Post-colonial era History of Islamic economics

1 post-colonial era

1.1 contemporary economics

1.1.1 land reform


1.2 islamic stock index

post-colonial era

during modern post-colonial era, western ideas, including western economics, began influence muslim world, muslim writers sought produce islamic discipline of economics. in 1960s , 70s shia islamic thinkers worked develop unique islamic economic philosophy own answers contemporary economic problems. several works particularly influential,

eslam va malekiyyat (islam , property) mahmud taleqani (1951),
iqtisaduna (our economics) mohammad baqir al-sadr (1961) and
eqtesad-e towhidi (the economics of divine harmony) abolhassan banisadr (1978)
some interpretations of property rights, capital , labor islamic perspective habibullah peyman (1979).

al-sadr in particular has been described having single-handedly developed notion of islamic economics

in writings sadr , other shia authors sought depict islam religion committed social justice, equitable distribution of wealth, , cause of deprived classes , doctrines acceptable islamic jurists , while refuting existing non-islamic theories of capitalism , marxism. version of islamic economics, influenced iranian revolution, called public ownership of land , of large industrial enterprises , while private economic activity continued within reasonable limits. these ideas helped shape large public sector , public subsidy policies of iranian islamic revolution.

in 1980s , 1990s, iranian revolution failed reach per capita income level achieved regime overthrew, , communist states , socialist parties in non-muslim world turned away socialism, muslim interest shifted away government ownership , regulation. in iran, reported eqtesad-e eslami (meaning both islamic economics , economy) ... once revolutionary shibboleth, indubitably absent in official documents , media. disapperared iranian political discourse 15 years ago [1990].

but in other parts of muslim world term lived on, shifting form less ambitious goal of interest-free banking. muslim bankers , religious leaders suggested ways integrate islamic law on usage of money modern concepts of ethical investing. in banking done through use of sales transactions (focusing on fixed rate return modes) achieve similar results interest. has been criticised western writers means of covering conventional banking islamic facade.

contemporary economics

in modern times, economic policies of 1979 islamic revolution in predominantly shia iran heavily statist large public sector, , official rhetoric celebrating revolution , rights of dispossessed, although tendency has faded on time. in sudan, policies of national islamic front party dominated regime in 1990s have been reverse, employing economic liberalism , accepting market forces in formulation of state policies. in algeria, jordan, egypt, , pakistan, islamist parties have supported populist policies, showing marked reluctance adopt austerity policies , decreased subsidies. in recent years, turkey had rapidly growing economy , became developed country according cia. indonesia, saudi arabia , turkey members of g-20 major economies.

in 2008, @ least $500 billion in assets around world managed in accordance sharia, or islamic law, , sector growing @ more 10% per year. islamic finance seeks promote social justice banning exploitative practices. in reality, boils down set of prohibitions—on paying interest, on gambling derivatives , options, , on investing in firms make pornography or pork.

another form of modern finance originated muslim world microcredit , microfinance. began in 1970s in bangladesh grameen bank, founded muhammad yunus, recipient of 2006 nobel peace prize.

land reform

one issue absent contemporary islamist economic thought (with exception of sayyid qutb) , action whether moderate or radical question of agrarian reform. opposition agrarian reform played role in islamist uprisings (iran 1963, afghanistan, 1978). @ least 1 observer (olivier roy) believes because imply reexamination of concept of ownership , , in particular throw question waqf, endowments revenue ensures functioning of religious institutions. in islamic republic of iran, example, waqf holdings large (in khorasan province, 50% of cultivated lands belong religious foundation astan-i quds, oversees imam reza shrine in mashhad). questioning waqf property mean questioning foundation of financial autonomy of mullahs , mosques , particularly among shia muslims.

islamic stock index

in june 2005, dow jones indexes in new york city , rhb securities in kuala lumpur teamed launch new islamic malaysia index —a collection of 45 stocks representing malaysian companies comply variety of sharia-based requirements. example, total debt, cash plus interest-bearing securities , accounts receivables must each less 33% of trailing 12-month average capitalization. also, gambling on derivatives , options, , on investing in firms make pornography or pork unacceptable. islamic bonds, or sukuk, use asset returns pay investors comply religion s ban on interest , traded privately on over-the-counter market. in late december 2009 bursa malaysia announced considering enabling individuals trade shariah-compliant debt on exchange part of plan attract new investors.