Problems of interaction between state and economy under the post‐communist transition : The perspective of Islamic political economy

Purpose – This paper seeks to identify the contribution Islamic political economy can make to the contemporary debate which is going on regarding deregulation and the role of the state under transition. Design/methodology/approach – A perspective of Islamic political–economic doctrine is discussed and hypothetical implications of this doctrine for post‐Soviet nations are presented through analysis of existing concepts and case studies. Findings – The paper finds that Islamic political economy itself is not synonymous and based on different schools of law as well as local practices, which makes it flexible in time and applicable in different given conditions. The main finding is about placing ethics in the core of whole policy approach. Research limitations/implications – Research is more analysis‐based and does not provide enough empirical data. Thus if it were based on the conceptual framework set by the paper surveys and other forms of field research, it would be helpful. Practical implications – Research comes up with the set of policy recommendations to be implemented as well as with an overall “Three “I” Model” of public policy, which revises the contemporary utilitarian approach to public policy. Originality/value – The paper proposes an alternative approach to the “state‐economy dilemma”. Review of related literature, on the one hand, and analysis/synthesis of the concepts on Islamic approach to addressing politico‐economic problems of the post‐communist transition, on the other hand, also add value.