scholarly journals Toward the Shari'ah Paradigm of Islamic Economics

1985 ◽  
Vol 2 (1) ◽  
pp. 79-99
Author(s):  
Muhammad Arif
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
Market Economy ◽  
Private Property ◽  
Free Enterprise ◽  
Scientific Justification ◽  
Scientific Nature ◽  
Islamic Economic ◽  
The Right ◽  
Made In

I. INTRODUCTION -THE MAJOR CRITICS OFISLAMIC ECONOMICS: This paper attempts to respond to the critics who, on various grounds, oppose the development of Islamic economics. The author feels that a scientific response to these critics is the responsibility of the Islamic economists. It is believed that such a response would be educational for the critics and their followers. It would enable them not only to understand the scientific nature of Islamic economics but would also allow them to appreciate that the development of the Shari'ah paradigm ofislamic economics is, in fact, the beginningofascientific revolution in economics. Given the bases of their arguments, these critics of Islamic economics can be classified into the following three schools of thought. 1) The Adjusted Capitalism School: According to this school the fundamental principles of the Islamic economic system are the same as those of capitalism. In support of this assertion they point out that like capitalism, Islam also allows the right to private property, free enterprise, and market economy. They, however, acknowledge that certain adjustments need to be made in capitalism to bring it in conformity with Islamic principles. They hold that these adjustments should be made according to Islam's distinction between Haram and Halal, and Islam's teachings in financial and fiscal areas; namely, riba and zakat. According to this school, if these areas of capitalism are adjusted according to Islamic requirements, then the adjusted form of capitalism will be nothing but the Islamic economic system. Thus this school holds that the conventional economic theory, with only a few adjustments, is fully capable of generating the Islamic economic system. Hence, they see no scientific justification for the development of Islamic economics toward the creation and establish­ment of an Islamic economic system ...

scholarly journals Institutional Setup in Market Economy and Islamic Property Rights

2018 ◽  
Vol III (I) ◽  
pp. 12-20
Author(s):  
Noor Fatima ◽  
Muhammad Zubair ◽  
Zubair Sarfaraz
Keyword(s):  
Property Rights ◽  
Economic System ◽  
Market Economy ◽  
Free Trade ◽  
Private Property ◽  
Essential Element ◽  
Property Right ◽  
Base System ◽  
Distribution Of Wealth ◽  
Islamic Economic

This paper argues that there is an ever-growing demand to correlate between Islam and Economics. Property-right and ownership is the basic concept of the modern economic structure of a liberal economic system. A property right is well explained in Islam and that also an essential element for the market economy, this paper discusses the Islamic perspective of property rights and how far it is complementary with the market economy. Since property rights of Islam are central to the structure of the economic system, Islam also emphasizes on economically good life depends on free trade. Free trade demands a recognized system of property rights, as a market base system demands a healthy competition of commodities, which ultimately needs private property rights for the protection of capital of producers and owners. The distribution of wealth is the main argument of the Islamic Economic System, which helps states in the fair distribution of resources.

scholarly journals COMPARISON OF ISLAMIC ECONOMY AND CONVENTIONAL ECONOMY TO PEOPLE'S INCOME GROWTH IN REDUCING POVERTY AND UNEMPLOYMENT

2020 ◽  
Vol 1 (2) ◽  
pp. 259-274
Author(s):  
Tarmizi Tarmizi
Keyword(s):  
Economic System ◽  
Economic Systems ◽  
Economic Activities ◽  
Capitalist System ◽  
The People ◽  
Socialist Economic ◽  
Islamic Economic ◽  
Islamic Faith ◽  
The Right ◽  
Socialist Economic System

Islamic economic system is built on the foundation of the Islamic faith, the faith in question is the right because it comes from Allah brought to mankind through the prophet Muhammad. The Islamic faith is a faith that satisfies reason, reassures the soul, and is in accordance with human nature. In an individual context, economic activity is based on the values of worship. The economic system known by society globally is the capitalist and socialist economic system. In the economic context, both systems have been able to increase the prosperity of the people in the country that uses both economic systems. The capitalist system is influenced by the zeal to make the most of its profits with limited resources. This capitalist venture is supported by the values of freedom to make ends meet. This freedom resulted in high competition among others in defense, while the socialist economic system had the goal of mutual prosperity. In conclusion, the Islamic economic system is a solution economic system for various problems that have arisen, while the conventional economic system is an economic system that is widely used by various countries in the world, including Indonesia. A conventional economy is an economic system that gives full freedom to everyone to carry out economic activities.

