scholarly journals A Macroeconomic Model of an Interest-free System

1995 ◽  
Vol 34 (1) ◽  
pp. 55-68 ◽  
Author(s):  
Hamid Zangeneh
Keyword(s):  
Economic System ◽  
Model Building ◽  
Banking System ◽  
Rate Of Return ◽  
Economic Systems ◽  
Free System ◽  
Simplifying Assumptions ◽  
Islamic Economic ◽  
Classical Economic ◽  
The Impact

A number of economic models have been designed to evaluate and analyse the Islamic banking system. However, less attention has been paid to macro model-building in an Islamic framework even though most of the Keynesian, Classical, and Neo-classical economic systems are compatible with the tenets of Islamic economics. In this paper an interest-free economic system is formulated in terms of the familiar Neo-classical macroeconomics models. Even though the rules of conduct for Muslims in an Islamic economic system are different from those in the non-Islamic economic systems, it is shown that the Islamic economic system does exhibit properties that are consistent, reasonable, and familiar. For example, under some reasonable simplifying assumptions, the model shows that savings and investment do not necessarily have to fall because of the institution of an Islamic economic system, as some economists suggest. These depend on the rate of returu on mudarabah investment, just as they depend on the rate of return on investment (profits) in a credit-based economic system. These could be higher, lower, or remain the same relative to their levels in a credit-based economy under different conditions. The model also shows the impact of fiscal and monetary policies on the rate of inflation, the rate of return on mudarabah, and therefore on the investment demand. The model shows that, in general, an economic system based on Islamic principles is viable; it also provides unique solutions for income, employment, and prices.

scholarly journals COMPARISON OF ISLAMIC ECONOMY AND CONVENTIONAL ECONOMY TO PEOPLE'S INCOME GROWTH IN REDUCING POVERTY AND UNEMPLOYMENT

2020 ◽  
Vol 1 (2) ◽  
pp. 259-274
Author(s):  
Tarmizi Tarmizi
Keyword(s):  
Economic System ◽  
Economic Systems ◽  
Economic Activities ◽  
Capitalist System ◽  
The People ◽  
Socialist Economic ◽  
Islamic Economic ◽  
Islamic Faith ◽  
The Right ◽  
Socialist Economic System

Islamic economic system is built on the foundation of the Islamic faith, the faith in question is the right because it comes from Allah brought to mankind through the prophet Muhammad. The Islamic faith is a faith that satisfies reason, reassures the soul, and is in accordance with human nature. In an individual context, economic activity is based on the values of worship. The economic system known by society globally is the capitalist and socialist economic system. In the economic context, both systems have been able to increase the prosperity of the people in the country that uses both economic systems. The capitalist system is influenced by the zeal to make the most of its profits with limited resources. This capitalist venture is supported by the values of freedom to make ends meet. This freedom resulted in high competition among others in defense, while the socialist economic system had the goal of mutual prosperity. In conclusion, the Islamic economic system is a solution economic system for various problems that have arisen, while the conventional economic system is an economic system that is widely used by various countries in the world, including Indonesia. A conventional economy is an economic system that gives full freedom to everyone to carry out economic activities.

scholarly journals ANALISIS DAN EVALUASI IMPLEMENTASI PENGELOLAAN KEPEMILIKAN UMUM DAN NEGARA DI INDONESIA (PENDEKATAN MADZHAB HAMFARA)

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Siti Murtiyani ◽  
Hery Sasono ◽  
Dwi Condro Triono ◽  
Hanifah Zahra
Keyword(s):  
Economic System ◽  
State Ownership ◽  
Management Approach ◽  
Public Ownership ◽  
Unequal Distribution ◽  
The Public ◽  
Wealth Management ◽  
Theoretical Approaches ◽  
Islamic Economic ◽  
The Impact

