Islamic economics refers to the body of Islamic studies literature that "identifies and promotes an economic order that conforms to Islamic scripture and traditions," and in the economic world an interest-free Islamic banking system, grounded in Sharia's condemnation of interest (Riba). The literature originated in "the late 1940s, and especially" after "the mid-1960s." The banking system developed during the 1970s. Islamic economic literatures' central features have been called "behavioral norms" derived from the Quran and Sunna, zakat tax as the basis of Islamic fiscal policy and prohibition of interest.
While the outside world hardly noticed, a significant and rapidly growing amount of money is now being managed in accord with Islamic law, the Shari'a. According to one study, "by the end of 2005, more than 300 institutions in over 65 jurisdictions were managing assets worth around US$700 billion to US$1 trillion in a Shari'ah-compatible manner."
Traditional Islamic concepts having to do with economics included
- zakat - the "taxing of certain goods, such as harvest, with an eye to allocating these taxes to expenditures that are also explicitly defined, such as aid to the needy."
- Gharar - "the interdiction of chance ... that is, of the presence of any element of uncertainty, in a contract (which excludes not only insurance but also the lending of money without participation in the risks)"
- Riba - "referred to as usury (modern Islamic economist have consensus that it does not refer to usury only rather Riba is any kind of interest)" The Quran (3: 130) clearly condemns what it calls by the Arabic term "riba," usually translated "interest": "O, you who believe! Devour not riba, doubled and redoubled, and be careful of Allah; haply so you will prosper."
Source: http://www.danielpipes.org/4973/islamic-economics-what-does-it-mean
No comments:
Post a Comment