Is there anything like "New Islamic Economics"? The answer is no. If we want to understand the (Old) Islamic Economics paradigm in two sentences here is a translation of what Imam al-Ghazali said over a thousand year ago: "The very objective of the Shariah is to promote the well-being of the people, which lies in safeguarding their faith ( din), their self (nafs), their intellect ('aql), their posterity (nasl), and their wealth (mal). Whatever ensures the safeguard of these five, serves public interest and is desirable and whatever hurts them is against public interest and its removal is desirable." We cannot have Islamic economics "Old" or "New" outside this paradigm.


The strong demand for the Islamic financial services shows that the public genuinely trusts the Shariah governance systems of Islamic financial institutions. Let us be confident that these systems are enough sensitive and effective that they will never tolerate Riba in practice. However, there could be a genuine discussion on how to ensure an effective Shariah and corporate governance system in Islamic financial institutions so that the above public policy statement of Imam Al-Ghazali can be effectively implemented.

Microfinance is "Exclusive" Not "Inclusive"! No matter who offers Microfinance, these services exclude millions of users of funds whose overriding concern is the avoidance of Riba. Unless Microfinance is made relevant for all by offering also Shariah complaint services, it cannot be genuinely inclusive. How to make microfinance inclusive is another worthwhile theme for discussion.

Tarikoulah Khan