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"The very term, 'Islamic State', was never used in the theory or practice of Muslim political science, before the twentieth century," according to Pakistani scholar of Islamic history Qamaruddin Khan.[4][5]
The modern conceptualization of the "Islamic state" is attributed to Abul A'la Maududi (1903–1979), a Pakistani Muslim theologian who founded the political party Jamaat-e-Islami and inspired other Islamic revolutionaries such as Ayatollah Ruhollah Khomeini.[6] Abul A'la Maududi's early political career was influenced greatly by anti-colonial agitation in India, especially after the tumultuous abolition of the Ottoman Caliphate in 1924 stoked anti-British sentiment.[7]
The Islamic state was perceived as a "third way" between the rival political systems of democracy and socialism (see also Islamic Modernism).[8] Maududi's seminal writings on Islamic economics argued as early as 1941 against free-market capitalism and socialist state intervention in the economy, similar to Mohammad Baqir al-Sadr's later Our Economics written in 1961.
Maududi envisioned the ideal Islamic state as combining the democratic principles of electoral politics with the socialist principles of concern for the poor.[9]"
https://en.wikipedia.org/wiki/Islamic_state