The Humanomic Structure of Islamic Economic Theory

Masudul Alam Choudhury
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Masudul Alam Choudhury: University College of Cape Breton

Chapter 1 in Islamic Economic Co-operation, 1989, pp 1-22 from Palgrave Macmillan

Abstract: Abstract The development of humanistic political economy has long been steeped in the controversies surrounding normative and positive economics. Positive economics came to be identified with mainstream economics. The wedge between the two schools is seen to be considerable in the works of Lionel Robbins and Milton Friedman.1 Both have argued in favour of economic science being independent of value judgements and ethical values. Friedman emphasised the goal of mainstream economics as being the logistics for greater precision in economic predictions based on the view of the world as it ‘is’, not as it ‘ought’ to be. Robbins on the other hand is the great exponent of the concept of economic rationality as the foundation of positive economics. The idea of economic rationality is well-known to centre around the properties of complete ordering and transitivity of individual or social states.2 In turn this requires that the following conditions be attained: (a) perfect information of the economic universe and full determination of the degree of risk and uncertainty behind economic events; (b) exogenous treatment of ethical considerations in the economic system. Exogeneity here means that economic philosophy under the positive school is by and large independent of value judgements, which are assumed to form outside it and are incapable of affecting the ethical parameters of the social order.

Keywords: Policy Instrument; Optimal Trajectory; Policy Variable; Social Good; Islamic Bank (search for similar items in EconPapers)
Date: 1989
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DOI: 10.1007/978-1-349-09902-3_1

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