Shariah Economy As a Governance Alternative Global Political Economy

Abstract

After the global financial crisis of the 2000s, the international political economy built on capitalism was put on trial because it was found to have flaws. The idea that capitalism is weak can also be seen in the Great Depression of the 1930s and the Monetary Crisis of the 1990s. A lot of experts are trying to come up with solutions to capitalism. Joseph Schumpeter, Daniel Bell, Irving Kristol, Gunnar Myrdal, Hla Mynt, and Mahbubul Haq all came to prominence in the 1940s. In the 1990s, Paul Ormerod, Joseph E. Stiglitz, and Bruce Greenwald criticized capitalism more and more for its flaws. They caused a wave of interest in finding and using a "new" economic system that has wide-ranging effects on justice, fairness, wealth, and meeting efficiency goals. If you look more closely, the new economics looks a lot like Islamic Economics, which is a political and economic strategy based on Islamic religious values. The goals of Islamic economics are: first, to worship Allah more than anything else; second, to keep the world and the afterlife in balance; third, to achieve the economic success that God wanted; and fourth, to avoid chaos and riots. So, this study tries to compare the problems with capitalism with the problems with Sharia. The new thing about this paper is that it tries to figure out which Islamic economic principles could be used to fix the present economic system. In general, there are four things to pay attention to: international trade, international banking, global markets, and the balance of structural power between countries.