Islamic Economic Principles

2019 ◽  
Author(s):  
Rodney Wilson
Keyword(s):  
Interest Rates ◽  
Economic System ◽  
Charitable Giving ◽  
Private Property ◽  
Moral Issue ◽  
Socialist Economy ◽  
Private Property Rights ◽  
Banking And Finance ◽  
Normal Method ◽  
Islamic Economic

Justice in commercial transactions is central to Islamic economic teaching, in particular the notion that remuneration should be fair, with distribution viewed as a moral issue. Risks are inherent in any economic system, but in Islam rather than risks being borne by debtors alone, they should be shared by creditors. This has implications for the organization of banking and finance. The charging of interest is forbidden, partly due to concerns about exploitative usury, as well as unease about how interest rates are determined. Islamic economic teaching stresses the merits of charitable giving and the importance of tackling poverty. At the same time there is an awareness of the dangers of creating a dependency culture and the desirability of sustainability in charitable giving. There is concern not only with how money is earned but with how it is spent, with Islamic economic teaching providing guidance on what spending is legitimate and desirable and what should be avoided. Markets are viewed as the normal method of conducting business in Islamic economics, and private property rights are respected. Islamic teaching in the economic sphere is often regarded as more compatible with a capitalist economic system than a socialist economy, although there is no consensus among Islamic economists about where the dividing line between the state and the private sector lies. Arguably Islamic teaching has developed more at the microeconomic level of the firm while macroeconomic fiscal and monetary policy options remain contested.

scholarly journals NILAI KEADILAN DALAM EKONOMI SYARIAH

2019 ◽  
Vol 13 (2) ◽  
pp. 355-382
Author(s):  
Syaakir Sofyan
Keyword(s):  
Economic System ◽  
Human Life ◽  
Economic Justice ◽  
Equal Treatment ◽  
Central Position ◽  
Economic Instruments ◽  
Right To Life ◽  
Islamic Economic ◽  
The Right ◽  
Broad Outline

Justice has a variety of meanings covering all aspects of human life, especially in the economic field. Justice occupies a central position in the Islamic economic system. With various meanings of fairness, in broad outline is a condition where all levels of society get equal treatment, equality of compensation, the right to life, and enjoy development without anyone feeling disadvantaged. Justice demand that resources be distributed equitably to all people through Islamic economic instruments. The concept of economic justice in Islam emphasizes equality of rights and avoids social imbalances caused by economic inequality. By creating economic justice for society it will present the concept of brotherhood. With a great commitment to brotherhood and justice, all resources which are sacred mandates are used to realize sharia maqashid.

scholarly journals Economic freedom between unbounded capitalism and Socialist denial and Islam's position on it – descriptive theoretical study: الحرية الاقتصادية بين الإطلاق الرأسمالي والنفي الاشتراكي وموقف الإسلام منها: دراسة نظرية وصفية

2021 ◽  
Vol 5 (4) ◽  
Author(s):  
Khalil Ahmed Marif
Keyword(s):  
Economic System ◽  
Economic Freedom ◽  
Planning System ◽  
Capitalist System ◽  
Socialist Economic ◽  
Pros And Cons ◽  
Islamic Economic ◽  
The Right ◽  
Legal Controls ◽  
Socialist Economic System

This research aims to highlight the role of the Islamic system in economic freedom and its success over the capitalist system, and a socialist in freedom. And between the pros and cons and the way of freedom in the mentioned systems. He emphasized that economic freedom in the capitalist system is absolute, there is no limit in it, but a little, while denying public ownership only an exception to the original, And the state's non-interference in economic and financial activities. And with the denial of economic freedom in the socialist economic system and direct and absolute interference of the state in all economic and financial activities through the central planning system, With the recognition of private ownership, an exception to the original. The research emphasized that economic freedom in the Islamic economic system is neither absolute nor denied, Rather, a compromise between the two sects recognizes economic freedom, but within a limited scope, Because it is disciplined by the legal controls that are valid for all societies. And on the research methodology: I used it in the research as a theoretical and descriptive study that shows freedom in the prevailing economic doctrines with an explanation of Islam’s position on its restricted freedom and the importance of legitimate controls valid for humanity. The results were obtained and the most important ones are Economic freedom in the capitalist economic system is absolute without any control, and Economic freedom is denied in the socialist economic system, therefore Many criticisms of the capitalist and socialist economic system appeared throughout their history as a result of some wrong ideas on which the Philosophy of the two doctrines, however The right to analyze and prohibit is not anyone's right but God alone, but the Economic freedom in the Islamic system is defined by Shari’a controls and constrained by restrictions that refer to the interests of the human community in general, though Islam’s mediation in economic freedom is between capitalist launch and socialist exile. One of the most important recommendations in this research Taking care of teaching Islamic economics in colleges and institutes, Commitment to economic freedom disciplined by Sharia controls, in order to eliminate corruption and bring human interests, and Following to this rule: every action is permissible unless there is evidence that it is prohibited.

