IEI Islamic Economics and Finance
1 total work
This book scrutinizes the efficiency of the statist model of "Big Government". The authors develop policy prescriptions based on Sharia rules of laissez-faire economics and perfect competition within labour and capital markets. Chapters argue that economic conditions have become increasingly unmanageable in both advanced and developing countries where "Big Government" has become a stumbling block to private enterprise. The discussion explores the idea that the elimination of interest-based debt could result in fully balanced budgets, steady external trade, risk-sharing banking, stable capital markets, and deflation. The authors propose Sharia-based policy regimes for discussion and adoption, and suggest that reforms to government size, together with the liberalisation of labour and capital markets, may present a successful and sustainable alternative mode of government.