Transcript Document

Islam & Socialism
IBM 11013
Introduction to Islamic Economics
Lecturer in charge
RA. Sarjoon
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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
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Islam and Socialism
Economics & Its Problems
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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.”
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The four basic economic problems:
1.
2.
3.
4.
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.
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Islam and Socialism
The pattern of economic institutions and organization in various countries is not the
same.
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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.
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These problems do not have only one solution. Alternative ways or alternative
systems exist in this regard.
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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
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Islam and Socialism
Socialism
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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
What is Socialism?
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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
Socialism
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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
Socialism Definition
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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
Socialism Terminology
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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
Historical Background
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Industrial Revolutions
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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
Types of Socialism
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Utopian Socialism
State Socialism
Christian Socialism
Anarchism
Marxian Socialism
Communism
Islam and Socialism
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Social Justice
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Better allocation of resources
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Improving productive efficiency
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Social security and welfare
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Economic stability
Islam and Socialism
 Lake
of incentive or encouragement
 Maladjustment
 Profit
and loss
 Private
property
 Bureaucracy
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 Not
in the demand and supply
monopoly of
successful in business
Islam and Socialism
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Misallocation of resources
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Lake of consumer sovereignty
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Loss of economic freedom
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Economic equality not achieved
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Concentration of power in the state
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 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 األرض جميعا‬
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Islam and Socialism
Islamic Economics System
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Halal & Haram
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Justice
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Equality
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Cooperation
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Brotherhood
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Benevolence
Islam and Socialism
Solution for Economics Problems
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Basic rules of Islam
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Naturally
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Concentration on ethics and morality
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The role of government where required
Islam and Socialism
Solution for Economics Problems
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Achieving wealth
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Rights of ownership
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How to use that Rights?
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utilization of capital
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Distribution of wealth [‫كفالت عامه‬
Islam and Socialism
‫‪Teaching of the Qur,an Regarding‬‬
‫‪Economics‬‬
‫‪Wright of private ownership‬‬
‫التأكلوا أموالكم بينكم بالباطل(النساء)‬
‫التدخلوابيوتا غيربيوتكم ‪(......‬النور)‬
‫‪ No concept of equality in economics‬‬
‫أهم يقسمون رحمة ربك نحن قسمنا بينهم معيشتهم ‪Allah says‬‬
‫في الحياة الدنيا ورفعنا بعضهم فوق بعض‪(..‬الزخرف)‬
‫‪ No priesthood‬‬
‫وكلوا مما رزقكم هللا(البقرة) ‪ Allah says‬‬
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‫‪Islam and Socialism‬‬
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Teaching of the Qur,an Regarding
Economics
Distinction between legal and illegal
‫التأكلوا اموالكم بينكم بالباطل‬
 Exaggeration is not allowed
‫والتسرفوا انه اليحب المسرفين‬
 How to spend?
 The concept of zakat
 Spoils of war
 The concept of Islam regarding inheritance
 The concept of public property
 ‫الماء والكالء والنا‬,‫الناس شركاء في ثالث‬
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Islam and Socialism
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Islam and Socialism