Welcome to Distinctive Features Of Islamic Economic System
Economic system plays an integral role in the Socio-Economic development of the state. Every kind of economic system is labelled with particular aspects. Every system has its own form and foundation from which it can be recognized and distinguished. Modern capitalism appeared due to rapid development facilitated by unprecedented human progress in the fields of science and technology. Modern capitalism is revolving around the idea of free market economy, interest and banking, very limited intervention of state in economic affairs, non-intervention.
There is another system called Socialism. It appeared as a response to capitalism. In socialism people believe in whole and complete control of state on full ownership of means of production or economy by community or the state. Feudalism is also another system in which few persons or families have ownership of land and makes majority of people serfs who work on lands either as employers of the property-owners or for insufficient share in the harvest of land.
On the other hand, Whereas Islam believes in justice and promotes fairness in the economic field. According to it, the man is Allah Almighty’s deputy or viceroy in complete divine system and he has been bestowed with limited rights of ownership or production of means. It identifies intervention of state in the economic movement for the determination of ensuring welfare of its peoples. Institution of sadaqat, Abolition of interest and, distinction between lawful and unlawful, Zakat, prohibition of hoarding and stress on circulation of wealth, equitable distribution of wealth, concern for wellbeing of the poor are the fundamental distinctive features of the Islamic economic system. Thus, Islam also ensures that only financial sound people are allowed to perform hajj with the help of Islamic pilgrimage to Mecca. It shows that Islam promotes economic stability and prosperity of its citizens.