ISTIFADA : Jurnal Ekonomi dan Lembaga Keuangan Syariah
Vol. 2 No. 01 (2026): ISTIFADA : Jurnal Ekonomi Dan Lembaga Keuangan Syariah

Relevance and Limitations of Conventional Development Theory in the Context of Muslim-Majority Countries

Citra Hadi Habibie (Universitas Islam Negeri Kiai Haji Achmad Siddiq)
Fauzan Fauzan (Universitas Islam Negeri Kiai Haji Achmad Siddiq)
M.F Hidayatullah (Universitas Islam Negeri Kiai Haji Achmad Siddiq)



Article Info

Publish Date
05 Jul 2026

Abstract

Modernization has become a dominant paradigm in contemporary development discourse, originating from Western intellectual traditions based on rationalism, secularism, industrialization, and economic expansion. Along with modernization, conventional development theories such as dependency theory and neoclassical growth theory emerged as frameworks for explaining economic transformation and development processes. However, their application in Muslim-majority countries raises questions regarding philosophical compatibility and practical limitations. This study aims to examine the relevance and limitations of conventional development theory from the perspective of Muslim-majority societies. This research uses a qualitative approach with library research methods based on books, journal articles, and conceptual literature. Data were analyzed descriptively to explore the philosophical and socio-economic foundations of conventional development theories. The findings show that modernization developed from the Renaissance and Enlightenment periods and was strongly influenced by secular values that prioritize rational and empirical approaches. Dependency theory highlights structural inequality in the global economy, while neoclassical growth emphasizes capital, labor, and technology as drivers of growth .From an Islamic perspective, development should integrate revelation, reason, and empirical knowledge to achieve justice, maslahah, and holistic welfare..

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Journal Info

Abbrev

istifada

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Description

ISTIFADA: Jurnal Ekonomi dan Lembaga Keuangan Syariah adalah jurnal ilmiah yang diterbitkan oleh Prodi Perbankan Syariah STIES Babussalam. Jurnal ini berfokus pada publikasi karya ilmiah di bidang ekonomi Islam, perbankan syariah, dan lembaga keuangan syariah, baik dalam konteks teori maupun ...