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The Long Divergence: How Islamic Law Held Back the Middle East
422 pages, 2012
history
999 books
economics & politics
987 booksThroughout the Middle Ages, the Middle East was more advanced economically than Europe. But by 1800, the region had fallen far behind―in living standards, technology and economic institutions. What caused this divergence? And why does the Middle East remain drastically underdeveloped compared to the West?
In The Long Divergence, Douglass North examines how Islamic institutions―legal codes and social norms that regulated market activity and restricted economic liberty―hindered technological innovation and institutional development in Muslim societies.
Timur Kuran argues that Islamic legal institutions, which had benefited the Middle Eastern economy in the early centuries of Islam, began to act as a drag on development by slowing or blocking the emergence of central features of modern economic life―including private capital accumulation, corporations, large-scale production, and impersonal exchange.
By the nineteenth century, modern economic institutions began to be transplanted to the Middle East, but its economy has not caught up. And there is no quick fix for this problem today. Low trust, rampant corruption, and weak civil societies―all characteristic of the region's economies today and all legacies of its economic history―will take generations to overcome.
In The Long Divergence, Timur Kuran explores the impact of Islamic law on the economic development of the Middle East. He argues that certain aspects of Islamic law hindered economic growth and contributed to the region's economic stagnation.
Kuran digs into the specifics of Islamic inheritance laws, which he believes played a significant role in the economic stagnation of the Middle East. He explains that these laws prevented the accumulation of large fortunes and discouraged long-term investment.
The book also explores how Islamic law influenced business practices in the Middle East. Kuran argues that the law's emphasis on individualism and short-term contracts hindered the development of large corporations and limited economic growth.
Kuran makes a compelling comparison between the Middle East and Western economies. He suggests that the Middle East's economic stagnation was not due to a lack of resources or talent, but rather the constraints imposed by Islamic law.
Despite the historical impact of Islamic law on the Middle East's economy, Kuran ends on a hopeful note. He believes that with the right reforms, the region can overcome its economic challenges and achieve prosperity. This book encourages readers to look into the complexities of Islamic law and its economic implications.