Islam, Muslims, and the Crisis of Ethical Practice.
“Is selling fake products halal?”
Dr Shabir Choudhry, London, 13 May 2026.
A thought-provoking study conducted by Hossein Askari of George Washington University raised an uncomfortable but important question: how closely do so-called Muslim countries actually reflect Islamic principles in governance, justice, and public life?
The research, published in the Global Economy Journal, attempted to measure countries not by the number of mosques, religious slogans, or outward displays of faith, but by values that Islam strongly emphasises — justice, accountability, honesty, welfare, equality, rule of law, transparency, and ethical governance.
The findings surprised many people.
According to the study, countries considered most aligned with Islamic ethical and social principles were not Muslim-majority states. New Zealand reportedly ranked first, followed by Luxembourg, Ireland, Iceland, Finland, Denmark, and Canada. By contrast, many Muslim countries ranked far lower. Malaysia stood at 38th place, Kuwait at 48th, Bahrain at 64th, while Saudi Arabia was reportedly placed at 131st.
The purpose of the study was not to declare non-Muslim countries “Islamic” in a theological sense. Rather, it sought to demonstrate that some societies commonly associated with secular Western democracy perform better in areas that Islam itself strongly values — fairness, transparency, institutional integrity, protection of rights, social responsibility, and accountability.
This distinction is intellectually important and should not be misunderstood.
The study also highlighted a painful contradiction within many Muslim societies. Muslims are often extremely careful regarding ritual practices such as prayer, fasting, recitation of the Quran, observance of Sunnah, hijab, beards, and religious dress. Yet the same seriousness is frequently absent from public ethics, governance, honesty in trade, professional conduct, and respect for others' rights.
This criticism is not entirely external. In fact, it echoes a long-standing moral concern found within Islamic teachings themselves: that religion without justice and ethical conduct risks becoming hollow ritualism.
The distinction between outward religiosity and ethical conduct is deeply rooted in the Quran, Hadith, and classical Islamic moral thought. The Quran repeatedly connects worship with morality and social responsibility. Prayer without justice is criticised. Charity without sincerity is condemned. Oppression, dishonesty, exploitation, and abuse of power are regarded as grave sins.
One striking anecdote often quoted in discussions surrounding this issue concerns a Chinese businessman who reportedly complained that some Muslim traders requested counterfeit goods carrying labels of famous international brands. Yet when invited to share food, they refused because it was not halal. His sarcastic question was simple but devastating:
“Is selling fake products halal?”
The point behind this criticism is obvious. Islam does not limit morality to food, clothing, or ritual observance. Ethical conduct in business, honesty in trade, fulfilment of contracts, fairness in dealing with others, and respect for people’s rights are also fundamental Islamic teachings.
Historically, Muslim civilisation earned global respect not only through military or political power, but also through scholarship, trustworthiness, justice, trade ethics, and intellectual excellence.
Another widely repeated observation comes from a Japanese convert to Islam who reportedly remarked:
“In Western countries, I see non-Muslims practising the principles of Islam, while in Eastern countries I see Muslims but not Islamic behaviour.”
This statement is rhetorical, not literal. It does not mean that Western societies are Islamic in terms of faith or spirituality. Rather, it reflects the perception that some non-Muslim societies often demonstrate values such as punctuality, cleanliness, honesty, civic responsibility, rule of law, meritocracy, and respect for human rights more consistently than many Muslim-majority societies, despite their strong religious symbolism.
At the heart of this debate lies a deeper and more uncomfortable question: what is Islam?
If Islam is reduced merely to rituals and outward religious identity, then one understanding emerges. But if Islam is understood as a complete moral and social framework governing justice, honesty, compassion, accountability, dignity, and human conduct, then the discussion becomes far more serious.
One of the most important Hadiths on this subject concerns the concept of spiritual bankruptcy. The Holy Prophet Muhammad (peace be upon him) explained that the truly bankrupt person is not someone without wealth, but someone who appears on the Day of Judgment with prayers, fasting, charity, and pilgrimage, yet has abused others, consumed their wealth unlawfully, violated rights, spread injustice, shed blood, or caused suffering. Despite outward religiosity, such a person loses everything.
This Hadith is profoundly important because it shifts attention from appearance to character, and from slogans to conduct.
The discussion also touches upon two essential dimensions of Islam:
- Iman — faith, belief, and declaration;
- and Ihsan — moral excellence, ethical behaviour, and beauty in conduct.
Without both dimensions working together, religion becomes incomplete. A society may display visible religious symbolism while simultaneously suffering from corruption, injustice, intolerance, dishonesty, abuse of power, sectarianism, and social decay.
It is therefore argued that personal religious obligations — such as prayer and fasting — primarily concern the relationship between an individual and Allah. However, social ethics concern relationships between human beings. When justice, honesty, compassion, accountability, and respect for human dignity disappear from society, collective decline becomes inevitable.
