By Abbas Mirakhor, Hossein Askari
There is a cognitive deficit among the holistic imaginative and prescient for human and societal improvement in Islam and the implications completed via Muslim societies. The authors start by means of the Western notion of improvement, which in recent times has well-known the broader dimensions of human improvement and the function of associations. hence Western considering has moved towards the Islamic imaginative and prescient and course of improvement, emphasizing human unity, belonging, health, sharing, drawback for others, easy human entitlements, and modest residing. The authors light up the Quranic imaginative and prescient and the adventure of the society equipped through the Prophet, which jointly signify the Islamic paradigm.
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Additional info for Islam and the Path to Human and Economic Development
30 North believes that enough progress has been made in the investigation of the process of growth and development to allow for the pinpointing of the causes of poor economic performance as well as the necessary remedies. Poor performance, North believes, is due to path-dependencies resulting from past institutional structure, reflecting a belief system that is difficult to change either because the needed changes that improve economic performance run counter to the belief system or these changes pose a threat to existing political or business leaders.
To create a large enough impetus for the economy to break out of the vicious circle, governments would have to undertake large-scale investments in a sufficiently wide spectrum of industries. Such investments would lead to an expansion of the supply of goods and services. Increased income would generate additional demand for an expanded supply of goods and services; thus a virtuous circle—increased employment and productivity, higher income, higher savings, higher investment, higher capital accumulation, and higher productivity—would be initiated.
Solow showed that relaxing these assumptions would avoid the knife-edge problem and would allow the economy to achieve a stable, steady equilibrium path of long-run growth. As the economy grows and capital intensity increases over time, the growth rate of the economy declines. Therefore, countries with higher capital-labor ratios would grow more slowly. 23 In 1957, Solow made a further contribution by decomposing the output-input relations to obtain the contribution of each element of the production process to the growth of output—the contributions of labor and capital, and what could not be attributed to these, the residual, was attributed to technology.