Mainstream economic policies often prioritize short-term goals, such as inflation control and GDP growth, over addressing the root causes of unemployment. This short-sighted approach can lead to unemployment persistence, even during periods of apparent economic growth. By contrast, behavioural economics urges policymakers to adopt long-term and holistic strategies that prioritize social welfare and sustainable job creation, offering a more nuanced and comprehensive perspective on addressing unemployment.
Behavioural and Islamic Economics Critique on Mainstream Views on Unemployment: A Joint Perspective
Debunking Economics
Prof. Keen shows the unscientific nature of economics by looking at the notion of diminishing marginal costs required to produce a downward slopping supply curve. He presents a summary of the empirical evidence which contradicts this key assumption of economics. How has economics handled this consistent evidence accumulated over many decades? By ignoring it. This speaks volumes for the way that economics handles contrary evidence to accepted beliefs. Not that this should come as a surprise, given that the notion was originally invented to ensure that neoclassical economics did not suggest that the economy would become dominated by big business (that this was precisely what was happening in the real economy at the time was considered irrelevant). The book also analyses a mathematical flaw in the standard argument against monopolies (often used to justify opposition to large firms). The book questions the conventional theory of the firm, arguing that monopolies can play a beneficial role in the economy.
Towards Understanding Riba (Part II)
Clarity on issue of Riba is so important in Shari’ah that while recognizing change in value due to change in quality, it does not force us to exchange different qualities in equal quantity and yet in case of Amwale Ribuwiah, it does not allow these to be directly exchanged with any excess of weight (quantity) on either side. As generally understood by our scholars, this restriction was essential to stop practice of Riba by hiding behind difference in quality.
Reinstating the Family in ESG: A Tawhidic and Maqasidic Recalibration of Global Governance Frameworks
The omission of the family from ESG frameworks is not a minor oversight—it is symptomatic of a deeper malaise within secular ethics and governance. As Professor Nejatullah Siddiqi once noted, “The preservation of family is not a cultural preference—it is a civilizational necessity.” The Mf-ESG model, with its Tawhidic, Maqasidic, and civilizational foundations, offers a corrective to the ESG paradigm’s moral myopia. It presents a model of sustainability not limited to compliance and metrics but inspired by meaning, purpose, and transcendence.
This model deserves further exploration and institutional support through high-level scholarly forums, international think tanks, policy summits, and academic curricula. It bridges theory and practice, faith and governance, offering not only a critique but a constructive framework for a just and flourishing civilization.
Rethinking the Architecture of Ethical Banking
The transition toward sustainability and ethical banking is both timely and necessary. However, its success depends on more than rhetoric or superficial commitments. Without substantive institutional and regulatory reform, the expectations imposed on banks may exceed their structural capacities—threatening financial stability and the long-term viability of ethical finance.
Moral Reflections on Economics, Vol 5, Issue 8
August 2025 issue (Vol 5, Issue 8) of Moral Reflections on Economics features
– “Rethinking the Architecture of Ethical Banking” by Prof. Turalay Kenc, Professor, INCEIF University Malaysia.
– “Reinstating the Family in ESG: A Tawhidic and Maqasidic Recalibration of Global Governance Frameworks” by Prof. Suhaimi Bin Mhd. Sarif, Professor, KENMS, IIUM, Malaysia.
– Towards Understanding Riba by Hifz-ur-Rab.
– Book review of “Debunking Economics” by Prof. Steve Keen.
– Research paper in focus on “Behavioural and Islamic Economics Critique on Mainstream Views on Unemployment” by Dr. Ekrem Yilmaz.
– Reflections on Faith and Science.
– Regular sections of market news, economic and financial indicators and call for papers.
Download at: https://www.islamiceconomicsproject.com/periodicals
Highlights of Human Development Report 2025
This year’s Human Development report examines what distinguishes this new era of AI from previous digital transformations and what those differences could mean for human development (Chapter 1), including how AI can enhance or subvert human agency (Chapter 2). People are already interacting with AI in different ways at different stages of life, in effect scoping out possibilities, good and bad, and underscoring how context and choices can make all the difference (Chapter 3). Human agency is the price when people buy into AI hype, which can exacerbate exclusion (Chapter 4) and harm sustainability. And, of course, who produces AI and for what matter a lot for everyone (Chapter 5).
ESG and Banking Performance in Emerging and Developing Countries: Do Islamic Banks Perform Better?
The banks’ ESG commitment can be in the form of adopting ESG framework in their banking operation and business strategy, incorporating ESG in credit assessment, and integrating ESG commitment in their banking products. In the case of Islamic banks, incorporating the environmental pillar can be adopted in the form of promoting green financing and integrating environmental risks in the banking operation. At the policy level, the financial authority is required to have an ESG framework to be implemented in the banking industry.
Economic Development in an Islamic Framework
Prof. Khurshid Ahmad argues that the Western model of development overemphasized industrialization, capital formation, and technological transfer while neglecting social and cultural factors. This approach adopted as it is by the third world countries has led to negative consequences, including increased poverty, inequality, and dependence on foreign aid. Prof. Khurshid Ahmad emphasizes that the Islamic concept of development focuses on human development across moral, spiritual, and material dimensions. It encompasses the purification and growth of individuals and societies, striving for comprehensive well-being and prosperity in this world and the hereafter. He lists the goals of development policy within an Islamic framework which include human resource development, expansion of useful production, improvement in the quality of life, balanced development, evolution of new technology, and reduction of national dependency on the outside world.
Remembering Prof. Zubair Hasan
He wrote extensively on Islamic microeconomics giving the Islamic perspective to the theory of consumer and producer behaviour. He would go beyond philosophical debates and narratives to also discuss the operationalization of the analysis of consumer and producer behaviour. He wrote several books, book chapters and research papers on Economics, Microeconomics, Development Economics, Essays on the issues in Islamic Economics and Islamic Banking.
Islamic Economics Project 