The economic system in contemporary Islamic thought: Interpretation and assessment

Abstract

Since the late 1940s, and especially since the mid-1960s, a wealth of pamphlets, articles, and books have appeared that constitute the corpus of what is now known as "Islamic economics." This literature, whose exponents call themselves "Islamic economists," purports to provide the blueprint of an economic system consonant with the original sources of Islam. The central feature of the proposed system is that individuals are guided in their economic decisions by a set of behavior norms, ostensibly derived from the Qur'an and the Sunna. Two other features stand out: zakat, a tax considered the basis of Islamic fiscal policy, and the prohibition of interest, viewed as the centerpiece of Islamic monetary policy. Virtually all Islamic economists consider this trio-the norms, zakat, and zero interest-the pillars of the Islamic system.'