ISLAMIC PERPECTIVE ON SUSTAINABLE DEVELOPMENT

During the last thirty years economic thinking has seen many fundamental changes under the banner of sustainable development debate. ‘Positive’ economics which avoided value judgments has come under severe attack. Many basic tenets of the neo-classical paradigm such as pure self-interest being the prime mover of economic behaviour, efficiency of free market in terms of resource allocation etc are also being challenged. Issues like ‘quality’ of development, social justice, protection of environment and concern for the welfare of future generations have modified the neo-classical theory significantly. This text explains that seen from an Islamic perspective, these are changes in the right direction. The Islamic economic paradigm has always considered values to be central to any economic decision-making. It emphasizes equity along with efficiency in the allocation of resources and distribution of income. In this sense, sustainable development philosophy is much closer to the Islamic economic philosophy than the neo-classical philosophy. Many of its policy prescriptions are also similar to those of the Islamic economic system; yet there are areas where the two streams of thought need to interact more closely. Such dialogue will lead to better understanding and mutual knowledge sharing, which will be to the advantage

AUTHOR: MUNAWAL IQBAL