What Is Islamic Economics Systems

2009

What is Islamic Economics Systems? Main characteristic of the Islamic economic system.

“Islamic economics” is defined a complete system that prescribed specific pattern of the economics behavior for all individual and society with in the Islamic way of life.

Qulb e abbas JAFSHAH 11/11/2009

The recently development toward Islamization, is to eliminate the interest – based transition particularly from the banking sector in general from the whole system of the economics. Broadly speaking “Islamic economics” is defined a complete system that prescribed specific pattern of the economics behavior for all individual and society with in the Islamic way of life. Now, here we discuss the main characteristic of the Islamic economic system. At the core of the Islamic economic system lies on the rule specified by the shariha namely the codification of injunction given by the HOLY QURAN and the TRADITIONS of the PROPHET MOHAMMAD. The blue prints of economic policy follow the rule, which are compatible with the shariha the key elements of the Islamic economic system are as. In Islamic system individual rights are a consequence of human obligations and not an antecedent to them. When these obligations are fulfilled, certain rights are gained. First the duty and then the rights of the individual, to peruse his economic interests with in the frame works of the shariha. The property rights are base on three principles. Firstly The ALLAHA is the owner of the whole land individual has been given the rights of the possession as a trust. Secondly, property is only a mean of achieving highest objectives and all members of the society share the natural resources at man’s disposal. Finally, these rights of society and of individual are protected by the shariha through the limitations imposed on the disposition of the property and the wealth resulting from it, called the principle of invariance. Islam gives guidance in all economic relation, exchange of goods on the base of contracts. The freedom to contracts with in the frame works of the shariha and remain faithful to their stipulations deeply emphasized in Islam. The QURAN prohibits strongly the payment and receipt of interest (riba) Interest (riba) refers to the addition to the amount of principle of a loan on the basis of time for which it is loaned or of the time for which the payment is deferred. There is now a consensus of the opinion among Muslim scholars that prohibition extends to any and all forms of interest. They signify the additional money charged in money –money type exchange or the uncompensated increase in a commodity-commodity transition. Islam exalts work and considers it as an inseparable dimension of faith itself. Idleness conversely is viewed as a manifestation of unbelief in the Islam. All persons are exhorted to work in order to earn for themselves and no one physically and mentally able is allowed to become a liability to his family or the state through idleness and voluntary unemployment. Wealth itself is considered as an important means by man’s ultimate objective. It is the highest blessing bestowed on man and every-one is encouraged to strive for it. Beside this the method to earning, possessing and disposing the wealth is defined by the shariha. The rules relating to 2

extravagance in consumption, waste, the obligation of sharing and inheritance The role of state in the Islamic economics ensure; first, that every individual has equal access to the natural resources and means of livelihood; second, the everyone has equal opportunity to use the resources included education, skill and technology. Third, the market is based on the rule of justices that is the authority ensures equal proportion in exchange. (Islam greatly emphasis market-network in ethical and moral rules of behavior operation under the authority works within the shariha). Forth, the transfer takes place from those more able to use the economy’s resource to those less able, according to the rules of shariha; and, lastly the laws of inheritance, which ensured the distributive justice for the next generation. The state is responsible to design the economic policy with in the framework of the shariha that is required in order to guarantee the attainment of these objectives and to meet the necessary expenditure associate with the performance of its duties through taxation and utilization of national resources.

REFERANCE 1.Sardar, Ziauddin., The Future of Muslim Civilization. Croom Helm, London. 2.Chapra, Umer., The Economics system of Islam, University of Karachi, Karachi. 3.Khan, Mohsain., Mirakhor, Abbas., ed., Theoretical Studies in Islamic Banking and Finance, the institute for research and Islamic Studies, Texas U.S.A.

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