Global Economic Crisis Need for a Paradigm Shift

Abstract

[The global economic and financial crisis that started in 2008 and continues today with multidimensional and phenomenal consequences not only highlights once again the need to reform capitalist global economic system – particularly its present version of Market Fundamentalism – but also raises questions about the fundamentals of the discipline of economics. Leading economists of the world have called for a reform of the discipline. Some seeking way-out ‘within’ the dominant paradigm of economic thought and economy, yet others endeavor to search for not mere shift ‘within’ the paradigm but a shift ‘of’ the paradigm. Humanity today needs and urgent paradigm shift from elite oriented, free market fundamentalism based economic system to a human centric, just and equitable economic framework. The focus has to be on rediscovering and reestablishing the relevance of ethics and morality. After a discussion on worldview, values, principles and ideals of the Islamic economic paradigm, it is argued that this paradigm needs special attention. As against exclusive obsession with material affluences, and efficiency without reference to equity, Islamic economics emphasizes wealth creation activity, with a vision of economy that is humane, just and efficient, ensuring need fulfillment and well-being of all members of society. – Eds.]