Salient Features of Islamic Economics Sample Essay

“Islamic Economicss and its Features”System:System can be defined as:“System ( from Latin systema. in bend from Greek systema ) is a set of interacting or mutualist entities. existent or abstract. organizing an incorporate whole. ”We can besides specify system as“A group of D that interact on a regular basis to execute a undertaking. ”There are many systems sing province and most of import is economics system of a state let us discourse it and explicate the economic system of a state with mention to Islam.

Economicss system:An economic system is a system that involves the production. distribution and ingestion of goods and services between the entities in a peculiar society. The economic system is composed of people and establishments. including their relationships to productive resources. such as through the convention of belongings. In a given economic system. it is the systemic agencies by which jobs of economic sciences are addressed. such as the economic job of scarceness through allotment of finite productive resources.

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Examples of modern-day economic systems include capitalist systems. socialist systems. and economic system of Islam. Economic systems are the economic sciences class that includes the survey of several systems. We can besides specify economic sciences system as:
“An organized manner in which a province or state allocates its resources and apportions goods and services in the national community. ” As we have discussed above that fundamentally there are four types of economic system let us discourse Islamic economic system and its characteristics in item.

Islamic Economic System:Islamic Economic System implies a temper of fulfilling the economic sciences demands of the members of organized society in conformity with is injection of Quran and Sunnah. The temper of disbursement 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 regulatory by the certain values of which commiseration. justness. benevolence.

cooperation. brotherhood and equality are particularly of import. The beginnings and beginning of these values are the Holy Quran and the Sunnah of Allah’s Apostle ( PBUH ) . They are ageless and changeless. Consumers.

manufacturers and bargainers are must stay these values. At one degree. the province can besides utilize the its powers to implements and implement these values. nevertheless. Islam largely guarantee their executions and day-to-day personal businesss of life through its system of instruction and preparation and by making a general clime of piousness in the society. Some Cardinal characteristics 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 legal guardian of the wealth:“Believe in Allah and His Messenger. and pass whereof He has made you heirs. ” [ Al-Hadid: 7 ]* Hoarding of wealth is prohibited:“And those who hoard up gold and Ag and pass non in the manner of Allah ; announce to them a painful castigation. ” [ At-Tauba: 34 ]* Circulation of wealth is a responsibility:“Whatsoever Allah may reconstruct unto His Messenger – is due unto Allah and unto His Messenger – the orphans and the needy. So.

that it may non be confined to the rich amongst you. ” [ Al-Hashr: 7 ]

Every economic system has its ain peculiar characteristics. which form its foundation and from which it can be distinguished and recognized. Modern capitalist economy. which has emerged due to rapid industrialisation facilitated by unprecedented human promotion in scientific discipline and engineering. is based on free market economic system. non-intervention or really limited intercession of province in economic personal businesss.

involvement and banking. Socialism. which has emerged as a reaction to capitalist economy. believes in complete control of province on economic system and full ownership of agencies of production by the province or community. Feudalism stands for ownership of land by few individuals or households and makes bulk of people renters or helot who work on lands either as retainers of the landlords or for meager portion in the green goods of land.Islam. on the other manus. believes in justness and equity in the economic field.

Harmonizing to it. the adult male is God’s vicereine or deputy in overall godly strategy and he has been given limited rights of ownership of agencies of production. It recognizes intercession of province in the economic activity for the intent of guaranting public assistance of its citizens. Abolition of involvement. establishment of sadaqat and Zakat. construct of lawful and improper.

just distribution of wealth. prohibition of billboard and emphasis on circulation of wealth. concern for good being of the hapless are the typical characteristics of the Islamic economic system. We will lucubrate and discourse some characteristics of Islamic economic system in this chapter as follows:1. Allah is the Sustainer2. God is Real Owner of Everything and Man is Merely a Trustee3.

Everything Created for Service and Use of Man4. Concept of Halal and Haram5. System of Sadaqat and Zakat6. Prohibition of Interest7. Ban on Hoarding of Wealth8.

Policy of Moderation9. Disapprobation of Monasticism and Materialism10. Equity and non Equality11. Flexibility12.

Moral valuesNow we are traveling to explicate each of the above characteristics in item which shows the broad being of Islamic economic system:

1- Allah is the SustainerOne of the major characteristics of Islamic economic system is the construct that Allah. the Almighty God of existence. is the upholder and supplier. Allah provides support and subsistence to all of His animals in the existence. It is Allah who has created all agencies and resources through which adult male earns his support. Allah. in fact.

has committed to feed. sustain and nourish all animals including human existences. It is Allah who expands or curtails rizq ( nutriment ) . To explicate and lucubrate this construct farther. allow us reproduce the relevant poetries of the Holy Qur’an and Ahadith of the Prophet of Islam. Poetries:
1- And there is non a animal in the Earth but the nutriment thereof dependant on Allah. He knoweth its habitation and its depository. All is in a clear record.

