Islamic Economic System

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Understanding the economic system :Philosophy

Principles Rules of functioning

3 Sector in Islamic Economic System

Siasi Sector- Public Sector Tijari Sector- Private Sector Ijtimai Sector- Social Welfare Sector

Should know.... Differences with Capitalism and Socialism Understanding the Welfare State

The Islamic Economic System

The first philosophy in the Islamic Economic system is the ownership. This world is literally owned by Allah S.W.T As human being, we stay on this earth only for the short while or as lending basis. Second philosophy that Allah is one and every other thing is created subservient to Him. The third philosophy is belief in the Day of Judgment day.

Principles Of Islamic Economic

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Individual Liberty Man has the right to execute and express thier feeling because without this principle, basic responbility to urge man towards and prevent wrongdoing
Right to Property (Ownership) Man must utilize the things that he owns that the right of ownership exists. The right of ownership is limited. The owner has no power to dispose of his property after death but to be distributed as detailed in the Quran. Certain kinds of material may not be owned invidually,such as natural resources. Ballance or non-partisanship This is manifested and expresses in many aspects of the behavior of muslims such as the moderation, avoiding extravagance and stinginess. Justice It is applied in all efficiency and fighting waste

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Rules Of Functioning
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Zakah Zakah plays a significant role in the distribution of income and wealth. Prohibition Of Riba Riba is any material favor or benefit stipulated to a loan. Qirad It is sort of partnership between the owner of monetary assets and the entrepreneur, the businessman. Social Insurance Zakah guarantees a minimum level of living to all residents of Islamic society. Roles of government of economic The gov exists in the market as a producer, owner and distribution of natural resources as well.

The Three Sector In Islamic Economic Syatem

Islam has a complete, progressive and dynamic economic system. The system may be conceived as comprising three sector as Siasi (Public Sector), Tijari (Private Sector) and Ijtimai ( Social Welfare Sector) Each of the three sector has its own specific function, possible forms of institutions and set of Shariah laws to abide by and implement.

Differences Between Islamic Economic System With Capitalism And Socialism

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Objective Of System Fundamental Principles Ownership Distributions

Welfare State System

A welfare state system is an economic system that combined the systems of capitalism and socialism. The philosophy is the belief that individual welfare is very significant to be held under the power of market operation. Some of the countries that apply this system in its governing are England, Germany and Sweden.

ISLAMIC ECONOMIC SYSTEM

Islam is Ad-Din- ruled by Allah Rules and regulation compliance based on fiqh muamalat Consider as an ibadah and given pahala (reward)

BUSINESS AND TRADE: THE ISLAMIC PERSPECTIVE

Performing business activities is one form of ibadah that will be rewarded if they conducted according to the principle of Islam. Regulation and principles of conducting business are governed by the Fiqh Muamalat.

Types Of Human Needs

Daruriyyah (basic needs) Food, Clothing, Education, Health care, security 2. Haajiyyah (wants) Can be referred to a situation where basic needs are all provided. 3. Tahsiniyyah (completion, excess wealth) Condition is achieved when a person experiencing excess wealth
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Principle Of Business In Islam

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Freedom Transaction without Riba Adil (fairness) Performing Business dealing with good manner (good akhlak) Honesty and Integrity Hard Work and Persistence

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Elaborate the principles of Islamic economic system. Explain the roles of zakah and prohibition of riba in the Islamic Economic System. Who are the main centre of economic activities and the engine of economic production and growth? Explain its activities. Explain the different between Islamic Capitalism and Socialism in term of distribution. Elaborate the characteristics of welfare state. Explain three of the principle of Islamic Financial system. Diffrentiate between Daruriyyah, Haajiyyah, Tahsiniyyah needs.