Islamic Economic System Outline

In the tradition of comparative economic analysis, the object of this thesis of to construct an ideal Islamic economic system, or the Islamic economic system as it ought to "be", and then proceed to demonstrate the experience of some Islamic practices, such as the economic Islamization of Iran, the changing oil system of the Persian Gulf countries, etc. I therefore seek to present and analyse the ideal and the real. The degree to which actually existing Islamic economic systems differ from or resemble the ideal becomes apparent after the study of part one ,which explains how "it should be" , and next, demonstrates how "it is".To present the ideal model and its theoretical economic implications , a number of problems were encountered and, I hope, surmounted. First, the identification of Islamic economic system is impossible without some familiarity with the Shariah or the legal basis on which it is based and from which it is deduced; hence the necessity of engaging the reader in an introductory understanding of the legal sources of Islam, as presented in Chapter 2. I feel that without this chapter it would have been impossible to understand the Islamic economic jargon. Furthermore ,readers would have been unable to grasp the reasons and the procedures by which different Islamic economic systems can be derived from a single legal source which is acceptable to all Muslims.Readers need to be exposed to the "belief system" that shapes and defines Islam's conception of the Ideal Man ,life ,and society. The Islamic economic system as an aspect of the Islamic system seeks to promote, develop and create these ideal categories. The intricate and irrefutable relation between the Islamic philosophy, is established through the examination of the Islamic Man in Chapter 3.In the process of constructing an ideal Islamic system in Chapter 4,I discovered that on the basis of different and even opposing, yet equally justifiable , Islamic interpretation it would be possible to construct 3 different Islamic economic systems. The detailed and intricate procedure of arriving at that conclusion would have been impossible without the groundwork laid out in the first two chapters .In Chapter 5, I developed what could be called the Islamic consumer's and the Islamic firms market behaviour . The clash between the prescriptive half with the rational half of the economic agents is the subject of how an Islamic market economy may function and the problems that it may encounter. In the following two chapters ,Chapter 6 and Chapter 7,I demonstrated the possible result of this unpredictable battle in micro and macro cases . The ensuing theoretical problems have even led a large number of Islamic economists to replace the Islamic Man with the Economic Man ,thereby undermining the whole raison d'etre of an Islamic economic system..My objective in Chapter 7 and Chapter 8 is to review the role of Islamic ideology in construction and the development of economic system in Iran and in production of oil., to demonstrate the deviation of the concrete economic forms from the ideal models constructed in the previous chapters. Iran claim to follow the Islamic path and are officially committed to the implementation of Islam. In my case studies, ideology in the form of Islam provides a framwork by the aid of which one can understand individual social action in relation to economics, social and political matters. Thus , Islamic ideology based on the Shariah, irrespective of how it is interpreted, constitutes the basis of economic and non-economic institutions of an Islam country. In Iran, just as in all Muslim countries, the dominant traditional ulema ,despite their differing levels of conservatism or pragmatism, believe that the political-economic issues and institutions must be deduced from the primary, secondary and tertiary sources. According to the Shariah, I demonstrate thateach Islamic economy will differ from another. In my studies of oil systems ,I found that each country emphasises some aspects of Islamic ordinances and...