– ( 11: 6 )2- Lo! Thy Godhead enlarged the proviso for which He will. and straitened it ( for whom He will ) . Lo. He was of all time Knower. Visionary of His slaves. – ( 17: 30 )3- O’ world! Remember Allah’s grace towards you! Is at that place any Godhead other than Allah Who provided for you from the sky and the Earth? …- ( 35: 3 )4- Have yet seen that which ye cultivate? Is it ye who foster it.

or are We the fosterer? – ( 56: 63-64 )Ahadith:1- Omar-b-al-Khattab reported: I heard the Messenger of Allah say: If you all had relied on Allah with due trust. He would hold surely given you proviso as He supplies commissariats to birds who get up hungry in the forenoon and return with full belly at twilight. —– ( Tirmizi. Ibn Majah ) ‘2- Ali ( Allah be pleased with him ) said: “I heard the Messenger of Allah ( may peace be upon him ) stating: ‘ ( on the Day of Resurrection ) when there will be no shadiness except that of the Throne of Allah. the individual who undertakes a journey to gain his support and so returns with it towards his dependants.

will be under the shadiness of Allah’s Throne’ . ” —– ( Masnud Zaid bin Ali )The construct of God’s Dispensation does non. nevertheless. suggest that one should sit idle and delay for nutriment which would automatically come to him. Alternatively of giving up battle. Islam instead inspires a individual to make his best in order to gain his support by utilizing all lawful ( Halal ) and just agencies. The Qur’an encourages struggle when it says: “And that adult male hath merely that for which he makes attempt. and that his attempt will be seen”— ( 53: 39-40 ) .

The revealed book of Islam encourages its followings even on Friday to scatter in the land after completing their supplication and seek of the premium of God ( 62:10 ) . Ahadith of Prophet Muhammad ( PBUH ) besides emphasis the importance of battle and difficult work put in for gaining support for oneself and one’s household. This construct merely emphasizes some basic truths. viz. : God provides nutriment to all His animals by puting sufficient and infinite resources in the Earth. everything has been created by God for service of adult male. and adult male should work these resources and things in lawful mode to gain his subsistence without go againsting the rights of others.2- God is Real Owner of Everything and Man is simply a Trustee: The celestial spheres and the Earth and everything in the existence belong to Allah.

God is the existent proprietor of everything. al-though He has given some rights to adult male for usage of things required by the latter for his being on the Earth. However. the rights given to adult male are really limited. the existent place of adult male being that of a legal guardian and a donee. Some of the relevant poetries of the Qur’an which highlight this construct are given as under: 1.

Unto Allah belonged whatsoever is in the celestial spheres and whatsoever is in the Earth ; and unto Allah all things are returned. – ( 3: 109 ) 2. Unto Allah B elongate whatsoever is in the celestial spheres and whatsoever is in the Earth. Allah of all time surrounded all things. – ( 4: 126 )This limited ownership or trust territory bestowed on adult male by Allah in regard of the wealth which is given to him is non without significance. The godly wisdom underlying this rule of trust territory is that adult male should non stash his wealth handling it as his absolute ownership and deprive others from its usage. Rather the excess wealth of adult male must travel to his fellow existences who are in privation.

This rule has been made more clear when the Qur’an says: “…… . and bestow upon them of the wealth of Allah which He has bestowed upon you……” ( 24: 33 ) . Thus the whole strategy of circulation of wealth through charity and Zakat and distribution of wealth through other just agencies envisaged by Islam is based on man’s limited rights as a legal guardian of wealth which has been bestowed on him by His Lord.

3- Everything Created for Service and Use of Man:It is God who has created everything in this existence. Many of the things created by God in the Earth are of benefit to adult male straight or indirectly. Animals. workss. minerals.

metals. H2O. air. fire. land. river. mountains. sea.

and even sun. Moon. stars. twenty-four hours and dark. etc.

are all for service to adult male. Many economic benefits have been placed by God in these things for adult male. The Qur’an brings this fact to visible radiation in its undermentioned poetries: 1. He it is Who created for you all that is in the Earth.

Then turned He to the Eden. and fashioned it as seven celestial spheres. And He is Knower of all things.

