1) Capitalism - Its concept and Ideology
In capitalism, few features has been laid down by the capitalist.
a) Human Nature
Conventional economic analysis assumes that Man is inherently selfish, that their primary concern is to derive maximum satisfaction or utility; and that in so doing they maximize the utility of the society as a whole. As a result, under this basic assumption, the selfish behaviour of individuals and nations is not only rationalized but also encouraged.
b) Materialism
The capitalist places a very high value on material attainments. Progress and material possessions are used synonymously. The main objective is material gain only for the betterment of the life in this world.
c) Ownership
Capitalism visualizes an absolute right to private ownership so far it is not acquired by damaging another person’s similar right. Thus, people are freed to make use of their resources the way they like.
d) Universalism
Adam Smith ( d. 1776), the Capitalist guru, wrote in his book, ‘ The Wealth of Nations’, rationalizes the concept of national policies in isolation from other peoples of the world. He championed the notion of a nation state which give rise to policies being adopted which suit their selfish ends ignoring the effects of such policies might have on other nations.
e) Free market Institution
Capitalist economics are organized on the basis of free market mechanism where production of goods and services comes from a combination of capital and wage labour. The capital is provided both as equity and as interest – bearing laon.
f) Role of Money
In the capitalist world, money is treated as a commodity besides being a medium of exchange and measure of value. It has a price which resulted in interest ( riba’).
g) Consumerism
The consumer behaviour in the capitalist economies is explained in terms of the sovereignty of consumers. One is free to buy anything he likes without any moral checks with the objective of ‘ catching up ’ with new and updated things in the market especially through the aggressive onslaught of advertisements.
h) Urbanisation
Urban development has been a focused in the capitalist economics. This unbalanced urbanization has led to many poor rural countries and over – population in the cities increasing.
i) Social Security system
In capitalism, the welfare of the society is a State – run social security system through secular taxes. There isn’t any other guiding principles in the capitalistic economy to answer the call in solving poverty. Thus, this method has been overwhelmingly supported eventhough it is not an efficient way to solve the problems of poverty.
j) Deficit Financing
Deficit financing has been a way of life in the capitalist economy. It relies on this deficit financing to stimulate the economy. Borrowing of money from banks and private sectors on interest by the State, which in turn adds to the public expenditure in the form of debt servicing, leading to a greater deficit.
k) Diffusion of Knowledge
For the capitalist, knowledge is chauvinistic. It has introduced the concept of patents and proprietary rights. As a result, the developed nations have to pay heavy sums of money as royalties to the industrially advanced countries. For example, in 1980, the developing countries paid $ 2 billion by way of royalties and fees to the industrial countries.
l) Economic Objective
In capitalism, the economic development is based on physical and material growth. It centred itself within this framework. Their objective in economic excellence is for the betterment of their life in this world only.
With all these basic assumptions or ideologies, they provided the framework in establishing the concept of capitalism or Capitalist Economics.
Table 1:
WESTERN ECONOMIC SYSTEM | ISLAMIC ECONOMIC SYSTEM |
Human beings are selfish | Human being are selfish as well as altruistic |
Materialism is the supreme value | Materialism should be controlled |
Demand creation through advertisement | Demand creation through charity, zakah, inheritance and waqaf. |
Consumerism a value | Simple living a value |
Money is a commodity besides medium of exchange and store value | Money as a medium of exchange and store value, not commodity |
Economic development based on physical and material growth only | Economic development through human and spiritual growth |
Interest based economy | No interest because it is forbidden in Islam |
You're not to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who does it or says it. Malcolm X
Nobody can give you freedom. Nobody can give you equality or justice or anything. If you're a man, you take it~ Malcolm X, Malcolm X Speaks, 1965
Power never takes a back step - only in the face of more power
Malcolm X, Malcolm X
Usually when people are sad, they don't do anything. They just cry over their condition. But when they get angry, they bring about a change
Malcolm X, Malcolm X Speaks, 1965
You can't separate peace from freedom because no one can be at peace unless he has his freedom. Malcolm X, Malcolm X Speaks, 1965
Muhammad Rasullullah (saw)~Qouted Qoute:
"Do not envy one another; do not hate one another; do not turn away from another; and do not undercut one another, but be you. O servants of Allah, brothers."
"There is nothing heavier in the scales than good character."
The Prophet (saas) made the following recommendations to his companions:
"Bad conduct destroys divine service as condiment destroys honey."
"Honour a believer for his religion. Think him superior for good conduct and wisdom."
"Verily, Allah is Graceful and He loves Grace. Pride is disdaining the truth (out of self-conceit) and contempt for the people."
"Arrogance means ridiculing and rejecting the Truth and despising people."
"Paradise is nearer to any of you than the strap of his shoe, and so is the (Hell) Fire."
"Whoever killed a person who is granted the pledge of protection by the Muslims shall not smell the fragrance of Paradise."
____________________________________________________________________________
Islam And Economic Development / M.Umer Chapra / IIIT / Pakistan / 1993
Islamic Principles Of Buisness Organisation And Management / Dr. F. R. Faridi / S.Abdul Majeed & Co /
K.L / 1997 / The Asian Renaissance / Dr Anwar Ibrahim / Times Book International / Selangor / 1997
Peranan Nilai dan Akhlak Dalam Islam / Dr Yusuf Qaradawi / ABIM / 1998 / KL /
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