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Introduction
There is no consensus among the experts that welfare can be increased through philanthropy or market is sufficient for the achievement of targeted level of welfare. It is still a main quest that giving visible good to one known fellow is better or market ethos have more positive impact on the society where we have needs of thousands of unknown. In Hayek's view from all the aspects, markets are more valuable than philanthropy - because they "confer benefits beyond the range of our concrete knowledge" (Hayek, 1988, p. 81) and therefore offer "a greater benefit to the community than most direct 'altruistic' action" (Hayek, 1988, p. 19). The same we can expect from the ethical and moral financial institutions having the objective to not only increase their profit but also equally trying to serve the community and society.
The current study proposes a constructive model in which markets, philanthropy and financial institutions work jointly to increase welfare, human independence, prosperous and voluntary social collaboration. In this study, we first examine the theoretical contrasts through which "commerce-philanthropy relationship" (e.g. conventional versus Islamic socialism) and the "historical-philosophical" framework in which they were framed. This supports to integrate philanthropy into Hayek's "theory of economic and social order" through financial institutions. Second, we discover the basics of an Islamic understanding of "philanthropic action".
This debate is stimulated by the emerging literature of positive psychology (Lewis and Chamlee-Wright, 2008; Chamlee-Wight and Myers, 2008) and double movement of Polanyi (2001). Without leaving Hayek's "theory of markets", we draw a picture of commercial society in which simultaneously markets and philanthropy ("voluntary giving and association that serves to promote human flourishing") are working and increasing the human welfare, their freedom, prosperity and also "voluntary social cooperation" under the umbrella of Islam. Here, question rises about relationship between "state and market" and welfare state or philanthropy. There is need to find out the role of market. Either market is able to produce the just and unbiased economic system or not. On the other hand, there is debate about the role of the government; government should address the welfare aspects or it should be done by the community/voluntary sector (Ismail et al. , 2013). We will also explore the different dimensions that...