Economics and Business

Economics and Business

Accounting Systems And Recording Procedures In The Early Islamic State


Despite advances in historical knowledge the precise origins of accounting systems and recording procedures remain uncertain. Recently discovered writings suggest that accounting has played a very important role in various sections of Muslim society since 624 A.D. This paper argues that the accounting systems and recording procedures practiced in Muslim society commenced before the invention of the Arabic numerals in response to religious requirements, especially zakat, a mandatory religious levy imposed on Muslims in the year 2 H.

Islamization of Knowledge With Special References To The Courses of The Faculty Of Business Administration

Dr. Md Golam Mohiuddin
Associate Professor Dept of Management Islamic University, Kushtia Bangladesh

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Mobile:01813406777

Bismillahhir Rahmanir Rahim

There is no branch of knowledge in the world, which is separted from the main stream of revealed knowledge. Not a single research can be found which deny its association with divine knowledge and this divine knowledge came to a complete shape through Muhammad (SAW).

So to Islamize any branch of knowledge the Muslims, best nation declared by Allah, have take the initiative. This Islamization of knowledge is the demand of time and this will help develop our students to meet the challenges of time. 

Towards A New Paradigm for Economics

J.KAU: Islamic Econ., Vol. 18, No. 2, pp. 49-59 (2005 A.D/1426 A.H)

Director General, International Institute of Islamic Economics
International Islamic University, Islamabad, Pakistan


Current economic theory is mainly concerned with the factors which affect the wealth of nations. Issues of income distribution and elimination of poverty and deprivation is secondary. The present paper invites discussion on a new paradigm: hunger and homelessness to make the subject of economics really serve the humankind.

  1. Focus of Conventional Economics is Wealth and not Poverty

Current Economic theory is firmly set in the mold structured by Adam Smith 1904). His concern was to look into factors which affect the wealth (and hence power, prosperity) of nations considered as a whole. Issues of income distribution are secondary, since wealth belongs to the nation regardless of how it is distributed among individuals. Since then, economists have been primarily interested in wealth and power, and not so much in removing poverty, hunger and economic misery. Malthus (1798) provided a convenient sop for consciences, showing that poverty arose as a consequence of natural laws (all proven wrong empirically later) and the only cure was to reduce the birth rate of the poor. Tawney (1926) has looked at the process by which morality got divorced from economics in much greater detail; because of this, questions of fairness, equity, justice no longer form part of current economic discourse.

Role of Fiscal Policy in Controlling Inflation in Islamic Framework


A focus on inflation presumes inflation is high. The situation in the developed countries has, however, changed recently, provoking some to proclaim the death of inflation. The situation in the developing countries remains worrisome but, excepting a few countries, no longer alarming. So what is the need for discussing the role of fiscal policy in controlling inflation, in Islamic framework? Two reasons to do so. Firstly, to reassure ourselves, and those who care that this problem too can be handled in Islamic way if and when the need arises. Secondly, insofar as the Islamic developing countries are concerned inflation remains high enough to press for a solution.

In what follows we define inflation. Then we describe fiscal policy and explain what is meant by Islamic framework. We note some characteristics of fiscal policy which make it less effective in controlling inflation once it is there even though it can be an effective tool for preventing inflation from occurring. Briefly mentioning other faster acting ways of controlling inflation we also have a glance at Islamic history, how price rises were handled. In conclusion we prefer a fiscal policy oriented towards supply augmentation over the one focused on demand management.

Muslim Scholars on Islamic Economic

:: Islamic Economic Thought 
:: Recent Works on History of Economic Thought in Islam: A Survey 
:: Economic Thought of 'Abd Allah Harith Al-Muhasibi 
:: Economic Thought of Ibn Hazm 
:: Economic Thought of Nizam Al-Mulik Al-Tusi 
:: Al-Ghazali on Economic Issues and Some Ethico-Juristic Matters Having Implications for Economic Behaviour 
:: Economic Significance in Ibn Tufayl's Philosophy 
 :: Economic Concepts of Ibn Taimiyyah 
:: Economic Thought of Ibn Qayyim 
:: Al-Shatibi's Objectives of Shariah and Some Implications for Consumer Theory 
:: Al-Kharaj and Related Issues: A Comparative Study of Early Islamic Scholarly Thought and Their Receptiveness by Western Economists 
:: Ibn Khaldun's Analysis of Economic Issues 
:: Ibn Khaldun, Father of Economics

Explaining the Economic Trajectories of Civilizations: The Systemic Approach


A civilization constitutes a durable social system of complementary traits. Some of the complementarities of any given civilization are between elements of “material” life and ones commonly treated as integral to “culture.” Identifying the mechanisms responsible for a civilization’s observed trajectory involves, therefore, causal relationships that cross the often-postulated “culturalmaterial” divide. Complementarities make it difficult to transplant institutions across civilizations on a piecemeal basis. They imply that reforms designed to jump start an economy will fail unless they are comprehensive. Civilizational analysis can benefit, therefore, from attention to institutional complementarities, including ones involving both cultural and material variables.

Can There Be an Economics Based on Religion? The Case of Islamic Economics

As an undergraduate student at the International Islamic University Malaysia, my experience in studying economics was quite unique in the sense that while being exposed to mainstream neoclassical economics, there was an explicit mention that economics was to be taught in a ‘comparative’ and ‘critical’ manner. At the same time, due to events of the late 1970s and early 1980s, developing ‘Islamic economics’ was one of the goals in a few Muslims countries, including Malaysia. I discovered that there was also a ‘mainstream school’ among those writing on Islamic economics, modeled along neoclassical lines, working almost within the boundaries of neoclassical theory, with some adjustments to incorporate teachings/norms/values that reflected certain requirements of Islam.

An Islamic Approach to Economics

This paper begins with a brief look at the development of economics through the last two centuries, focusing on the major methodological approaches, although we have something to say about earlier periods also to set the perspective right. We try to identify the issues which engaged attention of the masters of the disciplines and the problems facing man and society that engaged their attention. We note in this regard the gradual ascendency of formalism in economic theory and the meaning and purpose of economics gradually yielding ground to tools and technique of analysis. This would bring us to the second quarter of the twentieth century when economics was again forced to come face to face with reality and a methodological crisis ensued. We shall note the contemporary contents of economics and the various methodological approaches before we pass on to the next part of the paper which deals with its major theme: relevance of Islam to our discipline.

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