This book argues that the macroeconomic policy adjustment models
recommended by the IMF and the World Bank for implementation in
many Muslim countries, with substantial donor financial support,
have not been effective. Economic indicators show low economic
growth, persistent fiscal and external deficits and limited
industrialization. Also, these countries are experiencing increases
in unemployment, poverty and substantial growth in income and
wealth inequalities. These facts underline an urgent need to
produce an alternative to the failed conventional macroeconomic
model in order to address the challenge of macroeconomic and social
adjustment policies. The project posits and investigates the idea
that the Islamic economic model prescribed in the Quran and applied
by the Prophet (sawa) could be the ideal model for Muslim as well
as non-Muslim countries.
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