Globalization, Economic Imbalances, and Sustainable Development: What Islam Can Contribute To Solve It?

Globalization, Economic Imbalances, and Sustainable Development: What Islam Can Contribute to Solve It?
| Yuli Andriansyah
Globalization, Economic Imbalances, and Sustainable

Development: What Islam Can Contribute to Solve It?
Yuli Andriansyah
Department of Islamic Economics, Faculty of Islamic Studies, Islamic University
of Indonesia
yuliandriansyah@uii.ac.id
Abstract
This paper emerges from an academic and empirical anxiety regarding the current
trends in globalization effects on economic imbalances and sustainability issues
especially in developing countries. Economic globalization as manifested in freer
trade and finance around the world has brought at one side a wider access and
opportunity for humanity to thrive and prosper. But it also has taken humanity to
global imbalances in economic, political, and social achievement due to the
differences in readiness and preparedness in dealing the fast expansion of
globalization. Understanding this state of affairs, this paper explores what Islam,
the fastest-growing religion in the world with about 2B adherers, can contribute to
address this issues mainly viewed from its legal formal and economic system. To
do so, this paper will firstly examine to what degree that the globalization in trade
and finance has brought imbalance and sustainability issues in developing
countries. Afterward it takes a closer inquiries into the nature of ideal development,
justice and balance from Islamic legal and economic thought. It then expands the
analysis on how Islamic contributions can be implemented in dealing with
globalization massive effects on economic imbalances and sustainable development
in developing countries.
Keywords: developing countries, economic imbalances, globalization, Islam,
sustainable development
Introduction
Globalization is among the most used term in daily activities around the
world. It can be viewed in cultural, economic, political, educational, and many other
perspectives. In term of culture, globalization can be expressed in standardization
of many aspects of human life from the way they travel, the food they eat, the
clothes they use, the entertainment they enjoy and many others. As a political
element, globalization has been viewed as another threat to national sovereignty
and identity as it create a universal idea about how a good government work based
on the idea of individualism, market, and democracy (Encyclopdia Britannica,
2012).
In term of economic and financial activities, globalization can be described
as a process of eliminating obstacles that constrain economic interactions, or flows,
among countries such as in goods and services, capital, technology, and labor.
ICCP on Law and Sustainable Development amongst Developed and Developing Countries 2014
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Without such obstacles, all countries in the world enhance a new level of
competition. This competition can take many forms such as increased flow of goods
into the country at a lower price, increased flow of services (including banking and
other forms of financial services) at a lower price, etc. (Askari, Iqbal, & Mirakhor,
2010, pp. 29-30).
Globalization as logic consequence of advancement in human civilization
has emerged as international phenomenon involving all countries, cultures,
economies, faiths, and other human structures. Its primary form can be traced to the
origin of humanity, the birth of colonial power until current global complexity
(Robertson, 1990, pp. 26-27) which indicate its nature as evolving human path. As
it develops, its impacts consist of positive and negative sides to civilization. It at
one hand makes communication and relation among people easier and wider. It also
create another spaces for human quality of life improvement as many ideas spread
faster and more accessible through the advancement in information and
communication technology. This positive side impacts in the way business and
economy work to increase opportunity in more competitive and open market.
However, in other hand, globalization also brings its negative side to
humanity. As information spread fast, many foreign values of life are introduced
directly to young generations with or without conflict with local values inherited by
elders. A new way of life might also be introduced and practiced with many of its
disadvantages to local communities. In term of finance, globalization has been very
supportive to foreign investment which in advance bring benefit mostly to origin
country of funds. Poverty, inequalities, social and cultural issues are among the
impacts of globalization many countries now have to deal with.
Because of its wide impact on humanity, globalization is praised by its
supporters for it has put humanity to such amazing advancement. While for its
critics, globalization has been blamed as the sources of degradation in humanity
and its environment. Departing from this state of affairs, this paper was aimed to
explore what globalization has done to humanity in term of economic imbalance
and sustainable development. It also explores what Islam as one major religion in
the world can offer to solve the problem brought by globalization.
Globalization and Economic Imbalances

