The practice of local economic development andMaqāṣid al-Sharī‘ah

Fahmi Ali Hudaefi and Neni Heryani

International Journal of Islamic and Middle Eastern Finance and Management, 2019, vol. 12, issue 5, 625-642

Abstract: Purpose - This paper aims to study thePesantren’s role in alleviating the poverty in rural region, and the discussion is connected to the theory of local economic development and Maqāṣid al-Sharī‘ah. Design/methodology/approach - This paper engages a case study and an interview to get insight into the subject matters. Findings - This study finds that the roles of an entrepreneur and a stimulator are evident from the sampledPesantrenin empowering the local economy and the underprivileged community. Further, inasmuch as the fundamental concept of local economic development is in line with Maqāṣid al-Sharī‘ah, the evidence from the sampledPesantrenis also representative of its role in actualising it. This study is relevant for academics, local government in Indonesia and other related stakeholders. Practical implications - This paper credits both theoretical and practical implications for academics and the government. Firstly, by discussing the concept of prosperity from the Western and Islamic perspective, this paper creates a notion that these theories are harmonisable. Secondly, by sampling aPesantrento draw how these two concepts are applied to advance a rural economy, this paper comes out with the hands-on advice for Indonesian government to legally engage with the existingPesantrens to perform its rural development programmes. Social implications - While aPesantren’s role in empowering a disadvantaged community is comprehensively investigated, an accurate evidence is documented which can best challenge its radicalism and terrorism issues. Originality/value - This is the first study to harmonise the theory of local economic development and Maqāṣid al-Sharī‘ah and presents the practical evidence from aPesantren.

Keywords: Local economic development; Indonesia; Disadvantaged or underprivileged; Islamic boarding school; Maqāṣid al-Sharī‘ah; Pesantren (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:imefmp:imefm-08-2018-0279

DOI: 10.1108/IMEFM-08-2018-0279

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