Islamic Moral Economy and the Global Justice Crisis: From Theory to Social Responsibility

United Kingdom – The Indonesian Association of Islamic Economists in the United Kingdom (IAEI-UK) successfully held its signature Webinar Dialektika titled “Islamic Moral Economy and the Global Justice Crisis: From Theory to Social Responsibility” on Sunday, 23 November 2025. Conducted online, the event brought together participants from diverse academic and professional backgrounds, signalling a growing interest in the role of Islamic economics in responding to global challenges.

The webinar featured a distinguished speaker, Randi Suwandaru, member of the BAZNAS Team of Indonesia Aid for Palestine and PhD in Islamic Finance from INCEIF University Malaysia; along with esteemed discussants Astrid Fiona Harningtyas, Management of Studies and Development at IAEI-UK and PhD Candidate at Durham University, and Sabiq Musthafa, Head of Research on Islamic Philosophy and Economic Thought at IAEI-UK and an alumnus of the University of Exeter. The session was moderated by Muhammad Yusuf Ridwan, Programme Management Officer of IAEI-UK and MSc graduate from the University of Manchester.

The discussion opened with an exploration of the foundations of the Islamic Moral Economy (IME). The speakers described the moral economy as one in which economic behaviour is deeply rooted within a wider ethical and social structure. Rather than viewing individuals as mere rational utility maximisers, IME emphasises reciprocity, mutual responsibility, and the obligation to ensure that the pursuit of personal benefit does not cause harm to others. Economic activity, in this view, is inseparable from moral judgement and social consequence. Grounded in Islamic principles of justice, compassion, and trustworthiness, this perspective frames economic life not simply as a mechanism for wealth creation, but as a moral endeavour aimed at nurturing social cohesion and upholding human dignity.

Building on this conceptual foundation, the speakers reflected on how the Islamic Moral Economy contrasts with dominant economic paradigms that tend to prioritise efficiency and growth while marginalising ethical considerations. IME challenges the assumption that markets are morally neutral spaces, arguing instead that economic institutions are always shaped by value systems, either explicitly or implicitly. When ethical considerations are absent, economic systems risk producing outcomes that exacerbate inequality, exclusion, and environmental harm.

The conversation then turned to the global justice crisis, with a focus on the persistence of poverty, inequality, and structural disadvantages experienced across societies. Despite technological advancement and increasing global wealth, disparities in access to resources, opportunities, and security remain stark. The speakers argued that such injustices arise not only from technical shortcomings in policy design, but also from deeper moral deficiencies embedded in contemporary economic systems. In this context, IME was presented as an alternative framework that seeks to reconnect economic decision-making with ethical responsibility and long-term social welfare, rather than short-term accumulation.

To contextualise the contemporary relevance of IME, several real-world examples were discussed. The #NoStrawMovement emerged as a compelling case of community-driven ethical activism, demonstrating how public consciousness can reshape consumption habits. By encouraging individuals and businesses to avoid unnecessary plastic use, the movement illustrates how moral awareness can influence market behaviour and promote environmental responsibility. Rather than relying solely on regulation, such initiatives highlight the role of ethical norms in shaping economic practice.

The 2021 GameStop stock surge was also highlighted as an illustrative case of how collective sentiment can challenge perceived injustices within financial markets. While not framed as an Islamic movement, the phenomenon was discussed as evidence that economic actors are often motivated by moral outrage, solidarity, and a sense of fairness, rather than purely financial calculation. This example reinforced the argument that moral considerations continue to shape economic behaviour, even within highly financialised systems.

The speakers further engaged with influential ideas on human motivation, particularly the view that individuals act not solely out of self-interest but also from sympathy, moral obligation, and commitment to shared values. Drawing on this perspective, they noted that people may willingly accept personal costs when driven by ethical conviction. These impulses resonate strongly with Islamic teachings, which understand economic life as an arena in which moral character is formed and expressed, and where responsibility towards others is integral rather than incidental.

In their concluding reflections, the speakers underscored the urgency of translating theoretical insights into practical social responsibility. Strengthening zakat and waqf institutions, promoting ethical finance, and cultivating environmentally conscious behaviour were identified as key avenues through which IME can address contemporary injustices. These instruments were discussed not merely as technical tools, but as moral institutions that embody principles of redistribution, solidarity, and social care.

The event reaffirmed IAEI-UK’s commitment to fostering intellectual discussions that inspire real-world solutions and advance an economic vision grounded in ethics, balance, and social justice. Randi, together with IAEI-UK Chairman Muhamad Rizky Rizaldy in his welcoming remarks, emphasised that this gathering was ultimately a youth-driven forum, one that seeks not only to unify understanding but also to unite the spirit of change. They highlighted that Islamic economics must be seen as a movement that aspires to goodness and continuous improvement in human life.

With this webinar, IAEI-UK continues its mission to cultivate collaborative thought and action within the global Islamic economics community, contributing to the pursuit of a fairer, more sustainable, and more humane economic order.