One of the most anticipated effect of globalization especially in trade and
financial sectors is global economic imbalances. The economist (2009) define it as
the pattern of large, persistent current-account deficits in America and, to a lesser
extent, Britain and some other rich economies, matched by surpluses in emerging
markets, notably China. Other definitions can also be added like the huge
current account deficits chalked up by the US and the corresponding surpluses
accruing to the oil exporters and East Asian exporters (Dorman, 2014, p. 81), and
large current account deficits of the United States reflect asymmetries in the
development of financial markets across regions of the world (Corsetti, 2012). At
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general these definitions imply the existence of a wide diversity between some
advanced economies with large deficit with their counterparts in trade. As the
deficit grows higher, it finally become systemic problem in financial industry and
finally turn into a crisis.
How the world economic imbalance happens can be described from de
Larosires (2009) opinion that it comes from three dimensions namely: (1) a
strong GDP growth in the US coupled with large current account deficits; (2)
subdued economic growth in Europe hindered by insufficient structural reforms
and a balanced position in terms of current accounts; and (3) a spectacular
economic expansion in East Asia coupled with high current account surpluses and
growing international reserve accumulation. In order word, The United States
consumption-driven economy has been so far fueled by investment-driven growth
emerging economies especially China.
International Monetary Funds (2014) data as described in the following
figures and table can give better information to understand what global economic
imbalances is and its effects on current trends in world economy. Before 2009,
advanced economies suffer a very deep deficit in trade as depicted by negative
current account in US$ in figure 1 below. While at the same time emerging market
and developing economies benefit from a large surplus in trade as shown by positive
current account. As the financial crisis begins, advanced economies realize it is time
to stop or at least decrease the deficit. As fighting deficit become the main policy
in many advanced economies, surplus previously owned by emerging market
decrease slowly.
800
600
World
400
Advanced economies
200
Emerging market and

developing economies
Latin America and the

Caribbean
-200
Middle East and North Africa

Sub-Saharan Africa
-400
-600
Figure 1 Current Account Balance, US$ Billion, 2005-2014, World
Source: International Monetary Fund (2014)
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The similar trend can also be traced from countries level data as described
by the following figure. The United States deficit was very deep preceding 2008
financial crisis which make it incompatible to compete with China. China during
the last decade has gained many advantages from international trade not only in
relation with developing economies but also with developed ones. In 2005, for
example, as China gained US$ 132.378 in trade surplus, The United States deficit
was US$ -745.434. The numbers decrease significantly as the anti-deficit policy
took into action and resulted in US$ -430.939 deficit in 2014 or almost half of the
number in the last decade.
600
400
United States
Japan
200
China
0
India
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-200
-400
Indonesia
Malaysia
Philippines
Singapore
-600
-800
Thailand
Vietnam
-1000
Figure 2 Current Account Balance, US$ Billion, 2005-2014, Selected Countries
The reason why some developments in advanced economies are important

for emerging market and developing economies can be simply explained by the
extended effect of globalization. As the interconnectivity between countries
increases, economic and financial development in a country group will bring direct
and indirect impact to many sectors in other groups. The following figure describes
how the importance in development between economic groups has shifted in the
last decade. Advanced economies have been the largest contributors for world
economy in term of GDP share in 1980s, 1990s, and 2000s. But as 2010s and the
near future, emerging market and developing countries contribution tends to grow
faster and temporally become higher compared to advanced economies.
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70
60
50
40
30
20
10
0
1980
1990
2000
2010
2014
Advanced economies
Emerging market and developing economies
Latin America and the Caribbean
Sub-Saharan Africa
Figure 3 Gross Domestic Product Based on Purchasing-Power-Parity (PPP), Share of World Total, 19802014, World
Share of world for each economies as described in the figure below indicates
the relatively close relation between economies during the last decade. As the
advanced economies suffer deep recession in the 2008 financial crisis and its
aftermath, world economies also follow the same trend. However, after the fast
recovery led by emerging market and developing economies, the world economies
slowly awake. An exception can be easily seen in Middle East and North Africa
region as well as in Latin America and the Caribbean due to regional issues in
security and others.
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10
8
6
4
2
0
World
Advanced economies
Emerging market and
developing economies
Latin America and the
Caribbean
-2
Sub-Saharan Africa
-4
-6
Figure 4 Growth of Gross Domestic Product, Constant Prices (%), 2005-2014, World
The same trend can also be viewed using countries data level as the
following figure illustrates. As the United States economy growth fell in 2009,
Japan, Singapore, Thailand, and Malaysia economies also encountered with same
problem with different degrees. In the other hand, China and India kept the growth
even tough with a slower run. As for 2010 many countries have finally showed
positive growth with a slower recovery, indicating the depth of recession the United
States suffered. This description indicates how the relation on global financial has
impacted many countries at the fast and unpredictable speed depending on country
readiness to short-run shocks.
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20
United States
15
Japan
China
10
India
Indonesia
Malaysia
Philippines
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
Singapore
2014
Thailand
-5
Vietnam
-10
Figure 5 Growth of Gross Domestic Product, Constant Prices (%), 2005-2014, Selected Countries
The 2008 financial crisis was the one and the only example of globalization
effect on global economic imbalance. The 1997/1998 Asian crisis showed how
capital flight from the emerging economies resulted regional crisis which its
impacts spread into international economic and political aspects. Thailand,
Malaysia and Indonesia were among the most impacted by concurrent exchange
rate and asset price falls that finally overwhelmed banking and financial sectors,
lowered real investment and prompted recessions (Makin, 2009, p. 12). Not only
emerging countries, an advanced economy, like South Korea, also underwent
straight even though it rapidly recovered. Other countries like Hong Kong, Chinese
Taipei and Singapore were distressed through indirect chain mainly from trade
shocks. Asian financial crisis showed how serious macroeconomic problems can
emerge in an economy after a currency crisis appears. (Makin, 2009, pp. 12-13).
From this point of view, the previous discussion suggest how globalization
can generate a massive and wide impact on economies mostly because of its
capacity to integrate many nations into a single market. As a region suffer from a
crisis, another ones shall always be ready to prevent itself from the same potential
crisis as the consequence of this integration. However, as seen from previous crises,
global imbalances play significant role in deepening the negative impact of
globalization mainly because of differences in countries readiness in dealing with
economic shocks. A larger economy with higher surplus tends to be well-prepared
in dealing with crises compared to smaller economy having deeper deficit. To this
point, imbalances in global economy can be viewed as one of the main disease
brought by globalization that many developing countries should always be ready to
fight it.
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Globalization and Sustainable Development

