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.

3 Islam and Socialism

 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

4 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.

5 Islam and Socialism

 What is Socialism?

Socialism: A political and economic theory

that a countrys 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.

6 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.

7 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.

8 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

9 Islam and Socialism

 Social Justice

Better allocation of resources

Improving productive efficiency

Social security and welfare

Economic stability

10 Islam and Socialism

 Lake of incentive or encouragement

adjustment in the demand and supply

Profit and loss

Private property

Bureaucracy monopoly of

Not successful in business

Insufficient resources
11 Islam and Socialism
 Misallocation of resources

Lake of consumer power

Loss of economic freedom

Economic equality not achieved

Concentration of power in the state

12 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 Allahs is the kingdom
of the heavens and the earth, and Allah has power over
every things." [Al- Imran, 3:189].

13 Islam and Socialism

 Islamic Economics System

Halal & Haram

Justice

Equality

Cooperation

Brotherhood

kindness

14 Islam and Socialism

 Solution for Economics Problems

Basic rules of Islam

Naturally

Concentration on ethics and morality

The role of government where required

15 Islam and Socialism

 Solution for Economics Problems

Achieving wealth

Rights of ownership

How to use that Rights?

utilization of capital

Distribution of wealth [

16 Islam and Socialism

 Teaching of the Qur,an Regarding
Economics

right
of private ownership
No concept of equality in economics)

17 Islam and Socialism

 Teaching of the Qur,an Regarding
Economics

Distinction between legal and illegal

Exaggeration is not allowed
How to spend?
The concept of zakat
Spoils of war
The concept of Islam regarding legacy
The concept of public property

18 Islam and Socialism

19 Islam and Socialism