This illuminating and thought-provoking book questions whether classical Islamic capitalism, which has served Muslims so well for centuries, can provide a viable alternative world economic system. In the current recession - the worst since 1929 - this is surely a provocative question. But if Islamic capitalism is to emerge as a viable alternative, its nature and systems must be well understood.
Murat Cizakca explores key issues within Islamic capitalism and finance, shedding light on whether the Islamic system can indeed be called `capitalist', the principles on which the system was built, the institutions that were consequently developed, how they function and have evolved, and, perhaps, most importantly, whether they can be modernized to meet today's needs. Against the backdrop of rapid change in the Middle East, this book gives a solid background to the economic systems that will emerge in the world of Islam.
An essential guide to the past, present and future of Islamic economy and finance, this compelling book will prove to be of particular interest to academics and researchers of economics, finance, economic and financial history and political science.
Murat Cizakca, Professor of Islamic Finance, Comparative Economic and Financial History, INCEIF University, Kuala Lumpur, Malaysia
Contents: Foreword Introduction Part I: Value Systems Behind Institutions 1. Two Approaches to Islamic Economics and Finance 2. Basic Principles of Islamic Capitalism Part II: Historical Institutions of Private Enterprise: Capital Accumulation 3. Financing the Entrepreneur: The Medieval Islamic Business Partnerships 4. Evolution of Medieval Islamic Business Partnerships in the Islamic World and the West 5. Commerce and Commercial Institutions Part III: Historical Institutions of Capital Redistribution and Public Finance 6. Obligatory Redistribution of Wealth: Taxation and Institutions of Tax Collection, the Origins of Modern Sukuk 7. Voluntary Redistribution of Wealth (The Waqf) Part IV: Islamic Capitalism and Finance Today 8. Waqfs of Stocks 9. The Birth and Evolution of Modern Islamic Banking 10. Borrowing from the Public: Sukuk 11. Takaful (Islamic Insurance) 12. The Lembaga Urusan Dan Tabung Haji: Financing the Modern Pilgrimage Part V: Future of Islamic Capitalism and Finance 13. The Islamic Gold Dinar 14. Maqasid Al-Shari'ah and Islamic Banking 15. Venture Capital 16. Democracy and the Modern Islamic Capitalism Bibliography Index