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35 A Note on Islamic Economics Oct. 1998 (pp. 201-211), in which the author argues that economics is not a value-free science but a moral science in that.

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Presentation on theme: "35 A Note on Islamic Economics Oct. 1998 (pp. 201-211), in which the author argues that economics is not a value-free science but a moral science in that."— Presentation transcript:

1 35 A Note on Islamic Economics Oct. 1998 (pp. 201-211), in which the author argues that economics is not a value-free science but a moral science in that it is a ‗practical science‘ in the Aristotelian sense. See also Stefano Zamagni, ―Economics and Philosophy: A Plea for An Extension of Economic Discourse. ‖ International Economic Relations Seminar Series: Occasional Paper No. 1 (The Johns Hopkins University Center, Bologna, 1996). Jon D. Wisman argues the point that through a process of legitimation, ―economics helps in the formation of society‘s beliefs since it not only informs as to what is but as to what ought to be as well. ‖ See his paper ―Legitimation, Ideology-Critique, and Economics ‖ in Social Research, 46, summer 1979 (pp. 291-320). He also suggests that ―positive economics preserved economic thought‘s abdication of responsibility for addressing the practical problem of providing enlightenment as to the good and just economic order ‖ (p. 315-316). William K. Tabb, in Reconstructing Political Economy: The Great Divide in Economic Thought, published by Routledge, London, 1999, attempts to reinterpret the thoughts of economists over the last two centuries in light of major changes that have occurred. This book is a good coverage of history and methodology of economics. Tabb suggests ―there are now attempts to restore the holistic quality of economics or political economy as a social science ‖ (p. 3). Also, he echoes Professor Ali Khan that economics had its origin in moral philosophy, but it has little to offer in terms of ―guidance to those for whom decency, generosity of spirit, and an inclusive sense of community are valued. ‖ On the ongoing process of broadening economics, see Charles F. Manski, ―Economic analysis of social interactions ‖ in the Journal of Economic Perspective, Vol. 14, No. 3, Summer 2000 (pp. 115-136), in which two views of economics are offered, the ―narrower view has been that economics is primarily the study of markets, a circumscribed class of institutions in which persons interact through an anonymous process of price formation. The broader view has been that economics is defined fundamentally by its concern with the allocation of resources and by its emphasis on the idea that people respond to incentives. In this view, economists may properly study how incentives shape all social interactions that affect the allocation of resources... throughout much of the twentieth century, mainstream economics traded breadth for rigor.... the narrowing of economics ended by the 1970s. Since then the new phase has been underway, in which the discipline seeks to broaden its scope while maintaining the rigor that has become emblematic of economic analysis ‖ (p.115). He then proceeds to show the major developments in this ‗broadening‘ process. See also Professor Kazem Sadr: ―Understanding the Organic and Interactive Relationships between Economics and Islamic Economic School, ‖ Discourse, Vol. 4, Nos. 3-4, winter–spring 2003 (pp. 67–110) who, along the line of Shaheed Al-Sadr, distinguishes between the ‗science‘ and ‗school‘ of Islamic economics. He sees no contradiction between the science of economics and ‗school‘ of Islamic economics. Rather, he posits a mutually beneficial and complementary relationship between the two. Professor Sadr‘s view comes close to considering economics as a ‗method‘ rather than a doctrine, ‗an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusion‘ which is the view of Keynes in the introduction to the Cambridge Economics Handbook 1941.


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