Social Choice in an Islamic Economic Framework

Abstract

In this paper, the decision-making character of shura, the consultative
democratic concept in an Islamic social order, will be shown to clearly define
the determination of both state variables (socioeconomic variables) and policy
variables and the simulative interactions between them. These variables will
then be shown to configure the consumption, production, and distribution
menus in an Islamic political economy. They will thus be shown as clearly
defined variables that help to formulate the social choice, the social welfare
function, and the institutional decision-making problems in an Islamic politicoeconomic
order.
Shuratic Decision Making in the Perspective of
Organizational Theory
The Islamic shuratic (i.e., based on shura) decision-making process is
the centerpiece of organhtional behavior in Islamic institutions. The following
is a technical explanation of this process in light of modem organizational
theory:’
(a) Shura is structured into representative decision makers from
various walks of life (“sharees”).
(b) “The abstract nature of each individual task” is carried out
by ijtihad and the interpretations and implementation of the
Shari’ah (Islamic law) to various socioeconomic problems ...