Atul Arya
Comparative Economics of Transforming
World Economy
Comparative Development Perspective
HS30002
Chapter 4
Islamic Economics and the Economics of Other Religions
Answers:
1. In what sense can Buddhist and Hindu economics be said to be supportive of modern
“green” movements?
2. Compare and contrast Buddhist, Confucian, and Hindu views of the role of the state in
the economy.
Buddhist views of the role of the state in the economy as rationalistic and individualistic, this
coincides with market capitalism. (Thailand)
In Sri Lanka, Myanmar: socialist view (welfare state)
Confucian tends to support reliance on market forces, although with authoritarian state structure
and elements of state planning and control.
Hindu views advocate a decentralized system of self sufficient both nationally and at the village
level, emphasizing for swadeshi in the sense of appropriate technology.
3. Compare and contrast Judaic, Catholic, Protestant, and Islamic views of market
capitalism.
Christian Protestantism has been more closely linked to market capitalism both socially and
ideologically. Marx Weber argued that "the protestant" is the spirit of capitalism.
4. Why does Islam seem to have a more fully developed economic system than other
major world religions?
Other major world religions such as Judaism, Hinduism, Buddhism does not emphasize more on
the economic system and are somewhat limited to its culture and philosophy. But Islam is the
most prominent and most fully developed form of new traditional economic system in the
contemporary world.
Islam economics advocate about zakat (religious tax) for income redistribution, consumption,
gharar (risk), riba (interest payment), qirad (profit sharing) and most importantly Islamic Bank.
Islamic banks are now operating in over 60 countries, including the United States.
5. Why in most modern economies is zakat unlikely to be able to resolve the problem of
major income inequalities?
Countries that have introduced state-collected zakat include Pakistan, Saudi Arabia, Malaysia,
and Sudan.
Comparative Economics of Transforming
World Economy
Comparative Development Perspective
HS30002
Chapter 4
Islamic Economics and the Economics of Other Religions
Answers:
1. In what sense can Buddhist and Hindu economics be said to be supportive of modern
“green” movements?
2. Compare and contrast Buddhist, Confucian, and Hindu views of the role of the state in
the economy.
Buddhist views of the role of the state in the economy as rationalistic and individualistic, this
coincides with market capitalism. (Thailand)
In Sri Lanka, Myanmar: socialist view (welfare state)
Confucian tends to support reliance on market forces, although with authoritarian state structure
and elements of state planning and control.
Hindu views advocate a decentralized system of self sufficient both nationally and at the village
level, emphasizing for swadeshi in the sense of appropriate technology.
3. Compare and contrast Judaic, Catholic, Protestant, and Islamic views of market
capitalism.
Christian Protestantism has been more closely linked to market capitalism both socially and
ideologically. Marx Weber argued that "the protestant" is the spirit of capitalism.
4. Why does Islam seem to have a more fully developed economic system than other
major world religions?
Other major world religions such as Judaism, Hinduism, Buddhism does not emphasize more on
the economic system and are somewhat limited to its culture and philosophy. But Islam is the
most prominent and most fully developed form of new traditional economic system in the
contemporary world.
Islam economics advocate about zakat (religious tax) for income redistribution, consumption,
gharar (risk), riba (interest payment), qirad (profit sharing) and most importantly Islamic Bank.
Islamic banks are now operating in over 60 countries, including the United States.
5. Why in most modern economies is zakat unlikely to be able to resolve the problem of
major income inequalities?
Countries that have introduced state-collected zakat include Pakistan, Saudi Arabia, Malaysia,
and Sudan.
