Module ECON47315: Islamic Political Economy

Department: Economics and Finance

ECON47315: Islamic Political Economy

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• To define the scope and significance of Islamic Economics with special reference to the central problems of economic choice, whereupon the meeting points with, and departure points from, mainstream economics are critically appreciated;
• To enable students to locate the ethical character of Islamic economics within the context of the current debate on economic methodology, particularly the positive/normative characterisation of Islamic economics;
• To provide students with an advanced understanding of key concepts and theories and philosophical foundations of Islamic political economy and Islamic economic development;
• To enable students to critically evaluate the contributions of leading scholars to the fields of Islamic political economy and Islamic economics;
• To provide students with an advanced understanding of the principles and implications of Shari’ah law for economic and financial systems;
• To critically examine the systems and theories of governance and regulation applied to Islamic banking and financial intermediation.

Content

• Scope and definition of Islamic political economy – Rationale for Islamic economics; Foundational basis of Islamic economics; Methodology of Islamic economics; Locating Islamic economics as a system; Institutions of the Islamic economic system;
• Islamic Moral Economy – The moral dimension; The norms for ethical behaviour by market participants; The moral justification for rewards and issues of income distribution;
• The structure of an Islamic economy - the government sector: Government’s economic role; fiscal policy; monetary policy;
• The structure of an Islamic economy- Philanthropic Sector: Philanthropy as a strategic sector in an Islamic economy; the institution of Zakat; and institution of Awqaf;
• Developments in Islamic economic thought - Ibn Khaldun's moral theory of the business cycle; Just prices, market prices and the Hisba; Economic organization and property rights;
• Islam, capitalism and Marxism - The views of Muhammad Baqir Al-Sadr, Mawdudi, Umer Chapra and Nejatullah Siddiqi;
• Islam and economic development - Dissatisfaction with conventional measures of development; Objectives of development in an Islamic society; Rationale for an Islamic economic development paradigm; Conceptual definition and process of Islamic economic development; Islamic economic development strategy;
• Institutionalisation of the Islamic Economy; The role of Islamic Development Bank; The role of other regulatory bodies and frameworks; Historical and contemporary institutions of Islamic economy.
• Islamic Corporate Governance and Corporate Social Responsibility– Political economy of Islamic governance and regulations; Theories and models of Islamic corporate governance; Political economy of Islamic corporate social responsibility; theories and models of Islamic corporate social responsibility.

Learning Outcomes

• An advanced understanding of economic systems and the place of Islamic economics within a systemic understanding;
• An advanced knowledge of the nature and scope of Islamic economics and its relationship with conventional economics;
• An advanced knowledge of nature, framework and strategies of Islamic economic development and rationale for it;
• An advanced understanding of Islamic views on trade and commercial activity and the moral justification for rewards under the Shariah law;
• Advanced knowledge and understanding of the views of Islamic economists on capitalism and Marxism, notably those of Muhammad Baqir Al-Sadr, Umer Chapra and Nejatullah Siddiqi;
• An advanced understanding of the principles of Islamic economics in relation to corporate governance and regulation.

• The ability to identify Islamic economics as a unique system with its philosophical and institutional foundations;
• The ability to distinguish Islamic economic development targeting a just socio-economic order through the promotion of ethical values and the appropriate system;
• The ability to evaluate Islamic faith perspectives on economic organisation and behaviour;
• The ability to appreciate the differences between the ‘utopian’ Islamic moral economy and the contemporary Muslim economies and the practical nature of Islamic finance; and hence
• The intellectual capacity to judge the extent to which certain Muslim economies can be considered models of Islamic economies;
• The ability to critically reflect on whether the lack of development of many Muslim countries is explained by behavioural factors, moral theory and moral economy;
• The ability to identify and distinguish the Islamic corporate governance system with its institutions.
• Analysing economic behaviour in any given context including the Islamic framework;
• Developed perception and integrated approach to economic issues in a comparative manner;

• On completion of this module, students will have developed the following key skills:
• Developed self-awareness, openness and sensitivity to diversity in terms of people, religions, economics and business issues;
• Developed independent learning within a defined framework of study at an advanced level;
• Developed independent thought in analysing and critiquing existing scholarship on the subject area and in evaluating its contribution;
• Ability to engage in class discussion and impart complex information to others;
• Ability to work to a deadline and complete written work within word limits;
• Advanced essay-writing skills;
• The ability to seek out and use relevant data sources, including electronic and bibliographic sources.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• The modes of teaching are lectures, which allow the students to learn the identified topics and discuss them in a class environment; and four seminars, which will provide students with an opportunity to present teamwork. Lectures provide students with an opportunity to learn new concepts, principals, and philosophies, while seminars are appropriate for the students to further engage with this new paradigm through exchanging views and ideas.
• Assessment is through formative essay and discussion, as well as a summative essay on a specific topic. Essay writing is an appropriate method with the maximum freedom for the students to respond with what they have learnt, as summative assessment by written assignment will test students' knowledge and understanding of the subject matter, their critical judgement and problem-solving and critical skills.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

1000-word formative essay. Students will receive individual written feedback.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University