•Indruduction p.2 •Objectives of Islamic Economics
oRight of Property p. 3 oThe problem if equality p. 3-4 oSocial Justice p. 4 •Characteristics of Islamic Economics
oProduction of Wealth p.5 oDistribution of Wealth p.5 o Law of Demand and Supply p.5 oHalal and Haram p.5 •Conclusion p.6 •References p.7
The basis of Islamic economics is enshrined in the spiritual norms of Islam. Unlike the modern economic systems which are based on the mundane philosophy, the Islamic economic system is directly guided by Allah Almighty Himself. As Islamic economic system was passing through its early stages of development, the Quran guided the Holy Prophet (P.B.U.H.) with regard to its effective enforcement. Since this system is Divine guided, it is spiritual. Additionally, all important aspects of the Islamic economic system and the applicable norms are thoroughly discussed in the Holy Quran. Whether it is production, consumption, distribution or the financial system, they all have been discussed in this Divine Book sufficiently. Quran itself declares that Allah Almighty created the human being as His Viceroy on this Earth, and as such He created all needed provisions so that they may consume them and may satisfy their wants. Islam has laid down certain principles and limits for the economic activity of man so that the entire pattern of production, exchange and distribution of wealth may conform to the Islamic standard of justice and equity. Islam does not concern itself with time-bound methods and techniques of economic production or with the details of organizational patterns and mechanisms. Such methods are specific to every age and are evolved in accordance with the needs and requirements of the community and the exigencies of the economic situation. Islam’s concern is that whatever the particular form of economic activity in operation, its underlying principles should always be the same. According to the Islamic point of view, Allah has created for mankind the earth and all that it contains. It is, therefore, the birthright of every human being o try to secure his share of the world’s wealth and sustenance. Islam does not allow a particular person, class, race or group of people to create a monopoly in certain economic activities: equal opportunities for all is its watchword.
Objectives of Islamic Economics
Right of Property
Resources which are provided by nature and which can be used directly by man may be utilized freely, and everyone is entitled to benefit from them according to his needs. Water in the rivers and springs, timber in the forests, fruits of wild plants, wild grass and fodder, air, animals of the jungle, minerals under the surface of the earth and similar other resources cannot be monopolized by anyone nor can restrictions of any sort be imposed on their free use by Allah’s creatures to fulfill their own needs. Of course, people who want to use any of these things for commercial purposes can be required to pay taxes to the state. Or, if there is misuse of the resources, the Government may intervene. But there is nothing to prevent...