Of course, such discussions must also be approached carefully and fairly. The problems facing Muslim societies cannot be explained solely through religious hypocrisy or moral failure. Colonialism, dictatorship, authoritarianism, economic dependency, wars, foreign intervention, and geopolitical exploitation have also played major roles in weakening institutions and destabilising many Muslim countries.
At the same time, it would be intellectually dishonest to blame every problem entirely on imperialism or external conspiracies. Some may argue that internal weaknesses within Muslim societies — including political fragmentation, corruption, decline in knowledge, authoritarianism, sectarianism, moral decay, and intellectual stagnation — also contributed to their vulnerability to colonial domination and continued decline.
This requires serious self-reflection.
Why do societies that loudly proclaim religion often struggle with corruption, inequality, intolerance, weak institutions, and social injustice?
Why do outward symbols of religiosity sometimes coexist with dishonesty, exploitation, abuse of power, and the violation of human rights?
And why has the Muslim world, despite immense religious devotion, often failed to become a global model of justice, knowledge, scientific excellence, intellectual creativity, and ethical governance?
Perhaps the answer lies not in the absence of religion, but in the failure to internalise and practise its ethical teachings sincerely and consistently.
A quotation frequently attributed to George Bernard Shaw states:
“Islam is the best religion, but Muslims are the worst followers.”
Whether Shaw said these exact words or not, the statement continues to resonate because it reflects a painful gap between ideals and reality.
The crisis facing many Muslim societies today is therefore not merely political or economic; it is also moral, intellectual, and civilisational.
No civilisation can revive itself through slogans alone.
Genuine revival requires justice, honesty, knowledge, compassion, accountability, self-criticism, and the courage to confront uncomfortable truths.
Without these values, religiosity risks becoming symbolism without substance.
The final reflection is therefore deeply self-critical:
“How can Allah grant us the ability to practise Islam when we have never sincerely tried?”
That question is not merely theological. It is moral, social, political, intellectual, and civilisational.
In conclusion, I must add that:
It is imperative to put matters in the correct perspective, because many readers may misunderstand the study.
- The study did not claim Western countries are “Muslim”.
- Rather, it argued that some Western institutions better reflect certain ethical and governance principles associated with Islam.
This distinction is intellectually essential.
This is arguably the core thesis of the entire article.
The distinction between:
- Ritual, religiosity, and
- ethical/social Islam
is deeply rooted in:
- The Quran,
- Hadith,
- And classical Islamic moral thought.
This gives the argument theological legitimacy rather than making it sound like a modern liberal critique.
This is one of the strongest parts because it directly supports the argument from authentic Islamic tradition. This authentic Hadith clearly says:
“The bankrupt person from my Ummah is the one who will come with prayer, fasting and charity, but he abused others, consumed their wealth, shed blood, and oppressed people…”
This Hadith is devastatingly powerful because it shifts focus from outward religiosity to moral conduct.
Readers need to understand that this anecdote is extremely effective because it exposes a moral contradiction in simple everyday language, and we witness this in our everyday life, and sadly, tend to ignore it.
This connects Halal consciousness with:
- Corruption in trade.
- Injustice,
- Abuse of power,
- And so many other wrongdoings.
That contrast is memorable and relatable.
It is essential to understand that some phrases are rhetorical, and not literal.
Without clarification, some readers may misunderstand it as glorification of the West or rejection of Muslim identity. The clarification makes it intellectually safer and more balanced.
Academically, it is extremely important to clarify things; otherwise, critics could easily dismiss the arguments presented by saying:
- Muslim societies suffer because of colonialism,
- Dictatorships,
- Wars,
- Economic dependency,
- Foreign intervention,
- Authoritarian states,
- And geopolitical exploitation.
These are bitter realities and cannot be brushed aside. It is better to acknowledge our mistakes and shortcomings. If we associate everything with imperialism, wars and dictatorship, does it mean that before the Muslim countries were colonised, there was no injustice, corruption, nepotism, hypocrisy and wrongdoings in the Muslim societies?
The counterargument could be that Muslim countries were colonised because of injustice, corruption, immoral activities, hypocrisy and wrongdoings.
A bitter reality is that the problems of Muslim societies cannot be explained solely through religious hypocrisy; colonialism, authoritarianism, economic dependency, war, and geopolitical interference, because there is a long history behind this.
Islam is not merely ritual worship because Islam strongly emphasises:
- Justice,
- Honesty,
- Compassion,
- Accountability,
- Dignity,
- And ethical public conduct.
Dr Shabir Choudhry is a London-based political analyst, author, and expert on South Asian affairs, with a focus on Pakistan, Afghanistan, and Kashmir. Email: drshabirchoudhry@gmail.com
