Islam and the Challenge of Economic Development in the Muslim World: Review and Evaluation of Secular Arguments

Abstract

The majority of Muslim countries, classified as low or middle
income groups, suffer from poverty and face severe challenges in economic
development. International development reports attribute the economic
problems of Muslim countries to similar factors as those existing in other
developing countries. However, some secular studies have analyzed the
impact of Islamic culture on the economic variables in the Muslim World, and
consequently on its economic development. This paper reviews and evaluates
some of these studies. Secular works which are selected and examined in
this article can be classified into two main groups. The first group makes no
distinction between authentic Islamic culture and contemporary culture which
is prevailing in Muslim countries and builds its analysis and conclusion upon
this misconception. The second group, however, raises objections towards
some specific Islamic laws and traditional rules, considering them among
factors which have hindered economic development in the Muslim world.