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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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

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

15. 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

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

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

18. 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

19. 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

20. 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

21. Islam and Socialism