Islam and capitalism

1242 mots 5 pages
Islam believes in justice and fairness in the economic field. 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 (the share of wealth), 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. What is Capitalism? Capitalism, as defined by the Collins Dictionary, “is an economic system based on the private ownership of the means of production, distribution and exchange”. The profit motive constitutes the prime stimulus to productive. It is a type of economy in which capital is privately owned and may be freely used by the owners as they wish in attempting to make profits from their economic enterprises. Capitalism and Islam are compared in respect of their basic economic concepts as under: 1. Right to ownership: The existence of right of private ownership of property is the hallmark of capitalism. It gives unrestricted rights of ownership to the individual. The individual may acquire and own his property in whatever manner he likes. The system believes in the private. The unrestricted right to own property and earn profits leads to concentration of wealth in few hands. This necessarily disturbs the balance of distribution of wealth and income in society. The economic disparities and the ever-increasing gulf between the rich and the poor sows the seeds of discord and destruction in the capitalist society. Islamic concept of ownership is unique one. Ownership, in reality, belongs to God while some rights only vest in man so that he may fulfil the purpose of God, that is the purpose of community by acting as a trustee for those in need. In other words, what Allah has created for benefit of and service to man belongs collectively to the whole humanity. Legal ownership by the

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