Abstract

The global economic crisis makes closer collaboration between economics and other social sciences even more urgent. One major cause of divergence has been the attitudes of the parties towards the ‘market’. Yet, the market economy, in all its diversity, is one of the immutable facts of modern life. Understanding the causes of its survival will improve the dialogue. Another interesting puzzle is the lack of credible alternatives to it despite the depth of the crisis. The experience of the economists in constructing models of society based on the behaviour of individuals composing it can be valuable for other social sciences. We apply the framework developed by ‘institutional economics’ to gain insights into the relations between Islam, capitalism and democracy. The article finishes with some observations on Turkey and draws lessons for other Muslim societies.