Islamic Economics Thoughts of Schools

Abstract

This entry examines the emergence of Islamic Economics Thought of Schools, its development process, philosophy, main arguments, and points of distinction. Economic schools of thought emerge from the accumulation of innovative ideas and thoughts that have developed throughout history, starting from the early stages of the agrarian revolution up to the present-day complex global economy. Muslim scholars have made substantial contributions to the study of economics, as well as various other disciplines including mathematics, astronomy, physics, and medicine. Economic literature extensively delves into themes like as justice, coincidence, private property, free market, prohibition of interest, zakat, and charity. Currently, Islamic economics is being examined in comparison to other economic systems, such as capitalism and socialism. While certain scholars contend that Islamic economic theory presents a viable alternative system capable of mitigating the excesses of capitalism and the deficiencies of socialism, others assert that Islamic economic thought is insufficiently advanced to provide solutions to the intricate economic challenges of the present day. The development of Islamic economic theory was initiated through the translation of economic ideas from other cultures. The translation of great works from Western civilization has particularly contributed valuable intellectual information to Islamic society. During this process, Islamic intellectuals had the chance to assess the knowledge obtained from other civilizations. Translations of the works of Muslim thinkers into European languages played a significant role in establishing the fundamental principles of mainstream economic theory. Within current Islamic economic theory, notable schools include the modernist, neo-revivalist, Baqr al-Sadr, mainstream, and alternative-critical schools. The modernist movement seeks to reconcile Islam with contemporary economic systems and promotes the revitalization of ijtihad. The neo-revivalist movement, in contrast, promotes the direct implementation of the Quran and Sunnah, with the objective of structuring economic activities in alignment with Islamic principles. The Baqr al-Sadr school prioritizes social justice in Islamic economic theory and presents an alternative framework to capitalism. The mainstream school typically embraces orthodox economic theories and endeavors to reconcile these theories with the principles of Islam. The alternative-critical school, in contrast, centers on critiquing conventional economic theories and promotes the advancement of novel methodologies.