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1 – 10 of over 2000
Article
Publication date: 1 February 1994

Said Hallaq

This paper aims at examining the possibility of constructing an Arrow‐social welfare function (SWF) in an Islamic community, that is abide by the Islamic tradition (i.e…

Abstract

This paper aims at examining the possibility of constructing an Arrow‐social welfare function (SWF) in an Islamic community, that is abide by the Islamic tradition (i.e. the Shari'ah), where the domain of the individuals is defined in the context of Islamic framework. This domain is defined by the Shari'ah, where part of that domain is constrained, such that those actions that lie in the wajib (i.e. obligatory) or haram (i.e. prohibited), where the individual has no choice, must be thoroughly explored with respect to such a welfare function to consistency with the Shari'ah. Individual choice functions only within that segment of the domain that Islamic law leaves to the individual; the individual makes choices concerning actions in which they will not lose any praise or reward if they do or do not act one way or another. My concern in this regard will be the Mubah (i.e. permissible) range of the individual domain. In the process of examining the possibility of constructing an Arrow form (SWF) in an Islamic community, I have added a new Axiom to those suggested by Arrow (1951, pp.22–31). Kenneth J. Arrow, in his book Social Choice and Individuals Values (1951), has argued that five requirements of ‘fairness’ must characterize an acceptable social welfare function. He finds that these are inconsistent with each other. In fact, no welfare function exists that will satisfy all of those conditions simultaneously. As laid out by Arrow, these five conditions are, respectively: (1) universal domain; (2) positive association of individuals' values; (3) independence of irrelevant alternatives; (4) citizens' sovereignty; (5) nondictatorship. These conditions, characterized by Arrow as “seemingly innocuous” together rule out the possibility of deriving a complete and consistent (SWF) (Luce and Raiffa, 1957, p.328). The new axiom which I will refer to as Islamically imposed axiom such that, in the process of formulating an Arrow form social welfare function, it is important to be consistent with the Shari'ah. The Islamically imposed condition will thus guarantee the consistency with the Shari'ah in the process of formulating a social welfare function. This axiom implies that to maintain consistency the following must hold: When ti, (which refers to actions that individuals must do) is an element of the choice set (xi, ti), ti will always be chosen over xi (which refers to the feasible set of alternatives that individuals can choose from), and when tio is an element of the choice set (which refers to actions that individuals must not do), it will never be chosen. I came to the conclusion that when the choice set contains alternatives that the individual must do (wajib) or must not do (haram), the former will be chosen and the latter will never be chosen. Thus, for the general case, Arrow's negative results follow. If these elements are not in the choice set (i.e. all elements in the choice set belongs to Mubah activities), then Arrow's results follow in a straightforward fashion.

Details

Humanomics, vol. 10 no. 2
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 1 January 1993

Masudul Alam Choudhury

Discusses social choice formation in the Islamic institutionalframework. This involves the technical formalization of the institutionsof consultative decision making and…

Abstract

Discusses social choice formation in the Islamic institutional framework. This involves the technical formalization of the institutions of consultative decision making and knowledge formation in these institutions: processes which are respectively called the Shura and Ijtehad. Knowledge generated in the form of decision rules is transmitted to the socio‐economic order in accordance with the tenets of Shariah. Herein, knowledge‐function is shown to undergo an interactive and discursive form of revision, changes or affirmation. Shows that knowledge‐function interactions formulate the Shuratic process, an essential characteristic of which is treatment of ethics and morals relating to specific issues at hand in the midst of the polity‐market interactions. Examines mathematically several stability and equilibrium conditions of the social welfare function established on the basis of the Shuraticprocess. The problem of social consensus formation against social conflict resolution is taken up in the same interactive social choice model.

Details

International Journal of Social Economics, vol. 20 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 January 2021

Mehmet Asutay and Isa Yilmaz

This study aims to theoretically explore and examine the possibility of developing an Islamic social welfare function (ISWF) within the Islamic moral economy (IME) frame…

Abstract

Purpose

This study aims to theoretically explore and examine the possibility of developing an Islamic social welfare function (ISWF) within the Islamic moral economy (IME) frame by going beyond the traditional fiqhī approach. It focuses on issues of preference ordering and utility through the normative dimension of Islamic ontology, as expressed and articulated within the IME.

