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Islamic Economic System, Capitalism and Socialism

CHAPTER 1

ISLAMIC ECONOMIC SYSTEM

Economic system of Islam

Meaning :

Islam is an entire way of life, and Allah's Guidance extends into all areas of our lives. Islam has given detailed regulations for our economic life, which is balanced and fair. Muslims are to recognize that wealth, earnings, and material goods are the property of God, and we are merely His trustees. The principles of Islam aim at establishing a just society where in everyone will behave responsibly and honestly. The Arabic words Ma'eeshat and Aish share the same root. Ma'eeshat also means "economy" and " Aish" means "pleasure and happiness". There is no doubt that if the economy of a nation is good, it will have a life of pleasure and happiness. In other words, if Ma'eeshat of a country is good, the nation will have Aish. In 20:124, Allah says,

"Those who will disregard my Message [ZIKR], their economy will be in dire straits and they will be resurrected blind on the Day of Judgment" [20:124].

4 Key Aspects of an Islamic Economic System

1. Need Fulfillment.

Respectable source of earning:

2. Equitable distribution of income and wealth.

3. Growth and stability.

Islam - Places a greater emphasis on duties than on rights. Under Islam, the criteria for determining a man's worth are not his race, family, position or wealth but rather his character (which is a reflection of his faith and practice) and service to humanity. Lifestyles that reflect arrogance, pomp, grandeur or moral laxity lead to extravagance and waste and result in unnecessary pressure on resources, reducing societies' ability to satisfy the needs of all. They also promote unscrupulous ways of earning and generate inequalities of income beyond the normal distribution that is warranted by differences in skill, initiative, effort and risk. The adoption of Islam protects society form going to excess in lusts, luxury and pleasure, equally, in following restraint and privation....