IEF 404 - Islamic Economic System

Introductıon:

In this class titled: “The Islamic Economic System,” we will talk about economic systems that exit or existed and explain those systems in light of the Islamic economic system that is rising to the surface in light of more failures associated to other economic systems.

There is a confused understanding of what identifies the Islamic economic system. What identifies a system is its institutions not the generalities of its objectives or the generalities of the faith.[1]

All systems are based on justice and efficiency in the eyes of those who created them, that is the case in the presented theories in different economic systems despite the unjust applications of those systems. For example, Capitalism concentrates on profit and neglects the rights and wellbeing of the people, let alone ethics, freedom, and mercy.

This class will shed light on the main constituents of Islamic economics. To understand those institutions, students must also have a good idea about the fundamentals of Islamic economics, how Islamic economics is practiced today and the level of its compliance with Islamic teachings.   

Week 1: 

• Introduction to class
• General Introduction to the Islamic Economic System

Week 2: 

• Main economic theories (Socialism, Capitalism, Islamic economics!)
• Chapter 1 “Economic Systems”

Week 3: 

• Chapter 2 “Foundation of Islamic Economic Paradigm”
  • Rule-compliance / Justice

Week 4: 

• Institutional Outline
• Chapter 3 “Institutional Framework and Key Institutions”

Week 5: 

• Chapter 4 “The Islamic Economic System”
• Social and economic justice
• Risk sharing economic system

Week 6: 

• Chapter 5 “Key Microeconomic Concepts”
• The Islamic view on microeconomic concepts. The differences and similarities, what is accepted and what is rejected, what needs to be re-thought!

Week 7: 

• Continue Chapter 5
• Mid-term exam review

Week 8: 

• Midterm  …………………………..

Week 9: 

• Chapter 6 “Key Macroeconomic concepts”
• The Islamic view on macroeconomic concepts. The differences and similarities, what is accepted and what is rejected, what needs to be re-thought!

Week 10: 

• Chapter 8 “The Financial System”
• Notion of risk sharing
• Takaful (Islamic Insurance)

Week 11: 

• Role of the state
• Chapter 9 “Role of the State and Public Policy”

Week 12: 

• Chapter 12 “Economic Development and Growth”
• Foundation and Framework of Development and Growth in Islam
• Islamic Perspective on Financial Inclusion

Week 13: 

• Chapter 13 “Economic and Social Welfare”
• The concept of safety net and welfare

Week 14: 

• Chapter 14 “Economic State of Affairs in OIC Countries”
• Dimensions of economic and social achievements in Muslim countries
• Revision for the final

Week 15: 

• Final exam