Review Essay Islamic Economics: The State! of the Art Muhammad Akram Khan This paper reviews the development of Islamic economics at various levels. It examines the discursive accumulation of knowledge on Islamic economic topics and explores their contents and future direc- tion It evaluates the achievements of research and banking institutions. It also examines the extent to which Islamic economics has gained acceptance in the minds of ordinary Muslims and in the practices of Muslim states. This review is intended to provide a roadmap for the future development of the discipline. In the spirit of constructive criti- cal thinking it also provides a useful critique of the many failures of the institutions and limits of the discourse. Introduction This paper like an earlier endeavor,' seeks to assess the state of Islamic economics today. The objective is to make a fair evaluation of the achieve- ments and challenges of Islamic economics as a discipline and to make a few suggestions for future course of action. Islamic economics in the contempomy era started developing just after World War II when a large number of Muslim countries got independence from colonial rule. There had always been a smoldering flame in the psy- che of the Ummah to reincarnate its bygone glory. Independence from colonial rule only kindled this flame revealing a sudden large-scale awak- ening to the need for developing Islamic disciplines. People in these for- merly colonized countries had always desired to fashion their lives and institutions according to the Islamic worldview. Islamic economics emerged as one of the foremost fields toward thii end. During colonial rule, economic institutions underwent a massive change, offending the Muslim Muhammad Akram Khan is Deputy Auditor Gewrol with the Government ofPakistan. 90 The American Journal of Islamic Social Sciences 162 sensibilities, primarily due to the intduction of interest in the economy. In addition, the colonial rulers discarded the system of zakah to which the Muslims looked as a safety valve against unforeseen calamities and mass poverty- The early efforts toward Islamic economics were restatements of the Islamic teachings relating to economics as mentioned in the Qur'an, Wi th , and fiqh. Most of its contributors were religious scholars with very little exposure to modem concepts of economics. But their efforts did bear fruit. In 1976, at the First International Conference on Islamic Economics, over 200 economists, scholars, and social scientists from all over the world assembled in Makkah. This watershed conference exposed the participants to the growing need to address the concepts of Islamic economics at a more professional level and encouraged professional economists to make serious contributions. Achieve men ts From its humble beginnings over two decades ago, Islamic economics has grown as an academic discipline. There are quite a few successes that no one can ignore. I shall mention them by way of example, in the absence of any compre- hensive database on these issues: An independent discipline Islamic economics is now a serious academic discipline, evident from the number of books and articles being published on the subject. Presently, there are twelve journals, some of them refereed, exclusively devoted to Islamic economics. This is over and above a large number of Islamic jour- nals that publish material relating to it. In addition, joumals of convention- al economics, management, business studies, and accounting also publish material related to Islamic economics. One of the significant developments is that Palgraves Dictionary of Money and Finand now includes an arti- cle on Islamic banking. Intellectual efforts During the last two decades, a number of bibliographies have come out. Starting with M.N. Siddiqi's Bibliography and Survey of the Literature in 1W6, a number of volumes have appeared which list literature on the sub- ject. For example, the Islamic Research and Training Institute 0, Jeddah, published a comprehensive bibliography in 1993 and Tariqullah Khan: Islamic Economics: The state of the Art 91 Khan’s bibliography of 1984. S. Nazim Ali published a bibliography in 1994, and Javed Ahmad Khan in 1995. In addition, the Centre for Research in Islamic Economics (CFUE), Jeddah, published a series of bibliographies on specialized topics. I published two volumes of annotated bibliographies in 1983 and 1989. A third one is pending publication, and I am working on a fourth volume. These bibliographies speak for the academic activity going on in the field. University courses Islamic economics also occupies a place in the academic courses of var- ious universities and colleges. International Islamic University Malaysia and Intemational Institute of Islamic Economics in Islamabad, offer degree courses in Islamic economics. Several universities in Pakistan, Iran, Sudan, Saudi Arabia, and other Islamic countries offer courses on Islamic eco- nomics as part of a regular degree progam in economics. This is in addition to those which take up subjects relating to Islamic economics as an addi- tional area of study. Loughborough University in Leicester (UK) offers a program in Islamic economics. Also, International Institute of Ishnic Economics and Insurance in London offers a diploma course through cor- respondence. Other Islamic