The term “development policy” is employed to denote the array of economic, social, and political measures that a nation implements with the objective of achieving sustainable enhancements in living conditions. This entry examines the historical evolution of development policies, their fundamental theoretical approaches, and the limitations of these approaches in practice. It then discusses the possibilities of an alternative development paradigm from the perspective of Islamic economics. The initial assertion posits that development thinking evolved into a distinct discipline in the aftermath of World War II, initially emphasizing neoclassical growth models and capital accumulation, as well as technology transfer. During this period, modernization theory equated development with economic growth and industrialization. Approaches such as the “Great Push,” balanced/unbalanced growth, and the two-sector model served as guides for underdeveloped countries. However, beginning in the 1960s, the universalist and Western-centric assumptions of modernization theory were subject to criticism from structuralism and dependency theory. In the 1980s, the rise of the neoliberal paradigm was precipitated by two major factors: debt crises and structural adjustment programs. The neoliberal paradigm was characterized by the prioritization of market liberalization, privatization, and opening up to the outside world over state intervention. However, the implementation of these policies resulted in the so-called “lost decade” in Latin America, exacerbating existing disparities, and precipitating financial crises. During the 1990s, the developmental state model of East Asia reintroduced the significance of strategic state intervention to the agenda. During the 2000s, the concept of development underwent a significant evolution, expanding beyond the confines of mere economic growth to encompass human development and sustainability. The disparities, ecological devastation, and ethical vacuum engendered by prevailing paradigms have rendered the alternative vision of Islamic economics salient. Islamic economics, in contrast, defines development as a holistic process that is not limited to material prosperity. Rather, it is centered on justice (adl), holistic human welfare (falah), and ethical values. This theoretical framework is predicated on institutional tools such as zakat, the prohibition of interest (riba), risk-sharing financing (mudarabah, musharakah), waqfs (endowments), and infaq (charity). Zakat, on the other hand, ensures the redistribution and circulation of wealth. Conversely, the prohibition of interest proposes a more equitable financial system by preventing speculation and risk-free profit. Historically, waqfs have financed investments in education, health, and infrastructure, and they have the potential to be revitalized in the modern era. In this model, the state does not exercise uncontested authority over the market; rather, it serves as the guarantor of justice, social balance, and institutional quality (shura, accountability). In conclusion, Islamic economics, in contrast to modern development theories, provides a normative framework that is equipped with ethical principles. This framework aims for qualitative transformation rather than quantitative growth. In light of the challenges posed by the prevailing global economic system, this approach, which places a premium on principles of justice, solidarity, and sustainability, harbors the capacity to formulate a coherent and equitable alternative for national development policies.

National Development Policy

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发表日期：

2026年

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Betül Mutlugün

摘要

The term “development policy” is employed to denote the array of economic, social, and political measures that a nation implements with the objective of achieving sustainable enhancements in living conditions. This entry examines the historical evolution of development policies, their fundamental theoretical approaches, and the limitations of these approaches in practice. It then discusses the possibilities of an alternative development paradigm from the perspective of Islamic economics. The initial assertion posits that development thinking evolved into a distinct discipline in the aftermath of World War II, initially emphasizing neoclassical growth models and capital accumulation, as well as technology transfer. During this period, modernization theory equated development with economic growth and industrialization. Approaches such as the “Great Push,” balanced/unbalanced growth, and the two-sector model served as guides for underdeveloped countries. However, beginning in the 1960s, the universalist and Western-centric assumptions of modernization theory were subject to criticism from structuralism and dependency theory. In the 1980s, the rise of the neoliberal paradigm was precipitated by two major factors: debt crises and structural adjustment programs. The neoliberal paradigm was characterized by the prioritization of market liberalization, privatization, and opening up to the outside world over state intervention. However, the implementation of these policies resulted in the so-called “lost decade” in Latin America, exacerbating existing disparities, and precipitating financial crises. During the 1990s, the developmental state model of East Asia reintroduced the significance of strategic state intervention to the agenda. During the 2000s, the concept of development underwent a significant evolution, expanding beyond the confines of mere economic growth to encompass human development and sustainability. The disparities, ecological devastation, and ethical vacuum engendered by prevailing paradigms have rendered the alternative vision of Islamic economics salient. Islamic economics, in contrast, defines development as a holistic process that is not limited to material prosperity. Rather, it is centered on justice (adl), holistic human welfare (falah), and ethical values. This theoretical framework is predicated on institutional tools such as zakat, the prohibition of interest (riba), risk-sharing financing (mudarabah, musharakah), waqfs (endowments), and infaq (charity). Zakat, on the other hand, ensures the redistribution and circulation of wealth. Conversely, the prohibition of interest proposes a more equitable financial system by preventing speculation and risk-free profit. Historically, waqfs have financed investments in education, health, and infrastructure, and they have the potential to be revitalized in the modern era. In this model, the state does not exercise uncontested authority over the market; rather, it serves as the guarantor of justice, social balance, and institutional quality (shura, accountability). In conclusion, Islamic economics, in contrast to modern development theories, provides a normative framework that is equipped with ethical principles. This framework aims for qualitative transformation rather than quantitative growth. In light of the challenges posed by the prevailing global economic system, this approach, which places a premium on principles of justice, solidarity, and sustainability, harbors the capacity to formulate a coherent and equitable alternative for national development policies.