Title: Islamic economics and inclusive development

Authors: Zamir Iqbal; Bushra Shafiq

Addresses: The World Bank, 1818-H Street, NW, Washington, D.C. 20433, USA ' Islamic Banking Department, State Bank of Pakistan, 5th Floor, I.I.Chundrigarh Road, Karachi, 74000, Pakistan

Abstract: In recent times the reorientation of sustainable economic development has led to increased calls for inclusive growth and 'shared prosperity'. Conventional economics is often criticised for its failure to address the increasing gap in income and wealth disparity, along with its myopic focus on GDP while ignoring the wellbeing and welfare of individuals and society at large, the instability of economic and financial systems, financial and social exclusion, and environment degradation. The objective of this paper is to improve understanding of Islamic economics and finance on economic development, social and economic justice, human welfare, and economic growth. This paper concludes with policy recommendations to implement principles of Islamic economics to achieve sustainable and inclusive development.

Keywords: inclusive growth; shared prosperity; risk sharing contracts; Islamic economics; Islamic finance; economic development; social justice; economic justice; human welfare; economic growth.

DOI: 10.1504/IJPEE.2015.075861

International Journal of Pluralism and Economics Education, 2015 Vol.6 No.4, pp.355 - 370

Received: 20 Feb 2015
Accepted: 24 Dec 2015
Published online: 09 Apr 2016 *

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