1.3 The 3 Pillars of Islamic Economy - The Shepherds model

Islamic Finance Podcast with Almir Colan

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3+ y ago 59:12

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In this episode, we talk about a new model for Islamic economy: The Shepherds model.

The first domain of wholesome Islamic economy is the capacity to take care of the weak. This primary indicator shows the moral leadership and wellbeing of society via its capacity to take care of those who are in need. This function is built on virtues like empathy and compassion where Islam legislates several mechanisms such as zakat, sadaqh, waqf and similar methods to discharge this obligation.

Second, are regulatory measures that ensure that the economic system remains Shariah-compliant and not engages in activities that have a detrimental impact on society. This aspect of the economy ensures that ethical rules are respected and human effort is concentrated on activities that are approved by Islam. At the same time, it defines areas of commercial activities that are prohibited such as Riba (interest), Gharar (excessive risk) and similar.

The final critical part of economic development is in the domain of its entrepreneurial aspect. In this part, we define the vision and what economic leadership looks like in order to drive human potential towards the just and thriving economic system.

Hosted by Almir Colan

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