Articles on Islamic Economics
The authors argue that by expanding the network of Islamic banks and enhancing the technological infrastructure for financial access, policymakers can harness the transformative potential of Islamic finance to promote sustainable economic growth and development in the OIC countries. The authors urge policymakers to prioritize initiatives aimed at expanding the network of Islamic banks and enhancing technological infrastructure for financial access.
Prof. Islahi argues that Muslim scholars made substantial contributions to economic thought, influencing both the development of Islamic economics and, indirectly, the foundations of modern Western economic theory. He challenges the notion that modern economics is solely a product of Western thought, highlighting the intellectual debt owed to earlier Muslim thinkers.
In South Asia, serious hunger reflects rising undernourishment and persistently high child under nutrition, driven by poor diet quality, economic challenges, and the increasing impact of natural disasters. The goal of Zero Hunger by 2030 now appears unreachable, and if progress remains at the pace observed since the 2016 global GHI score, the world will not reach even low hunger until 2160 more than 130 years from now.
In Harrod (1939)-Domer (1946) and Solow’s Growth model, the emphasis is on increasing savings and investments and that is supposed to lead to increased productivity corresponding to lower Incremental capital output (ICOR) ratio in Harrod (1939)-Domer (1946) model and hence higher rate of growth and to higher steady state level of output in Solow’s Growth model. Savings that result in investments contribute to growth. Essentially, what leads to growth is investment. Savings are only the source of investment funds.
This paper explores answers to the question that what should be the subject matter of Islamic economics.
Use of mathematics in economic theorizing has restricted economic analysis of consumer behavior within a confined boundary of certain axioms. Often, these axioms are found to be empirically false.
The authors caution that democratic politics may or may not help fix dynamic social problems. The authors argue that even in their own optimistic model of politics—where parties maximize average utility of those currently alive— equilibrium policies may not put society on the right path, and the speed of the green transition may be too slow. Climate change and environmental degradation is a slow and cumulative process. To protect environment, the efforts also need to be cumulative and consistent. A self-centric secular worldview encourages the self-centric use of private property resources. However, even small things done collectively and consistently can have a larger effect.
The author urges responsible attitude towards ―limits to growth‖. The author argues for the equalization of endowments rather than expansion of policies that redistribute current income. Kate Raworth then lists seven ways of thinking about the economy that will help us manage common needs such as water, food, income – the things in the hole of the doughnut – so that humanity lands in the sweet spot rather than drifting past the outer ring – the ecological ceiling — where phenomena like ozone layer depletion thrives.
The threat of air pollution is not new, but it is changing. Air pollution has contributed to death and disease and has hurt economic prospects and community resilience for decades. During that time, policies and technologies have drastically improved air quality in some areas, saving lives, and proving that pollution is not an inevitable by-product of economic development.
Air pollution is a complex mixture of particles and gases with sources and composition varying over space and time. While hundreds of chemical compounds can be measured in the air, governments typically measure only a small subset as indicators of the different types of air pollution and major sources contributing to that pollution.
To fully address climate-related financial risks and promote sustainability, banks must balance their protective and proactive roles. While protecting assets from climate risks remains critical, it should not overshadow the need for a broader responsibility. Banks are uniquely positioned to be powerful agents of change, and by integrating sustainability into their operations and business strategies, they can contribute significantly to the global effort to combat climate change and foster sustainable development.
Islamic Economics Project 