Financial Globalization and Islamic Financing Institutions: The Topic Revisited

Abstract

This paper while being a study of its own subject matter is also a response to Professor Ali Khan’s discussion paper entitled, “Globalization of Financial Markets and Islamic Financial Institutions” that appeared in Islamic Economic Studies, Vol.8, No.1 (2000:19-67). The topic of financial and economic globalization is studied in contrasting perspective between Occidentalism and Islam. The epistemology, model and approach of the formative ummatic globalization are brought out. Contrasting epistemological questions of morals, ethics and values that shape human behavior, institutions and approaches to well being in the global sense are examined from the viewpoints of Occidentalism and tawhidi (divine unity of knowledge) praxis. In the process of this thematic study the content of the paper by Professor Ali Khan on the same topic is critically examined. The normative structure of the progressive ummatic transformation and its positive implications within the framework of finance, money, real economy and global Islamic institutional relationships is examined.