Logical Positivism and Islamic Economics

International Journal of Economics, Management and Accounting, Vol 21, No. 2, pp1-18. published by International Islamic University of Malaysia

24 Pages Posted: 2 Jan 2013 Last revised: 18 Apr 2015

See all articles by Asad Zaman

Asad Zaman

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE)

Date Written: December 30, 2013

Abstract

We provide a detailed discussion of current methodology of economics and its emergence from secular roots in Europe. The foundational principles of this methodology, which is based on logical positivism, are in conflict with Islam. We then sketch some alternative methodologies which would be more suitable for Islamic economics.

We first describe how logical positivism emerged as the dominant philosophy of science, and how it was adopted into the foundations of economics. We then show that the current economic methodology is based on logical positivism. This philosophy is anti-Islamic, and therefore cannot be used to construct Islamic Economics. There are two main points of opposition. Logical Positivism rejects the unseen, while Islam requires faith in the unseen. Logical Positivism rejects morality as unscientific, while morality is a central part of Islamic teachings. This means that a methodology for Islamic economics must be radically different from that currently in use in conventional economic theory. Some essential elements of an alternative methodology are sketched.

Suggested Citation

Zaman, Asad, Logical Positivism and Islamic Economics (December 30, 2013). International Journal of Economics, Management and Accounting, Vol 21, No. 2, pp1-18. published by International Islamic University of Malaysia. Available at SSRN: https://ssrn.com/abstract=2195043 or http://dx.doi.org/10.2139/ssrn.2195043

Asad Zaman (Contact Author)

Quaid-i-Azam University - Pakistan Institute of Development Economics (PIDE) ( email )

Quaid-i-Azam University Campus
P.O.Box 1091
Islamabad, Federal Capital 44000
Pakistan

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