—-2: Al-Baqarah:29
2. And He it is Who hath set for you the stars that ye may steer your class by them amid the darkness of the land and the sea. We have detailed our disclosures for a people Who have Knowledge. —-6: Al -An’am:973- Concept of Halal and Haram:Islam has introduced construct of Halal ( lawful ) and Haram ( improper ) in its economic system. In fact the foundations of the Islamic economic system have been laid on this construct. This construct reigns supreme in the kingdom of production every bit good as ingestion. Certain means of gaining support and wealth have been declared improper such as involvement. graft.

gaming and games of opportunity. guess. short deliberation and short measurement. concern malpractices.

etc. Improper agencies of gaining are purely out and a follower of Islam is permitted to gain through lawful and just agencies. Similarly in the field of ingestion certain points of nutrient are improper such as dead animate beings. blood. swine flesh and animate beings slaughtered in the name other than that of Allah. Even disbursals on certain points such as drinks. narcotics. orgy.

harlotry. erotica. things that promote lewdness and coarseness. lotteries and chancing are purely inadmissible. Now let us peek through relevant poetries of the Quran and Ahadith of Muhammad ( PBUH ) .

the Prophet of Islam. to foreground in brief the construct of Halal and Haram. Poetries of the Koran:
1- O world! Eat of that which is lawful and wholesome in the Earth. and follow non the footfalls of the Satan. Lo! he is an unfastened enemy foryou. ( 2:168 ) 2. O ye who believe! Eat of the good things wherewith We have provided you. and render thanks to Allah if it is ( so ) He Whom ye worship.

He hath forbidden you merely carrion. and blood. and swine flesh. and that which hath been immolated to ( the name of ) any other than Allah. But he who is driven by necessity. neither hungering nor offending. it is no wickedness for him.

Lo! Allah is Forgiving. Merciful. ( 2:172-173 ) Ahadith of Prophet Muhammad ( PBUH ) :
1. Abu Hurairah reported that the courier of Allah said: Verily Allah is pure. He does non accept but what is pure … . .

Then he mentioned about a adult male disheveled in hair and loaded with dust. doing his journey long and widening his custodies towards Eden: O Lord! O Lord! while his nutrient was improper. his drink improper. his frock improper and he was nourished with improper things. How he can be responded for that? ( Muslim ) 2. Abu Masud Al Ansari reported that the courier of Allah forbade the monetary value of Canis familiariss.

net incomes of cocotte and prediction of a forecaster. ( Bukhari. Muslim ) 5- System of Sadaqat and ZakatIslamic economic order has introduced a comprehensive system of sadaqat which comprises: compulsory parts like Zakat. sadaqat Fitr. pecuniary expiations ; and voluntary parts such as almsgiving. disbursement in the manner of Allah on the hapless. contributions to charitable cause. waqf.

etc. Charity and alms giving is sometimes called by the Qur’an a goodly loan to God Who Himself would counterbalance the giver manifold and besides reward him in the Hereafter. Islam has declared that the hapless and destitute have due portion in the wealth of the rich and the rich are bound to return the portion of the hapless without stretch. The system of sadaqat ensures just distribution of wealth in the Muslim community and makes it certain that the wealth does non stay hoarded in idle channels. Circulation of wealth in productive channels is ensured by heightening the buying power of the hapless. Concentration of wealth in few custodies is discouraged and the spread between the rich and the hapless is bridged. Some of the poetries of the Qur’an and Ahadith sing system of sadaqat are reproduced as follows: Poetries of the Qur’an:1- Establish worship.

pay the poor-due. and bow your caputs with those who bow ( in worship ) . ( 2:43 ) 2. Spend your wealth for the cause of Allah. and be non cast by your ain custodies to destroy ; and make good. Lo! Allah loved the beneficent. ( 2:195 ) 3. They ask thee what they shall pass.

Say: That which ye spend for good ( must travel ) to parents and near kindred and orphans and the needy and the wayfarers. And what so of all time good ye do. lo! Allah is Aware of it. ( 2:215 )Ahadith of the Prophet:1.

Anas reported that courier of Allah said: verily charity appeases wrath of the Lord and removes stabs of decease. ( Tirmizi )
2. Abdullah bin Masud raising the tradition reported.

