Islamic Economics As A Moral Economy Essay

1116 Words 5 Pages
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 a concept of oneness. According to Choudhury (1983), In the economy, it encapsulates the essential meaning of Islamic Economics, which teaches us how to build a business relationship, and, moreover, acknowledges God’s existence in every activity we run. To establish the principle of Tawhid and Brotherhood, Islam forbids riba; exploitative gains of money made in trade, and teaches us to redistribute our individual and national income. One underlying substance of the economy besides the working of the economy based on market exchange, allocation of resources, as well as maximising utility together with profits that Islamic Economics considers as the major crucial matter is…

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