation system and is inefficient (or nonoptimal). The result is that no money and no credits are created. The provision of this system compensates money by increasing the real money supply or deflation. To ensure Pareto optimality, it has been proven in the field of microfoundation that there should be no fixed money contracts and no money interest rates. It is necessary that the interest rate on consumption credit is zero or Qarz-al-Hasna is broken. Moreover, profit sharing is offered in the production sector. Findings As a result, the authors proved mathematically that the money interest rate must be zero to ensure productivity and Pareto optimality. On the other hand, the introduction of money or credit through loanable money leads to inefficiency, both in production and households and in the general equilibrium. The inflation generated by the credit system stimulates the change in the price level and perpetuates this inefficiency. Thus, if the authors want to return to the optimality condition, the interest rate on consumption credit must be zero or Qarz-al-Hasna is breached. However, the behavior of the fractional banking system and the credit mechanism teaches us that the money interest rate is an integral part of credit and loanable funds. Thus, the elimination of the money interest rate from the banking system without bank creation is implausible. Finally, to ensure Pareto optimality, it has been mathematically proven in the field of microfoundation that there should be no fixed money contracts and no money interest rate. It is necessary that the interest rate on consumption credit is zero, or Qarz-al-Hasna is broken. Moreover, profit sharing is offered in the production sector. The result is that no money and credit are created. The provision of this system compensates money by increasing the real money supply or deflation. Originality/value The capitalist theory of the definition of interest plays a decisive role in economic science. In this context, the authors are dealing with different vocabularies and terms for the interest rate. These different vocabularies have their origin in the different economic situations and especially determine the thinking of the schools. Because of the relationship between future and spot, the authors have to transform the variable “level” into the variable “interest rate” in the dynamic space. Finally, the exact explanations for the movement and evaluation of the economy are revealed by the correlation of the different interest rates.

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Weber and Baqir as-Sadr: The Paradox of Economic Development in Islamic Societies

Cited by 7 publications

References 26 publications

The Controversy of Muhammad Baqir Ash-Sadr's Thoughts (Eastern Capitalist) with the Thoughts of Karl Marx and Max Weber (Western Capitalists) in the Context of Global Islamic Economic System

The Controversy of Muhammad Baqir Ash-Sadr's Thoughts (Eastern Capitalist) with the Thoughts of Karl Marx and Max Weber (Western Capitalists) in the Context of Global Islamic Economic System

Social equity-based distribution networks design for the COVID-19 vaccine

Providing an Islamic approach of monetary systems

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