EMBEDDEDNESS of MAWAH ACEH in MUDHARABAH CONTRACTS: A SYSTEMATIC LITERATURE REVIEW AMIDST MODERN ECONOMIC FLOWS

Abstract

The practice of local wisdom such as mawah is not solely viewed in terms of profit or gain, but its existence and function are actually supported by the roots of cultural, social, and religious values that have long been embedded in it, such as the values of solidarity or social capital, trust values, and the value of mutual assistance. Mawah can also be seen from a different paradigm, namely as a unique local socioeconomic fact. Therefore, the main issue in this research is how mawah as a local economic product is able to create social capital, benefits, and its own separate economic market mechanisms, disembedded from the free market of global capitalism? Or the fundamental question in this research is 'how does mawah manage to survive amidst the penetration of modern economic currents?

From the local economic paradigm to the national economic paradigm, based on a systematic literature review, field studies, and interviews conducted, it has not been indicated that similar studies are still relatively rare. This is because the focus of attention among other authors related to the issues of theory and field findings shows that the patterns and tendencies of the authors only understand the surface facts that are identified with mudharabah contracts. 

The main issue fact from the SLR analysis results shows that other authors have not yet examined the mawah from the socio-economic perspective of Eastern Europe like Karl Polanyi, who tends to view mawah as socio-economic facts that are always interconnected with each other, embedded in specific political, cultural, and ideological structures. Polanyi directly asserts that economic activities take place within specific social institutions that are not neutral, an instituted economic process, including customs, laws, and beliefs. Mawah in fact persists and operates within the framework of local social institutions such as gampong, customary practices, and even unwritten laws. So, the existence and presence of the Acehnese mawah practice remain relevant and functional as long as the communities in rural Aceh continue to uphold and can ensure that the mawah contract processes align with the mudharabah contract in Islamic economics.

Key Word: Embeddedness, Mawah, Mudharabah, Contract, SLR