Another effect emerges from the globalized economic of the world is
sustainable issues. Economic and financial forces in the globalized world have put
many natural resources in danger because of its exploration and use. Not only the
natural resources, the planet earth as humanity home base is also in danger because
of pollution, climate change, and many other environmental disasters rooted in the
human ambition to achieve economic growth and financial goals. These negative
effects of globalization have brought the world to take more effort in understanding
and applying a more sustainable approaches to the global economic activities so
that development can bring not only prosperity for today generations but also the
future ones.
Based on a report of a team selected by the United Nations established to
identify future environmental approaches for the world, sustainable development
was defined as development that meets the needs of the present without
compromising the ability of future generations to meet their own needs (Elliott,
2006, pp. 7-8). This definition, by which expressed in a report two decades ago,
mainly focuses sustainability as a whole process in development by which next
generations interests should be taken into account by policy makers today. The
wholeness in the definitions imply the need of sustainability not only in term of
environmental issues but also can be generated to governance, financial, etc.
Therefore, Munasinghe (1993, p. 3) pointed three methods to make
sustainable development real, namely: (a) economic approach by maximizing
income while maintaining a constant or increasing stock of capital; (b) ecological
approach by maintaining resilience and robustness of biological and physical
systems; and (c) social-cultural approach by maintaining stability of social and
cultural systems. Furthermore, Rogers, et al. (1997) proposed some indicators by
which sustainable development can be achieved, i.e.:
Leave everything in the pristine state, or return it to its pristine state.

Develop so as to not overwhelm the carrying capacity of the system.
Sustainability will take care of itself as economic growth proceeds
(Kuznets).
Polluter and victim can arrive at an efficient solution by themselves (Coase).
Let the markets take care of it.
Internalize the externalities.
Let the national economic accounting systems reflect defensive
expenditures.
Reinvest rents for nonrenewable resources (weak and strong sustainability).
Leave future generations the options or the capacity to be as well off as we
are (Rogers, Jalal, & Boyd, 2008, p. 23).
Despite bringing imbalances in economic capacity, globalization also

