Crisis in Islamic Economics: Diagnosis and Prescriptions

Abstract

There is substantial evidence that the development of the discipline of Islamic Economics is currently in crisis. In this article, we argue that the main reason for this is that most Muslim economists have accepted too many of the ideas of Western economists uncritically. The methodological framework, and underlying assumptions are wrong, and in conflict with Islamic views. This conflict has not been recognized, and the attempt to combine contradictory bodies of knowledge has failed. We also present alternative foundations on which a genuine Islamic economic theory could be constructed.

Keywords: Islamization of Knowledge, Islamic Economics, Economic Methodology