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To establish these definitions we revisit expression (5.3) of Chapter 5. Since this expression describes a phenomenological model of knowledge transmission from its epistemic origin to the world-system by learning processes, therefore, we first summarize the arguments on what can be the nature of (Ω,S) in this expression. Our arguments were centered on the contrasting nature of moral absolutism and the ethical meaning so derived. This axiomatic core of the arguments stood up against moral relativism of both the rationalist and religious types on which is premised a different meaning of ethics.

The economic, financial, social, and scientific reasoning in Occidentalism is a profound example of the reasoning dichotomy caused by the problem of heteronomy. The duality consequences of economic rationality and rationalism between the spiritual and material domains remain entrenched in all the sciences (Dampier, 1961).

We commence answering the above questions first with an extension of the definition of Economy given by Gerard Debreu (1959). Choudhury (1999a) has extended Debreu's formulation by introducing the learning parameter of unity of knowledge. The ethically induced economy in the light of conscious oneness is a complex relational universe of its micro-parts. These comprise prices, quantities, incomes, resources, preferences and production menus, and technological choices. These are studied in relation to multimarkets and their agents represented by vector-variables of each of the above-mentioned categories. All of these categories of the representing variables are mutually interactive according to the interactive, integrative, and evolutionary (IIE)-learning processes (explained earlier) by the medium of knowledge-flows that emanate from the episteme of conscious oneness.¹

Reliance on statistical data on trade and development for Islamic countries cannot forecast the state of the future state of reconstruction of the Muslim World in this field. The limitation here is due to the age‐old debility of the Muslim World to project any significant economic, social and institutional transformation in the light of her own communal interest and self‐reliance. Thus the past economic data on trade and development variables show no pattern of future change. Forecasting with these data simply projects the past state of the Muslim World into the future. For these reasons, a model of reconstruction and transformation of the Muslim World on Islamic grounds necessitates reliance on normative issues. Yet these are issues that are First theoretically modelled and then empirically investigated for viability according to survey data.

This chapter tries to find that how to reduce transaction cost in corporate governance by subjecting it institutionally to ethics and values of interactive and consensual decision making with transparency gained from participation between managers and shareholders/stakeholders and the community at large. This is an epistemological problem in Islamic approach to corporate governance. This chapter brings these out in technical language and methodology. An analytical epistemological and comparative study between mainstream and Islamic conceptions in corporate governance is used to develop the idea mentioned above. The analytical model used is of an ethico-economic general equilibrium type with learning variables. This chapter conveys an original idea that has not been taken up elsewhere. It reflects the systems approach to the study of behavior in corporate setting within the epistemology of systemic unity of knowledge.

This chapter presents the hetrodox theory of Islamic finance in regard to the theme of corporate governance in the light of the particular Islamic epistemological premise. A vast social implication of corporate governance is opened by its epistemological inquiry comprehending integrated decision making and systemic complementarities expending across society at large. Thereby, a socio-financial theory of corporate governance in the epistemological context is elaborated upon. This is a path-breaking chapter premised on its epistemological approach of unity of knowledge and learning systems as a distinct contribution to the theory of corporate governance in the field of ethical socio-financial perspective.

The Organising Committees of the workshop on Unity of Knowledge: Integrating the Muslim World Through Trade and Development sincerely thanks the sponsors of this workshop, the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran, Saudi Arabia and the Social Sciences and Humanities Research Council of Canada Grant received by Professor Masudul Alam Choudhury at the University College of Cape Breton, Sydney, Nova Scotia, Canada, for jointly launching this eminent scholarly event at KFUPM. This event is being organised by the Department of Finance and Economics at the College of Industrial Management in KFUPM.

The raw data are tabulated as given in Table 9.1.

The basis of the present financial crisis, which is bound to continue inflicting its venom because of structural problems of society, economy, finance, and institutions, is the insatiable preferences of households and investors that fuel excessiveness in the real estate market. Then there is the contagion that this kind of preference has on the economy and the foreboding uncertain market expectations everywhere. Finally, the excessiveness is allowed to survive and proceed on with unrelenting animal spirit by weak government polices, outmoded understanding of the economic and financial world-system, being unable to simulate the otherwise complex system by a spent-out methodology.

Setting the field of economics as the study of value in exchange, Blaug (1968a, 1968b, p. 6) wrote:The problem that gave rise to economics in the first place, the “mystery” that fascinated Adam Smith as much as it does a modern economist, is that of market exchange: there is a sense of order in the economic universe, and this order is not imposed from above but is somehow the outcome of the exchange transactions between individuals, each seeking to maximize his own gain. The history of economic thought, therefore, is nothing but the history of our efforts to understand the workings of an economy based on market exchange.