Islamic economics and inclusive development

Abstract

In recent times the reorientation of sustainable economic development has led to increased calls for inclusive growth and 'shared prosperity'. Conventional economics is often criticised for its failure to address the increasing gap in income and wealth disparity, along with its myopic focus on GDP while ignoring the wellbeing and welfare of individuals and society at large, the instability of economic and financial systems, financial and social exclusion, and environment degradation. The objective of this paper is to improve understanding of Islamic economics and finance on economic development, social and economic justice, human welfare, and economic growth. This paper concludes with policy recommendations to implement principles of Islamic economics to achieve sustainable and inclusive development.