Salient features of Islamic economics compared with capitalism and socialism
Lahore College for Women University
“Islamic Economics and its Features”
System can be defined as:
“System (from Latin systema, in turn from Greek systēma) is a set of interacting or interdependent entities, real or abstract, forming an integrated whole.”
We can also define system as
“A group of D that interact regularly to perform a task.”
There are many systems regarding state and most important is economics system of a country let us discuss it and explain the economic system of a country with reference to Islam.
An economic system is a system that involves the production, distribution and consumption of goods and services between the entities in a particular society. The economic system is composed of people and institutions, including their relationships to productive resources, such as through the convention of property. In a given economy, it is the systemic means by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources. Examples of contemporary economic systems include capitalist systems, socialist systems, and economic system of Islam. Economic systems are the economics category that includes the study of respective systems. We can also define economics system as:
"An organized way in which a state or nation allocates its resources and apportions goods and services in the national community.” As we have discussed above that basically there are four types of economic system let us discuss Islamic economic system and its features in detail.
Islamic Economic System:
Islamic Economic System implies a mood of satisfying the economics needs of the members of organized society in accordance with is injection of Quran and Sunnah. The mood of spending production, distribution and exchange of wealth is determined by the tenor of these injections. In this system the economic activities of the members of the society are regulative by the certain values of which pity, justice, benevolence, cooperation, brotherhood and equality are especially important. The sources and origin of these values are the Holy Quran and the Sunnah of Allah’s Apostle (PBUH). They are eternal and immutable. Consumers, producers and traders are must abide these values. At one level, the state can also use the its powers to implements and enforce these values, however, Islam mostly ensure their implementations and daily affairs of life through its system of education and training and by creating a general climate of piety in the society. Some Fundamental features of Islamic Economics System are written below:
* All the wealth belongs to Allah (SWT):
"And give them of the wealth of Allah which He has given you." [An-Nur: 33] * The community is the trustee of the wealth:
"Believe in Allah and His Messenger, and spend whereof He has made you heirs."[Al-Hadid: 7]
* Hoarding of wealth is prohibited:
"And those who hoard up gold and silver and spend not in the way of Allah; announce to them a painful chastisement." [At-Tauba: 34]
* Circulation of wealth is a duty:
"Whatsoever Allah may restore unto His Messenger - is due unto Allah and unto His Messenger - the orphans and the needy. So, that it may not be confined to the rich amongst you." [Al-Hashr: 7]
Every economic system has its own peculiar features, which form its foundation and from which it can be distinguished and recognized. Modern capitalism, which has emerged due to rapid industrialization facilitated by unprecedented human advancement in science and technology, is based on free market economy, non-intervention or very limited intervention of state in economic affairs, interest and banking. Socialism, which has emerged as a reaction to capitalism, believes in complete control of state on economy and full ownership of means of production by the state or...