Book Reviews 

Book Review 

441 

Islam and Economic Development 

By Muhammad Umer Chapra, The International Institute 
of Islamic Thought and Islamic Research Institute, 
Islamabad, Pakistan, 1993, 166 pp. 

Islam and Economic Development is another intellectual contribution 
by M. Umer Chapra, a well-known Muslim social scientist and author of 
Toward a Just Monetary System and Islam and the Economic Challenge. 
He has been devoting time, energy, and experience to the cause of Islami- 
zation of knowledge, and this work, which shares much in theme, tone, 
and territory with his earlier works, reflects his deep commitment and 
dedication to a painstaking task. This thought-provoking book, which 
offers a global and integrative perspective of the phenomenon of develop- 
ment within the framework of an Islamic worldview, is divided into six 
chapters, preceded by the author’s preface and a foreword by Zafar Ishaq 
Ansari, and followed by notes and refelences, a bibliography, and an 
index. 

Chapter 1, “The Kind of Development,” initiates the discussion of the 
book’s general theme by presenting the issue of development in terms of 
goals and the strategies employed to realize those goals. The two basic 
goals-efficiency and equity-are defined within the Islamic concept of 
just development, which is derived from the concepts of t a w W  (the 
oneness and unity of God), khikifah (the vicegerency of human beings), 

The terms “efficiency” and “equity,” as defined on page 8, need 
further explanation, especially when the authm has discussed the impor- 
tant analytical issue of the optimality and the maximization of the two 
variables. Moreover, the concept of wlilcsfak (state) and the two basic 
goals that it seeks to achieve, ‘adcllah (justice) andfa& (general well- 
being), could have been better linked to the time basic pillas of Islam: 
tawhid, riscflah (prophethood), and dkhirah (the hemfter). 

Chaptet 2, ”Can Secularism F&r Just Development?,” feat- 
development stmtegies of the two prominent secular systems: the free 
market system and the socialist system. Chapra points out that the 
reallocation of nsources cannot be realized within the value-neutral 
framework of secular systems. He notes that the ftee market system, 
which is based on the concept of self-intenst, cannot motivate people to 
act in the interest of society. He shows the futility of the Swirling pattern 

and *&-m (justice). 



442 The American Journal of Islamic Social Sciences 11:3 

of government policies designed to ovemme market failures. He also 
presents a diagnosis of the socialist system, showing that its strategy of 
development, which is ftee from moral imperatives and lacking in eco- 
nomic incentives, is not consistent with the concept of just development. 

Chapter 3, "The Inconsistency of Development Economics," provides 
a critical =view of the theory and practice of economic development as 
extended and a d v a n d  during the past three decades. Chapra shows the 
flaws and in coflsistencies present in development strategies, which are 
built on a mix of the neoclassical economic thought and the development 
planning of socialist thought. He argues that implementing inappropriate 
strategies has generated severe intemal and external imbalances in the 
economies of many developing countries without accelerating the process 
of development. 

In chapter 4, "The Islamic Strategy," Chapra builds a basic framework 
for the formulation of a development strategy based on Islamic principles. 
He suggests that both the social and economic aspects of human life must 
be taken into consideration while designing a strategy that would e m  
development with justice and stability. Thus, an Islamic economic order 
needs to be treated as a subsystem of Islamic social order. In such a sys- 
tem, it would be assumed that moral values would play a dominant role 
in the optimization of efficiency and equity in the use of resowes. 
Chapra identifies four major elements for the development of such a 
strategy: moral filter, motivation, socioeconomic restructuring, and the 
state. The moral f o m  serves as a mechanism to filter off excessive and 
unlimited consumer demands and as a curb on the wasteful use of limited 
resources. He argues that faith in the accountability and the system of 
punishments and rewards in the hereafter motivate people to do righteous 
deeds. The transformation of self-inte- into social intemst, under the 
impact of an inner moral force, reinforces the price mechanism and 
improves market efficiency. 

Chapra also focuses on the need to testructure socioeconomic insti- 
tutions so that they will conform to Islamic norms. The role of the 
government in the process of testructuring is stressed. Many other factors 
that supplement and complement in actualizing the Islamic vision of 
development are discussed in detail. But somehow, several important 
factom-the internal and extemal migration of labor, the quest for 
tesource redistribution, and the development of technology through 
investment in research and development, seem to have been overlooked. 
Momver, Chapra has avoided the use of constmcts that show the cause- 
and-effect relationship between identifiable and quantifiable variables. 
This oversight rendem his presentation amenable to serious criticism from 
economists who are mathematically oriented. 



Book Reviews 443 

In chapter 5, "Why the Failure?," Chapra explains that, among many 
other causes, the political factor is the major element that has been 
Fesponsible for the failure of the Muslim counGes to implement the 
Islamic strategy in their quest for development. He emphasizes the need 
to establish the W l i h i f d ,  which would be committed to the well-being of 
all human beings and ensme the equitable distribution of income and 
Wealth. 

Chapter 6, the conclusion of the book, delivers an inspirational mes- 
sage to the Muslim leaders and elite, who have grown complacent vis-A- 
vis the free market system, to try the Islamic altemative. Chapra also 
provides food for thought for secular oriented economists by showing the 
relevance and applicability of the Islamic strategy when it comes to 
providing the best altemative fot dealing with all of the various 
short-term and long-term problems. He makes a telling point by hypo- 
thesizing that material development with justice and stability is not 
possible without moral development. At a time when Socialism has lost 
its appeal and the world seems to be attracted to free market system 
despite its deficiencies, shifiing the locus of intellectual influence fmm 
the free market system to an Islamic system is not an easy job. There are 
many studies on the issue of development, but this is the fust I know of 
that has organized the subject matter in such a simple, clear, and 
petsuasive manner. The author is to be commended. This book is a 
valuable primer that can be used as a guide, rather than as a text, in the 
a m  of economic development as well as in the field of the comparative 
study of social systems. 

Shujaat A. Khan 
Asst. Professor 

St. John's University 
New Yo& 

Dept. of Economics