What is Wrong with Islamic Economics? takes an objective look at the state of the art in Islamic economics and finance. It analyses reasons for perceived stagnation and also suggests a way forward.
As well as probing various myths, the book presents several innovative ideas and a methodology for developing the subject on new foundations. It also highlights weaknesses in the conventional position on prohibition of interest, which has led Islamic banks devise a series of legal tricks. The author notes how the original aim of devising a new brand of banking has become less prominent whilst Islamic banks now position themselves more closely to conventional banks. The book also offers insights into how certain traditional thinking has seemingly ignored the egalitarian spirit of the law of zakah and created a scenario where zakah is not able to help the billions of poor people around the globe.
This detailed book will appeal to students, professors, researchers, Islamic banks and finance houses, consulting companies, accounting firms, and regulatory bodies. Professional economists, libraries in research and training organizations, as well as anyone with a general interest in the topic will find much to interest them.
Muhammad Akram Khan, Former Deputy Auditor General of Pakistan (until 2003) and Chief Resident Auditor, UN Peacekeeping Missions (2003-2007)
Contents: Preface Part I: Islamic Economics 1. Islamic Economics: State of the Art 2. The `Why' of Islamic Economics 3. What is Islamic Economics? 4. Methodology of Islamic Economics 5. From Islamic Theology to Islamic Economics 6. Expanding the Frontiers of Economics 7. An Islamic Economic System or Spiritual Capitalism? Part II: Prohibition of Riba 8. Elimination of Interest: From Divine Prohibition to Human Interpretation 9. Prohibition of Riba in the Primary Sources of Islam 10. Theory of Riba: The Orthodox Interpretation 11. Assessment of the Orthodox Interpretation 12. Modernist Thinking on Riba 13. Prohibition of Riba: The Continuing Debate 14. Unresolved Issues in the Orthodox Interpretation of Riba 15. Practice of Interest-based Finance Among Muslims 16. Prohibition of Riba: The Way Forward Part III: Islamic Banking and Finance 17. Theoretical Basis of Islamic Banking 18. Problems of Profit-Loss Sharing 19. Practice of Islamic Banking and Finance 20. A Trajectory of Legal Tricks (Hiyal) 21. Islamic Insurance (Takaful) Part IV: Zakah in the Present Age 22. Contemporary Application of the Law of Zakah Bibliography Index