The topic of ethico-economics is summarily treated here as study of theendogenous treatment of ethics in political economy theory. Such an ethicalendogeneity grounds the strong and globally interactive processes that underlie the general definition of political economy. It gains especial attention, focus and importance in Islamic political economy because of the knowledge-induced interactive worldview of this order.

We will approach the subject matter of ethical endogeneity in thestromgly and globally interactive order in the context of the study of resource allocation and economic growth in the presence of market venue. The subject matter of resource allocation is central to the study of the role of private and public sectors in economic development. By the latter concept we mean the structural transformation of the economy along lines of attaining economic efficiency and distributive equity. In Islamic approaches to socio-economic matters, the focus on these targets assumes a precise and methodological content. The issue then is: Is it at all possible to realize both economic efficiency (the material welfare) and distributive equity (the moral worth) simultaneously in an Islamic economic framework using neo-classical methodology?

Objectives of this Chapter

It is our objective in this chapter to answer this question in an analytical and empirical light. However, we cannot be exhaustive in the Islamic critique of the neo-classical doctrine in an all-comprehending analytical and philosophical depths. We will also not formulate the Islamic politico-economic methodology in its analytical dimensions. For these other details, the reader may refer to the literature. The neo-classical methodology will also be implicated with both the Capitalist and Socialist/Communist doctrines while examining the approach to privatization in the Capitalist transition of the Muslim Commonwealth of Independent States. The neo-classical premise of these doctrines has been well established in the literature

The Ethical Constraints of Neo-Classical Economics

What is Neo-Classical Economic Methodology?

The Social Economic Consequences of Neo-classical Economics

What is Different and New in the Islamic Politico-Economic World View?

1. The Formulation of the Knowledge-Based Model of Polity-Market Interactive 
World View: Replacing Substitution Methodology by 
the Principle of Universal Complementarity

2. Policy Coordination on the Basis of the Developmental and Institutional
Perspectives: Elimination of Interest and Use of Profit-Sharing in Project Related Ventures With Global Perspectives of Economic Cooperation

Conclusion