This study aims to analyze and critically evaluate the implementation of the management of public ownership (Milkiyah 'ammah) and State ownership (Milkiyah Daulah) in Indonesia. This study descriptively describes the implementation of both ownerships that are currently practicing in Indonesia. Theoretical approaches used is the Islamic Economic System Madzhab Hamfara (Hadza Min fadzli Rabbi) who critically evaluate the implementation of the public wealth management and state wealth in Indonesia. This research used secondary data that was obtained from Madzhab Hamfara books, literature, journal and information relating to the Indonesian State assets management system. A comparative analysis was conducted to understand the difference between the public wealth management and state wealth management in Indonesia. Findings show that the management of both, public and state ownership are not in accordance to the ownership management approach of Madzhab Hamfara Islamic Economic System. The evidence suggests that both public and state ownership are not fully managed by the Government of Indonesia. The fact shows that public ownership in the form of water, fire and pastures are managed by individuals and institutions as well as foreign parties who have fund to privatize the public ownership. Consequently, it has the impact on unequal distribution of income that cause poverty in Indonesia. This research suggest that government should implement Islamic Economic System Madzhab Hamfara in managing public and state ownership in Indonesia. =========================================== Kajian ini bertujuan untuk menganalisis dan mengevaluasi secara kritis penerapan pengelolaan kepemilikan umum (Milkiyah 'Ammah) dan kepemilikan negara (Milkiyah Daulah) di Indonesia. Studi ini menjelaskan secara deskriptif tentang implementasi pengelolaan kedua kepemilikan tersebut yang sekarang dipraktikkan di Indonesia. Teori yang digunakan dalam penelitian ini adalah Sistem Ekonomi Islam Madzhab Hamfara (Hadza Min fadzli Rabbi) yang secara kritis mengevaluasi implementasi pengelolaan kepemilikan umum dan negara di Indonesia. Kajian ini menggunakan data sekunder yang berasal buku-buku madzhab Hamfara, literatur, artikel jurnal dan informasi lainnya yang terkait dengan pengelolaan aset di Indonesia. Analisis perbandingan juga dilakukan untuk memahami perbedaan pengelolaan kepemilikan umum dan kepemilikan negara. Hasil kajian menunjukkan bahwa pengelolaan kepemilikan, baik kepemilikan umum maupun negara di Indonesia, tidak dijalankan sesuai dengan sistem ekonomi Islam Madzhab Hamfara. Bukti-bukti menunjukkan bahwa pengelolaan kepemilikan publik dan negara tidak sepenuhnya dilakukan oleh negara. Fakta juga menunjukkan bahwa kepemilikan tersebut lebih banyak diserahkan kepada lembaga-lembaga privat bahkan lembaga-lembaga asing. Akibatnya, kesenjangan pendapatan yang menjadi pemicu kemiskinan terus terjadi. Kajian ini menyarankan agar pemerintah mengimplementasikan sistem ekonomi Islam Madzhab Hamfara dalam pengelolaan kepemilikan umum dan negara di Indonesia.

Economics as Theory and Ideology

1954 ◽  
Vol 6 (3) ◽  
pp. 289-305
Author(s):  
H. van B. Cleveland
Keyword(s):  
Economic System ◽  
Economic Thought ◽  
Western World ◽  
Economic Systems ◽  
Human Society ◽  
Economic Problems ◽  
Goods And Services ◽  
Economic Liberalism ◽  
Eighteenth And Nineteenth Centuries ◽  
Classical Economic

There is not a great deal to be said about economics which is truly universal. One can say that economics is the study of economic systems. Economic systems can be defined as systems of human actions concerned with the production and the distribution of goods and services which are scarce relative to the wants of the community. But statements of this kind, which attempt to define the economic aspect of human society in universally valid terms, are far too general to serve as premises from which an economic theory, useful for understanding actual economic problems, can be logically deduced. To have theory, one must start with premises and assumptions about some particular economic system, historically given, or some particular kind of economic system. The great bodies of economic thought of the Western world—mercantilism, classical and neo-classical economic liberalism, and the various schools of Marxist economic—have been theories relevant to particular economic systems: those, let us say, of the Western world in the seventeenth, eighteenth, and nineteenth centuries.

