Islam & Socialism

IBM 11013

Introduction to Islamic EconomicsLecturer in charge

RA. Sarjoon

1 Islam and Socialism

There are so many problems facing by the human being, economic is the one of them and its significance cannot be denied in the life of human being.In the very beginning it was said that economic problem is due to the scarcity.1 economics of production2 economics of distribution

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Economics & Its Problems

What is economics?“To utilize the limited resources in a way that maximum needs and wants

are met to ensure the well being of all members of the human society.”

The four basic economic problems:1. Determination of Priorities2. Allocation of Resources (Land, Labor, Capital, Entrepreneur)3. Distribution of Income4. Development

We will compare how Capitalism, Socialism and Islamic Economic system addresses to these problems. 

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The pattern of economic institutions and organization in various countries is not the same.

There is difference in relations of different groups of people and also, the strategies to solve basic economic problems of the society are not the same.

These problems do not have only one solution. Alternative ways or alternative systems exist in this regard.

If we look around the world from the point of view of an economist, we find that although in every country economic conditions are different, yet they can be grouped into a few broad categories or economic systems under which they solve their basic problems of 'how’,’ what' and 'for whom’. Every economic system has some unusual features, which distinguish it from others. These systems have been names as:

1)Capitalism

2)Socialism

3)Islamic Economic System

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Socialism

Socialism does not have a common meaning. Different people include different things in it. However the basic thinking is the same, i.e.;

the government should have control over economic activities, and private ownership of land and capital abolished or put under tight restrictions.

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What is Socialism?

Socialism: A political and economic theory that a country’s land, transport, natural resources and chief industries should be owned and control by the whole community or by the state, and the wealth should be equally distributed.

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Socialism

Thus we can say that, socialism is a system under which all capital

and natural resources are owned by the state and all production is certainly planed as if the whole economy is one big firm.

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Socialism Definition

Dickinson defines it as, Socialism is an economic organization of society, in

which the material means of production are owned by the whole community and operated by the organs, representative of, and responsible to the community, according to a general plan; all members of the community are being entitle to have equal benefit from the resulting production.

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Socialism Terminology

The term Socialism or Socialist can refer to several related things:

An ideology or a group of ideologies, a state that exists or has existed. In Marxist theory: the society that would succeed capitalism,

and then develop further into communism.

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Historical Background

Industrial Revolutions– Threw thousands of handcraft workers into the labor Market– Crowed slum were established around the factories– Crimes, disease, hunger and misery were a way of life – Industrial accident and no compensation for families – No Rights of wage earner– Union were illegal

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Types of Socialism

Utopian Socialism State Socialism Christian Socialism Anarchism Marxian Socialism Communism

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Social Justice

Better allocation of resources

Improving productive efficiency

Social security and welfare

Economic stability

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Lake of incentive or encouragement

Maladjustment in the demand and supply

Profit and loss

Private property

Bureaucracy monopoly of

Not successful in business

Insufficient resources

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Misallocation of resources

Lake of consumer sovereignty

Loss of economic freedom

Economic equality not achieved

Concentration of power in the state

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According to Quaranic verses, every thing in this universe belongs to God almighty.

"Whatever is in the heavens and whatever is in the earth belongs to Allah." [Al-Baqarah, 2:284].

He is the real owner of everything "And Allah’s is the kingdom of the heavens and the earth, and Allah has power

over every things." [Al- Imran, 3:189].

جميعا األرض في ما لكم خلق الذي هو

Islamic Economics System

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Islamic Economics System

– Halal & Haram

– Justice

– Equality

– Cooperation

– Brotherhood

– Benevolence

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Basic rules of Islam

Naturally

Concentration on ethics and morality

The role of government where required

Solution for Economics Problems

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Solution for Economics Problems

Achieving wealth

Rights of ownership

How to use that Rights?

utilization of capital

Distribution of wealth [ عامه كفالت

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Wright of private ownership) ( النساء بالباطل بينكم أموالكم التأكلوا) النور ......) غيربيوتكم التدخلوابيوتا No concept of equality in economicsAllah says بينهم قسمنا نحن ربك رحمة يقسمون أهم

.. بعض فوق بعضهم ورفعنا الدنيا الحياة في معيشتهم) الزخرف)

No priesthood Allah says ) ( البقرة الله رزقكم مما وكلوا

Teaching of the Qur,an Regarding Economics

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Teaching of the Qur,an Regarding Economics

Distinction between legal and illegal بالباطل بينكم اموالكم التأكلوا

Exaggeration is not allowedالمسرفين اليحب انه والتسرفوا

How to spend? The concept of zakat Spoils of war The concept of Islam regarding inheritance The concept of public property , والنا والكالء الماء ثالث في الناسشركاء

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