1. ISLAM AND OTHER ECONOMIC SYSTEM
Topic 3
ECS 10403

2. OUTLINE CAPITALIST SYSTEM SOCIALISM SYSTEM COMMUNISM SYSTEM
ISLAMIC ECONOMICS SYSTEM
THE DIFFERENCES BETWEEN ISLAMIC SYSTEM AND CONVENTIONAL SYSTEM

3. CAPITALIST SYSTEM Emergence
Capital is needed to build factories, purchase machines, raw materials and pay labor
Individuals invest in hopes of profit (future return)
Based on concepts of free enterprise and competition
Needs and desires of consumers (purchasers) met by quality goods at lowest price

4. The business owner or capitalist get richer while the workers do all the hard work
The capitalist get more power to serve their own interests

5. Basic Principles
Private Ownership
Free Enterprise
Profit Motive
Competitive
Market Economy

6. Limited role for government
Capitalist Ideology
Limited role for government
Self- interest
Free Trade
Competition

7. FLAWS OF CAPITALISM No bindings/ restrictions while maximizing profits
No moral value limitations
Monopolies are created that exploit the society as a whole
Government and industrialists join hand for mutual benefit and make laws that exploit common people
Imbalance in the distribution of income due to which concentration of wealth take place

8. SOCIALISM SYSTEM Emergence
Socialism provides a different conception of individual responsibility and government
A variation on socialism argue that socialism and democracy can work
Democratic governments should promote economic-as well as political- freedom and equality

9. Egalitarianism/Equality
Basic Principles
Egalitarianism/Equality
Moralism

10. FLAWS OF SOCIALISM Individuals lose incentive to work
Government becomes a dictatorship
Government places needs of the state over the individuals
Government central planning the economy
Government must be in constant state of emergency to instigate production

11. COMMUNISM SYSTEM
A government where people shared work fairly and were paid equally
Goal: to get rid of social classes and make everything fair for everyone

12. FLAWS OF COMMUNISM Everything is distributed equally
Dictatorship is government when a group or one person has control over everyone
The rich get richer, while the poor get poorer
People never achieved the goal

13. ISLAMIC ECONOMICS SYSTEM
The humanitarian goal of achieving the well being of all members of the human family
To raise the spiritual content of well being and reduce all the symptoms of anomie
Islam accepts the right to private property and maximize profit. But these right are not uncontrolled rather there are some prohibitions.

14. Circulatuion of wealth is a duty All basic needs guaranteed
Basic Principkes
Circulatuion of wealth is a duty
All basic needs guaranteed
Prohibition of Riba
Islam Focuses on the distribution of wealth not just the production

15. THE DIFFERENCES BETWEEN ISLAMIC SYSTEM AND CONVENTIONAL SYSTEM

16. ISSUES Poverty in Islamic country Begging status in Islam economic
Islamic economic system as alternative in financial crisis