There are three whom Allah loves. A adult male who gets up at dark to read the Book of Allah. and a adult male giving alms with his right manus which he conceals ( I consider that he said ) from his left manus. and a adult male. being in a battalion. encounters the enemies.

although his comrades are routed. ( Tirmizi )3. Marsad bin Abdullah reported: Some of the comrades of the Holy Prophet informed me that he heard the Prophet say: Surely the shadiness of the truster on the Resurrection Day will be his charity. ( Ahmad )6- Prohibition of InterestInterest. which forms the foundation of capitalistic system of economic system and which has non been eliminated even in the socialist system. has been wholly abolished by Islam. Charging of involvement is a major wickedness and the loan sharks have been given the notice of war from God and His courier. Following are some of the poetries of the Qur’an and Ahadith of Muhammad ( PBUH ) covering with involvement.

Poetries of the Qur’an:
1- Those who swallow vigorish can non lift up save as he ariseth whom the Satan hath prostrated by ( his ) touch. That is because they say: Trade is merely similar vigorish ; whereas Allah permitteth trading and forbiddeth vigorish. He unto whom an warning from his Lord cometh and ( he ) refraineth ( in obeisance at that place to ) .

he shall maintain ( the net incomes of ) that which is past. and his matter ( henceforth ) is with Allah. As for him who returneth ( to usury ) . Such are rightful proprietors of the Fire. They will stay in this. Allah hath blighted vigorish and made almsgiving fruitful.

Allah loveth non the impious and guilty. ( 2:275-276 )2- O ye who believe! Observe your responsibility to Allah. and give up what remaineth ( due to you ) from vigorish. if ye are ( in truth ) trusters.

And if ye do non. so be warned of war ( against you ) from Allah and His courier. And if ye repent. so ye hold your principal ( without involvement ) . Incorrect non and ye shall non be wronged. ( 2:278-279 )3- O. ye who believe! Devour non usury.

duplicating and quadrupling ( the amount Lent ) . Observer your responsibility to Allah. that ye may be successful. ( 3:130 )Ahadith of Muhammad ( PBUH ) :1- Jaber reported that the Messenger of Allah cursed the devourer of vigorish. its remunerator.

its Scribe. and its two informants. And he said that they are equal ( in wickedness ) . – ( Muslim )
2- Abdullah-bin-Hanjalah reported that the Messenger of Allah said: A Dirham of vigorish a adult male devours with cognition is greater than 36 fornications. ( Ahmad. Darqutni ) 7- Ban on Hoarding of Wealth:Hoarding of wealth has been condemned by Islam in really clear footings. and those who hoard wealth and do non pass it for good cause have been threatened with painful day of reckoning. Hoarding of wealth is a great immorality as it tantamounts to obstructor of flow of God-given wealth from the rich to the hapless who are in echt demand of it.

Therefore. Islam discourages stashing of wealth and alternatively encourages circulation of wealth among all the subdivisions of society. Following poetries of the Qur’an and Ahadith of the Prophet of Islam throw visible radiation on this topic. Poetries of the Qur’an:1- And allow non those who hoard up that which Allah hath bestowed upon them of His premium think that it is better for them.

Nay. it is worse for them. That which they hoard will be their neckband on the Day of Resurrection…………- ( Al-Imran 3:180 ) 2- They who hoard up gold and Ag and pass in non in the manner of Allah. unto them give newss ( O Muhammad ) of a painful day of reckoning. On the Day when it will ( all ) be heated in the fire of snake pit and their brows and their wings and their dorsums will be branded therewith ( and it will be said unto them ) : Here is that which ye hoarded for yourselves. Now gustatory sensation of what ye used to stash. —– ( 9: At-Taubah:34-35 ) Ahadith of Prophet Muhammad ( PBUH ) :1- Abu Hurairah reported that the Messenger of Allah used to hive away up nil for the morrow.

– ( Tirmizi )2- Ayesha reported that the Messenger of Allah said: This universe is an residence for 1 who has got no residence. and a belongings for 1 who has got no belongings. and one who has got no wisdom caches for it.

( Ahmad. Baihaqi )8- Policy of Moderation:Islam follows policy of in-between manner or moderateness and avoids extremes. The two extremes of every action are bad and moderateness between them is the best policy harmonizing to Islam. Following poetries of the Qur’an and Ahadith of Muhammad exhort the Muslims to follow the manner of moderateness.

The poetries of the Qur’an:
1- ye. who believe! Forbid non the good things. which Allah hath made lawful for you. and transgress non.

Lo. Allah loveth non transgressors. – ( 5: 87 )2- And allow non thy manus be chained to thy cervix nor unfastened it with a complete gap. lest 1000 sit down rebuked. denuded. – ( 17: 29 )3- And 1000 ( Muhammad ) be non loud voiced in thy worship nor yet soundless therein. but follow a manner between. – ( 17: 110 )4- Be modest in thy bearing and subdue thy voice.

