"Of course there are people who are trying to rethink the Islamic tradition in ways that would make it compatible with liberal democracy. But I am much more interested in the fact that the Islamic tradition ought to lead us to question many of the liberal categories themselves. Rather than saying, "Well yes we can also be like you," why not ask what the liberal categories themselves mean, and what they have represented historically? The question of individualism, for example, is fraught with all sorts of problems, as people who have looked carefully at the tradition of individualism in the West know very well. The same is true of the question of equality. We know that the equality that is offered in liberal democracies is a purely legal equality, not economic equality. And the two forms of equality can't be kept in water-tight compartments. Even political equality doesn't necessarily give equal opportunity to all citizens to engage in or contribute to the formulation of policy. What do Islamic ideas about the individual, equality, etc., tell us about Western liberal ideas?
These are questions worth pursuing, I think. So instead of leaping up and saying, "Ah yes, we can all be liberal," I think it is more important to ask, for example, "What exactly does the liberal mean by tolerance?" It is easy enough to be tolerant about things that don't matter very much. That tends to be the rule in liberal societies. Increasingly what you believe, what you do in your own home, whether you stand on your head or decide not to, is up to you as an individual in liberal democracies. So who cares? The liberal tolerates these things because the liberal doesn't care about them. Yet tolerance is really only meaningful when it is about things that really matter. Even in ordinary language we talk about "tolerating pain". In other words, the kind of tolerance that really matters is something we ought to be exploring, thinking more about - and the ways in which the Islamic tradition conceives of tolerance (however limited that might be) helps to open up such questions."
http://www.asiasource.org/news/special_reports/asad.cfm