The objectives of this chapter are to explain first the concept and practice of economic growth in mainstream economics, and to develop the Islamic perspectives of economic growth. Secondly, we will examine the policy questions associated with growth and development in the context of sustainability.

Measurements of Economic Growth

We have been hearing much these days about the economic miracle of East and South-East Asia, in which are Muslim countries, Malaysia, Indonesia and Brunei. Yet each of these countries are found to enjoy different levels and structure of economic growth even in the face of the high figures they are showing for the rate of change of output. Thus, the criterion of economic growth is being simply equated to its measurement by means of the time rate of change of real gross domestic product. Another measures of economic growth used is the time rate of change of real per capita gross domestic product.

Let us examine these measures first

1. Real rate of growth of GDP is defined by
2. Real per capita rate of growth of GDP is defined by

The Structure of Growth

1. Neoclassical Picture on the Structure of Growth
2. Keynesian Outlook on the Structure of Economic Growth

Technological Induction in Factor and Output Relationships

1. Neoclassical Outlook
2. Keynesian Outlook

The Islamic Framework of a Theory of Economic Growth and Development

Environment, Sustainable Development and Economic Growth

1. Neoclassical and Keynesian Treatments
2. Islamic Treatment

Formalizing the Concept of Islamic Development Process

The Process Model of Development Invoking Shari'ah Attributes
A Shari'ah-Based Process Model of Development