TOWARD AN ISLAMIC MORAL-ECONOMY READING OF UNGKU AZIZ’S DEVELOPMENT THOUGHT

Abstract

This paper explores the development of a moral-economy approach to Malaysia based on the Islamic theory of development as expressed by Ungku Aziz, Sarong Index. It argues that Ungku Aziz offers a plausible alternative to growth-based development by establishing the economic policy in the ethical purpose, social justice, and institutional responsibility. Based on his texts on poverty, education, rural development, and nation building, the article reinvents his conception of development as implicitly organized around maqad sharieah, especially safeguarding against poverty, livelihood, knowledge and social bonding. It is brought out that the core of the argument is that Ungku Aziz understood development as human based process where markets, the state and social institutions serve as means as opposed to ends; economic effectiveness is thus secondary to moral responsibility and distributive justice. The paper contextualises this philosophy in the post colonial developmental process in Malaysia and shows how this philosophy is applicable to the current problems of inequality, financialisation and policy fragmentation. The paper adopts a qualitative interpretive design based on textual and policy analysis. The analysis suggests that his approach can be interpreted as a form of Islamic moral economy that is pragmatic, policy based, and institutionally-based and not just normative. The paper ends by stating that reconsidering the Islamic philosophy of development in the writings of Ungku Aziz can add value to the ongoing discussion of sustainable and inclusive development in Malaysia by recovering the ethics as a key type of economic argumentation.