Hassam Patoli

SOCIALISM, COMMUNISM AND ISLAMIC VIEW

SOCIALISM VIEW:
Socialism refers to an economic system characterized by social ownership of the means of production and co-operative management of the economy "Social ownership" may refer to cooperative enterprises, common ownership, state ownership, or citizen ownership of equity. There are many varieties of socialism and there is no single definition encapsulating all of them. They differ in the type of social ownership they advocate, the degree to which they rely on markets or planning, how management is to be organised within productive institutions, and the role of the state in constructing socialism. A socialist economic system would consist of a system of production and distribution organized to directly satisfy economic demands and human needs, so that goods and services would be produced directly for use instead of for private profit driven by the accumulation of capital. Accounting would be based on physical quantities, a common physical magnitude, or a direct measure of labor-time in place of financial calculation. Distribution would be based on the principle to each according to his contribution. As a political movement, socialism includes a diverse array of political philosophies, ranging from reformism to revolutionary socialism. Proponents of state socialism advocate the nationalization of the means of production, distribution and exchange as a strategy for implementing socialism. In contrast, libertarian socialism proposes the traditional view of direct worker's control of the means of production and opposes the use of state power to achieve such an arrangement, opposing both parliamentary politics and state ownership. Democratic socialism seeks to establish socialism through democratic processes and propagate its ideals within the context of a democratic political system. People often confuse "socialism" with the concept of "communism." While the two ideologies share much in common -- in fact communism encompasses socialism -- the primary difference between the two is that "socialism" applies to economic systems, whereas "communism" applies to both economic and political systems. Another difference between socialism and communism is that communists directly oppose the concept of capitalism, an economic system in which production is controlled by private interests. Socialists, on the other hand, believe socialism can exist within a capitalist society.
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Hassam Patoli

CAPITALISM VIEW:
Capitalism is an economic system based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit. Elements central to capitalism include capital accumulation, competitive markets, and a price system. There are multiple variants of capitalism, including laissez-faire, welfare capitalism and state capitalism. Capitalism is considered to have been applied in a variety of historical cases, varying in time, geography, politics, and culture. There is general agreement that capitalism became dominant in the Western world following the demise of feudalism. Economists (including political economists) and historians have taken different perspectives on the analysis of capitalism. Economists usually emphasize the degree to which government does not have control over markets (laissez-faire), as well as the importance of property rights. Most political economists emphasize private property as well, in addition to power relations, wage labor, class, and the uniqueness of capitalism as a historical formation. The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy. Many states have what are termed mixed economies, referring to the varying degree of planned and marketdriven elements in an economic system.

CAPITALISMS FACTORS OF PRODUCTION

This theory can be briefly stated like this: wealth should be distributed only over those who have taken a part in producing it, and who are described in the terminology of economics as the factors of production. According to the Capitalistic economics, these factors are four:1. Capital: It has been defined as "the produced means of production" - that is to say, a commodity which has already undergone one process of human production, and is again being used as a means of another process of production. 2. Labor: It is to say, any exertion on the part of man. 3. Land: This has been defined as natural resources (that is to say, those things which are being used as means of production without having previously undergone any process of human production).
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Hassam Patoli

4. Entrepreneur or Organization: The fourth factor that brings together the other three factors, exploits them and bears the risk of profit and loss in production. Under the Capitalist economy, the wealth produced by the co-operation of these four factors is distributed over these very four factors as follows: one share is given to Capital in the shape of interest, the second share to Labor in the shape of wages, the third share to Land in the shape of rent (or revenue), and the fourth share (or the residue) is reserved for the Entrepreneur in the shape of profit.

ISLAMIC VIEW
The Islamic system of the distribution wealth is different from both. From the Islamic point of view, there are two kinds of people who have a right to wealth: 1. Those that have a primary right that is to say, those who have a right to wealth directly in consequence of participation in the process of production. In other words, it is those very "factors of production" which have taken a part in the process of producing some kind of wealth. 2. Those who have a secondary right, that is to say, those who have not taken a direct part in the process of production, but it has been enjoined upon the producers to make them co-sharers in their wealth.

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