Dialogue on Reform in Mainstream Economics and its Implications for the Islamic Economics Discipline

Abstract

While the most recent financial crisis highlighted a myriad of problems within mainstream economics, the call for reform has been widespread, long-standing, and deep-seated. This paper reaffirms this call from an historical perspective, with accelerating climate change adding a sense of urgency. Unfortunately, mainstream economics is not capable of self-reformation; instead, it has erected formidable barriers. Not surprisingly, as this paper highlights, little substantive reform has occurred within mainstream economics, while the outside urge to reform continues unabated. This paper calls for pluralism as a compelling and necessary (but not sufficient) intellectual foundation for reform, and concludes by logically pointing to the wisdom of Islamic economics.