scholarly journals Sharia Islamic Economics in the Middle of Civilization Transition

2021 ◽  
Vol 3 (1) ◽  
pp. 64-75
Author(s):  
Mohammad Ghozali ◽  
Resi Handayani ◽  
Wahyudi Bakri
Keyword(s):  
Economic System ◽  
Secondary Data ◽  
Advantages And Disadvantages ◽  
Positive Side ◽  
Library Research ◽  
The Government ◽  
Islamic Economic ◽  
The Individual ◽  
The Right ◽  
The Relationship

The existence of an economic system of capitalism, an economic system of socialism, and an economic system of sharia are a response to problems regarding the economy as well as an answer to removing people from the obscurity of the existing economic system. It’s hoped that these systems will be the key to the economic success of a society. But there are always advantages and disadvantages to every existing system. The economic system of capitalism is an economic system hi which investors or owners of capital are the movers and rulers. Meanwhile, the economic system of socialism is a system hi which the government is the main control, this system ignores the position of the individual, everything is regulated by the ruler and no one has the right other than the ruler. The considerations positives and negatives of each system have created a sharia economic system where this system has every positive side of the capitalist and socialist economic system but ignores the shortcomings or negative sides of the two systems. This paper discussed how the economic system of capitalism, the economic system of socialism, the Islamic economic system, and the relationship between them. The method used in this writing was library research, in which the authors used various secondary data from books, article, and many more. The results showed that it is clear that there are far differences between the conventional economic system and the Islamic economic system, the conventional economic system includes the economic system of capitalism and the economic system of socialism.

scholarly journals البنية المعرفية للاقتصاد الإسلامي: دراسة مقارنة مع الاقتصاد الوضعي

2010 ◽  
Vol 16 (62) ◽  
pp. 43-13
Author(s):  
أحمد إبراهيم منصور
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
Frame Of Reference ◽  
Theory And Practice ◽  
Basic Concepts ◽  
Cultural Borrowing ◽  
Islamic Economic

يبدأ البحث بإيضاح عناصر الاقتصاد الوضعي التي تمثل مرجعية معرفية للممارسات الاقتصادية، مع التركيز على المنهج والمفاهيم، وينتقل إلى بيان عجز الاقتصاد الوضعي عن تحقيق العدالة والكفاءة. ثم يتناول عدداً من المفاهيم الأساسية ليوضح طبيعة البيئة التي تشكل فيها المفهوم، والشكل الذي تم إنتاجه فيها، ويختار لذلك مفهوم "العمل". ثم يختم بتحليل مسألة الاقتراض الثقافي للمفاهيم ودورها في التمييز بين جهود بناء الأصالة الحضارية أو الوقوع في التبعية الحضارية. ويؤكد البحث أن بناء نظرية اقتصادية إسلامية أمر ممكن لتوفر الإطار المرجعي للنظرية ومنظومة المفاهيم المشكلة لها وأدوات التحليل والتفسير العاملة فيها، ومن ثم يدعو المهتمين بشأن الاقتصادي الإسلامي: فكرأ وممارسة، إلى بذل الجهد اللازم لبناء هذه النظرية. This paper begins by clarifying elements of prevailing economic system characterized by positivist philosophy, with a focus on methodology and concepts.  It exposes the inability of this system to achieve justice and efficiency. The paper then addresses a number of basic concepts to explain the nature of the environment in which the concept has been formed choosing the concept of "work" for that purpose.  It concludes with citing the danger of cultural borrowing of concepts, and its role in creating cultural dependency and harboring efforts of building civilizational identity of the Muslim Ummah. The paper stresses that building an Islamic economic theory is possible, given that a the frame of reference for the theory and the system of concepts that forms it and its tools of analysis are all available, and calls on those concerned with Islamic economics to exert the necessary effort, in theory and practice, to build such theory.

