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Salient Features of Islamic Economics System

Every economic system has its own peculiar features, whgich form its foundation and from which it can be distinguished and recognised. Modern capitalism, which has emerged due to rapid industrialisation facilitated by unprecedented human advancement in science and technology, is based on free market economy, non-intervention or very limited intervention of state in economic affairs, interest and banking. Socialism, which has emerged as a reaction to capitalism, believes in complete control of state on economy and full ownership of means of production by the state or community. Feudalism stands for ownership of land by few persons or families and makes majority of people tenants or serfs who work on lands either as servants of the landlords or for meagre share in the produce of land.

Islam, on the other hand, believes in justice and fairness in the economic field. According to it, the man is God’s viceroy or deputy in overall divine scheme and he has been given limited rights of ownership of means of production. It recognises intervention of state in the economic activity for the purpose of ensuring welfare of its citizens. Abolition of interest, institution of sadaqat and Zakat, concept of lawful and unlawful, equitable distribution of wealth, prohibition of hoarding and stress on circulation of wealth, concern for well being of the poor are the distinctive features of the Islamic economic system.

Filed under: Salient Features

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