Islamic development thinking after the global financial crisis : shaking the “consensus” or mimicking it

Geyer, Robert and Royle, Steve (2014) Islamic development thinking after the global financial crisis : shaking the “consensus” or mimicking it. Journal on Policy and Complex Systems, 1 (2). pp. 42-59. ISSN 2372-8590

Abstract

Islamic development thinking claims to be distinct from the traditional IMF/World Bank discourse on development, particularly in the Islamic banking sector. However, attempts to develop this distinctive path are caught in a continual tension between the constraints (and benefits) of the dominant neo-liberal financial and banking framework and the demands of Islamic national and local elites and societies. In this article, we chart the emergence of modern Islamic development thinking and examine if and how it has mimicked a neo-liberal model. This is explored through the cases of Iran and Malaysia and the recent initiatives to create a more unified international Islamic finance system. We argue that if Islamic development and financial thinkers are to avoid repeating the mistakes of the past “consensus” they need to create a continual balancing process between the neo-liberal system and the distinctive needs and demands of a variety of Islamic societies and actors.