Design/methodology/approach

Being a theoretical paper, a conceptual and critical discursive approach is used in this paper.

Findings

To establish an ISWF, a narrow juristic approach remains inadequate; there is a need to integrate the substantive morality to complement the juristic approach to achieve the ihsani process as the ultimate individual objective, which makes an ISWF possible. As the scattered debate on the topic concentrates mainly on the juristic approach, the main contribution of this study is to present a model in which juristic and moralist positions endogenized and augmented to constitute ISWF.

Originality/value

As there is a limited amount of research available on the subject matter, this paper will be an important theoretical contribution. In addition, this study develops an IME approach rather than fiqh-based approach used in the available research, which makes it novel.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 1 November 1990

Masudul Alam Choudhury and Masudul Alam Choudhury

Pure economic theory ignores ethical values but in Islamic societythese are seen as essentially recreated entities of the social order.Islam presents its worldview not as…

Abstract

Pure economic theory ignores ethical values but in Islamic society these are seen as essentially recreated entities of the social order. Islam presents its worldview not as a pluralistic value but as one that calls for the organisation of social and economic order around its well‐defined precepts, principles and instruments. The relationships between these are explained both philosophically and logically. Islamic social choice formation using syllogistic deductionism is demonstrated.

Details

International Journal of Social Economics, vol. 17 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 January 1996

Muhammad Iqbal Anjum

Capitalism is fundamentally an economics of producers that has always served the cause of producers. Its special concern for economizing the production process in the…

Abstract

Capitalism is fundamentally an economics of producers that has always served the cause of producers. Its special concern for economizing the production process in the guise of economic efficiency went always in favor of producers at the cost of interests of workers and consumers thereby creating a strong sense of economic deprivation in the conscience of workers and low‐income consumers who generally constitute the majority of the population in almost all the developed countries including the United States of America. It is this growing sense of economic deprivation that can be easily observed, especially in the big cities of the United States of America, as a catalyst for Marxist reaction. The Marxist fruit of Capitalist international economics appeared in the form of cold war within the global economy between the rich and the poor countries. Keeping in view the historical dynamics of Marxist movement, twentieth century Capitalist economists have consciously started to counter the threat of Marxism by incorporating in economics the extensive analysis of issues such as social welfare function, interdependent utility functions, intertemporal utility functions, equity in distribution, unemployment insurance, economic development, labor unionism, full‐employment of labor, economic rents, consumer protectionism etc. in the form of labor economics, public sector economics and development economics. It was no doubt a Capitalists' cleverish attempt to redress the grievances, mainly resulting from market failures, of the economically depressed classes within the Capitalist system. So far problems of the depressed classes could not be solved and are not at all expected to be fully solved within the original Capitalistic framework due to its inherent exploitative tendencies.

Details

Humanomics, vol. 12 no. 1
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 1 February 1989

Masudul Alam Choudhury

A view of Islam as a comprehensive way of life for its adherents ispresented. The spiritual and ethical reconstruction of individuals,societies and the world order are…

Abstract

A view of Islam as a comprehensive way of life for its adherents is presented. The spiritual and ethical reconstruction of individuals, societies and the world order are given in a socio‐economic framework. The principles of Islam and brotherhood, with reference to the Quran, are explained in some detail.

Details

International Journal of Social Economics, vol. 16 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 January 1989

Volker Nienhaus

The aim of this paper is to show that there is need for revitalization of the normative branch of political economy. The first part of this paper will deal with some…

Abstract

The aim of this paper is to show that there is need for revitalization of the normative branch of political economy. The first part of this paper will deal with some methodological reservations against a participation of economists in a rational discussion of normative issues. The second and third parts will outline the approaches and problems of two unconventional schools of thought in present‐day economics which make attempts to strive for a reconciliation of positive and normative economics.

