Re: Sharia and Economy split from: Why do US officials say such things in Pakistan?
Islam itself doesn't have any problems with economic activity, as long as its ethical. Any backhanded dirty activity - and you have to face a punishment for it if caught. If not caught, doesn't matter, you get punished in the end anyway.
That's the difference between economics in non-muslim countries vs. economics in a true hypothetical Islamic state.
Yet it is true that when "shariah" is enforced, sometimes you see that economic activity lags severely behind. In Arabia, if it weren't for the oil, there wouldn't be any substantial economic opportunity other than what goes on in Makkah and Madinah during Hajj season. Another example, NWFP. It has been in MMA control for some time now, and what economic progress has it made? None.
Therefore, one should ask the question - why is there no progress when muslims come into the picture?
And the problem is that our Islamic laws do not have much detailed mention over business activity, other than the ethics in trading. Therefore, you have two types of muslims:
Muslim A: "The Quran does not say I should NOT do business, and do well at it, so.... I'm going to do business and do well at it".
Muslim B: "The Quran doesn't mention anything much about business, therefore, it is best I stay away from it, lest I sin. My mullah advisor taught me
When you have type B's controlling state, you have economic stagnation
When you have type A's controlling the state, you don't.