Submitted by: Ali Afzal

Submitted to: Dr. Tariq Majeed

Regis. No: 04091713139/8th

Subject: Islamic Economics

Assignment: 1

Review of the article

‘THE ECONOMIC PROBLEM: CAN ISLAM PLAY AN EFFECTIVE ROLE IN

SOLVING IT EFFICIENTLY AS WELL AS EQUITABLY?’

PHILOSOPHY OF CAPITALISM AND MARXISM:

.

THE UNDERLYING PHILOSOPHY OF ISLAM:

The standard of Pareto optimality gave the academic thinking to the engendering of unfair
transport. This is because any redistribution would fuel the rich off notwithstanding the-way that
it would make the poor liberally great and the net expansion to society would be altogether
certain. In the Islamic system as in some other morally arranged structures, most importantly, all
shifty techniques for securing and degenerate practices like are partnership, aggregating,
dumping, cheating and blackmail just to get an advantage over others through inappropriate
infers have been thoroughly limited. The veritable execution of this prevention should help
decline a huge wellspring of oppressive scattering of pay. Additionally, abuse of work has been
criticized and portion of a pay has been required. What a pay ought to be settled in the light of a
couple of factors, including the yield of work, the compensation that is relied upon to help a
typical family, the level of money related improvement of the country similar with the size of its
general population, and the expert getting ready workplaces available to engage work to be more
capable and prepared to procure the crucial remuneration. Thirdly, return on money related
capital without help in the peril of business has been denied. The bank should either partake in
the peril through advantage and-setback sharing or get no return. This won't simply help kill one
of the huge wellsprings of uneven characters of pay yet also decline the penchant towards
excessive advancing which will overall win in any system that didn't rely upon peril sharing.

THE UNDERLYING PHILOSOPHY OF ISLAM:

It targets making an amicability between the material and the significant necessities of people
and between close to home situation and social interest. While there is nothing generally wrong
in serving one moral duty there ought to be a framework to ensure that the individual doesn't
cross the confine and abuse the advantages of others. Socialism relied pointlessly upon the public
position anyway bombarded in making a prevalent society. Private undertaking from the start
saw as ideal competition to be sufficient for safeguarding the social interest and was, along these
lines, for simply a base occupation for the public expert in the economy. It may, in all honesty,
be all the more dreadful because of the more essential power in the ownership of authorities. It is
eminent that power ruins, and incomparable power degenerate completely. Along these lines,
change of the individual and the foundations that impact his lead ought to be given a perceptible
spot in any work to ensure the secure of social interest. As requirements be, the basic component
of the Islamic perspective is change of the distinctive individual himself similarly as the
associations that impact his perspective and direct's Islamic perspective contain three interrelated
thoughts. These are: Tawhid, Khilafah, and Adala. All of these three thoughts are interrelated
and are together proposed to change the point of view of the individual and his stance towards
life. This raises the basic issue of what the plan is behind the thinking about people. The
explanation, as demonstrated by the Quran, is to be a thoughtfulness or present for everyone and
everything made by God (al-lamn) („al-Qur‟n, 21:107). The word al-lamn is ordinarily
interpreted as mankind. It has, regardless, significantly more broad connotation and combines
everything other than God Himself. It, likewise, encompasses individuals just as animals, birds,
bugs, and the entire genuine environment. To enable individuals to fulfill the inspiration driving
their creation, the Creator has similarly equipped them with four fundamental assets. One of
these is the best genuine constitution (al-Qur‟an, 95: 4). This ought to engage them to fulfill all
of their prerequisites and, thusly, make their life more pleasing. The resulting asset is a clean
inner personality (fitrah) with no inherent deformity in it. Suitably, all individuals are worthy
generally and can save this inner goodness in case they so need. In case they don't save their
internal goodness and do things that are in battle with it, by then they will hurt their own benefit
just as that of others and may, thusly become the "filth of society" (al-Quran, 95:5). The third
asset is understanding, which remembers them from any excess creatures.

Khalifa idea and suggestions:

A conviction in the vital fortitude of the human family and the equilibrium and regard of each
person, autonomous of whether they are white or concealed, rich or poor, and male or female. A
conviction that the individual, as khalifah of God, isn't the fundamental owner of resources
provided for him by God. He is just a trustee. He ought to acquire them just rightfully13 and use
them according to the subtleties of the trust to serve his own self just as his family, others, any
excess creatures, and the environment. It isn't going on to him to act in a whimsical manner or to
use these resources wastefully or lavishly. A conviction that the right attitude towards others, all
people from God's family isn't might is right‟, fight to serve essentially one's very own condition
and natural selection cooperation and value, love and love, and regular thought and interest with
the objective of fulfilling the crucial necessities of all, developing the entire human potential, and
improving human life to transform into a "preferring for mankind" concerning the Quranic
vision. Contention is subsequently allowed in what is satisfactory and good anyway not in
highbrow character, immaturity and shared decimation. A conviction that the individual is
imagined free and is meek to none yet Him. The Quran communicates that one of the
fundamental focuses of all of the Messengers of God, paying little mind to when and where they
resided, was to convey mankind from the loads and chains that difficult situation them (al-Quran,
7: 157). It is this preparation which prompted „Umar, the Second Caliph, to ask: "Since when
have you persecuted people when their mothers delivered them as free people. As per this
conviction, man is self-ruling in his dynamic and is himself mindful before God. A conviction
that the individual is mindful before Him and must, thusly, lead an everyday presence concerning
his status as khalifah of God. The monetary value likes principal importance in the Islamic worth
system. It has been articulated to be nearest to praiseworthy nature or Taqwa (al-Qur‟an, 5:8) in
regards to its significance in Islam.