Lo! the harshest of all voices is the voice of the buttocks. ( 31: 19 )Ahadith of the Prophet:1- Good manners. hold and moderateness signifier a portion out of 24 parts of Prophethood. – ( Mishkat-ul-Masabih )
2- Abu Hurairah reported that the Messenger of Allah said: Moderation in outgo is half of support. and love for people is half of wisdom.

and good inquiring is half of larning. – ( Bukhari )3- Matref-b-Abdullah reported that the courier of Allah said: The best of personal businesss is their mean. The rule of moderateness propounded by the above mentioned texts every bit applies in economic field specially in the field of acquisition of wealth and ingestion. 9- Disapprobation of Monasticism and MaterialismIslam condemns Monasticism every bit good as Materialism and recommends its followings to follow in-between manner between these two extremist ways of life. A religious or a cloistered ballads all the accent on moral and religious facet of life and ignores wholly material facet.

He regards all economic activity as a frailty and economic battle as a iniquitous act. The Qur’an. the revealed Bible of Islam. expresses its disfavor explicitly for the cloistered manner of life in its undermentioned poetries: 1- O ye who believe! Forbid non the good things which Allah hath made lawful for you. and transgress non.

Lo! Allah loveth non transgressors. – ( 5: 87 ) 2- But monasticism they invented. We ordained it non for them-only seeking Allah’s pleasance. and they observed it non with right observation.

So we give those of them who believe their wages. but many of them are evil-livers. – ( 57: 27 ) The Prophet of Islam has besides discouraged the cloistered manner of life among his followings. Once he learnt that some comrades had taken a vow to fast during the twenty-four hours. go through the dark in worship.

abstain from meat and fat and renounce intercourse with adult females.Thereupon he ( peace be on him ) delivered a discourse in the class of which he observed: “This is non my credo. Your organic structure has rights over you. You should fast. but eat and drink besides. Pray at dark.

but sleep besides. Look at me. I sleep and I pray besides. I both keep and omit fasts. I eat both meat and fat. So whoso does non subscribe to my manner. he is non of mine. [ 1 ] He ( peace be on him ) so said.

“What has happened to people that they have renounced adult females. good nutrient. aroma. slumber and worldly pleasance? I have ne’er taught you to be a monastic or a priest. In my Deen ( Creed ) there is non proviso for repudiation of adult females or meat nor for abandoning the universe. For self-denial. I enjoin fast.

All the advantages of asceticism can be had from the Jihad of Islam. Worship Allah and do non tie in naught with him. Perform Hajj and Umra. Establish Namaz.

wage Zakat. and keep fasts in Ramadan. The people who came to destroy before you met this destiny because they were difficult on themselves and Allah was hard on them excessively.It is the leftovers of these people that you see in monasteries and convents.

2 Some other traditions on the same capable relate that the Holy Prophet ( peace be on him ) one time learned sing a comrade that it was long since he had gone in to his married woman and was engaged in prayer twenty-four hours and dark. The Holy Prophet ( peace be on him ) summoned him and ordered that he should travel in to his married woman at one time. ‘I am fasting’ . submitted the comrade. “Break your fast and proceed. ” the Holy Prophet ( peace be on him ) told him. 3Islam does non subscribe to the position of monastics and abstainers that satisfaction of physical impulses is an hindrance in religious development. Rather Islam enjoins upon its followings that the things.

which Allah has made lawful for them. should be enjoyed as enjoyment of them is piousness and repudiation of them is evildoing. On the other manus Islam has expressed in univocal and unambiguous footings its disapprobation of Materialism as good.

Materialists are those who lay the full emphasis on the material facet of life.They ignore moral facet of life and give their full clip and energy to the attainment of stuff terminals. They justify every agency. right or incorrect. to get wealth and amenitiess of this life and utterly disregard moral values.

baronial causes and human virtuousnesss. Following poetries of the Qur’an cull philistinism which. in fact. is passion for wealth and secular pleasances: 1- …… . But of world is he who saith: “Our Godhead! Give unto us in this world” and he hath no part in the Hereafter. – ( 2: 200 ) 2- Lo! Those who expect non the meeting with Us but desire the life of the universe and experience unafraid therein. and those who are inattentive of Our disclosures ; Their place will be the Fire because of what they used to gain. ( 10: 7-8 ) 3- Whoso desireth the life of the universe and its gaudery.

