The “impossibility theorems” of Islamic economics

Abstract

PurposeThe purpose of this paper is to bring out with analytical argumentation and mathematical treatment the central problem of Islamic economics, finance, institutionalism and socio‐scientific thought as it is being practiced today and for some time now. The problem arises from the failure of contemporary Islamic intellection to formulate its methodology according to the cardinal principle, and the singularly central and minimal axiom of all its inferences. This is the precept of the oneness of God explained in terms of the epistemology of unity of divine knowledge and the unity of the consequential knowledge‐induced world‐system.Design/methodology/approachThe objective is achieved by mathematical theorems for pointing out the impossibility problem of Islamic economics and finance. The analytical alternative in the epistemological framework of unity of knowledge, or the functional law of oneness of God in its functional ontological functioning in economics and finance are formalized.FindingsA number of Impossibility Theorems of Islamic economics and finance are stated and solved. Alternative epistemological premise and its functional nature are presented in the light of unity of knowledge or what is known as the law of oneness of God and its application to the unified world‐system.Research limitations/implicationsThis is a theoretical paper based on analytical argumentation and mathematical formalism to bring out the theorems that state and resolve the problem of impossibility of attaining the goals of Islamic economics and finance under their present pursuit.Practical implicationsAlthough the paper is of a theoretical nature it has profound practical extensions. The principal ones are in the direction of developing the structure of Islamic economy and financing within a globally interactive, integrative and evolutionary system of practical interrelations. Such a structuring will embed the economy, finance, business and society in an organic model of unity of interrelations.Social implicationsThe paper presents a new social and ethical meaning to the present exogenous treatment of Islamic economics that proceeds on by an exogenous treatment of morality, ethics and their functioning in an unsustainable economic, finance, and social order.Originality/valueThis paper is emphatically original. It questions the entire premise and methodological orientation of the prevailing nature of Islamic economics and finance. The intellection and its application based on the absence of unity of knowledge as the divine mooring of Islamic intellection in everything has been distanced or treated as an exogenous still‐born axiom having no dynamics in the analytical and functional system otherwise.

Modeling Islamic Economics and Finance Research: A Bibliometric Analysis

“…Using the Islamization framework of Al-Attas (2014), any attempts that carry out the stage of isolation or elimination of foreign elements and key concepts from the body of existing knowledge, and infusing Islamic values and key concepts into it are considered as originative paper. According to Choudhury (2012), the originative process should be deductively carried out from the basic teaching of Islamic economy. He argued to totally reject the conventional neoclassicism and returning to an epistemological system premised on the Tawhidi worldview of unity of knowledge.…”

“…However, as a truly solid concept, basic research is needed that tries to formulate a more comprehensive and robust concept of Islamic economics and finance. According to Choudhury (2012), the originative process should be deductively carried out from the basic teaching of Islamic economy. He argued to totally reject the conventional neoclassicism and returning to an epistemological system premised on the Tawhidi worldview of unity of knowledge.…”

Contribution of mathematical models to Islamic economic theory: a survey

“…Furqani and Haneef (2012) shared the view that Islamic economics methodology would not start from scratch but use the relatively more advance development in conventional economics (theories and methodologies) and attempt to make them compatible with Islamic economics. Choudhury (1990Choudhury ( , 2012Choudhury ( , 2014aChoudhury ( , 2016a) presented his Tawhidic epistemology, which, although coherent, some scholars argued that it has few adherents among the mainstream Islamic economists (Farooq, 2013). The methodology of humanomics championed by Choudhury (1990), in his own words, is:…”

“…They argued that "rather than develop in isolation from Western literature, Islamic scholars would do well to exploit the wealth of supportive argument to be found in Western literature"; this according to them "would also encourage Islamic economic theory greater focus in the West upon the new Islamic paradigm as a topic for research." Naqvi (1981;1993) and Choudhury (1990;2012;2014b;2016b), for example, used many deductive methods of analysis for arriving at some of their conclusions. But, Choudhury (2012) attacked the mimicking of classical and neo-classical economics by Islamic economics and finance, declaring them contrary to the epistemic origin of Qur'anic thought.…”

“…Naqvi (1981;1993) and Choudhury (1990;2012;2014b;2016b), for example, used many deductive methods of analysis for arriving at some of their conclusions. But, Choudhury (2012) attacked the mimicking of classical and neo-classical economics by Islamic economics and finance, declaring them contrary to the epistemic origin of Qur'anic thought. He argued that Muslim worldview centered on a complete rejection of the conventional neoclassicism, and returning to an epistemological system premised on the Tawhidi worldview of unity of knowledge.…”