1. ISLAM AND OTHER ECONOMIC
SYSTEM
ZCZC6943
PRESENTED BY:
MAISYARAH STAPAH
FARHANAH MOHD NOAH

2. OUTLINE
• CAPITALIST SYSTEM
• SOCIALISM SYSTEM
• COMMUNISM SYSTEM
• ISLAMIC ECONOMICS SYSTEM
• THE DIFFERENCES BETWEEN ISLAMIC
SYSTEM AND CONVENTIONAL SYSTEM
• ISSUES
• RECOMMENDATION

3. CAPITALIST SYSTEM
• Emergence
– Capital is needed to build factories, purchase
machines, raw materials and pay labor
– Individuals invest in hopes of profit (future
return)
– Based on concepts of free enterprise and
competition
– Needs and desires of consumers (purchasers)
met by quality goods at lowest price.

4. • The business owner or capitalist get richer
while the workers do all the hard work.
• The capitalists get more power to serve their
own interests.

5. Private
ownership
Market Free
economy enterprise
BASIC
PRINCIPLES
Competitive
Profit
motive

6. Limited role
for Free trade
government
Self-interest Competition
CAPITALIST
IDEOLOGY

7. • FLAWS OF CAPITALISM
– No bindings / restrictions while maximizing
profits.
– No moral value limitations
– Monopolies are created that exploit the society
as a whole
– Government and industrialists join hand for
mutual benefit and make laws that exploit
common people
– Imbalance in the distribution of income due to
which concentration of wealth take place

8. SOCIALISM SYSTEM
• Emergence
– Socialism provides a different conception of
individual responsibility and government
– A variation on socialism argue that socialism and
democracy can work
– Democratic governments should promote
economic – as well as political – freedom and
equality

9. Egalitarianism
/ Equality
BASIC
PRINCIPLES
Moralism

10. • FLAWS OF SOCIALISM
– Individuals lose incentive to work
– Government becomes a dictatorship
– Government places needs of the state over the
individuals
– Government central planning the economy
– Government must be in constant state of
emergency to instigate production

11. COMMUNISM SYSTEM
• A government where people shared work
fairly and were paid equally
• Goal: to get rid of social classes and make
everything fair for everyone

12. • FLAWS OF COMMUNISM
– Everything is distributed equally
– Dictatorship is the government when a group or
one person has control over everyone
– The rich get richer, while the poor get poorer
– People never achieved the goal

13. ISLAMIC ECONOMICS SYSTEM
• The humanitarian goal of achieving the well
being of all members of the human family
• To raise the spiritual content of well being
and reduce all the symptoms of anomie
• Islam accepts the right to private property
and maximize profit. But these right are not
uncontrolled rather there are some
prohibitions

14. Islam focuses
on the
distribution of
wealth not just
The Gold & the production. All basic
Silver
needs
standard for
guaranteed
currency
Islam neither
believes in a
free market
Basic Circulation of
wealth is a
nor a command
economy
principles duty
It is Prohibition of
prohibited to Riba –
sell what you The Islamic encouragemen
don’t have economy is t of investment
real and Islam
prohibits the
current form of
financial
markets

15. Distribution
surplus
money
Scarcity
Moral
Religion Considerations
& Restrictions
Co-
THE DIFFERENCES Right To
Existence BETWEEN Wealth
ISLAMIC SYSTEM
AND
CONVENTIONAL
SYSTEM
Private Concept Of
Ownership Brotherhood
Divine
Sovereignty
Prohibition
Government
Risks Restriction

16. ISSUES
• Poverty in Islamic country
• Begging status in Islam economic
• Islamic economic system as alternative in
financial crisis

17. RECOMMENDATION
• Positive economics:
– The part of economics that analyzes human
behavior as it is or on its own nature-looks at
people do
• Normative economics:
– Give prescriptions about how the human
behavior should be-deals with policy matter on
what ought to be done.