Salman Ahmed Shaikh's Blog, page 6

Limitations of Mainstream Economics

The mainstream economics we know now is an even more perverted version of Smith’s work. In an earlier book ‘The Theory of Moral Sentiments’, he argued that societal and moral sentiments are important to exercise self-control. He also believes that government should be necessary in supporting the moral framework such as providing education to the poor. This part of his work is generally ignored in mainstream economics framework while the idea of self-interest shines eminently.

Reforms in the Zakat System

Lack of awareness about Zakat rules is also an important barrier. A great majority of people are not aware of treatment of real estate, financial assets, receivables and debts. It is important to raise awareness and urgency about Zakat. It is a religious obligation and its effective mobilization and disbursement can improve social welfare of masses. Hence, it is critical to raise awareness using public broadcast media, awareness seminars, mosque sermons and other ways of engagement. A hotline and availability of scholar at district office can help the community in Zakat assessment as well.

Moral Reflections on Economics, Vol 5, Issue 3

March 2025 (Vol 5, Issue 3) issue of Moral Reflections on Economics features Article on Reforms in the Zakat System, Highlights of Global Risk Report 2025 by Muhammad Hammad, Limitations in Mainstream Economics by Mohammad Afif Naqib, Muhammad Faiq, Muhammad Luqman, Muhammad Afi and Mohamad Syahid, IEP Public Poll results on Effects of USA’s Reciprocal Tariffs on Asian Exports, Book review of Islamic Economics and Financial Crisis edited by Prof. Erhan Akkas, Research paper in focus on Blockchain Technology in Zakat Management in India by Arfan Ghouse and Ibrahim Mohammed, Reflections on Lessons from Fasting in Ramadan and regular sections of market news, economic and financial indicators and call for papers.

Islamic Financial Inclusion and Economic Growth in OIC Countries: Panel Quantile Regression Analysis

The authors argue that by expanding the network of Islamic banks and enhancing the technological infrastructure for financial access, policymakers can harness the transformative potential of Islamic finance to promote sustainable economic growth and development in the OIC countries. The authors urge policymakers to prioritize initiatives aimed at expanding the network of Islamic banks and enhancing technological infrastructure for financial access.

History of Islamic Economic Thought

Prof. Islahi argues that Muslim scholars made substantial contributions to economic thought, influencing both the development of Islamic economics and, indirectly, the foundations of modern Western economic theory. He challenges the notion that modern economics is solely a product of Western thought, highlighting the intellectual debt owed to earlier Muslim thinkers.

Highlights of Al-Baraka Forum

During the opening ceremony, H.E Mr. Yousef Hassan Khalawi, Secretary General, AlBaraka Forum for Islamic Economy highlighted that the world has now spent more than a full century talking about sustainability. The Islamic world has 22 countries classified as least developed countries. We should focus on our nations and focus on our beliefs, as today we are trying to introduce Sukuk as one of our major initiatives created by Muslim economists, scientists, and experts.

Islamic Finance and Inclusive Economic Growth

In a market following Islamic norms and values, the market forces will determine which Halal goods and services should be produced and offered at what price. Through private sector investment and production, resource markets and product markets will function to enable households to obtain purchasing power by providing rentable factors of production like labour services (Ijarat-ul-Ashkhas) or usufruct of a naturally existing or produced tangible asset (Ijarat-ul-A’yan) in the production process and earn compensation in terms of wage and rent, respectively.

Moral Reflections on Economics, Vol 5, Issue 2

February 2025 (Vol 5, Issue 2) issue of Moral Reflections on Economics features article on Islamic Finance and Inclusive Growth, Highlights of AlBaraka Forum by Muhammad Hammad, IEP Public Poll results on Effects of USA's Pullout from Climate Commitments, Book review of History of Islamic Economics Thought by Prof. Abdul Azim Islahi, Research paper in focus on Financial Inclusion and Growth in OIC Countries by Massinissa Ameziane, Reflections on Qur'anic Description of Nature, Regular sections of market news, economic and financial indicators and call for papers.

Reflections on Qur’an and Ethics

In extreme situations where a person’s survival is in question, Allah allows exceptions. One can use forbidden things with two conditions. The first is that there should be no desire and the second is that it should not exceed the limit. Then, it would not be morally wrong. Allah in Qur’an says:“He has only forbidden you (to eat) carrion, blood, swine, and what is slaughtered in the name of any other than Allah. But if someone is compelled by necessity—neither driven by desire nor exceeding immediate need—then surely Allah is All-Forgiving, Most Merciful.” (Surah Al-Nahl 16, verse 115).

The Value of Societal Values in Finance

The author urges that deep and rapid decarbonization must become a global priority because climate tipping points will likely be reached much sooner than previously expected as greenhouse gas emissions continue to rise. To safeguard humanity and its societal systems, it is not only important to consider the time it takes to achieve decarbonization, but to ensure that we avoid reaching the climate tipping points.