Abstract

This paper argues that many developing countries in general, and Muslim countries in particular, have failed to achieve a commendable level of development, despite their rich resource base and good economic policies. This is mainly due to the internal conflicts within their societies which have adversely affected their strength. The paper emphasizes the need for a peaceful Conflict Resolution Mechanism, and argues that the institutions and practices based on Islamic values, when used as components of CRM, can not only resolve the conflicts, but are also capable of producing an overall environment conducive to sustained growth. In support of this position, the paper presents a detailed case study of the CRM of the Malaysian society that has been built into Malay Islamic culture and has contributed enormously to the country's remarkable development.