Islam and Economy

Islamic economics in the world

Islamic economics in practice, or economic policies supported by self-identified Islamic groups, has varied throughout its long history. Traditional Islamic concepts having to do with economics included

* zakat - the "taxing of certain goods, such as harvest, with an eye to allocating these taxes to expenditures that are also explicitly defined, such as aid to the needy."

* Gharar - "the interdiction of chance ... that is, of the presence of any element of uncertainty, in a contract (which excludes not only insurance but also the lending of money without participation in the risks)"

These concepts, like others in Islamic law and jurisprudence, came from the "prescriptions, anecdotes, examples, and words of the Prophet, all gathered together and systematized by commentators according to an inductive, casuistic method." [1] Sometimes other sources such as al-urf, (the custom), al-aql (reason) or al-ijma (consensus of the jurists) were employed.[2] In addition, Islamic law has developed areas of law that correspond to secular laws of contracts and torts.

Contents * 1 Early Islamic economics * 1.1 Early reforms under Islam * 1.2 Social responsibility in commerce * 2 Legal institutions * 2.1 Hawala agency * 2.2 Waqf trust * 3 Classical Muslim commerce * 3.1 Age of discovery * 3.2 Agricultural Revolution * 3.3 Islamic capitalism * 3.4 Islamic socialism * 3.5 Industrial development * 3.6 Labour force * 3.7 Urbanization * 4 Classical Islamic economic thought * 4.1 Early Islamic economic thinkers * 4.2 Riba * 4.3 Ibn Khaldun * 5 Post-colonial era * 5.1 Contemporary economics * 5.1.1 Land reform * 6 See also * 7 References * 8 Further reading |

Early Islamic economics

Early reforms under Islam

Main article: Early reforms under Islam

Some argue[who?] early Islamic theory and practice formed a "coherent"...