Foundations of Islamic Political Economy

The main objective of this book is to develop the framework of the "shuratic" process that establishes interactions between the ethical principles of Islam, the instruments and institutions of ethical policy and the market system. The market system is thus shown as the arena where "shuratic" policies and Islamic principles flourish side by side toward bringing about the integration between the Islamic polity and the grand ecological order of which the market system is a specific subset. The development of the key principles and instruments of the Islamic ethico-economic order is given in a rigorous scientific relevance based on the epistemological foundations of the Quran and "Sunnah". From these fundamental beginnings the book rapidly unfolds into the logistics of the polity-market integration process, termed throughout the book as the "shuratic" process. The labyrinth of transformations, interrelationships and scientific meaningness of these relations are shown to lead into dimensions in economic theory and economic discipline. The Principles of the Islamic economy are, the principle of "Tawhid" and solidarity, the Principle of Felicity linked to the Principle of "Tawhid", the Principle of Distributive Equity, and the Principle of Work and Productivity. Their interrelationships are developed in terms of the Quranic Algebras and spaces. The authors then use the basis of these interrelations to develop the system of general ethico-economic equilibrium in the mico-macro interface. The authors argue that there is no Keynesian type or neoclassical type distinctions between the micro and macro levels in the Islamic economy. The basis of this book will make it of interest to students and researchers in the areas of Islamic economics, social economics, history of economic thought, comparative economic systems and mathematical economics. The book may also prove of interest to international development organizations and national institutions that undertake socio-economic development programmes in the developing countries.