Modelling Interest- Free Economy, A Study in Macro-Economics and Development

In recent years there has been numerous Islamic publications in both social and economic fields trying to establish their theoretical and empirical basis according to Islamic principles Modelling Interest-Free Economy, A Study in Macro-economics and Development by Dr. Muhammad Anwar is one book whi...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autor principal: Sabri Tekir
Formato: article
Lenguaje:EN
Publicado: International Institute of Islamic Thought 1989
Materias:
Acceso en línea:https://doaj.org/article/2a5844d551384054b1f62e45d4bed3f7
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
id oai:doaj.org-article:2a5844d551384054b1f62e45d4bed3f7
record_format dspace
spelling oai:doaj.org-article:2a5844d551384054b1f62e45d4bed3f72021-12-02T17:26:17ZModelling Interest- Free Economy, A Study in Macro-Economics and Development10.35632/ajis.v6i2.26902690-37332690-3741https://doaj.org/article/2a5844d551384054b1f62e45d4bed3f71989-12-01T00:00:00Zhttps://www.ajis.org/index.php/ajiss/article/view/2690https://doaj.org/toc/2690-3733https://doaj.org/toc/2690-3741 In recent years there has been numerous Islamic publications in both social and economic fields trying to establish their theoretical and empirical basis according to Islamic principles Modelling Interest-Free Economy, A Study in Macro-economics and Development by Dr. Muhammad Anwar is one book which is a laudable study in economics, applying particularly the mudaraba system to the macro-economic level. Although it is really valuable study, I would like to express my opinions on the following points. 1) Regarding the technical points, it would have been useful for the reader if the sources used as reference had been given as footnotes. It is difficult to refer back to the sources. 2) “Muslim countries are reforming their financial systems in the light of Islamic teachings. Islamic financial institutions conduct their operations in ways that steer clear of interest and conform to the Sharia, the Islamic code of law and ethics (p. 7).” In such studies, it would be useful to draw a clear line between trade activities and partnerships and the banking system. Since Islamic countries and Muslim scholars are just now trying to develop a new banking system according to Islamic principles, we should be strictly careful when using the term “Islamic Banks.” In contrast with some Muslim scholars, for similar reasons we should also be careful when putting forward the mudaraba system as the basis for a banking or economic system. Instead of calling these institutions “Islamic” it would be more proper to use such terms as “Interest-Free Commercial Institutions”, “Interest-Free Financial Institutions”, “Interest- Free Credit Institutions (Corporations) ,” etc. 3) The mudaraba contract as a form of partnership is directly related to trading activities. The involvement of the banking system in trade activities by establishing partnerships with certain firms through mudaraba contracts can severely distort the free competition in the market system which is encouraged by the Prophet (SAAS). Banks are institutions in which huge amounts of financial resources are accumulated. As the banks enter the market to make commercial transactions, even though in the forms of mudaraba, musharaka or murabaha, this involvement will likely ... Sabri TekirInternational Institute of Islamic ThoughtarticleIslamBP1-253ENAmerican Journal of Islam and Society, Vol 6, Iss 2 (1989)
institution DOAJ
collection DOAJ
language EN
topic Islam
BP1-253
spellingShingle Islam
BP1-253
Sabri Tekir
Modelling Interest- Free Economy, A Study in Macro-Economics and Development
description In recent years there has been numerous Islamic publications in both social and economic fields trying to establish their theoretical and empirical basis according to Islamic principles Modelling Interest-Free Economy, A Study in Macro-economics and Development by Dr. Muhammad Anwar is one book which is a laudable study in economics, applying particularly the mudaraba system to the macro-economic level. Although it is really valuable study, I would like to express my opinions on the following points. 1) Regarding the technical points, it would have been useful for the reader if the sources used as reference had been given as footnotes. It is difficult to refer back to the sources. 2) “Muslim countries are reforming their financial systems in the light of Islamic teachings. Islamic financial institutions conduct their operations in ways that steer clear of interest and conform to the Sharia, the Islamic code of law and ethics (p. 7).” In such studies, it would be useful to draw a clear line between trade activities and partnerships and the banking system. Since Islamic countries and Muslim scholars are just now trying to develop a new banking system according to Islamic principles, we should be strictly careful when using the term “Islamic Banks.” In contrast with some Muslim scholars, for similar reasons we should also be careful when putting forward the mudaraba system as the basis for a banking or economic system. Instead of calling these institutions “Islamic” it would be more proper to use such terms as “Interest-Free Commercial Institutions”, “Interest-Free Financial Institutions”, “Interest- Free Credit Institutions (Corporations) ,” etc. 3) The mudaraba contract as a form of partnership is directly related to trading activities. The involvement of the banking system in trade activities by establishing partnerships with certain firms through mudaraba contracts can severely distort the free competition in the market system which is encouraged by the Prophet (SAAS). Banks are institutions in which huge amounts of financial resources are accumulated. As the banks enter the market to make commercial transactions, even though in the forms of mudaraba, musharaka or murabaha, this involvement will likely ...
format article
author Sabri Tekir
author_facet Sabri Tekir
author_sort Sabri Tekir
title Modelling Interest- Free Economy, A Study in Macro-Economics and Development
title_short Modelling Interest- Free Economy, A Study in Macro-Economics and Development
title_full Modelling Interest- Free Economy, A Study in Macro-Economics and Development
title_fullStr Modelling Interest- Free Economy, A Study in Macro-Economics and Development
title_full_unstemmed Modelling Interest- Free Economy, A Study in Macro-Economics and Development
title_sort modelling interest- free economy, a study in macro-economics and development
publisher International Institute of Islamic Thought
publishDate 1989
url https://doaj.org/article/2a5844d551384054b1f62e45d4bed3f7
work_keys_str_mv AT sabritekir modellinginterestfreeeconomyastudyinmacroeconomicsanddevelopment
_version_ 1718380780936232960