Ribā as asymmetry: Reconstructing the ethics of Islamic political economy

This thesis defines Ribā, an ambiguous legal term in Islamic economics, as ‘the exercise of a power asymmetry to obtain an asymmetric benefit for the relatively powerful’. Until now, the lack of a complete definition of Ribā has facilitated the proliferation of Islamic financial products that circumvent the formal cause of Ribā whilst violating the spirit of the prohibition. This thesis, however, offers a comprehensive definition that encapsulates Ribā’s various forms within a single principle, whereby Ribā is understood as a political-economic asymmetry that disrupts justice and balance. The thesis begins by surveying existing conceptions of Ribā, highlighting notions of justice, rights, and economic balance. The thesis employs a hybrid methodological approach, including Tafsīr al-Qur’ān bil-Qur’ān (TQQ) and Shātibean Istiqrā’ (inductive reasoning), to derive a definition of Ribā through thematic induction and statistical syllogisms; identifying deeper meanings related to asymmetry and power. The thesis also introduces the ‘Maqāsid Hierarchy’, an ethico-legal framework relinking Ribā to justice, rights, and purpose, whilst defining an Islamic conception of benefit and harm, and distinguishing between legal injunctions and principles. The thesis further reinforces the definition of Ribā by using Istiqrā’ to extract a principle of symmetry consistent with the definition from the corpus of Islamically prohibited transactions. Positive Islamic economic principles such as stakeholder consideration, long-term planning, and empowerment (via Zakāt) are additionally discussed to supplement the definition of Ribā. Policies targeting Ribā are offered throughout the thesis, advocating for structural economic reform. Whilst the thesis redefines the term Ribā, it also considers the state perspective; offering actionable regulatory frameworks, methods, and policies for Muslim states to identify, regulate, and eliminate Ribā and its means. Through an ethico-legal approach to Islamic economics, the thesis aims to reconstruct an authentic, justice-oriented, economic system consistent with the objectives of the Sharī’ah (Islamic law).