Islamic Economics Essay

1158 Words 5 Pages
Discuss the rationale for a distinct economic system based on Islamic values originating from moral teachings of Shari’ah.

Introduction The existence of neoclassical economic system with no doubt has significant contributions which can be seen through the history. Capitalist and socialist economics system for example has been there as foundation for over hundred years to serve the basic economic questions. However, there are still problems in relation on how the system works. So, in this writing, my aim is to present how economic system based on the Islamic values originating from moral teaching of Shari’ah is distinct from the conventional economics. There are two major points of why Islamic economics are different from either Capitalist or Socialist.
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Contradict with capitalist model which emphasized on total freedom, he explained the concept of “freedom is not unlimited”. In Islamic perspective, one is free to choose but, the limit should be within the Shari’ah rules and regulation, i.e Halal and Haram. Shari’ah in this context represents how religion play vital role in shaping economics system. Shari’ah derives from the system of belief, religions as an order which shape the paradigm of Islamic economics. It can be scientifically explain, how justice play dynamic role in the economics. According to Nienhaus (2010), Islam has its own way in supporting the economic activities as the religion has positive view of life. He simplifies the fundamental of Islamic economics and its application in social market economy. He stressed that despite the fact that people wants to live in luxurious way; the wealth acquired should not be used to satisfy individual wants. Islam suggested that the surplus of wealth to be used for social interest. Looking at this point, it highlighted how value of adl being integrated even in the acquisition of wealth, as Islam promotes Wasatiah (modesty) in life. An application of adl can be seen through the economic

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