The economic philosophy of Muhammad Baqir al-Sadr: Ontological foundations, distributive justice, and the third way between Capitalism and Marxism

This opinion paper undertakes a systematic philosophical analysis of the economic thought of Muhammad Baqir al-Sadr (1935-1980), the Iraqi Shia scholar whose foundational works Iqtisaduna (Our Economics) and al-Bank al-la Ribawi fi al-Islam (The Interest-Free Bank in Islam) constitute the most philosophically sophisticated attempt in twentieth-century Islamic thought to construct a comprehensive alternative economic doctrine grounded in Islamic jurisprudence and theology. Drawing on al-Sadr's own primary texts and their reception in both Islamic economic scholarship and comparative political economy, the paper examines the ontological, epistemological, normative, and institutional dimensions of his economic philosophy. It argues that al-Sadr's project is not merely a technical exercise in Islamic jurisprudence applied to economic problems but a fundamental philosophical intervention that challenges the metaphysical premises of both capitalism and Marxism, reconstitutes the concept of economic freedom within a framework of divine sovereignty (tawhid), and develops an original theory of distributive justice grounded in the doctrine of istikhlaf (vicegerency). The paper further examines al-Sadr's treatment of property, production, distribution, and the role of the state, before engaging critically with the principal objections raised against his framework—including concerns about internal consistency, practical implementability, and the adequacy of ijtihad as a mechanism for economic adaptation. The paper concludes by assessing the contemporary relevance of al-Sadr's philosophy for Islamic economic governance and its potential contribution to a pluralist global conversation about post-neoliberal economic alternatives, with particular attention to its implications for Muslim-majority economies such as Indonesia.