Shi‘ism and Islamic Economics: Sadr and Bani Sadr
Referring to the writings of Baqir al-Sadr and Bani Sadr, makes a highly incisive commentary on the contemporary exposition of Islamic economics. The theoretical framework of Islamic economics does not exist. The method is contradictory. It lacks an integrated network ofproposals for economic action. It combines traditional Islamic doctrines and practices with elements of modern radical ideologies. It permits private property in trade and agriculture, and very little in its arguments would exclude it from other spheres of economic activity. It identifies riba with interest but this is debatable in theory and may be inconsistent with other Islamic principles in practice. It emphasises limits to cash holdings, meaning thereby that personal wealth above certain limits must be held in non-monetary forms such as property and consumption goods, and overlooking the fact that a legal limit to cash holdings would be highly inflationary if economic resources are fully employed, or if there exist supply shortages or technological constraints. The practice of Islamic economics by the post-revolutionary regime since 1979 is far from satisfactory. A highly critical paper with rare analtyical insights. For economists. Based on primary and secondary sources. Documented.
