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Islam and Underdevelopment: An Old Puzzle Revisited

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  • Timur Kuran

    (Department of Economics, University of Southern California)

Abstract

The world's predominantly Muslim countries have long been underdeveloped. This paper classifies, critiques and extends the analytical mechanisms that have been proposed as explanations for the pattern. One mechanism involves the use of Islam to legitimize worldviews that serve vested interests. Another emphasizes religious obstacles to free thinking and innovation. And still another focuses on communalist norms that dampened incentives to develop capitalist economic institutions. None of these explanations elucidates why groups without any stake in the impediments to growth failed to bring about major reforms. The missing element is the role of public discourse, including non-religious public discourse, in keeping individuals from questioning, even noticing, social inefficiencies.

Suggested Citation

  • Timur Kuran, 1996. "Islam and Underdevelopment: An Old Puzzle Revisited," Working Papers 9640, Economic Research Forum, revised 12 1996.
    • Handle: RePEc:erg:wpaper:9640
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