economics correspondence courses are offered on the Internet. Ph.D. dissertations A large number of universities accept research projects leading to a Ph.D. in economics with subjects related to Islamic economics. I have copied from the Internet the abstracts of forty-seven Ph.D. dissertations accepted by various U.S. universities from 1953 to 1996. I could not lay my hands on information from other universities. Incidentally, this type of infonna- tion should be gathered at one of the Islamic economics research centers. Islamic economics research centers There are at least four research centers or institutes exclusively devoted to Islamic economics. Of these, Islamic Research and Training Institute under the Islamic Development Bank, Jeddah, deserves special mention. It has an in-house team of professionals and commissions research studies from outside as well. Until 1997, it had published 180 books and mono- grams on Islamic economics. The Intemational Institute of Islamic Thought, a U.S. based think tank too has made important contributions to the development of Islamic eco- nomic thought. It has organized a large number of professional seminars, 92 The American Journal of Islamic Social Sciences 16:2 academic workshops, and meetings in various places. -dings of seven of these meetings have already been published. IIIT has published fourteen books on the topic in English and forty-four books in Arabic. The institute is now undertaking a research project on the “Intellectual Map of Islamic Economics.” The purpose of this project is to identify and describe the con- temporary intellectual scene in the field of Islamic economics, in terms of its academic literam and institutional practices so that directions and pri- orities for new research can be identified. IIlT also copublishes the American Journal of Islamic Social Sciences with the Association of Muslim Social Scientists. Over the years, the journal has published two special issues dedicated to Islamic economics and dozens of articles on the subject. Islamic economics databases The Islamic Development Bank has also developed a database on Islamic banking, finance, and economics. The bank has five databases: Islamic Banks Infomation System (Arabic and English), Islamic Economics Bibliography, Islamic Economics Bibliography (Index), Muslim Experts Information System, and Directory of Channels of Communications (direc- tory of addresses and other communication means among Islamic financial instiwions). Compendiums of Shari‘ah studies The Fiqh Academy of the Organization of Islamic Countries, the Fish Academy of India, the Islamic Ideology Council of Pakistan, and the Association of Islamic Banks have published valuable material relating to the Shari’ah position on various contemporary issues relating to economics, business, and finance. The Ministry of Religious Affairs and Awqaf of Kuwait has so far published thirty-seven volumes of Encyclopaedia of Fiqh. The work is still going on. The Encyclopaedia contains a large num- ber of entries about subjects relevant to Islamic economics. The Institute of Islamic Banking and Insmce , London, in addition to publishing the Encyclopaedia of Islamic Banking and Insurance, has recently brought out the Encyclopaedia on Shari‘ah Rulings on Islamic Banking and Finance (1998). The Urdu Encyclopaedia of Islam published by Punjab University, Lahore, contains several entries on subjects relating to Islamic economics. The Turkish Encyclopaedia of Zslam published in Istanbul also includes entries relating to Islamic economics. Khan: Islamic Economics: The State of the Art 93 Accounting and auditing standards On a more technical side, the Islamic financial institutions have set up a board for developing accounting and auditing standads relating to Islamic banks. The board has created the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Bahrain. This organization con- sists of highly skilled people within the profession who have started issu- ing accounting standards relating to Islamic banks and financial institu- tions. One volume delineating these standards came out in 1994. In 1997, it was revised and expanded to include several new topics. The Institute of Islamic Banking and Insurance, London, has also issued a book on account- ing of Islamic banks. These efforts reveal a gmwing interest among acade- micians and practitioners in subjects relating to Islamic economics. P rofessiona I body There also exists a professional body of Muslim economists under the name of International Association of Islamic Economics. The Association, though not very active, publishes a professional journal besides organizing occasional conferences and seminars. Conferences and seminars Every year scores of conferences, seminars, and symposia are held around the world which are either exclusively devoted to Islamic econom- ic themes or are related to issues in Islamic economics. Inter net If we surf the Internet we find a large number of entries regarding Islamic economics, Islamic banking, and related subjects. Some individuals and associations - such as Islamic Development Bank, International Islamic University Malaysia, The Islamic Foundation of Leicester, and the International Institute of Islamic Banking and Insurance, London - have also made serious research work available on the Internet without