Islam & Socialism IBM 11013 Introduction to Islamic Economics Lecturer in charge RA. Sarjoon Islam and Socialism

Preamble 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 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: Determination of Priorities Allocation of Resources (Land, Labor, Capital, Entrepreneur) Distribution of Income Development We will compare how Capitalism, Socialism and Islamic Economic system addresses to these problems.  Islam and Socialism

Introduction 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 Islam and Socialism

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. Islam and Socialism

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. Islam and Socialism

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. Islam and Socialism

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. Islam and Socialism

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. Islam and Socialism

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 Islam and Socialism

Types of Socialism Utopian Socialism State Socialism Christian Socialism Anarchism Marxian Socialism Communism Islam and Socialism

Better allocation of resources Improving productive efficiency Social Justice Better allocation of resources Improving productive efficiency Social security and welfare Economic stability Islam and Socialism

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 Islam and Socialism

Misallocation of resources Lake of consumer sovereignty Loss of economic freedom Economic equality not achieved Concentration of power in the state Islam and Socialism

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 الأرض جميعا Islam and Socialism

Islamic Economics System Halal & Haram Justice Equality Cooperation Brotherhood Benevolence Islam and Socialism

Solution for Economics Problems Basic rules of Islam Naturally Concentration on ethics and morality The role of government where required Islam and Socialism

Solution for Economics Problems Achieving wealth Rights of ownership How to use that Rights? utilization of capital Distribution of wealth [كفالت عامه Islam and Socialism

Teaching of the Qur,an Regarding Economics Wright of private ownership لاتأكلوا أموالكم بينكم بالباطل(النساء) لاتدخلوابيوتا غيربيوتكم ......(النور) No concept of equality in economics Allah saysأهم يقسمون رحمة ربك نحن قسمنا بينهم معيشتهم في الحياة الدنيا ورفعنا بعضهم فوق بعض..(الزخرف) No priesthood Allah says وكلوا مما رزقكم الله(البقرة) Islam and Socialism

Teaching of the Qur,an Regarding Economics Distinction between legal and illegal لاتأكلوا اموالكم بينكم بالباطل Exaggeration is not allowed ولاتسرفوا انه لايحب المسرفين How to spend? The concept of zakat Spoils of war The concept of Islam regarding inheritance The concept of public property الناس شركاء في ثلاث,الماء والكلاء والنا Islam and Socialism

Islam and Socialism