What is the economic contribution of Islam

economy

Since the middle of the 20th century, both the western capitalist. Economic model as well as socialism ideas from an «islam. Economic order »developed based on the principles of Sharia law. The aim is to establish a “just order” in which the welfare of the individual is in accordance with the welfare of islam. Community is in the foreground and extreme social inequalities should be abolished. Essential prerequisite for such an Islam. Economic order is the renunciation of interest and the creation of one's own financial institutions, primarily banks. Private property, including in the means of production, and economic competition, however, are as in the capitalist. Economic system Part of such an economic order. In practice they are islam. Economic models not least because of the ever-expanding international econom. Interrelationships hardly feasible. The states of islam. World have very different economic structures. Economically strong countries such as Malaysia and the oil-rich countries on the Gulf contrast with those with extreme poverty such as Afghanistan, Bangladesh or Yemen. As a rule, their economies suffer from underdeveloped industrialization, suffer from extremely unbalanced trade balances, an inadequate training system that is not tailored to the needs of the labor market and a simultaneous brain drain. The oil-rich states of the Arabian Peninsula have made intensive efforts in recent years to reduce their economic dependence on oil as a raw material. Nevertheless, the drop in the price of oil on the world market has a negative effect on the state's efficiency and, in particular, welfare services and is consequently chronically dependent on Western know-how. The profound changes that European colonialism has brought to the national economies are among the causes of this misery. The rich oil states of the Arab. Peninsulas have a raw material that is highly coveted on the world market, but have so far not been able to build national economies that do not primarily rely on this resource. As another oil-rich country, Iran has a more developed industrial sector than the Arab states on the Gulf, but it suffers severely from the international sanctions imposed on it in 2006, which have now been gradually lifted since the beginning of 2016, as well as from an economic structure riddled with corruption. On the contrary, rentier economies have emerged here that are closely tied to the development of the oil price. Even countries that do not dispose of crude oil but send skilled workers to the oil states as guest workers have (in contrast to production states) created rentier economies.

Literature:
El Ashker, A./Wilson, R .: Islamic economics. A short history, 2006. - Schuss, H .: «Economy and Islam», in Brunner, R .: Islam. Unity and Diversity of a World Religion, 2016, 452--462.

Author:
Dr. Renate Dieterich, DAAD Bonn, Oriental Studies

Source: Elger, Ralf / Friederike Stolleis (eds.): Kleines Islam-Lexikon. History - everyday life - culture. Munich: 6th, updated and expanded edition 2018.