Islamic banking is based on moral foundations that make it distinct from conventional banking. Some argue that because of its foundation in Islam, Islamic banking may represent a more morally appealing alternative. Yet, evidence shows that this is not the case. Indeed, the current practice of Islamic banking has not been able to achieve its goals which are based on Islam's moral values: to enhance justice, equitability, and social well-being. This essay examines the extent to which Islamic banking is ethical (...) and concludes that the practice of the industry does not seem to be de facto ethical from the Islamic perspective of ethical values. It only consists in trading the same instruments of conventional banks without genuinely enforcing Islam's ethical vision. The practice of Islamic banking misrepresents Islam and does not contribute to solving social problems. The interaction between maqasid al-shari᾽a and qiyās provides a supplementary tool for interpreting the failure of the prior in terms of the practical misuse of the latter by Islamic banks. This essay provides an interpretive approach to the current debate about why Islamic banking has failed and suggests ways to move cautiously in the future. (shrink)

In The Ethico-Religious Concepts in the Qur'án Toshihiko Izutsu analyses the guiding spirit of the Islamic moral code, the basic ethical relationship of man to God. Izutsu asserts that, according to the Qur'anic conception, God is of an ethical nature and acts upon man in an ethical way. The resulting implications for man are enormous, requiring devotion not merely to God but to living one's life ethically.Izutsu shows that for the Qur'an our ethical response to God's actions is religion itself; (...) it is at the same time both ethics and religion. Izutsu explores these themes by employing ethnolinguistics, a theory of the interrelations between linguistic cultural patterns, to analyse the semantic structure of major concepts in the Quar'an. Islam, which arose in the seventh century, represents one of the most sweeping religious reforms ever to appear in the East.The Quar'an shows in vividly concrete terms how time-honoured tribal norms came into bloody conflict with new ideals of life, and finally yielded to the rising power. This transitional epoch is of particular importance in the whole of Islamic thought, a time during which the key terms of a traditionally fixed system of values were transformed in their connotative structure, modified in their combinations, and finally integrated into an entirely different system.Originally published in 1959 as The Structure of the Ethical Terms in the Koran and revised under the current title in 1966 this 2002 reprint makes this classic work of Islamic studies once again available. (shrink)

Patricia Crone's _God's Rule_ is a fundamental reconstruction and analysis of Islamic political thought focusing on its intellectual development during the six centuries from the rise of Islam to the Mongol invasions. Based on a wide variety of primary sources--including some not previously considered from the point of view of political thought--this is the first book to examine the medieval Muslim answers to questions crucial to any Western understanding of Middle Eastern politics today, such as why states are necessary, what (...) functions they are meant to fulfill, and whether or why they must be based on religious law. The character of Muslim political thought differs fundamentally from its counterpart in the West. The Christian West started with the conviction that truth (both cognitive and moral) and political power belonged to separate spheres. Ultimately, both power and truth originated with God, but they had distinct historical trajectories and regulated different aspects of life. The Muslims started with the opposite conviction: truth and power appeared at the same time in history and regulated the same aspects of life. In medieval Europe, the disagreement over the relationship between religious authority and political power took the form of a protracted controversy regarding the roles of church and state. In the medieval Middle East, religious authority and political power were embedded in a single, divinely sanctioned Islamic community--a congregation and state made one. The disagreement, therefore, took the form of a protracted controversy over the nature and function of the leadership of Islam itself. Crone makes Islamic political thought accessible by relating it to the contexts in which it was formulated, analyzing it in terms familiar to today's reader, and, where possible, comparing it with medieval European and modern political thought. By examining the ideological point of departure for medieval Islamic political thought, Crone provides an invaluable foundation for a better understanding of contemporary Middle Eastern politics and current world events. (shrink)