Islam & Socialism

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 production
2 economics of distribution
2 Islam and Socialism
 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 Priorities
2. Allocation of Resources (Land, Labor, Capital, Entrepreneur)
3. Distribution of Income
4. 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

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  Misallocation of resources

 Lake of consumer sovereignty (kekuasaan)

 Loss of economic freedom

 Economic equality not achieved

 Concentration of power in the state

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 Islamic Economics System

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].

‫هو الذي خلق لكم ما في األرض جميعا‬

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 Islamic Economics System

– Halal & Haram

– Justice

– Equality

– Cooperation

– Brotherhood

– Benevolence

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 Solution for Economics Problems

 Basic rules of Islam

 Naturally

 Concentration on ethics and morality

 The role of government where required

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 Solution for Economics Problems
 Achieving wealth

 Rights of ownership

 How to use that Rights?

 utilization of capital

 Distribution of wealth [‫كفالت عامه‬

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 ‫‪Teaching of the Qur,an Regarding‬‬
‫‪Economics‬‬

‫‪‬‬ ‫‪Wright of private ownership‬‬

‫التأكلوا أموالكم بينكم بالباطل(النساء)‬
‫التدخلوابيوتا غيربيوتكم ‪(......‬النور)‬
‫‪ No concept of equality in economics‬‬
‫أهم يقسمون رحمة ربك نحن قسمنا بينهم معيشتهم ‪Allah says‬‬
‫في الحياة الدنيا ورفعنا بعضهم فوق بعض‪(..‬الزخرف)‬
‫‪ No priesthood‬‬
‫وكلوا مما رزقكم هللا(البقرة) ‪ Allah says‬‬

‫‪19‬‬ ‫‪Islam and Socialism‬‬

 Teaching of the Qur,an Regarding
Economics

 Distinction between legal and illegal

‫التأكلوا اموالكم بينكم بالباطل‬
 Exaggeration is not allowed
‫والتسرفوا انه اليحب المسرفين‬
 How to spend?
 The concept of zakat
 Spoils of war
 The concept of Islam regarding inheritance
 The concept of public property
 ‫الماء والكالء والنا‬,‫الناس شركاء في ثالث‬

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