Kaffah Economics

Abstracts Islamic Economics

1. A Comparison Of The Importance Of Leadership Concept And Attributes In Islamic Theology And Management Sciences by Naderehsadat Najafizadeh (Islamic Azad University of Arak)

Leadership is one of the most important subjects in management science and in Islamic theology. Since leadership is also on important aspect at human life, to shed some lights on different aspect of it, this article has been tried to look at leadership in two points of view, today’s management science and Islamic theology. In the first part , has been tried to explain the importance of such a study , in which it has been talked about leadership definition, concept, methods, difference between leadership and management, and leadership styles, with using the views of different management scientists and thinkers. Then in the second part all the subjects in the first one has been compared and contrasted with Islamic thinking based on “Holy Quran” and relevant Hadith from the prophet Mohammad (peace be upon him). In addition a major part is dedicated to the Islamic religious leader characteristics which are already low profiled and unknown. That’s while at the end, after studying the leadership characteristics from the Islamic point of view these characteristics are presented as a comprehensive & applicable pattern. Finally in concluding chapter some sentences related to management and leadership from the book of Nahj ul-Balagha, the orders of Ali Ibn Abitaleb , Amir Al momenin, are discussed as examples to show how one should be behave with his obedient & can be used to guide management scholars.

2. Islamic Economics and Endogenous Money Supply: Post-Keynesian Analyses by Yousuf N. Marvi (Connecticut College)

Much of the criticism of Islamic economics is based on theoretical disagreements with neo-classical economics. From the theoretical models of inflation to unemployment trade-off, to the concept of interest-rate, there are many fundamental differences between neo-classical and Islamic economics. As a result, many Islamic economist, fuqa’ha, and muftis have argued for a completely different approach to Islamic economics embracing new models and methodologies. Unfortunately, this regurgitation of critiques towards neo-classical economics has created a tunnel-vision for some Islamic economists and resulted in a total rejection of western-knowledge-based economics. Post-Keynesian economists are one of the heterodox groups of economists who have very divergent views on the nature of economics and how it interacts with human beings. It is heavily impacted by three concepts: the non-ergodic nature of the world, institutionalism and the Marxian critique on class. Post-Keynesians accept five roles of money: exchange value, store value, transaction, speculative, and finance demand value. On the other hand, in Islamic Economics, giving or taking interest in money matters is strictly forbidden, thus affecting and altering the aforementioned roles of money. The purpose of this paper shall be to highlight the compatibility of Post-Keynesian economic analyses with Islamic economics, especially, in the field of monetary economics. The emphasis will be on the theory of Endogenous Money Supply and its implications for Islamic economics, the challenges, and benefits it can create towards further development of Islamic economics, especially monetary economics.

3. Stock Price Forecasting in an Interest-Free Economy by Ahmed Hassan Mabrouk (International Islamic University Malaysia)

Stock price forecasting models are equally important for investor decisions in the western market as well as in the Islamic market. Both dividend discount and earning-based valuation models use interest rate as a fundamental measure to reflect the present value of future dividends and earnings respectively. In general terms, stock prices are forecasted based on the correlation between stock return and interest rate. However, in an Islamic, interest-free economy, no such correlation is available. This paper suggests that interest-free economy would realize the principle of market efficiency more efficiently and would render stock prices more related to economic realities. In other words, stock prices would capture the real growth component of the concerned stock, rather than the speculative and artificial ones. It is argued that such an economy provides more accurate indicators to investors as to where to direct their funds for potential growth at a rate higher than the market capitalization rate.
ICIE2009, Kuala Lumpur 28-29 April 2009

4. Measuring Economic Development Level of OIC Countries through Islamic Economic Development Index (I-EDI) by MB Hendrie Anto (Islamic University of Indonesia)

Islam has its own concept on economic development, so measurement of development level of Muslim countries would be more appropriate by using a specific Islamic economic development indicator. This paper is aim to (i) construct a new measurement of economic development under Islamic perspective, (ii) simulate this index to OIC countries and, (iii) compare this index with other indices such as Human Development Index (HDI), GDP/capita, etc. The proposed index, Islamic Economic Development Index [I-EDI] includes all dimensions within the framework of the Maqasid al-Shariah, which is basically concerned with the promotion of human well being through the preservation of self, wealth, posterity intellect and faith. The findings show that the whole rank composition between I-EDI and HDI is slightly difference. In one hand, a number of countries enjoy a better rank in I-EDI compared with HDI. In another hand, several countries suffer a marked deterioration of rank. The high score group in I-EDI is still dominated mostly by Middle East Countries and the bottom line is still dominated by African Countries. In general, the contribution of material welfare index (MWI) in the whole I-EDI is superior which indicate the importance of material in developing the whole welfare.