differentiate countries on their capacity in exploration of their natural resources and
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its uses. World Banks (2011) report in the following tables and descriptions can be
viewed as important reason why sustainable development is required by current
policy makers. In this report World Bank uses many indicators to capture
economies and countries based on their wealth. Total wealth is present value of
future consumption that is sustainable, discounted at a rate of time preference of 1.5
percent, over 25 years. Net foreign assets are calculated as total assets minus total
liabilities. Produced capital is sum of physical capital and urban land, which is
valued at 24 percent of physical capital across all countries. It is defined as
accumulation of investment series (gross capital formation) taking into account
depreciation at the rate of 5 percent with 20 years as the service lifetime assumption.
Natural capital is sum of Crop, Pasture Land, Timber, Non Timber Forest, Protected
Areas, Oil, Natural Gas, Coal, and Minerals. And intangible capital is calculated as
a residual.
Advanced economies, based on this report, tend to be more creative in
technology that make their environment better and finally their wealth much higher
compared to lower income economies. As table 1 below shows, total wealth of high
income OECD countries reached US$ 551,964 in 2005. It was far above lower
income countries which for the same data, its wealth didnt reach 1% of the wealth
of high income countries.
Table 1 Trend in total wealth based on a balanced sample of 124 countries across all 3 years (1995, 2000,
and 2005), US$ Billions, 2005
Aggregate values
Population
Total
Wealth
Intangible
Capital
1,707,083,759
35,284
17,615
Net
Foreign
Assets
122
Europe & Central Asia
408,064,333
29,684
18,420
Latin America & Caribbean
531,341,503
42,079
Middle East & North Africa
239,764,358
Produced
Capital
Natural
Capital
10,035
7,512
-442
5,450
6,256
29,981
-826
6,515
6,410
6,951
2,869
47
1,663
2,372
1,439,572,302
15,031
8,783
-177
2,629
3,796
Sub-Saharan Africa
680,952,968
9,457
5,829
-184
1,301
2,510
Low income
586,050,253
3,597
2,153
-112
462
1,094
Lower middle income
3,432,693,572
58,023
29,476
-128
14,032
14,642
Upper middle income
579,971,064
47,183
33,447
-779
7,650
6,865
High income: OECD
938,210,925
551,964
449,946
-1,735
93,386
10,367
54,232,900
12,826
5,080
1,340
2,653
3,753
5,591,158,713
673,593
520,102
-1,412
118,182
36,721
East Asia & Pacific
South Asia
High income: non-OECD

World
Source: World Bank (2011)
The data for per capita wealth in selected countries also captures the same
trends as the following table indicates. United States and Japan lead the table for its
high achievment in total wealth compared to other countries. An intriguing data can
be seen in case of Singapore. With only US$2 per capita natural capital, this
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neighbouring country has US$300,975 total wealth per capita far above southeast
Asian countries which also make it among rich countries in the world. Singapores
experience indicates that achievment in global economy was not merely caused by
the natural resources but mostly by capacity to advance any opportunities to
progress. It is simply because globalization brings competition closer to every home
countries so that readiness and preparedness are requirements to win the challenge
of globalization.
Table 2 Per Capita Wealth Estimates, 2005, US$, Selected Economies
Economy
Population
Total Wealth
United States
296,410,404
734,195
Intangible
Capital
627,246
Net Foreign
Assets
-6,947
Produced
Capital
100,075
Natural
Capital
13,822
Japan
127,774,000
548,751
398,870
11,920
135,866
2,094
China
1,304,500,000
19,234
8,921
284
6,017
4,013
India
1,094,583,000
10,539
5,961
-107
1,980
2,704
Indonesia
220,558,000
19,769
11,398
-523
3,968
4,926
Malaysia
25,347,368
64,767
35,943
-750
16,824
12,750
Philippines
83,054,478
19,698
14,076
-592
2,745
3,468
Singapore
4,341,800
300,975
164,849
54,719
81,405
Thailand
64,232,758
37,765
21,150
-905
9,711
7,810
Vietnam
83,104,900
9,374
4,196
-303
1,851
3,630
Source: World Bank (2011)
To make sure that a country thrive in a global economic competition, human

resources quality is a must instead of natural resource. High quality in human
resources can improve a countrys quality and guarantee its sustainability since
human factors have been proven the main causes of many fatalities in environment.
From this point of view, sustainability should also be seen as an integrated aspect
of human life which imply the need of human resource quality improvement to
succeed in globalization. Without strong and comprehensive attention to human
resources, sustainability in development will be far to reach even though in a
country where natural resources are affluent. In the context of developing countries
like Indonesia, such situation has been clearly exposed. The lack of capacity in
technology along with pressure from advanced economies together have put
national wealth absorbed abroad while many population living under poverty line
or close to it.
Contributions of Islam for a Better Globalization