charge. There are also announcements regarding various courses and training pro- grams in Islamic economics. Islamic banking and finance All this has come in the wake of the practical implementation of Islamic economics. The most signifcant development has been in the field of Islamic banks. At present, more than 100 Islamic banks, managing funds worth $80 billion operate in thirty-three countries. This includes a number of specialized financial institutions like mudarabu companies, ijara com- panies, takafol companies, and unit trusts. The Islamic Development Bank, 94 The American Journal of Islamic Social Sciences 162 Jeddah operates as a leader in this field. Pakistan, Iran, and Sudan claim to have Islamized their entire financial system, although we have our reserva- tions about such claims. In Malaysia, under the patronage of its central bank, an Islamic capital market with a number of innovative financial instruments is emerging. The Islamic financial institutions have introduced a large number of new financial products. Though these developments have their weaker points, it shows a growing interest in the Islamic economic and financial system. It is also evidence of the growing influence of Islamic economics in actual life. Zakah systems Pakistan, Sudan, Saudi Arabia, Kuwait, and Malaysia have introduced systems of zakah. They have brought in new legislature or modified an ear- lier one and created administrative structures to manage the zakah funds. Shortcomings After counting the achievements of Islamic economics, we now turn to its shortcomings. Narrow focus The focus of Islamic economics has been on a very narrow range of sub- jects. Most of the researchers and scholars have written on Islamic banking and finance or zakah to the neglect of other areas. For example, Javed Ahmad Khan’s bibliography (1995) has 1,621 entries, 936 of which pertain to interest and zakah. To an uninitiated reader, it gives the impression that Islamic economics is primarily concerned with interest-free banking and zakah. Even when these two subjects are the focus, the research is extreme- ly limited, leaving out fundamental questions. For example, there are very few studies that discuss, in a rigorous and conclusive manner, the negative effects of interest, although data on developed capitalist economies are available, and it should be possible to show that this institution is a source of injustice for humanity. Similarly, as we shall argue subsequently, the dis- cussions relating to zakah are based on outdated fiqh premises, which can- not withstand scrutiny. Islamic economics removed from real life Islamic economics is still an adjunct of the main economic courses based on conventional secular economics. First, the subjects covered in conven- tional economics are too wide to be ignored. Second, the growth in secular economics is related to real life issues, and it is difficult to remain oblivi- Khan. Islamic Economics: The State of the Art 95 ous of it. Herein lies the real weakness of Islamic economics. Islamic eco- nomics does not concern itself with real life. Except for the literature on Islamic banking and finance that has mushroomed in the last few years, the literature is only theory, not related to the real-lie situation in the society. An extreme example of this is that Muslim economists have not focused on Muslim societies, claiming that these societies are secular and not Islamic. The fact is that Muslim societies, however removed they may be from the Islamic ideal, still retain some Islamic values. People still lead life accord- ing to Islam, if not ideally, at least to some extent. Islamic economics could study the behavior of the people in these societies and then analyze the extent to which that behavior was influenced by Islamic values; it could also study how this behavior could be transformed into Islamic norms. Waiting for the ideal Islamic society to manifest is like waiting for dooms- day. If Islamic economics makes the study of existing Muslim societies its subject, it will enrich itself considembly, and its relevance to real life will increase tremendously. Confusion about the methodoiogy There still exists some confusion about the methodology of Islamic eco- nomics. First, some economists who were trained in the West have become fascinated with Islamic economics. They think that Islamic economics is secular economics with some verses of the Qur'an or a few hadith sprinkled in. They neither a p p i a t e the reason why Islamic economics is being developed nor the way in which the worldview of Islam changes the researcher's outlook. Second, many researchers have not been able to fm up their response to conventional economics. Muslim economists are shy to enter into a dialogue with conventional economists. Another academic discipline needs to be developed because of the difference in worldviews. This difference is likely to affect theories, postulates, hypotheses, and laws of economics as developed in the West. Therefore, the Muslim economists should be engaged, in most cases, in examining the work published in con- ventional economics, pointing out the similarities and differences between the two disciplines. They should go theory by theory, postulate by postu- late, hypothesis by hypothesis, and institution by institution, discussing the position of