Modernism (in general): To see everything through the lens of reasoning.
Islamic Modernism: Reconciliation of Islamic values with the modern values i.e., democracy, constitutionalism, civil rights, equality etc. Islamic modern scholars believed that Islamic theology was interpreted in historical context, therefore it should be revisited in modern context.
Causes & Emergence: In West Martin Luther (not King) proposed the separation of State and Church. Due to this separation of State and Religion, West/Europe was developed in the field of Politics, Economics, Education, etc. at the expense of religious beliefs.
Development in the West shifted power from the Islamic world to Western world gradually. After colonial rule, Muslim states came under Western dominance, which created a sense of inferiority of Islamic values among Muslims. Islamic values were criticized by the West under a planned propaganda through Christian missionaries. Moreover, Muslims became vulnerable to atheism due to sudden decline of Muslims, studying modern sciences and attraction of Western culture.
Response of Muslim Scholars: In response to these attacks Muslims were divided into two sections; modernists and conservatives. Former adopted modernism and believed it necessary for the revival of Islam in modern times, while the latter thought modernism as a threat to Islamic teachings and confined themselves to the basic fundamentals of Islam for the transfer of true Islamic values to the next generation. It is pertinent to mention here that both of the approaches were with good intention and neither can be blamed. However, modernists have been proved more harmful to Islam than conservatives.
Sayyed Jamal-ud-Din Afghani along with his students Muhammad Abduh pioneered the movement of Islamic Modernism. “Tahzib-ul-Akhlaq” and “The Reconstruction of Religious Thought in Islam” are written works on Islamic Modernism by Sir Syed Ahmad Khan and Dr. Allama Iqbal respectively. Almost all of the Muslim modernists were influenced by Martin Luther and his policy of separation of state and religion, except Dr. Allama M. Iqbal.
Political, Economic, Educational and Social Aspects of Islamic Modernism:
Almost all of the Islamic countries have adopted western political systems with minor changes.
Interest based banking system is working in Islamic world after Islamic Modernism.
In most of the Islamic countries, women are more liberated than ever. Women are participating in politics, work departments and getting higher education in the name of women empowerment.
Modern social values are being practiced after modernism in the name of human rights.
Given topics must be consulted for complete information on Islamic Modernism:
Reconstruction of Religious Thought in Islam by Allama M. Iqbal
Has the door of Ijtihad been closed?