1. ECONOMIC DEVELOPMENT IN ISLAMIC PERSPECTIVE REVISITED
AUSAF AHMAD
Presentation at
Pune College, Pune, India
March , 2012
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2. In the name of Allah the most Gracious The Most Merciful

3. This Presentation Includes -1:
An Introduction
Some Observations on Development and Islamic economics
Some observations on Islamic Strategy of Development
Islamic values and Development Values
Some Lessons from Hisry: Scientific basis, Increases in productivity and Role of institutions.
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4. This Presentation Includes -2:
Towards a Development Strategy in Muslim Countries:
Application of modern science
Investment in Human capital
Balance between Market and State
Some Observations on Islamic institutions:
Islamic financial institutions
Zakah institutions
Waqf institutions
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5. This Presentation Includes -3:
Concluding Remarks.
A more comprehensive model of development
Development strategies of the Islamic world must reflect ‘ground realities’.
Instead of speaking of high ideals, Muslim countries may assign a developmental role to existing institution.
Developmental role may particularly be assigned to existing institutions of Zakah, Awqaf and Mosques
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6. INTRODUCTION-1
More than 25years ago, a prominent Islamic thinker spoke of a challenge before the Islamic Ummah. This is the Challenge of Development.
The Challenge remains as strong now as it was then.
The political economy of International Economic system has drastically changed during this period.
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7. . INTRODUCTION- 2 [Contd]
The map has been redrawn.
The demise of the Soviet Union.
The idea of ‘ catching up’ is no more as mismerizing as it was once. The industrialized countries are developing at a faster rate, and gap between the rich and poor nations is increasing
New forms of neo-colonialism: near monopoly situation in trade, technology and finance.
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8. INTRODUCTION -3 [contd.]
The ‘defeat’ of the Socialist system does not mean a victory for the capitalist system which has its own problems.
Skewed distribution of income and wealth.
Poverty, economic injustice, inequality of opportunities, crime, inflation, cycles are some of the diseases of capitalist system
Both systems were devoid of any moral content.
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9. Development and Islamic Economics
Economic development has been a neglected area in Islamic economics
The point of reference has been a seminal paper by Khurshid Ahmed that was presented at the First International Conference on Islamic economics held in Makkah in 1973.
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10. Development in Islamic Persprective-1
Khurshid Ahmed starts with the concept of development and reiterates its holistic nature.
He emphasizes that Islamic concept of development is based on four Islamic notions:
Tawheed: Oneness of God
Rububiyah: Divine Providence
Khilafah: Man is God Vice gerant on Earth
Tazkiyah: Purification and Growth
The main criterion on which Development as a human experience, must be evaluated is that what it does to lives of people.
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11. Islamic Strategies of Development
Khurshid Ahmed then identifies an Islamic strategey t to Development
Can there be “an Islamic strategy of development?”
Or there could be several “Islamic” Strategies of development.
Apparently different authors have suggested different strategies. Khurshid Ahmed, Chapra, Siddiqi, M. A. Mannan have given different strategies.
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12. Islamic Strategies of Development -1[Contnd.]
Most of suggested Strategies are nothing but “tall orders” requiring far reaching changes in the political and economic structures.
Till such time that these changes occur, these strategies constitute mere “academic exercises”.
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13. Development and Islamic Economics
Development has remained a neglected area for too long.
Lately researchers in the area have turned their attention to it.
Publication of scholarly articles and books, organization on seminars, conferences and symposia etc. are different manifestations of this interest.
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14. Islamic Values and Development Values
Rational approach, self interest, sanctity of private property, profit motive, negation of parochial approaches are identified as some of the development values.
Islam emphasizes a universal and human approach in all matters concerning human beings. It enjoins justice and fairness in human dealings. It encourages rational enquiry and freedom of action.
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15. Islamic Values and Development Values-2
It may be argued that there is no inherent conflict between the values by Islam and the values required for development.
The reasons for the apparent backwardness of Muslim societies must be sought some where else. For example in colonial rule and mismanagement of the economy.
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16. Lessons from History 1. Scientific Revolution
2. Increases in productivity per worker
3. Role of institutions and policies
Some Muslim countries have shown dynamism in the recent past establishing new development institutions. Tabung Haji in Malaysia and Grameen Bank in Bangladesh may be cited as examples.
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17. Towards an Islamic Strategy of Development in Muslim Countries
Desirability of Development
Ingredients of an Islamic strategy
Application of modern science and technology
Investment in Human capital
Balance between Market and State
Role of Islamic institutions
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18. Institutional Development in Muslim Countries
Islamic Financial Institutions
Zakah Institutions
Awqaf Institutions
Islamic Institutions and Resource mobilization
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19. CONCLUSION A more comprehensive concept of development
Muslim economists have traced the reasons of non performance of Muslim countries in adoption of western models and inappropriate strategies.
Lessons from history and ground realitries
Developmental role of existing Islamic institutions.
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20. THANK YOU FOR YOUR PATIENCE !
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