scholarly journals Tawhid and Shariah Economics: Positioning Tauhid as Philosophical Foundation of Shariah Economics

2019 ◽  
Vol 4 (2) ◽  
pp. 145
Author(s):  
Nurul Hilmiyah ◽  
Bayu Taufiq Possumah ◽  
Muhammad Hakimi Mohd Shafiai
Keyword(s):  
Economic System ◽  
Human Life ◽  
Economic Science ◽  
Real Economy ◽  
Human Beings ◽  
General Equilibrium Theory ◽  
Mainstream Economic ◽  
Mainstream Economics ◽  
Islamic Economic ◽  
The Impact

Purposes: In the social sciences, economics is one of the most influential and prestigious disciplines. Mainstream economics typically view economic agent as amoral, entirely self-interested, unrealistic and has damaging effects. In the last few decades, while remaining a powerful discipline, economics has narrowed in scope. Consequently, to reinvigorate economics, especially in times of crisis or major institutional change, mainstream economics has almost lost a key reserve of alternative thinking. This study intends to investigate the contemporary mainstream economic system, does Islamic Economics taking advantage of the shortfall of the system outlined above based on Tawhidical approach?Design/Methodology/Approach: This paper using the descriptive qualitative method Findings: Modern economics is normative bias; does not explain actual economies but describes a "utopia" in which Pareto optimality applies. The excessive unrealistic assumption is the impact of the inconsistency of modern economic theory. The important aspects of human behavior ignored by this assumption as the theory of economic man. In addition, the general equilibrium theory of neoclassical is not compatible with an economy that develops over time. It relies too much on complex mathematical models without sufficient attention to whether this really illustrates the real economy and ignores the complexity of nature and human creativity. At the contrary, Islam cause to be present the Tawhidic based economics approaches can be focused towards seeing wholes of economics, rather than parts; seeing economics activities as worship, rather than competition; cultivating the solidarity (charity), rather than individualism and creating the justice, rather than injustice. Thus this paper designed to provide the concept of Islamic economic system with Tawhid as the basis, to fit the philosophy of economic science and reality of human life. The paper shows the position of Tawhid in the system and theory of economy.  It becomes a must to do to create prosperity and benefit for all mankind, with the aim to realign and comparing to the mainstream economic system and their theory.Originality/Value: This paper proposes the position of Tawhidic based economics approach in setting the economic system. The position of this foundation offers basic guidelines for the justice and fairly system, which is benefited to all human beings regardless of religions, races, and castes, and furthermore to the sustainable economic development and welfare for the ummah.

scholarly journals KETAHANAN EKONOMI KELUARGA DALAM EKONOMI ISLAM: SEBAGAI UPAYA MENCARI SOLUSI ALTERNATIF

2021 ◽  
pp. 49
Author(s):  
M. Ikhwan ◽  
Imroatus Solihah
Keyword(s):  
Economic System ◽  
Qualitative Method ◽  
Economic Systems ◽  
Economic Resilience ◽  
Economic Problems ◽  
Normative Approach ◽  
Family Economy ◽  
The Family ◽  
The Government ◽  
Islamic Economic

This paper explains the Islamic economic system which is believed to be not only an alternative economic system but can be a solution to various economic problems including the family economy. To explain this will explain the definition, genealogy and comparison of Islamic economics with conventional economic systems, and the last explained the Islamic economic solution to the economic resilience of the family economy. This paper uses a qualitative method to narrate the concept of Islamic economics as a solution to the family economy with a philosophical and normative approach and refers to secondary research sources such as books, journals and other scientific articles. From the observations that have been made, the economic resilience of the family starts from applying the Islamic economy in household life, then being simple/modest, abandoning usury practices, giving zakat, the spirit of work, avoid asking for solicitation and addressing the government properly.

scholarly journals Water infrastructure and economic security of regional socio-economic systems: evidence from Ukraine

