Socialism vs Islamic Economic System

ا�ش�ت�ر�ا�ک�ی� ن�ظ�ا�مSocialism

Submitted To: Mr. Mubeen ButtSubmitted By:

Muhammad Umair khan Mubashar Ahmad Qureshi,Mubeen Zubair,Faisal Mughal.Muhammd Imran

MS-IBF, BATCH 4, FALL 2016.ISLAMIC ECONOMICS AND POVERTY ALLIVIATION.

MINHAJ UNIVERSITY LAHORE.

Analysis Between Capitalism and

Socialism vs Islamic Economics

Socialism is a way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies

اشتراکی نظام ایک معاشرے کو ترتیب دینے کا ایسا طریقہ ہے جسمیں بڑیصنعتوں کا کنٹرول اور ملکیت حکومت کے ہاتھ میں ہوتی ہے بجائے اسکے کہ انفرادی لوگوں اور کمپنیوں کے ہاتھ میں ہو۔

Socialism

Basic Characteristics of Socialism

Collective Property( ملکیت (اجتماعی

Planning( بندی (منصوبہ

Collective Interest( مفاد (اجتماعی

EQUITABLE DISTRIBUTION OF INCOME( تقسیم منصفانہ کی آامدنی )

CLASSLESS SOCIETY( معاشرہ طبقاتی (یک

Merits & demerits Merits

Social Justice ( انصاف (سماجیEconomic Stability ( استحکام (معاشیHigher Economic Growth ( ترقی اقتصادی (اعلیAbsence of Class Struggle ( موجودگی عدم کی جدوجہد (طبقاتی

Elimination of Unemployment ( خاتمہ کا روزگاری (بے

DemeritsLoss of Consumer ( نقصان کا (صارف

CorruptionEnd of Liberty ( خاتمہ کا مختاری (خود

Concentration of economic Power

( ہونا حراست زیر کا طاقت (اقتصادیErrors in Planning ( بندی منصوبہ (ناقص

High TaxesLess Incentive to work Hard / ImproveNo Competition within major

IndustriesResources can be limited thus causing

shortages

Disadvantages of Socialism

1. Liberty to EarnIn socialism the product of peoples labor is confiscated by the

state to distribute it equally among the public. People have to lose their earning in a coercive environment, e.g. many Ukrainian farmers were killed because they tried to conceal the grains of their sustenance.

Islamic economic system allows individuals to operate in a free market but all the activities should be Sharia Compliant.

Islamic Economic System Versus Socialism

2. Liberty to ownSocialism restrict the right of ownership, in

communism no individual has the right to own property.

Islam allows the people to own property as much they want but with the unique concept that Allah is the owner of everything; and holds the followers accountable regarding the legality of property (Sharia compliance and also apply obligatory taxes like Zakat and encourages Sadaqat).

Islamic Economic System Versus Socialism

3. Distribution of wealthSocialism claim equal distribution of wealth which

is against the laws of nature, as it will limit the desire to work.

Islam allows the people to earn using Halal means and get rich, also Islam allows the people to be poor and rich but not to the extent that it create classes in the society.

Islamic Economic System Versus Socialism

خ�ی�ر�ا ا�ل�ل�ہ� ج�ز�ا�ک�

Thank you!