An Economic IslamicityIndex (EI²)

Abstract

Given the post-9/11 climate of global uncertainty, suspicion, hostility, and fear, interest in the relationship between religion and economics, politics, and social behavior has been rekindled. In particular, there has been considerable attention afforded to the impact of religion on economic, social, and political development and vice versa. However, before the impact of religion on economic performance or the impact of economic performance on religion can be examined, one should first ascertain the religiosity of a country. In this case, "how Islamic are Islamic countries?" or "what is their degree of 'Islamicity?"' In this paper, we assess, on a very preliminary basis, the adherence of Islamic countries to Islamic economic teachings and develop an Economic IslamicityIndex (EI 2 ) to assess the extent that self-declared Islamic countries adhere to Islamic doctrines and teachings. We do this by measuring 208 countries' adherence to Islamic Economic principles using as proxies 113 measurable variables.

The composite risk‐sharing finance index: Implications for Islamic finance

“…The multidimensional composite risk‐sharing friendliness index (RSFI) encompasses different aspects of the concept of risk‐sharing. Inspired from the earlier works on forming composite indexes to gauge the level of risk‐sharing, this study attempts to construct the index on the basis of four dimensions, including (i) Institutional Scaffolding, (ii) Governance and Legal Environment, (iii) Financial Sector Development, and (iv) Multidimensional Inclusion (Alaabed, Iqbal, & Rostom, 2014; Askari, Iqbal, & Mirakhor, 2014; Rehman & Askari, 2010). Each of these dimensions stands for an important aspect of the prerequisites of a risk‐sharing financial system and their significance in the risk‐sharing is discussed in detail in Askari et al (2014).…”

The Implementation of Islamic Teaching in Multiculturalism Society: A Case Study at Pesantren Schools in Indonesia

“…Recently, the result of a study on how Islamic is Islamic countries conducted by Rehman and Askari (2010) has stirred up the Islam countries in the world especially in Indonesia. How could the result of this research have positioned Indonesia as one of the predominantly Muslim country ranks 140 th out of 208 countries?…”

Putting ‘Good Society’ Ahead of the Economy: Overcoming Neoliberalism's Growth Trap and its Costly Consequences

“…Also in recent times, Rehman and Askari () have developed what they call the ‘Economic Islamicity Index (EI2)’, a set of economic indicators that are based on the ‘Koranic values’ of equity, justice and fairness, and have demonstrated how subjectivities are possible to express in tangible terms. These examples – those of Piketty and of Rehman and Askari – indicate that issues of equity and social justice that are expected to form the basis of ‘good society’ are possible to define and assess tangibly in a number of ways, including those of the constructive values of religion.…”

“…For example, inculcation of Buddha's teaching that talks of values of ‘collective goodness’ and ‘compassion to nature’ possesses great potential to humanize attitudes and change lifestyle behaviour to conform to those envisaged by a ‘good society’ agenda. Similarly, the ‘Economic Islamicity Index (EI2)’ of Rehman and Askari () – a set of social and economic indicators that are based on the ‘Koranic’ values of inclusion, simplicity, equity and social justice ( Insaaf) etc. – is a value‐based milestone that is concrete and conducive to promoting values and organizing societies in a manner that is not too different from that stipulated by the ‘good society’ concept.…”