We shall refund them their workss herein. and therein they will non be wronged. These are they for whom is naught in the Hereafter save the Fire.( All ) that they contrive here is conceited and ( all ) that they are wont to make is bootless. —– ( 11: 15-16 ) 4- Whoso desireth that ( life ) which hasteneth off. We hasten for him therein that We will for whom We please. And afterward We have appointed for him snake pit ; he will digest the heat thereof. condemned.

rejected. —– ( 17: 18 ) 5- Rivalry in worldly increase distracteth you. Until ye come to the Gravess. – ( 102: 1-2 ) 6- Woe unto every slandering defamer. who hath gathered wealth ( of this universe ) . and arranged it.

He thinketh that his wealth will render him immortal. Nay. but verily he will be flung to the Devouring One.

Ah. what will convey unto thee what the Devouring One is! ( It is ) the fire of Allah. kindled.

– ( 104: 1-6 ) Islam adopts in-between manner between these two extremist positions of life. It advises its followings that their success lies neither in monasticism nor in pure philistinism. Therefore.

they should neither give themselves up wholly to monasticism or spiritualism ignoring the importance of stuff agencies of life ; nor they should travel to the other extreme and justice everything by the mercenary point of position. They should strike balance between these extremes and follow in-between way. The Muslims have been called by the Qur’an the people of the in-between manner and.

hence. they should non be extremists.10- Equity and non Equality:Islam establishes equity. equity and justness in the production and distribution of wealth. and in ownership of agencies of support. However it recognizes that like other natural things there is no equality among human existences as respects the economic agencies and ownership of worldly wealth. This inequality has been presented by the Qur’an as a portion of Divine Economic order.

The Qur’an does non see these inequalities in the distribution of Divine nutriment as penalty or wages and does non seek to extinguish them. because no two persons have been blessed with 100 per centum equal mental and physical abilities. Taking the being of inequalities as a portion of godly strategy. the Qur’an advises its followings non to covet those things in which Allah has made some of them extra others. By lauding some of you over others in rank or by favoring some of you over others in commissariats. God in fact attempts and tests the human existences whether they are grateful to Him in good fortunes and patient in bad fortunes.
The Qur’an high spots these inequalities in its undermentioned poetries: * And covet non the thing in which Allah hath made some of you exceed others. Unto work forces a luck from that which they have earned.

and unto adult females a luck from that which they have earned…… . . – ( 4: 32 ) * He it is Who hath placed you as vicereines of the Earth and hath exalted some of you in rank above others. That He may seek you by ( the trial of ) that which He hath given you………- ( 6: 165 ) * And Allah hath favoured some of you above others in provision……- ( 16: 71 ) * Lo! thy Lord enlargeth the proviso for whom He will. and straiteneth it ( for whom He will ) …… . – ( 17: 30 ) Is it they who apportion their Lord’s clemency? We have apportioned among them their support in the life of the universe. and raised some of them above others in rank that some of them may take labor from others ; and the clemency of thy Lord is better than ( The wealth ) that they amass. – ( 43: 32 )The being of economic inequalities among the people is non merely natural but is besides a approval for the purification of human psyche and development of human personality.

Those who have scarce agencies of nutriment should thereby larn to be patient and contented and non to be covetous ; while those who have abundant resources should thereby larn to be thankful to God. to be sort and benevolent to the hapless and to give their ownerships for the cause of God. Islam. in fact. teaches the people to see the being of differences in wealth as a trial by which God tries them in this universe. By allowing copiousness of wealth to some.

God observes how they spend it ; whether they consider it as their personal belongings denying the hapless any portion in that or they consider themselves as legal guardians in regard of the wealth bestowed by God and pass it in the manner of God for the public assistance of their hapless brothers.And God tries the hapless by distressing their nutriment whether they lose their trust in God and become covetous of the rich or whether they keep their religion in God and remain patient in the inauspicious fortunes. However.

Islam does non allow the difference in ownership of wealth to presume such proportions that few lucky individuals live in easiness and luxury commanding major part of community’s wealth while the huge bulk of people possessing negligible portion in community’s wealth lives a life of low poorness. wretchedness and hungriness. Harmonizing to Islam. difference in wealth must non transcend natural and sensible bounds. because if it happens the community invites wrath of God and meets its natural terminal of suicide. The Prophet of Islam has said: If anyone spent a dark in a town and he remained hungry boulder clay forenoon.

the promise of God’s protection for that town comes to an terminal.Islam. hence. does non let the difference between the rich and hapless range unmanageable bounds so as to upset the peace of society. Although it does non believe in complete equality in ownership of economic agencies. yet it absolutely stands for socio-economic justness.

