islamic economic renaissance 371may be used to influence the allocation of resources. Profit-Loss-
Sharing ratios in the Islamic system can replace interest rates in a
non-Islamic system (Ahmed et al., 1983). These views are among
that Chapra has elucidated competently in his “Towards a Just
Monetary System”, as this work provides a through explanation of
the technical and operational mechanisms of fiscal and monetary
policy in an Islamic economy (Chapra, 1985). Of the many contri-
butions on the subject Chapra’s Towards a Just Monetary System
is a distinguished addition to the Islamic economics literature: it is
comprehensive, well integrated, conceptually analytical, and opera-
tionally pragmatic.
Islamic Economics Theory, Ethics and Economics
The first international conference on Islamic economics demonstrated
a variety of interest among researchers and participants. The first
was an interest in laying down the conceptual and theoretical frame-
work of Islamic economics—a conceivable start in a first conference
of its kind. With different emphasis on the economic activities of the
individual and the state, Islamic economists are, as expected, unanimous
that their subject draws its concepts and principles from the Sharì"ah,
the Divine Law. Consequently, ethics as emanating from Islam, are
the paramount foundation of Islamic economics. In theorizing on
Islamic economics, the issues of Zakàh and banking without inter-
est are, inevitably, in a prominent position.
Having started by defining economics as a science, Sakr proceeded
to look into Western economics theories with a view to providing
what seems to be a common ground between Islamic and Western
economics. The conclusions appear to be: as there are already embed-
ded ethical values in Western economics, manifested in normative
economics and advocated by altruist economists, there are also eth-
ical values in Islamic economics that is based on Islamic norms and
religious ideals, which would, or should, make Islamic economics
per se more readily acceptable to Western economists as an indepen-
dent branch of economics, (Sakr, 1981). On the role of the state in
the economy, he proceeded further, outlining the role of the Islamic
state in managing the economy. This should be based on: optimum
employment of economic resources, directing public expenditures for
public benefits, state surveillance of market operations, controlling