STEI Tazkia hosted International Muslim Scholar Talk with the guest speaker, Prof. Mehmet Asutay, Professor of Middle Eastern and Islamic Political Economy & Finance, from Durham University, United Kingdom on Wednesday on 5 September 2018/24 Dzulhijjah 1439 H.
The agenda was started by a discussion chaired by Dr. Arip Rahman on Islamization of Economics. On 9.00 am, the agenda was continued by keynote speech on Islamic Moral Economy Theory Development both of Conventional and Islamic Thoughts delivered by. Prof. Asutay. He explained that the Islamic moral economy emerged in the modern sense in the late 1960s and early 1970s as an attempt to develop an authentic understanding of the Islamic system of economics and develop policies accordingly. As part of this concept, Islamic banks and financial institutions are considered as the institutional aspects of this moral economy, which can pool their resources together to finance real economy activity. However, the transformation of Islamic banking into a commercial banking form since mid-1975 has resulted in unprecedentedly successful financial performance, which, however, has been at the expense of the a�?social and economic developmentalista�� aspirations of Islamic moral economy. Therefore, Islamic banks and financial institutions are criticised for their social failure.
The correction of the observed social and developmentalistsa�� failure is essential for sustainable development and therefore for fulfilling the promise of Islamic Moral Economy (IME). In serving such objectives, new Islamic financial institutions beyond but in addition to Islamic Banks and Financial Institutions (IBFIs) are necessary and essential. Therefore, in the new institutionalization stage, IBFIs should relate to the substancea�� and the a�?consequencesa�� rather than merely the a�?form,a�� which would help to moderate and remedy the divergence observed in the present practices of IBFIs.
On 10.00 am, the agenda was continued by exchanging token of appreciation between Tazkia and Durham University because Prof Asutay has been scheduled to visit other places. After that, discussion was continued by Mr Nurizal Ismail on history of Islamic Moral Economy until 11 AM. There are three conclusion that he has mentioned; First, the moral economy that was established by early Muslim scholars referred to the primary sources (Quran and Sunah) of Islam and develop in their works. Second, in philosophical foundation, Islamic economics is distinction with Conventional economics which emphasizes the moral in economy. And Lastly, Islamic moral economy is comprehensive economy that is not only focus on moral but also the whole aspects of Islamic worldview.
By: International Program and Partnership Office