scholarly journals Der Übergang zur Marktwirtschaft – Ein soziokulturelles Problem

1994 ◽  
Vol 38 (1) ◽  
pp. 100-114
Author(s):  
Hans G. Nutzinger
Keyword(s):  
Economic System ◽  
Market Economy ◽  
The Other ◽  
European Countries ◽  
Economic Systems ◽  
Eastern European ◽  
Free Enterprise ◽  
Enterprise Development ◽  
Economic Decisions ◽  
Eastern European Countries

Abstract Hans Nutzinger describes the current complex of problems of the eastern european countries on their transition to market economy and points out, how far socio-cultural problems determine the conditions of transformation. The appropriate economic system seems to appear as a responsibility of organization, where as interdependence has tobe seen in a double sense: as an interdependence of all economic decisions, valuations and actions and, on the other hand, as an interdependence of economic systems as a whole. He deals with the topic how far a free-enterprise development depends on specific religious preconditions, but leaves the question - respecting the Iimits of the economic discipline - undecided

scholarly journals Faktor-Faktor Produksi Dan Konsep Kepemilikan

2016 ◽  
Vol 2 (1) ◽  
pp. 29
Author(s):  
Muhdi Kholil
Keyword(s):  
Economic Theory ◽  
Production System ◽  
Private Property ◽  
Theory And Practice ◽  
Economic Welfare ◽  
Social Harmony ◽  
Good Material ◽  
Production Concept ◽  
Islamic Economic ◽  
Minimal Effort

<p>Issues that are fundamentally appointed by Mannan in his book entitled: "Islamic Economic Theory and Practice" in the Islamic economic system in the theory or production concept is the principle of wealth. The concept of economic welfare in Islam consists of an increase in revenues that caused by increasing of production of good material through using resources maximally, both human and objects. Thus, the improvement of production system in Islam not only mean increased revenues that can only be measured in terms of money, but also improvements in the fulfillment of our needs maximally with minimal effort, but still consider the commandments of Islam in consumption.</p><p>When talking about the concept of ownership, Mannan had been taken ownership based on the Quran and As-Sunnah. In this case, Islam was different from capitalism and communism, because none of them was successful in placing individuals in a mosaic of social harmony. Private property is the foundation of capitalism. In other hand reducing of private property is its abolition is a target of socialist doctrine.</p>

scholarly journals Privatization in economic theory

2007 ◽  
Vol 54 (1) ◽  
pp. 103-118 ◽  
Author(s):  
Maja Drakic
Keyword(s):  
Property Rights ◽  
Economic System ◽  
Market Economy ◽  
Private Property ◽  
Choice Theory ◽  
Free Market ◽  
Mass Scale ◽  
Equilibrium Models ◽  
Dominant Form ◽  
Private Property Rights

In reality privatization has never occurred according to the handbook rules of ordinary market transactions. Not even in advanced market economies can privatization transactions be described by the Walrasian or Arrowian, or Leontiefian equilibrium models, or by the equilibrium models of the game theory. In these economies transactions of privatization take place in a fairly organic way ? which means that those are driven by the dominance of private property rights and in a market economy. But despite this fact Western privatization also some peculiar features as compared to ordinary company takeovers, since the state as the seller may pursue non ? economic goals. Changes in the dominant form of property change positions and status of many individuals and groups in the society. That?s why privatization can even less be explained by ordinary market mechanisms in transition countries where privatizing state-owned property have happened in a mass scale and where markets and private property rights weren't established at the time process of privatization began. In this paper I?ll discuss and analyze the phenomenon of privatization in context of different economic theories arguing that empirical results go in favor of the public choice theory (Buchanan, 1978), theory of "economic constitution" (Brennan and Buchanan 1985), (Buchanan and Tullock, 1989), and theory of "collective action" (Olson, 1982). These theories argues that transition from one economic system into another, for example transition from collectivistic, socialistic system into capitalism and free market economy with dominant private property, will not happen through isolated changes of only few economic institutions, no matter how deep that changes would be. In other words privatization can not give results if it's not followed by comprehensive change of economic system because privatized companied wouldn't be able to operate in old environment.

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