2020 ◽  
Vol 18 (2) ◽  
pp. 166-179 ◽  
Author(s):  
Svitlana Fedulova ◽  
Oleksandr Pivovarov ◽  
Veronika Khudolei ◽  
Vitalina Komirna ◽  
Andrii Kalynovskyi
Keyword(s):  
Economic System ◽  
Critical Infrastructure ◽  
Water Security ◽  
Economic Security ◽  
Security System ◽  
Economic Systems ◽  
Water Infrastructure ◽  
Study Results ◽  
Definition Of ◽  
The Impact

The correlation between the development of a regional economy and the degree of infrastructural development of a country or its territory is a common practice. Considering this, the paper is aimed at studying the impact of water infrastructure on the economic security of regional socio-economic systems in order to develop a water security system for them. A variety of threats against key waterworks can seriously undermine the national economy and water security of regions and cities. Thus, the study analyzes the process of transformation of water infrastructure in the context of ensuring the economic security of regional socio-economic systems. It offers the definition of such categories as “water infrastructure” and “water security of a regional socio-economic system” to formulate a relevant economic policy in Ukraine based on world experience. The study proves the need to attribute water infrastructure to the critical infrastructure sectors of Ukraine and its regions, based on the best world practices in managing water resources and protecting the water infrastructure itself from technogenic, physical, and cyber-physical threats. According to the study results, conceptual bases for ensuring the economic security of regional socio-economic systems are developed, which differ in view of the water security system of the regional socio-economic system, giving priority to the engineering and technical infrastructure of a region.

scholarly journals Effective economic growth under conditions of regional water management dependence

2021 ◽  
pp. 22-43
Author(s):  
Svitlana Fedulova ◽  
Volodymyr Dubnytskyi ◽  
Nataliia Naumenko ◽  
Vitalina Komirna ◽  
Iryna Melnikova ◽  
...  
Keyword(s):  
Water Management ◽  
Economic Growth ◽  
Water Resources ◽  
Water Supply ◽  
Regional Development ◽  
Economic System ◽  
Economic Systems ◽  
The Impact ◽  
Regional Water

Purpose. The purpose of the article is an identifying the impact of regional water management dependence on economic growth in the region. Methodology / approach. The subject of the study is theoretical and methodological basics of a new scientific paradigm for regulation the development of the regional socio-economic systems under the conditions of limited water resources. The study used traditional and special research methods, including: historical and logical – to analyze the evolution of regional socio-economic systems under conditions of limited water resources; abstractions and analogies – to reveal the essence of water-efficient regional socio-economic systems in the modern processes of regionalization and globalization; theoretical generalization, analysis and synthesis – to specify the categorical apparatus; statistical analysis to assess the level of needs of regional socio-economic systems in water resources and create an index of regional water management dependence; method of correlation analysis (biserial correlation, using a point biserial Pearson’s correlation coefficient). Results. The main idea of the paper is to study the issues of development of regional socio-economic systems under the conditions of limited water resources. Considering this, the paper is aimed at studying the impact of regional water management dependence on economic growth in the region. The tasks for development of regional socio-economic systems on the basis of water efficiency are defined, as well as the concept “water-efficient regional socio-economic system” is defined. The study presents a hypothesis about the need to change the paradigm of regulation of regional development on the basis of water use efficiency and regional water management dependence. In order to trade effectively with the main crops, it is necessary to determine whether there are sufficient water supplies in a given country and its regions. For this purpose, the authors proposes to use own indicator, such as the index of regional water management dependence. Thе characteristic of water management dependence is given, from regions where only up to half of the water supply of the territory is used, and to regions where more than 100 % of the water supply of the territory is used. The research has updated that the expansion of knowledge and understanding of the specifics of the water sector can solve significant problems. It is proved that the economic growth of the Ukrainian economy due to the agricultural sector has its limits and is limited by the water management dependence of the territories, ie the limitation of certain territories of the regions of Ukraine in terms of water resources. The next effective economic growth is possible only through the implementation of water-efficient technologies and intensification of water-efficient activities in the region. Originality / scientific novelty. The study for the first time defines the concept of water-efficient regional socio-economic system, so it is a socio-economic system that provides for the restoration of water resources in the region, reducing the water intensity of gross regional product (GRP) and approaching European norms and proposes the classification of regions according to the index of regional water management dependence on the basis of its threshold values. A scientific and methodological approach to assessing the level of needs of regional socio-economic systems in water resources has been improved, based on the application of the index of regional water management dependence, which is proposed to calculate the ratio of total fresh water use in the region to the volume of available river runoff in the region (parts of the water potential). The classification of regional socio-economic systems according to the level of water supply has been improved, which is based on the definition of threshold values of the index of regional water management dependence. The methodological bases for assessing the impact of the spatial economy on regional development under conditions of limited water resources have been improved, which differ in substantiating the dependence of the level of development of regions on the available water potential of the territory. Practical value / implications. The results of the study allow a more comprehensive approach to the study of the problem of using water resources in Ukraine in the context of their limitation. The results of the study showed that the economic complex in most regions is water-intensive and unbalanced, as well as does not provide restoration of water resources by environmental parameters and requires the implementation of infrastructure schemes for redistribution of water resources between regions for economic activity. The results are recommended for consideration by local governments and regional administration for the development and implementation of “Regional programs for the development of water management in the region” and for the development of “Strategies for regional development until 2025–2027”.