Islamic economics on each one of them. It means an appropri- ate research approach will yield a critique of Western economics backed up by a large body of literature. One m o n that Islamic economics has not moved in this direction could be that Muslim economists, who are them- selves trained in conventional economics, do not find themselves equal to % The American Journal of Islamic Social Sciences 162 the challenge. It requires a very deep understanding of the two worldviews and years of patient thinking to undertake such a venture. Obviously, most Muslim economists have not been trained for this type of innovative work. Talking to one another Muslim economists are talking to one another. The jargon, the style, the level of argument being used presumes a Muslim audience. Of come, Muslims are the first audience of this discipline. But Islamic economics should be developed as a discipline for all human beings. Muslim econo- mists should address humanity at large. If they adopt this approach, the agenda for research, the level of argument, the terminology, and the style of discussion will undergo a change. At present, most of the writings on Islamic economics do not make much sense to the ordinary educated per- son. It does not mean that Islamic economics should not use technical terms or should live with the secular economics terminology; rather, it means the subjects of research should be more general in nature. The argument pre- sumes faith in Islamic values and belief in Islam. It makes the frame of dis- cussion for Muslims only. If we look at the style of the Qur'an, it address- es humanity at large, not only Muslims. This approach would make Islamic economics more comprehensible and interesting for ordinary educated Muslims as well as non-Muslims. Absence of consensus on basics Islamic economics has not developed a core of basic principles. Although most contributors have written on the basic principles, they have done so without going into the details of real-life application. Some examples will illushate this point. (a) Alternatives to interest There seems to be a consensus that the alternative to interest-based financing is profit-loss sharing or a variant thereof. But in practice, the Islamic banks and financial institutions do not find profit-loss sharing a realistic alternative. They fear the dishonesty of their clients or are appre- hensive of the monitoring cost. Moreover, bankers must have developed and diversified skills to play an active role in a profit-sharing proposition that protects the interest of the depositors. As a result, profit-loss sharing cannot become a going concern. Islamic banks adopted various techniques that brought them a fmed return; for an ordinary person, it is very similar to interest-based financing. Despite the rationalization, Islamic economists have been unable to convince the ordinary person that the alternatives Khan. Islamic Economics: The State of the Art 97 adopted by Islamic banks are Islamic in nature. The entire enterprise of Islamic banking has become a doubtful proposition, more devoted to liter- alist or legalistic solutions, satisfying theologians but not yielding any ben- efit to humanity. Muslim economists have not accepted this criticism. The situation is so unbearable that certain Islamic research institutes or centers have produced a great deal of literature on Islamic banking without listen- ing to the arguments of the other side. It seems the attitude is: We do not care what you say; we are sure of our own righteousness. This attitude needs reconsideration because it is one of the obstacles to persuading ordi- nary people about the veracity of the concepts of Islamic banking. In fact, the type of Islamization that took place in Pakistan, for example, has evoked more ridicule than praise. (b) Inflation and interest Another example is the question of inflation and interest. In those coun- tries where the rate of inflation is high, it is difficult to make people accept a zero rate of return on savings, because it is tantamount to accepting a lower real value over time. Despite the faith in the prohibition of r i h , peo- ple feel that those who save will get a bad deal at the hands of the Shari’ah in an inflationary economy. Islamic economists have not been able to find a solution to this problem. All suggestions about indexation have met with rejection, but no alternative has been offered. (c) Role of government Economists have given every shade of opinion on the role of government - from all-pervading to minimal - and have brought arguments in their support from the primary sources of Islamic law or history. An unwary reader of the literature remains unsure of the Islamic position. (d) The law of zakah The questions relating to rate, nisub, types of wealth, or income subject to zakah contain several ambiguities and differences of opinion. The dis- cussion is so involved that at the end of the day, one is not sure about Islam’s position. As a corollary to this is the Islamic position on taxation; opinions differ as to whether any tax other than zakah is acceptable. (e) Land tenancy The question of the land tenancy system remains as open as it has been throughout Islamic history. No innovative work has emerged that could set- tle the position of Islam on this vital question. 