In the beginning, it might appear that Islamic Economics is just economics with the moral values. Surprisingly, a closer look reveals that its values are the logic behind why we cannot claim it as economics, but instead a moral economy. This essay will demonstrate why we should view Islamic Economics as a moral economy rather than economics by exploring the foundational principles, the economic objectives, the real problem of the economy in the developing countries and the economic rationale. The final part of the essay will define what makes Islamic Economics a moral economy.
In his research, Choudhury (1983) illustrates three fundamental ideas of Islamic Economics; the principle of Tawhid and Brotherhood, the principle of work and productivity, and the principle of distributional equity.
Tawhid is …show more content…
Therefore, in Islam, providing free universal education to all is essential because education can balance the socio-economic. In his research, Naqvi (1978) implies that education guarantees human freedom since it gives people the ability to achieve wealth; materially and socially. In the end, the people who have better education will pursue the main objective of Islamic Economics which is social justice.
The last objective of Islamic Economics is economic growth. The growth of the economy will improve the national income which then becomes available for production and consumption. Odedokun’s 1992 study (cited in Tabash and Dhankar 2014) says that a causality exists between finance and growth since financial development causes the economy to grow and economic growth stimulates the financial sector to develop further. However, Naqvi (1978) mentions that it is social justice, not economic growth, which is the most important objective in the Islamic
In his research, Choudhury (1983) illustrates three fundamental ideas of Islamic Economics; the principle of Tawhid and Brotherhood, the principle of work and productivity, and the principle of distributional equity.
Tawhid is …show more content…
Therefore, in Islam, providing free universal education to all is essential because education can balance the socio-economic. In his research, Naqvi (1978) implies that education guarantees human freedom since it gives people the ability to achieve wealth; materially and socially. In the end, the people who have better education will pursue the main objective of Islamic Economics which is social justice.
The last objective of Islamic Economics is economic growth. The growth of the economy will improve the national income which then becomes available for production and consumption. Odedokun’s 1992 study (cited in Tabash and Dhankar 2014) says that a causality exists between finance and growth since financial development causes the economy to grow and economic growth stimulates the financial sector to develop further. However, Naqvi (1978) mentions that it is social justice, not economic growth, which is the most important objective in the Islamic