What Are The Differences Of Ideologies And Ethical Values Between Islamic Economics And Capitalism

No matter how materialistic the world economic systems are

, they are not bereft of some ethical values. And most of the times it is because of these values that an economic system is different from the other in its appearance, inherent nature and fundamental principles. The chief and the fundamental difference between the Islamic economic system and that of the west, proper to say the capitalism, is of interest or usury. Islam states in clear, unambiguous terms that interest or Riba is altogether Haram or unlawful in the Islamic economic system. Islam equals it declaring war against God and his Prophet.

The Holy Quran says:

But if you do not (give interest up), then listen to the declaration of war from Allah and His Messenger. However, if you repent, yours is your principal. Neither wrong, nor be wronged. [2:279]

On the other hand interest is the base of the world economic system and fundamental stone. The difference of these attitudes stems from the different ideology and different values which we are going to have a brief look on, and see what ideology and values regard more of humanity, at individual level and the at level of society.

According to Capitalism,

3.Livelihood is the fundamental problem of human beings and their ultimate goal lies in their economic good and progress.

4.wealth or property in the possession of man is his own property and he is free to do whatever he likes to do with it, any restriction is a transgression on his freedom of choice

Quite contrary to it, Islam presents a different ideology it says that:

3.livelihood may be indispensable but not the fundamental problem of human

Beings, their ultimate goal are the good of the life hereafter.

4.Wealth or property in the possession of man is not his own. He is the trusty or the guardian of this wealth and not supposed to exploit or manipulate it on his own; he needs to follow the instructions of the Provider of the wealth.

These fundamental differences in the basic ideologies of these two different great economic systems determine the rest of the differences. The consequences of these ideologies can be summarized as such that interest unstraps the capitalists to accumulate money with the help of money. Capitalist does not have to take any risk. All risk goes to the money manager or the active partner of the business. The capitalist takes advantage of the limitation of the worker as he needs money. Capitalist is not ready to share his loss but to take a fixed share of his profit, this is because he is the capital provider.

Interest creates callousness. Interest gives unbridled power and capacity to the money maker to heap wealth. Thus money rushes into the accounts of a few and creates big clots of blood in the body of economy, which in turn causes misbalance in the distribution of wealth, and the only outlet left to extract money from the these money grabbers are taxes.

While the good governance of Islamic economic system restricts capitalists by allowing them to invest on the condition of Mudarabah or/ and Musharakah, in which a capitalist, too, has to share the profit and bear the loss, he cannot set himself aloof from the actual economic activity. It is not the interest but the actual share which is distributed between the partners: capitalist and working partner. Good governance of Islamic economic system provides a more humane and more ethical system that if you are there to share the profit you should share the loss too.

This is another debate that Islamic economic system needs a very innovative executive education to put it in practice which is being done with a good pace. This executive education should be well versed in Islamic economics as well as alive to the present scenarios.

by: Anna Williams

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