98 The American Journal of Islamic Social Sciences 162 (0 Justice and benevolence Muslim economists and Shari’ah scholars agree that the Islamic econom- ic system is based on the concepts of justice and benevolence (‘ad and ihsan). But the definition of justice is not agreed upon. The dimensions of justice and benevolence and how to achieve them are not clear. The entire literatwe on the subject is devoid of any effort to operationalize these basic concepts. As a result, these two concepts have become mere slogans. These are merely two examples; a comprehensive list of such issues could also be drawn. 1 n tellectua I freedom Islamic economic institutions and centers of research are hardly places of free intellectual activity. Governments or other influential people who finance them like to keep these organizations within the constraints of “defined freedom of thinking.” This approach definitely stifles innovative intellectual work, repulsing free-thinking minds. Moreover, the scholars of Islamic economics seem to be afraid of the grip of the clergy, from whom they fear severe opposition. They feel shy of suggesting innovative ideas, despite all the talk of ijtihad. Professional body Another example of a stillborn organization is the International Association of Islamic Economics. This body, which could have bloomed into a professional association for consolidating knowledge and soliciting consensus on various issues, has done little except host some seminars and irregularly publish a journal. It has not even been able to attIact a majority of Muslim economists, let alone invite non-Muslim economists to partici- pate in its activities. In Muslim countries, university faculties have not even heard of the association. The reasons for such i n e h should be explored. Suffice it to say that Muslim economists are losing a great opportunity and a potential forum. The Hope The above discussion should not depress Muslim economists. There are many developments taking place that augur well for the development of Islamic economics. Muslim economists should treat them as opportunities and make a contribution. We shall give a few examples. Khan: Islamic Economics: The State of the Art 99 Human resource development In recent years, there has been a growing concern in the world for human resource development. The annual publication of the UN’s Human Development Report and the changes occurring in the economic literalum and research agenda are welcome changes from the Islamic point of view. In fact, Islamic economics approaches the entire subject of economics from a human angle. Conventional economists were late to realize the impor- tance of human resource development; however, it is a positive develop- ment. Unbalanced development A lot of literature in economics is now addmsing the question of “unbal- anced development.” The conventional development theory is based on an unbalanced concern for material betterment to the neglect of the environ- ment and distribution of income and equity among the people. Now these concerns are being addressed. From the Islamic perspective, this is a desir- able change. Privatization The recent surge toward privatization, coupled with a regulatory mecha- nism to protect the public interest, is very much a concept that Islamic eco- nomics supports. Once again economic theory is recognizing something that Islamic economics upheld centuries ago in the form of a free market regulated by the institution of al-hisba. Foreign direct investment investment (FDI) over debt capital. For example: A growing trend in international capital movement favors foreign direct Inflow of FDI into developing countries have surged from $31 billion in 1990 to $80 billion in 1993, almost 60% of it going to Asia. The entire outflow of investment since 1990 has reduced the rich world’s capital stock by a mere 0.5% from what it would otherwise have been? This shows that the world has recognized the role of enterprise and real- ized the need for preferring it to debt capital. By itself, it is a welcome trend from the Islamic point of view. Venture capital There is a new trend in the developed countries toward venture capital. The financiers have started providing capital to new ventures with bright 100 The American Journal of Islamic Social Sciences 162 business propositions on the basis of equity rather than as a loan on inter- est. In its spirit, the concept is closer to the Islamic concept that favors enterprise mther than interest. In this regard, some data relating to the United States will be of interest. In the United States, in 1984, there were 600 venture capital firms with a total of 6 billion dollars invested ... According to the latest research, the secalled “angel money” represents the largest source of venture capital in the US. Business “angels” are those invisible individual investors who provide small amounts of equity capital to the startup and develop ment of companies. Accoding to Wetzel, there are about 250,000 business angels in the US, with a venture portfolio totaling at least 25 billion dollars. He further estimates that the portfolio will soon reach 100 billion dollars. Moreover, these investors provide each year, $10 to $20 billion to between 50,000 and loO,oOOfirm~.