Sistem Perbankan Islam di Indonesia: Sejarah dan Prospek Pengembangan

2012 ◽  
Vol 3 (1) ◽  
pp. 111
Author(s):  
Suryani Suryani
Keyword(s):  
Economic System ◽  
Banking System ◽  
Moral Values ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Free System ◽  
Western Countries ◽  
Islamic Countries ◽  
Financial Transactions

Islamic banking or sharia banking is a new phenomenon in the modern worldeconomy, its emergence as the intense efforts made by Islamic scholars in the development of Islamic economics in which it will be able to replace theconventional economic system based on the interest to the interest-freesystem. That’s why sharia banking system apply an interest-free system inoperation. Therefore, the closest term to define sharia banking is a bank that operates based on Islamic sharia principles, by reference to the Al-Quran and Sunnah as the basis or the legal and operational basis. Islamic banks were originally developed from the response of some economists and practitioners of Islamic banking that seek to accommodate pressure from various parties who want to make available services of the financial transactions carried out in line with moral values and principles of Islamic sharia. On his journey, sharia-based banking system is increasingly popular not only in Islamic countries but also western countries, characterized by increasingly the number of banks that implement this concept

scholarly journals The impact of currency risk on international outsourcing

2021 ◽  
Vol 9 (2) ◽  
pp. 51-55
Author(s):  
Sergey Komarov
Keyword(s):  
Economic System ◽  
Theoretical Basis ◽  
Production Cost ◽  
Graphical Analysis ◽  
Qualitative Assessment ◽  
Management Approach ◽  
Economic Systems ◽  
Currency Risk ◽  
International Outsourcing ◽  
The Impact

The paper considers the impact of currency risk on economic systems based on international outsourcing. The theoretical basis for constructing a model of the economic system based on international outsourcing, as well as economic speculative currency risk, is presented. The authors propose and describe a model of the impact of currency risk on economic systems based on international outsourcing. Mathematical modeling, as well as mathematical and graphical analysis of indicators characterizing the impact of currency risk are carried out. The results reflecting the impact of currency risk on a particular participant of the economic system, as well as on the system as a whole, under various particular conditions, are presented. The authors point out that currency risk in economic systems based on international outsourcing is expressed, not only explicitly, but also covertly through changes in the volume of production, cost and price of final value. Based on the modeling, general and specific criteria for the qualitative assessment of currency risk in international outsourcing are proposed. The results of the study can be used by organizations that are part of economic systems based on international outsourcing, regardless of the management approach and the mechanism for forming an economic system based on international outsourcing.

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