Nature of Islamic Economics

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‘Nature of Islamic Economics’
‘’Islamic economy identifies and promotes an economic order that conforms to Islamic scripture and traditions". Economic problems started with the birth of men and become more complicated with the development in the wants of men as the men is surrounded by wants. According to western scholars economics is the study of wants and scarcity and the reaction towards the ends and wants of the people. Adam Smith is regarded as the Father of economics due to his famous book ,’’The wealth of nations ‘’ in 1776 A.D. But five centuries before Adam Smith Madan’, and ‘Al-Muash’ etc. our well known economists are Muhamad bin Hassan tossi (1274 A.D), Ayatollah Mahmoud Taleghani (1911 - September 9, 1979), Ibne Khaldun (1332 A.D to 1406 A.D). The industrial resolution have given an edge I almost every field to western nations. Due to the advancement of western arts and science and more and new concepts that the modern institutions in Islamic countries has started providing education and training in those areas. The awareness of the need to re orientate the arts and science has risen among Muslim academicians and educationists of the countries which have won independence in the 20th century.

‘Difference between Islamic and Modern economics’ Islamic economics and modern economics both deals with same subjects but there approaches are different well there is a basic difference between them in the modes of study ,goals, lines of approach and in several other respects. Islamic economics can also be justified as an identification of an area of studies that is based on the assumption of the existence of Islamic axioms in the socio-political-cum –legal environment and the system of values and the ethics which guide the economic behavior of men and women in an Islamic society. While Modern economics deals with the systematic relations among individuals involve in production of wealth ,distribution of and exchange of wealth and the use of commodities and services. Some points of important points of difference are noted below.

Difference in basic Assumptions:
Every science natural or social is based upon some assumptions every system and religion has its own rules and regulations we will see the conflicts between both under the headings below. (a) Views of the Universe:

Western economics: * Universe is made of matter and and has its attributes of matter its is finite and indestructible. * Study of ends and scarcity and there relationship. * This cause aggressive selfishness, competition and mutual conflict among individuals due to shortage of resources. * The strong and more resourceful individuals accumulate vast surplus means of livelihood while the weak lag far behind in the economic race and face deprivation.| Islamic economics: * It is based on the doctrine that the universe is the creation of an All Knowing Creator. He proclaims Himself as the Lord of the worlds and so it becomes His Majesty to supply food and others necessities of life in full measure for His creature whom He calls His family. * He has created man in the best form and endowed him with all those intellectual and practical faculties which are needed to exploit the treasures of the universe. |

(b) Concept of man:Western economics: * Regards men as an animal like other animal species in the universe. * All principles and laws govern the life of animals aply also to the life of man. * Its main concern is how to fulfill the physical and material needs of man. * The animal nature of man holds the greatest importance.| Islamic economics: * Regard man as the vicegerent of Allah on Earth. * Man is the best of the whole creation and holds a position far above other animate. * He deserves a high and beneficent treatment. * The most suitable system for the economic struggle of man is that which is keeping with his social status guarantees him a lawful and decent...
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