Islam and economic development: the problem of compatibility
This chapter has two aims. First, it shows that, at the level of pure theory, the ideal Muslim economy is remarkably similar to a capitalist economy, for both are based on private property and market competition in which production and exchange are profit driven. Unfortunately, however, Islamic economic theory failed to progress beyond the ideal of perfect competition. This failure is primarily attributable to Islamic scholarship which rejected the pioneering contributions of such early economic thinkers as Ibn Khaldun. Islamic economics, as a guide to Islamic public policy, never advanced beyond infancy.