THE EVOLUTION OF ISLAMIC ECONOMICS: A CRITICAL ANALYSIS

Since the ill-conceived separation of finance from Islamic economics in the literature, the latter has landed in confusion and neglect. Of late, much concern is being voiced about this state of affairs; divergence of views on various aspects of the subject tends to grow while cohesive efforts are missing. It is in this context that the present paper takes a brief look at the evolutionary process of the subject and examines the definition, nature, scope, methodology and systemic approach of Islamic economics. It also discusses the problems that hinder the growth of the discipline, the challenges that Islamic economics faces, and its future prospects. The paper concludes that the future of the subject depends on how realistically the academic community and policy makers respond to such challenges.