ISLAM AND UNDERDEVELOPMENT - AN OLD PUZZLE REVISITED

The world's predominantly Muslim countries have long been underdevelop ed. This paper classifies, critiques, and extends the mechanisms that have been proposed as explanations for the pattern. One mechanism invo lves the use of Islam to legitimize worldviews that served vested inte rests. Another emphasizes religious obstacles to free thinking and inn ovation. And still another focuses on communalist norms that dampened incentives to develop capitalist economic institutions. None of these explanations elucidates why groups without any stake in the impediment s to growth failed to bring about major reforms. The missing element i s the role of public discourse in keeping individuals from questioning , even noticing, social inefficiencies.