~ Workers as partners The Islamic view of workers as partners is now being applied by many progressive businesses. Several methods for involving workers in the management of firms have been devised. Two examples are: Employee Stock Ownership Plans (EsOPs) and membership of work- ers on the firm’s board of directors. The effectiveness of the ESOPs in the U.S. is indicated by the fact that in 1988, more than 10 million workers and 10 thousand companies were covered by them, figures that represent increases, over a ten-year period, of 260 percent and 150 percent respectively. Current research shows that these methods are highly beneficial for both f m s and employees. Productivity has increased, workers are happier at their workplace, and customer satis- faction has improved! Voluntary sector There is an upsurge of the voluntary sector in the world. The voluntary sector concept is embedded in the Islamic concept that human beings are both selfish as well as altruistic and that Islam promotes almism without ignoring self-interest. Gradually humanity is realizing the truth of this con- cept. In most developed countries, as well as in developing countries, vol- untary organbitions are coming up for philanthropic work. For example in Japan, by 1985, some 2 million voluntary welfm workers - housewives as well as r e W husbands - had registered with municipal centers. By 1995, their number had swollen to over 5 million. Today, some 64,OOO vol- Khan: Islamic Economics: The State of the Art 101 untary groups have been established across Japan. Even so, there are still proportionately only a tenth as many volunteers in Japan as in America. Public debt It is pertinent to note that the world has finally recognized that the public debt is a curse and that it is leading to misery, poverty, and exploitation of the poor countries at a massive scale. A flood of literature is coming out, pleading for some mechanism to redeem humanity from the tyranny of interest. The atmosphere for arguing the case of Islamic economics has never been as favorable as it is today. Corruption We can see a sudden uproar against corruption in the developing coun- tries and the role being played by the developed countries in promoting and protecting corruption. All over the world there is a strong realization that corruption, in all its forms, must come to an end. A few decades ago, cor- ruption was not an issue. But now a large number of pressure groups, appropriate legislation, and institutions are coming up all over the world to fight this menace. I wish Muslims had founded organizations like Transparency Intemational. This is a welcome opportunity for Islamic em- nomics to demonstrate its potential for humanity. Civil society Corruption cannot be fought by legislation or the creation of institutions only; there is a dire need for creating a “civil society.” In general, “civil society” means that people are mobilized to stand up and fight corruption at all levels. They are organized to blow the whistle, put up resistance against corrupt elements, and help the government in fighting it. If we think deeply about these ideas, they are nothing but the Islamic concept of enjoin- ing the proper and forbidding the improper behavior (urn bi ul-mar4 wu nuhi ‘an ul-mwrkar). Islamic economics has not employed this concept appropriately. It is time to do so. These are but a few examples; a more comprehensive list could be drawn of non-Muslim economic ideas and concepts that are drawing close to Islamic concepts. These ideas show that humanity is moving toward the ultimate truth revealed by the divine message that came through the prophets of Allah. Islamic economics cannot take credit for the trend that is moving the world toward its own ideas and concepts. Humanity has reached this point through much experimentation and rational thinking. But these concepts show that Islamic economics has a very favomble time. 102 The American Journal of Islamic Social Sciences 162 Humanity is already disposed favorably toward what Islamic economics is pleading for. It is necessary that the presentation of Islamic economics should be more persuasive, based on rational thinking, real-life data, and convincing arguments. The real challenge is in proper presentation and formulation of the concepts and postulates of Islamic economics. I do not think there would be much resistance from the world at large if we succeed in doing so. The Future Now we tun to the last question in this paper: What should be the strat- egy of Muslim economists, scholars, and institutions toward developing Islamic economics for the future? Intellectual resources The Ummah needs to develop its intellectual resources for the Islamization of knowledge. The Qur'an, Hadith, fiqh, and Islamic history should be examined so that material relevant to Islamic economics is clas- sified, annotated, explained, and published in stand-alone volumes. This rich heritage of the Ummah is still inaccessible to Westem-trained econo- mists and scholars. As a result, they rely on secondary sources. Innovative thinking is inversely proportional to the availability of original sources. Thus, if we want Western-trained scholars to contribute, we must make a concerted effort to make our primary sources accessible to them. This r e q u h s publishing anthologies of material sifted from the Hadith, fiqh, history, and social life along with proper indexing and research tools. These sources should also be