An Islamic Perspective on Governance, Edward Elgar – By Zafar Iqbal and Mervyn K. Lewis

• Date: 01 July 2010
• DOI: http://doi.org/10.1111/j.1467-8683.2010.00821.x
• Author: Chahime Salim
• Published date: 01 July 2010

Book Review

Zafar Iqbal and Mervyn K. Lewis, An Islamic Perspective on Governance, Edward Elgar

Publishing Limited, Cheltenham, England, 2009, ISBN 978-1-84720-138-6. 384 pages.

In face of the divergence between sacredand secular in the

West, Islam has always been viewed as the blueprint and

social cement of a civilization. Professors Iqbal and Lewis

examine, from an Islamic perspective, some of the central

issues in public governance, economic governance, and cor-

porate governance.

The authors use both normative and positive approaches

to develop a contemporary Islamic standpoint on several

key issues. They explore alternative perspectives on gover-

nance by comparing the Islamic model of governance with

the conventional Western model. Within this framework,

they present the principles of Islamic economies and justice

and review the practices of taxation, budget deficits, and

government finance. They provide a discussion of the indi-

viduals’ roles and responsibilities and introduce the “gate-

keepers” who would ensure accountability within an

Islamic society. They also examine the economic effects of

corruption and present a framework to improve governance.

The central argument of this book is that the major differ-

ence between the two aforementioned models of gover-

nance lay in the role the religious beliefs play in

philosophical and economic inquiry. Muslim researchers

accept revelation as a source of knowledge on metaphysical

issues as well as on ethics and justice (p. 49), and scientific

activity has to be in line with Shari’a for Muslims. In contrast,

for Western researchers,economic analysis has generally not

been shaped by the religious beliefs.

For example, Iqbal and Lewis state that while Islam

encourages trade and free markets, it does not legitimize

such behavior over all spheres of human activity (p. 51).

Market behavior derives its rules from the Islamic theory of

justice. The authors argue that standard economics must

admit a theory of justice, too, to tackle governance issues.

Iqbal and Lewis discuss existing approaches to Islamic

governance, and find that the achievements of Islamic eco-

nomics have been disappointing in at least two major

respects. First, Islamic economics have not advanced far

beyond explicating the fiqh solutions and institutional struc-

tures of early Muslim polities. Second, Islamic economics

have been the dominant model in Islamic societies, and as

such, the re-invention of the contemporary conventional

financial architecture under a different nomenclature has

not been easily attainable (p. 313).

The authors propose an alternative approach to gover-

nance, intended to resolve the current challenge faced by

Muslims in assessing the development in knowledge since

they had handed over that task to the West in the Middle

Ages (p. 55). The authors visualize the contemporary knowl-

edge in conventional economics and finance as being orga-

nized within various compartments in a filing cabinet. Each

folder is opened up, its content examined. Then, Islamic

theory in a given subfield is examined by way of bringing

out its underlying values. This methodology selects the theo-

ries that are closest to the Islamic spirit. A comparison of

both approaches is undertaken in order to avoid those prin-

ciples that contradict the Islamic perspectives.

An Islamic Perspective on Governance is a major work that

complements prior literature on governance heavily focused

on Western countries. It sheds light on governance issues

from the perspective of Islamic economics and helps

compare the Islamic and Western viewpoints on the topic. It

recognizes the role that can be playedby religious principles

in Islam and Christianity, and highlights the need to uphold

constitutions and strengthen institutions that would replace

loyalty to specific persons and their ruling styles.

The comparative approach between the methodology of

Islamic economics and that of conventional positive eco-

nomics, which forms the basis for this valuable book on

Islamic governance by Iqbal and Lewis, provides the

reader with a broader basis for understanding the similari-

ties and differences between the various approaches to

organizing society and government. The alternative model

presented by the authors is valuable as it opens one’s eyes

to other perspectives, thereby giving scholars the opportu-

nity to look at a diversified range of models. In fact, having

closely studied the Western model of governance has

clearly informed the Islamic perspective on governance

advanced by Iqbal and Lewis. No model is necessarily

superior to the other; each operates within a given cultural

context and under certain economic and political condi-

tions. However, learning about other approaches is helpful,

particularly to scholars in the field. Diversity of approaches

is enriching and can positively contribute to stronger inter-

action between Islam and the West, as was historically the

case in the Middle Ages.corg_821378

Reviewed by Chahime Salim

Associate Professor of Finance

American University of Beirut

378

Corporate Governance: An International Review, 2010, 18(4): 378

© 2010 Blackwell Publishing Ltd

doi:10.1111/j.1467-8683.2010.00821.x