ABSTRACT
This chapter presents the methodology of Islamic economics through a maqasid-based socioeconomic framework involving vision, goals and resources in contrast with an alternative methodology that relies on “vision” alone in the bid to strike clear paradigm shift from the standard practice. Islamic economics is thus shown to branch off from this framework with the objective to examine economic forces at work, formulate testable hypotheses and see how far the prevalent socioeconomic order conforms or deviates from the desired goals. The need for testable theoretical models is therefore well in place to show how the scarce resources should be allocated to correct undesired discrepancies. Given the key role of “vision” as the source of inspiration for developing morally motivated policies in the pursuit of Shar‘iah socioeconomic goals, the chapter develops the 3-stage development model to guide dynamic socioeconomic change. In the final analysis, the maqasid-based methodology perceives economic theory as means to offer useful guidance for the attainment of the moral ends underlying Shar‘iah economic rulings rather than taking economic theory as a moral end in its own right.
