Heterodox Economics and Good Governance: Integrating Social Structures, Money Circulation, and Islamic Insights for Sustainable Development

Abstract

An effective governance is essential for fostering a stable and prosperous economy in any nation. Good governance involves the effective and efficient administration of a nation's resources and affairs. The social structure of any country vitally contributes to its economy.  In past, the social structure & culture didn’t matter in the economy. The economy was based on a factor of production only.

Now the economy is heterodox economics. Today social governance, social structure, culture, politics, & behaviors matter. The circulation of money provides the foundation of a stable economy. The development of a macroeconomic is based on well structure micro-economy.

Islam, a religion with a rich history, has long recognized the interconnectedness of social challenges and economic prosperity. This perspective aligns with modern governance principles, highlighting the importance of addressing societal issues to foster a thriving economy. Islam emphasizes the well-being of individuals and communities as a cornerstone of economic development.