ISLAMIC MORAL ECONOMY AS AN ALTERNATIVE FRAMEWORK FOR GLOBAL ECONOMIC CHALLENGES

Abstract

Islamic Moral Economy offers an alternative framework for addressing persistent global economic challenges, including economic inequality, financial instability, poverty, and ethical deficiencies in contemporary economic systems. Mainstream economic models often emphasize profit maximization and market efficiency, which can lead to social imbalance and moral neglect. In contrast, Islamic Moral Economy integrates ethical values with economic practices, prioritizing justice, social responsibility, and collective well being. This framework promotes equitable wealth distribution, discourages exploitative financial practices, and encourages responsible production and consumption. Social finance instruments such as zakat, waqf, and charitable redistribution play a significant role in reducing poverty and strengthening social solidarity. By incorporating moral, social, and economic dimensions, Islamic Moral Economy provides a holistic and sustainable approach to economic development. This value-based framework demonstrates relevance beyond religious boundaries and offers a viable response to ongoing global economic challenges in an increasingly interconnected world.