Details

Humanomics, vol. 5 no. 1
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 1 June 1986

Masudul Alam Choudhury and A.N.M. Azizur Rahman

Josef Alois Schumpeter indicated in his monumental work that economic science, if it is to be a science, must be bereft of all shades of value judgements. He defined…

Abstract

Josef Alois Schumpeter indicated in his monumental work that economic science, if it is to be a science, must be bereft of all shades of value judgements. He defined “scientific economics” to mean “the sum total of the historical, statistical and theoretical techniques, together with the results they produce”. The impingement of all shades of value judgements was to be considered outside the pale of economic theory, because, as Schumpeter claimed, such judgements leave economic analysis unaffected. Notwithstanding this claim, the statement could not be sustained in the body of Schumpeter's work.

Details

International Journal of Social Economics, vol. 13 no. 6
Type: Research Article
ISSN: 0306-8293

Article
Publication date: 23 August 2021

Akhtar Ali Saeed Mohammed and Fadillah Mansor

This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual…

Abstract

Purpose

This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual reports towards achieving their fundamental objectives of human-centred economic development and social justice.

Design/methodology/approach

Based on Islamic finance, Islamic economic principles and perception of Maqasid al-Shari’ah, this paper examines and assesses the current practices of Islamic financial institutions (IFIs) in Bahrain through content analysis of financial and annual reports of Islamic banks in Bahrain and interviews of Islamic banking experts.

Findings

The findings reveal that value-based banking (VBB) has not been translated fully into practice by the Islamic banks in Bahrain.

Research limitations/implications

The data analysis was restricted to Islamic banks in Bahrain.

Practical implications

This paper identifies the need for reporting standard development to improve the VBB practice in Bahrain in the future. Looking at the objectives of the IFIs, this paper introduces the concept of VBB in Bahrain, which includes ethical banking, responsible banking and social responsibility. The study adds value not only to the current Islamic finance literature but also helps many stakeholders, including prospective academics, who may conduct comparative studies in different jurisdictions throughout the world.

Originality/value

The specific contribution of this paper is the identification of the VBB practices and related disclosure in the Islamic banking industry in Bahrain. The study is useful to harmonise and standardise the practices of VBIB by the contemporary Islamic banks in Bahrain.

Details

International Journal of Ethics and Systems, vol. 37 no. 4
Type: Research Article
ISSN: 2514-9369

Keywords

Open Access
Article
Publication date: 21 September 2022

Murniati Mukhlisin, Nurizal Ismail and Reza Jamilah Fikri

This study aims to analyse whether theories and views of classical Islamic scholars are widely adopted as references in Islamic accounting and finance (IAF), Islamic

Abstract

Purpose

This study aims to analyse whether theories and views of classical Islamic scholars are widely adopted as references in Islamic accounting and finance (IAF), Islamic economics (IE) and Islamic business management (IBM) research studies as part of their contribution to solving current economic and financial problems.

Design/methodology/approach

The research adopts a qualitative meta-analysis methodology using NVivo 12 with selected data from 474 international journal articles published between 1981 and 2021. The study considers 172 IAF articles, 111 IE articles and 191 IBM articles.

Findings

The results of the study show that the use of theories and views of classical Islamic scholars is not widespread among the examined research papers. The findings show that 90% of researchers tend to acquire modern economics, management, psychological and sociological theories instead of classical theories. Both modern and classical theories have been discussed in the studied articles namely agency theory, stakeholders' theory, ḥisbah (accountability), maqāṣid al-Sharīʿah (objectives of Islamic law) and waʿd (unilateral promise). The gaps prevail not only in the taxonomy of terms but also in the choice of paradigm references. It is found that 66% of the 474 journal articles adopt a positivist paradigm, followed by interpretivism (19%), post-structuralism (9%) and critical orientation (6%).

Research limitations/implications

This paper considers only ABS ranking journal articles. Future research may consider other journal articles from different ranking groups such as Scopus or Thomson & Reuters.

Practical implications

The paper sheds light on how Islamic educational institutions can develop strategies for the Integration of Knowledge (IOK) in their curriculum.

Social implications

This paper helps to shape the Muslims' way of thinking within an Islamic worldview which will lead to an Islamic way of expressing knowledge, skill and behaviour.

Originality/value

This paper contributes to the model of IOK that has been deliberated among Islamic universities, especially those that develop IAF, IE and IBM studies.

Details

ISRA International Journal of Islamic Finance, vol. 14 no. 3
Type: Research Article
ISSN: 0128-1976

Keywords

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