Islamic economy should be enhanced like given underneath:

First every person who can work and is looking for an errand or a business can find one
according to his ability and can obtain a „just‟ pay which is adequate to satisfy his own similarly
as his family's focal prerequisites. Likewise, it's not possible for anyone to get a compensation
that isn't legitimized by the organizations conveyed by him. Third, there is no assembly of
political, money related and furthermore monetary power a few hands. Fourth, there is a
fundamental intend to give government oversaw retirement to the people who need it in the event
of joblessness, jumble, inadequacy, develop age and inability to obtain a good work on account
of conditions outside their capacity to control. Fifth, redistribution of pay and plenitude to the
degree significant and protected to prevent the combination of wealth a few hands, and to meet
the authentic necessities of all populace who can't do as such through their own effort.

The basic three questions

The fundamental three inquiries

1: WHAT TO PRODUCE?

The request is, is it functional for the market structure working in a

typical framework, where everyone is allowed to put forth a defense for
resources as he wishes concerning his compensation and his inclinations
and tendencies, to answer without any other person the fundamental
request of what to convey; accordingly, three of the most critical of these
for making an evenhanded and changed society where the prerequisites
surprisingly are sufficiently satisfied from the open confined resources
which are these.

Introductory, a lot of characteristics or chooses of direct that would help

make a fair balance in the cases on resources close by. Second, a
pushing framework to engage people to circle back to these
characteristics. Third, a supporting piece of the public position.
Additionally, the suitable reaction given by standard monetary issue
with its utilitarian perspective is, in any case, yes. Staying away from the
fundamental requests of ethics, value and redistribution, it puts over the
top complement on the serving of individual situation. What to make is
unfathomable to hope to be answered by market impacts alone if the
hankering is to satisfy the central necessities surprisingly in the public
eye and to avoid inflationary squeezing factors. What is needed for this
aim is some instrument to enhance the worth system in order to kill the
interest in product and endeavors that doesn't contribute absolutely to
human thriving. How should this be done? One fundamental way is to
implant more unmistakable obligation and request into the market
structure through a lot of temperances that can help comprehend the
thriving surprisingly in the public eye. In any case, an economy should
be named powerful if it can convey enough of the key items and
adventures that are fundamental for satisfying the significant necessities
of all of its family. The task of resources should around then be
considered as ideal. Consequently, all of the Messengers of God brought
about these current conditions world to develop such a system and their
exercises are a piece of the tradition of basically all friendly orders all
through the planet to how much these exercises have not been lost.

2: HOW TO PRODUCE?

In a typical market structure, the advantage maximizer is the overall

population's delegate to choose how product and ventures are to be
conveyed. The worth system fills in as his hailing device. Contention
drives him to restrict his costs. It is, therefore, basic to inject a moral
estimation, close by a positive piece of the public power, into the market
system to ensure that resistance is strong, and the market works
adequately just as fairly. Thus, every effort ought to be made in an
Islamic economy to engage strong contention to decrease the costs of
creation and improve the idea of the things through more unmistakable
profitability, progression and various leveled updates.

3: FOR WHOM TO PRODUCE?

The standard of Pareto optimality gave the academic thinking to the
proliferation of crooked movement. This is in light of the fact that any
redistribution would intensify the rich off despite the fact that it would
make the poor liberally great and the net expansion to society would be
altogether certain. In the Islamic structure as in some other morally
arranged systems, most importantly, all shady strategies for securing and
degenerate practices like are partnership, amassing, dumping, cheating
and blackmail just to obtain an advantage over others through
inappropriate infers have been thoroughly limited. The authentic
execution of this prevention should help decline a critical wellspring of
prejudicial scattering of pay. Plus, abuse of work has been decried and
portion of a straightforward compensation has been required. What a
straightforward pay is to be settled in the light of a couple of factors,
including the yield of work, the compensation that is relied upon to help
an ordinary family, the level of money related improvement of the
country similar with the size of its general population, and the expert
getting ready workplaces open to engage work to be more capable and
prepared to gain the crucial pay. Thirdly, return on financial capital
without help in the peril of business has been denied. The loan specialist
should either partake in the peril through advantage and-mishap sharing
or get no return. This won't simply help dispense with one of the huge
wellsprings of lopsided characteristics of pay yet also decline the
penchant towards unreasonable advancing which will overall win in any
system that didn't rely upon peril sharing.