As this paper has described earlier, at some point globalization is a noble
endeavor to maintain humanity in good relation by opening wide access for
different cultures, faiths, languages, etc. to collaborate in harmony and achieve
greater benefit for all. Using this attribute to understanding globalization, then
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Islamic sources of teaching, the Holy Quran and the Sunnah impulse Muslims to
always seek knowledge and be tolerant in faiths, societies, and nationalities (Soguk,
2011, pp. 30-32). At this point, one may conclude that Islam is very supportive to
the idea of globalization.
Furthermore, when globalization was defined as the process towards an
increasingly strong interdependence between increasingly large parts of the world,
which then resulted in the phenomenon that an occurrence and progress in an area
effect almost others, Islam has important role in globalization processes. From its
very beginning, Islam has contributed many political, economic, and cultural life
of other civilization through its conquering (fat) and assimilation (Meuleman,
2002). In short, Islam not only supportive to progress brought by globalization
process but it was among prominent player in spreading ideas to create a globalized
world.
Islam is also a religion of civilization by mean never separate cultural
essence outside history so that it was blended in politics, society, and history
(Atasoy, 2005, p. 18). Such idea of civilization makes Islam not only supportive for
globalization but also an active player in coloring globalization with thoughts and
contributions. Therefore, Islam and Western civilization, as they have long been
interconnected through international trade and economic exchange, now embrace
a new relation in an economic world system (Wallerstein, 1974 ) (1984). This
economic system worldly involve humanity is what historically connect nations in
general along with material and cultural exchanges (Ahmed & Donnan, 1994).
Islams compatibility to globalization is, from this perspective, undeniable.
Although Islam is compatible to globalization, many of Islamic teachings
do not allow Muslims to fully entangling in globalization because of its negative
impacts on culture, faith, and economy. This paper however focuses only on
economic aspect mainly with regard to efforts in legal and financial framework. As
the financial and economic crises like the ones in 2007/08 emerges it is clear that
speculative transactions are main cause of it (Binswanger, 2012). Speculative
transaction may appears mostly because of greediness naturally possessed by
materialistic capitalism in which globalization relying on. In the other hand, Islam
forbid speculation for its destructive effect not only on money but also to society.
This idea of forbidding speculation is mainly rooted in Holy Quran teaching
regarding gambling (mysir, qimar) for example in Surah A-Baqarah verse 319 and
Surah Al-Maidah verses 93-94. Such a forbidding was then legalized by Muslim
scholars in fiqh and as well as in Islamic finance application as one of its main
principles (Iqbal & Mirakhor, 2011, p. 10).
Not only forbidding speculative transaction as the root of financial crisis,
Islam also forbid Muslims to consume too much resources for it make abundance
wasted. Surah Al-Isra verses 26-27 forbid wasting food and blame those who do it
as companion of devils. Other verses like 141 of Surah Al-Anam and 30 of Surah
Al-Araf remind Muslims to eat and drink proportionally and without wasting
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resources. Why does Islamic teaching regarding consumption important for