It believes in carnival and just distribution of incomes and wealth and ensures that the Islamic province should supply for basic human demands to all of its citizens. Many legal and economic steps have been provided to bridge the gulf between the rich and the hapless and to set up Islamic public assistance province which guarantees proviso of societal security and secures basic needs to its less fortunate citizens. These facets of Islamic economic system we shall analyze in subsequent chapters of this book. Here we can safely reason that Islam believes non in equal distribution but in just and merely distribution of resources and wealth. 11. Flexibility:The economic system of Islam is to the full capable of absorbing new thoughts.

establishments and organisation. There is no saloon here to profit from human experiences in ingestion. production.

distribution and exchange of wealth. Islamic economic science has the capacity to absorb joint stock companies. economic planning. societal public assistance services. insurance and banking establishment. modern instruments of money and recognition.

progress proficient equipment and foreign trade carbon monoxide operations. provided that they are non in struggle with the moral values and ordinance of Islam. Moral values:To set into consequence a merely Islamic economic system. free of any extra or shortening a comprehensive strategy of moral instruction and preparation has been drawn up which is linked to a strong and co ordinate system of believes and devotional patterns. By efficaciously modulating economic factors. these moral values protect the economic system from internal struggles and crisis. Besides to advance the step of economic prosperity.

this system efficaciously uses the authorization of province. Other Economic system: some of other economic system is every bit follow: • Capitalism• SocialismCapitalismCapitalism is the economic system in which the agency of production are distributed to openly viing profit-seeking. Capitalism is non simply an economic science system but a curious attitude of head and behaviour. Basically it springs out of the impression of the capitalist that he has earned his wealth by his ain ability. accomplishments. cognition and wisdom. Socialism

Socialism or communism means an economic science system in which the mean of production are owned by the province. A cardinal board of directors controls the production of goods and services.

The board of directors decides the nature. measure. and temper of production of goods. This distribution of goods is besides directed by the cardinal organic structure.

Socialism refers to a wide set of economic theories of societal organisation recommending province or corporate ownership and disposal of the agencies of production and distribution of goods. and the creative activity of Modern socialism originated in the late nineteenth-century working category political motion. Karl Marx posited that socialism would be achieved via category battle and a proletarian revolution which represents the transitional phase between capitalist economy and communism.Socialists chiefly portion the belief that capitalist economy below the belt concentrates power and wealth among a little section of society that controls capital and creates an unequal society. All socialists advocate the creative activity of an classless society.

in which wealth and power are distributed more equally. although there is considerable dissension among socialists over how. and to what extent this could be achieved Difference between Islamic economic System and others ( Capitalism and Socialism ) Here we will discourse the difference between the Islamic and Other Economic System like Capitalism and Socialism briefly by comparing Islamic and Other Economic Systems in regard of their basic constructs.Comparison of Capitalism with Islam:Capitalism and Islam are compared in regard of their basic economic constructs as under: 1. Right to ownership:The being of right of private ownership of belongings is the trademark of capitalist economy. The system believes in the private ownership of the agencies of production.

distribution and exchange which are managed and controlled by persons or groups of persons for private net income. The unrestricted right to have belongings and gain net incomes leads to concentration of wealth in few custodies. This needfully disturbs the balance of distribution of wealth and income in society. The economic disparities and the ever-increasing gulf between the rich and the hapless sows the seeds of strife and devastation in the capitalist society. Islamic construct of ownership is alone one.

Ownership. in world. belongs to God while some rights merely vest in adult male so that he may carry through the intent of God. that is the intent of community by moving as a legal guardian for those in demand.

In other words. what Allah has created for benefit of and service to adult male belongs jointly to the whole humanity.

Legal ownership by the person is recognized in Islam but it is capable to the moral duty that in all wealth all subdivisions of society have the right to portion. Therefore private or single ownership in Islam is non limitless or unrestricted. All the agencies of production are non placed under private ownership as public ownership of certain things of common public-service corporation exists side by side with it in an Islamic province. Islamic province has besides the right to nationalise certain things which are under private ownership for the benefit of the community.

In this manner the limited right of private ownership with jurisprudence of heritage which distributes the estate of the deceased among reasonably big figure of inheritors averts concentration of wealth in few custodies and therefore prevents class-conflict.2. Economic Freedom:Unrestricted economic freedom and non-interference of the province in such freedom is another characteristic of capitalist economic system. Every person is at autonomy to originate. form and set up any endeavor. concern.

trade. profession. etc. He has full freedom to gain as much income as he can and pass his wealth in whatever mode he likes. This unrestricted economic freedom by and large leads to gaining of wealth through foul agencies such as gaming and harlotry.

