Tag Archives: Economic Development

Labor Productivity and Technical Progress in Islamic Economic Framework

Salman Ahmed Shaikh Most developing countries have lower labor productivity. Some of the reasons why people are not able to increase their productivity include lack of education and hence lack of employable skills, poor health and malnutrition. Islam has made … Continue reading

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Is Islam the Cause of Underdevelopment

Salman Ahmed Shaikh It is observed that many of the developing countries are countries with Muslim majority population. In fact, if we flip this, almost every country with Muslim majority population seems to be underdeveloped. Is this a coincidence or … Continue reading

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Negative Effects of Interest Based Loans on Development

Salman Ahmed Shaikh Most developing countries are going through a perpetual debt trap which takes away resources that could have been used on development, but instead are used to service compounded debt. Continent of Africa seems to be most affected … Continue reading

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Islamic Economics and Consumer Behavior

Salman Ahmed Shaikh Purpose behind human existence is one the basic questions in philosophy. Centuries ago, pioneer philosophers used to study and discuss ‘why we exist’, but after renaissance in Europe and revolt against Church, social philosophers came to the … Continue reading

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Distributional Inequity and Welfare Loss in Interest Based Financial System

Salman Ahmed Shaikh Capitalism, the way it is practiced as an economic system, has largely allowed and provided legal cover to certain exploitative institutions and their operations based on free market philosophy. Such institutions have been chiefly responsible for much … Continue reading

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Balancing Market Mechanism and Divine Injunctions in Islamic Economic Framework

Salman Ahmed Shaikh Neoclassical growth theories and models help us to explain the differences in per capita incomes across countries. The main conclusion of these theories is that countries with high savings and investment rates, countries having people spending more … Continue reading

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Effects of Islamic Inheritance Laws on Wealth Inequality

Salman Ahmed Shaikh In an interest based financial system, wealth inequality automatically results in income inequality with legal permissibility of risk-less earnings for the lender. Hence, wealth inequality perpetuates and concentration of wealth increases in the society with the passage … Continue reading

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Development from Islamic Economics Perspective

Salman Ahmed Shaikh In neoclassical growth theories, the emphasis is on increasing savings and technological progress which brings about increase in capital per worker and eventually output per worker. In ‘endogenous growth theory’ models, more sophisticated work has been done … Continue reading

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Physiological and Psychological Dimensions of Scarcity

Salman Ahmed Shaikh Resources are scarce as compared to unlimited wants. But, the economics of non-rival ideas creation has proved that resources are ample and that physical resources could be used in ways that keeps fulfilling the basic needs of … Continue reading

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Demystifying Economic Behavior: Islamic Perspective

Salman Ahmed Shaikh Humans are much more than utility maximizing machines. They are capable of using both material rationality and moral rationality to differentiate right from wrong and need reinforcement to adopt virtues influenced by an inner urge other than … Continue reading

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