made widely accessible over the Internet for greater access. Expansion in scope Islamic economics needs to widen the scope of its research. Two major breakthroughs are essentiak First, it should study the real conditions of Muslim societies and relate them to Islamic economics, even though these societies are far from the Islamic ideal. This will provide a rich agenda for future research and help Muslim economists contribute toward the trans- formation of these societies. Second, the Muslim economists need to grab the opportunity being offered to them by the overall intellectual environ- ment. As argued above, there are several currents and crosscurrents in eco- nomics that are quite near to the Islamic point of view. We need avail our- selves of this opportunity and examine these currents in detail. It should Khan: Islamic Economics: The State of the Art 103 then lead us to identify any fine differences between contemporary think- ing and the pristine Islamic approach. These developments will enrich Islamic economics and fertilize its ideas. Critique of ” s ec u I a r” eco n o m i c s Muslim economists must undertake the essential task of critically exam- ining the developments in “secular” economics. Their research agenda should include reviewing all secular economic issues and stating the Islamic economic position. It means we should take up all Western eco- nomic knowledge concept by concept, theory by theory, and institution by institution and show how Islamic economics differs or agrees with it. This will immediately cause Islamic economic knowledge to increase many times. Institutionalize consensus building Much of the criticism leveled at Islamic economics relating to its inabil- ity to create a consensus is valid. There has been no systematic effort to cre- ate institutions to establish the basic postulates. In “secular” sciences, pro- fessional bodies engage in this type of activity. Although Islamic econom- ics does have an International Association of Islamic Economics, its role is mostly decorative. It has long been dormant. It is time that the Ummah cre- ate dynamic institutions that can define a process for arriving at consensus. Let me add here that the classical concept of consensus, where everyone agrees, does not hold here. We have to accept the concept of majority rule, leaving the door open for dissenting opinions to flourish on their own. Islamic economics should be able to publish a set of basic postulates that have the support of the majority of the scholars. This requires a massive effort but is important for further development of the discipline. Opinion building and marketing Islamic economics also suffers from poor projection. Although it has a natural lobby of over a billion people who support it merely because it has the sanction of Islam, Muslim economists are unable to make their voices heard. Even in Muslim societies, the ordinary educated person is skeptical of its viability; educational institutions have not included its basic princi- ples in their programs; the policy-making bodies are unaware what prom- ise Islamic economics holds for them; and the bureaucrats often ridicule it. There is a need to propagate Islamic economic teachings. The universities should hold seminars, meetings, and conferences to increase awarenes~.~ 104 The American Journal of Islamic Social Sciences 162 Fight for the independence of thought Muslim economists should encourage independent thinking and allow difference of opinion. Islamic economics should not be afmid of dissenting opinion. The divine message has the strength to withstand all human criti- cism. The process of criticism is a sure mad to the development of knowl- edge. Muslim economists should fight for preserving the right of others to disagree, even though this right is exercised to criticize Islamic economics. In fact, Muslim economists should make available anthologies of literature criticizing Islamic economics. These books should be taught in university courses as well, and students should be encouraged to examine them inde- pendently. Human welfare In the f d analysis, Islamic economics should concentrate on the prob- lems of human welfare. No matter how grotesque our arguments and how persuasive our intellectual architecture, if we are unable to contribute toward the welfare of humanity, we will not be able to survive. We must widen our audience to include all of mankind. Our Prophet was sent to address the whole of humanity. Alas! We have (inadvertently) restricted His message to Muslims only. Let us change the focus once again. We must address human problems and humanity at large. Support will follow auto- matically. Notes 1. See Toward Zslamization of Disciplines (Herndon, V A The International Institute 2. Palgraves Dictionary of Money and Finance (London: Macmillan. 1992). 3. Venture Capital Journal, September 1986: 3. 4. J.W. Henry, “ESOPs with Productivity Payoffs,” Journal of Business Strategy, 5. One good effort made by the International Institute of Islamic Economics, Islamabad, was a training program for the senior officers of banks and financial institu- tions. The objective of the program was to inform the senior personnel in these institu- tions about Islamic economic teachings. Alas! Even this has been abandoned. Of Islamic Thought, 1989). 273-294. JUly-AUguSt 1989: 33.