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Download this Document for Free Islamic Economic System, Capitalism and Socialism August 13, 2009 Chapter 4 COMPARISON BETWEEN THE ISLAMIC ECONOMIC AND OTHER ECONOMIC SYSTEM COMPARISON BETWEEN THE ISLAMIC ECONOMIC SYSTEM AND OTHER ECONOMIC SYSTEMS 22 Islamic Economic System, Capitalism and Socialism August 13, 2009 Capitalism and communism is that the latter systems study analyses and try to solve the economic problem of man by isolating it from the total framework of human life. They do not give much consideration to the effect that their solution of the economic problems might have no other spheres of collective life. In contrast Islam studies the economic problem of man in the total perspective of individual and collective life and adopts a solution which not only tackles the problem in the best possible manner but also does not have any adverse effect in other departments of collective life. DIIFFERENCE BETWEEN ISLAM AND CAPITALISTM: Both recognize the right of private ownership of necessaries of life and the means of production. There is difference between concept of ownership given by Islam and Capitalism. According to Islam All kind of property are Allahs trust with the individuals this interest can only be obtained with Allahs will. Islam does not recognize the right of the individual to own a property which he has gained by those means which shariat declares unlawful. Capitalism recognizes absolute right of the individual to own and utilize his property. This opensthe door to all the evils like economic inequality, injustice distribution of wealth and class conflicts. Interest: Interest is the backbone of capitalism. The creation and formation of capital and professional activity depends on it. Islam proscribes interest. So the rise of major and blood- sucking usurious monsters has been stopped forever. Distribution of wealth: The capitalism economy by nature tends to concentrate means of livelihood in a few hands. In this system individuals exercise their freedom to rapidly establish their economic monopolies. Taxes can be imposed only up to the limit. Moreover the capitalism class generally resorts to tactics of tax-evasion. Islam discourages all those means of earning wealth which leads to the rise of economic monopolies. Islam ensures the circulation and equitable distribution of wealth among all classes of society by establishing a regular system of Zakat, sadqat and the law of inheritance. THE DIFFERENCE BETWEEN ISLAMIC AND COMMUNIST SYSTEM OF ECONOMY: Different viewpoints: There is the difference between fundamental view points of both systems. The communist system is the child of materialism. It regards material need as the only real needs of man. 23 Islamic Economic System, Capitalism and Socialism August 13, 2009 Hence man should struggle to satisfy these needs. Islam present the concept of higher world which is above this material world. This higher world is permanent and everlasting. Collective Ownership: The basic concept of the communist economy is to abolish private ownership and establish collective ownership of means of production. All means of production are taken under state control. Multitude of capitalists is replaced by only one big capitalist. There is no doubt that collective ownership of means and production and state management of distribution of goods and services ensures the supply of necessities of life to individual citizens but for this gain they loss their natural blessing of free thoughts and actions. Profit Motive: Production targets are set in advance and then measures are taken to achieve those targets by force. Islam has kept the natural profit motive alive among the individuals so that they may have full opportunity to exercise their intellectual talent, capacities and energies. Where the profit motive oversteps its lawful bounds, automatic checks are ready to keep it on the right track. Communism and Capitalism-----Two sides of same coin: Capitalism and socialism are the two branches of same tree. Hence they take two different

directions the fruit they bear are the same. In the capital system, the greed for profit has blinded on individual. In socialism collective ownership has robbed individual of not only their property but also their natural freedom of thoughts. In other words, both systems in their philosophy and action have proved destructive of social justice which guarantees peace and comfort to human beings. 24 Islamic Economic System, Capitalism and Socialism Download this Document for FreePrintMobileCollectionsReport Document Info and Rating comparision of economic system shab-i-tab Share & Embed Related Documents PreviousNext p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. p. More from this user PreviousNext 47 p. 15 p.

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deleted_fbuser_1295415821left a comment mujahid 02 / 23 / 2010 Islamabadeeleft a comment very nice work 11 / 03 / 2009 Upload a Document Search Documents Follow Us! scribd.com/scribdtwitter.com/scribdfacebook.com/scribd AboutPressBlogPartnersScribd 101Web StuffSupportFAQDevelopers / APIJobsTermsCopyrightPrivacy Copyright 2011 Scribd Inc.Language:English