Role of the State in the Economy: An Islamic Perspective visits an important subject against a background of the collapse of state-managed economics. Articles included in this collection discuss how Islam seeks to orient economic agents towards ethical conduct and socially -responsible behaviour. The state is called upon to make up for moral and/or market failure to the extent possible within a framework of essential freedoms. Internalization of moral values and social concern is perceived as minimizing the need for social intervention which, nevertheless, has a place in the Islamic system. The middle raod advocated by Islam is projected as a better alternative to exclusive reliance on the market, as now in vogue as a result of disenchantment with state management.