Journal of Political Sciences & Public Affairs
Open Access

Abstract

A Welfare State Approach to Islamic Polity

Soldatos GT

This paper builds upon the following critique of Islamic economics: (a) Persistence on the literal interpretation of what the theology of Islamic law implies socioeconomically, (b) Rejection subsequently of the core western economic principle of homo economicus cum-competition, though homo economicus behavior is innermost to absence of riba alfadl (of exploitation in the goods market) in the large at least impersonal markets of our times, (c) Rejection, because of the ahistorical view of the West and hence, of inability to realize that the Cold War European welfare state with a constitution inspired by social solidarity as it derives not politically but religiously from Islamic law might be worth followed by Islam, and (d) Identification of riba an-nasiya (of exploitation in the financial markets) with zero interest rate charges and not with zero commercial bank seigniorage.