globalization? The answer relies on previous discussion on causes of global
economic imbalances. Consumption-driven economy like the United States and
other advanced economies have been responsible for fast growing consumption of
many products which impacted in large deficit. Without any efforts to stop or at
least limit the consumption, planet earth capacity to feed human race must be in
danger.
Not only endanger planet earth capacity in providing food, consumptiondriven economy put the world into a paradox as many rich countries spend billions
dollar to fight obesity, their counterparts in low income countries suffer from mass
famine. Therefore, Islamic teaching on feeding hunger (Surah Ad-Dahr verses 8
and 9) and giving the needs (Surah Al-Maun) should be introduced as a solution
to imbalances in wealth among people. And as Prophetic sayings, faith is related to
willingness to feed poor because those who sleep knowing others in hunger and do
not give appropriate help, his faith is questioned. From this point, Islamic teaching
give solution on dealing with imbalances by driving Muslims to be wish in
consumption and generous in helping others.
In term of sustainability Islamic teaching mainly urge human race as the
best creation of God (Surah At-Tiin) and therefore they were obliged to guide the
world as leaders (khalifah) to bring prosperity on it (Surah Al-Baqarah verse 30,
Yunus verses 14 and 73, Al-Araf verses 68 and 83, etc.). Islam acknowledge
human right and capacity to develop earth as their home for creating prosperity but
also reminds them about the consequence they will deal if they make destructions
on earth. Surah Ar-Rum verse 41 explains how natural disasters, destructions, and
many other difficulties faced by humanity are the results of human actions. These
difficulties are exposed to humanity to make them aware of their faults with a hope
they can make it to the blessed way of God. Destructive human actions in this
context are the cause for disasters but also the source to make them realize their
wrong way. It implies that Islam put human race not only as free community in
dealing with resources available on earth but at one hand emphasizes the
responsibility to take care of it. Freedom then is nothing in Islam without
responsibility.
The balance between consumption and giving as well as between freedom
and responsibility then brings to the very important principle in Islamic teaching:
justice. Justice has been praised as the closest way to taqwa (Surah Al-Maidah verse
9), the highest stage of excellences in Islam (Surah Al-Hujurat verse 13). Justice in
Islam is not merely object in term of legal or law but can also be widened to farther
aspects of Muslims life. In the context of globalization justice implies the
responsibility of advanced economies to take more actions on developing countries
to deal with famine, hunger, indebtedness, etc. as consequence for the benefit they
take in the form of natural resources, etc. Justice for emerging economies means
proper wage for workers so that they live a better life and protect the world from
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dumped price. Justice in globalization also reflects the need to renegotiate trade
agreements to benefit both parties not only the advanced societies.
To summarize, Islamic teachings pay attention on creating justice society
where gambling is forbidden for it is harmful, empowering community through
limitation of unnecessary consumption and providing others in needs, and
promoting justice as global idea in dealing with universal human problem. Will
such ideas be respected, accepted, and even applied? As Singh (2014) noted our
need now is to have an integrated, holistic approach to maintain sustainable world
together. According to Strong (1996, p. 16), such efforts should have a root in the
culture, the values, the interests and the priorities of the people who have concern
about the matter. This simply put Islamic ways in dealing globalization effects as
one option for solution. Without trying to find cure to globalization problems from
the perspective of different cultures, faiths, and societies, the world will go to more
dangerous situation caused by a globalized life in planet earth. However, this paper
has offered a little but hopefully beneficial and applicable solution in dealing with
globalization.
Conclusion
Previous discussions suggest that globalization has many faces in front of
humanity. It is a gift at one hand as it enables more people to engage and gain
benefits but in the other hand it produce many problematic issues. The discussions
focus mainly on economic imbalances and sustainable development as two among
many other negative effects of globalization. Imbalances in global economy mainly
caused by the high consumption-driven activities in advances economies compared
to deep investment-driven growth in emerging markets. But the problems caused
by imbalances touch not only those living in the two economies but also around the
world as part of globalization consequences. While for sustainability issues,
globalization brings another challenges for developing countries as it absorb its
natural and human resources and bring them to advanced economies that finally
resulted in wider inequalities in capacity to sustain in the future. Sustainability deals
not only environmental aspects but also countries capacity to grow and benefit from
it.
Islam offers many guided teachings on how to deal with globalization,
mainly by forbidding speculative transaction as the basis of greed which fuel the
crises around the world. It also encourages balance between freedom and
responsibility in using world scare resources to guarantee future generations
capacity to grow. In its core of teachings, Islam emphasizes justice in legal and
economic aspects as cure for humanity problems in the age of globalization as by
justice better solution can be gained. These options for solution to globalizations
impact on imbalance and sustainability issues emerge from Islamic teaching
originated from the Holy Quran and Sunnah which for Muslims are main sources
of their daily life guidance.
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This paper has many limitations mainly because it focus on imbalance and
sustainability as wide aspects of globalization. A more specific focus on poverty,
inequalities, disparities, and other with special cases can be offered for better
research in the future. Moreover, discussion on Islam and globalization will be more
attractive when viewed from country or region perspective along with specific
opinion of scholars or school of thought in Islam. However, endeavors this paper
carried should be seen as an opening step for another journeys in relation of Islam
and globalization and efforts to make it work better.
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Globalization, Economic Imbalances, and Sustainable Development: What Islam Can Contribute To Solve It?

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Globalization, Economic Imbalances, and Sustainable Development: What Islam Can Contribute to Solve It?

Globalization, Economic Imbalances, and Sustainable

Globalization and Economic Imbalances

Emerging market and

Latin America and the

Middle East and North Africa

The reason why some developments in advanced economies are important

Emerging market and developing economies

Latin America and the Caribbean

Middle East and North Africa

Globalization and Sustainable Development

Leave everything in the pristine state, or return it to its pristine state.

Despite bringing imbalances in economic capacity, globalization also

Europe & Central Asia

Latin America & Caribbean

Middle East & North Africa

Lower middle income

Upper middle income

High income: OECD

East Asia & Pacific

High income: non-OECD

Source: World Bank (2011)

To make sure that a country thrive in a global economic competition, human

Contributions of Islam for a Better Globalization

resources. Why does Islamic teaching regarding consumption important for

Iqbal, Z., & Mirakhor, A. (2011). An Introduction to Islamic Finance-Theory and

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