It besides encourages concern malpractices such as smuggling. black selling. profiteering. stashing. guess.

forward minutess. fraud. development. debasement. etc. Thus a mad-race for gaining wealth becomes order of the twenty-four hours and high societal and moral values such as fraternity. brotherhood. common aid.

love. benevolence. truthfulness give topographic point to selfishness. unfeelingness.

hatred. falsity and misgiving.
Capitalism. in fact. has come to mean a faith of money or dollar absolutism.

Islam besides allows economic freedom to an person who is at autonomy to gain wealth. have it and pass his wealth at his discretion. But the freedom given by Islam in economic domain is non limitless. Islam makes differentiation between halal ( permitted being lawful ) and haram ( out being improper ) in every economic activity encompassing huge Fieldss of production. exchange and ingestion. 2 Similarly ingestion of wealth on epicurean life. haram things and excessive disbursement is besides out. A Muslim is required to pay Zakat and pass whatever he can for the cause of the hapless and the destitute. All these ordinances promote moral values in Islamic society and extinguish mad-race for wealth and stuff additions.3. Monopoly:Competition. which is another characteristic of capitalist economy. leads to the devastation of minor endeavors and houses. This encourages amalgamation of smaller concern organisations into major 1s and therefore monopolies or trusts are established. Monopolies kill free competition. cause rising prices in monetary values and finally ensue into unemployment. Thus labour and consumer are both exploited in such a state of affairs. Furthermore. trade-cycles. unplanned production. over-competition. increasing accretion of capital upset the balance between production and ingestion which sometimes leads to economic depressions. Islam forbids unhealthy competition and bans all the ways which lead to it. Islam besides disallows constitution of monopolies. The Prophet of Islam is reported to hold said whoever monopolies a evildoer is. Particularly monopolies over food-stuffs or articles of day-to-day usage are forbidden by Islam. Commodities and services which are of the common involvement of the community are ne’er allowed to be monopolized. 4. Institutions of Interest:
The Institution of banking and involvement is the life-blood of capitalistic signifier of economic system. For concern. trade and industry particularly for large undertakings and economic ventures. immense financess are required which no person or house can set up. This leads to constitution of Bankss who borrow capital from depositors and investors on lower rate of involvement and impart it to concern endeavors on higher rate of involvement. Therefore the establishment of involvement has become portion and package of capitalist economy. Islam considers involvement as the most exploitative establishment for humanity and has abolished it root and subdivision in its every signifier and manifestation. Harmonizing to al-Quran pickings of involvement tantamount to war against God and His Apostle. while harmonizing to Prophet Muhammad ( PBUH ) involvement is worse than criminal conversation. Islam builds its economic system on involvement free footing and promotes net income and partnership as inducement for salvaging and investing.5. Exploitation:Unrestricted right of economic freedom and uncontrolled right of private ownership has practically resulted into development. Economic development of the weak by the strong is an order of the twenty-four hours in a capitalist society. Wealth is the faith of every individual ( but a few honest exclusions ) and gaining of it through carnival or foul agencies is his credo. Consequently. everyone exploits the other economically with a position to garner every bit much luck as possible. Islamic economic system. on the other manus. ensures riddance of development of one adult male by the other. Many effectual steps have been taken by Islam to make so. Riba or vigorish is one of the worst instruments of human development and this has been abolished in all signifiers by Islam.
6. Distribution of Wealth:Capitalism does non believe in just and merely distribution of wealth. Since it believers in full economic freedom and private ownership of agencies of production. Concentration of wealth in few custodies takes topographic point while immense bulk of the public is deprived of the really basic necessities of life. The privileged few live in luxury while poorness. ignorance. disease and unemployment is the batch of the battalion. This disturbed balance of distribution of economic resources and unbridgeable gulf between the rich persons and poor persons finally leads to category battle and ultimate overthrow of the really system.
Islam on the one manus guarantees proviso of basic human demands such as nutrient. vesture and shelter to everyone and. on the other manus. ensures just and just distribution of wealth and economic resources among all. For bridging the gulf between the rich and the hapless and for guaranting just distribution of wealth. Islam has taken many stairss such as Zakat and Sadaqat. Torahs of heritage and mandatory parts in the signifier of revenue enhancements and responsibilities. To forestall concentration of wealth in few custodies Islamic economic codification has taken steps like abolishment of involvement. prohibition of earning of wealth through haram agencies. prohibition of billboard of wealth. etc.


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