What is Islamic economics and how is it different from conventional economics?

– The main purpose of Islamic economics is to achieve falah in the world and the hereafter, while the conventional economy is solely worldly prosperity. – The main sources of Islamic economy are the Qur’an and Al-Sunnah or Islamic teachings.

What is conventional economic system?

Sustained economic growth as measured by gross national product, is the path to human progress. Free markets, unrestrained by government, generally result in the most efficient and socially optimal allocation of resources.

What makes an Islamic economic system different from other economic systems?

Along with this, Islamic economic system uses some distinct features derived through Islamic economic teachings i.e. Interest free economy, moral check on unbridled self-pursuit and provision of socio-economic justice to achieve the goals of Socialism as far as is naturally possible without denying individual freedom …

How does Islamic economic rationalism differ from conventional economic rationalism?

In addition, in economics decision making, Conventional economics emphasize on the self-interest and the rationality of the consumer whereas Islamic economics accentuates on the social and moral values, scale of welfare etc.

Why do we need Islamic Economics?

It is because the strength influence of two systems capitalism and socialism. Therefore, the main objectives of Islamic economics are the realization of human pur- pose to achieve the happiness of the world and the hereafter (falah), as well as a good and honorable life (al-hayah al-tayyibah).

What are the objectives of Islamic economics?

(i) Muslim economists have the consensus that the main objective of Islamic Economics is to establish social justice, elimination of poverty, tangible reduction in economic disparities, free society of corruption Page 6 170 Review of Islamic Economics, Vol. 13, No. 2, 2010 society through the institution of Zakah.

What is conventional perspective?

I define conventional perspectives as characteristic of most psychologists and psychiatrists and of most clinical social workers; these perspectives are research-oriented and focus on research-supported material, and are supported by professional organizations.

What are the principles of Islamic economics?

According Karim (2003), there are five basic principles of Islamic economics, namely tawhīd (faith), ‘adl (justice), nubuwwa (prophetic), the caliphate (government), and ma’ad (back/result). The fifth value is the basis of inspiration to formulate propositions and theories of Islamic economics.

What is role of distribution of wealth in the Islamic economic system?

Abstract. Distribution of wealth is a fundamental and essential concern of economy ever. It is found that the Islamic theory presents an efficient and amicable way of distribution which may be pivotal to eliminate poverty and facilitates all non active participants of the society in the production of wealth.

What are the differences between conventional and Islamic economic systems?

The main difference is on the economic fundamental issues. According to the conventional economic system, the real economic problem is the lack of existing resources. Lack of the resources is often called ‘scarcity.’

Is the Islamic economic system based on the Qur’an?

Meanwhile, the Islamic economic system is an economic system that is extracted from the values contained in the Qur’an and Sunnah, that focuses on brotherhood and strength (Machmud 2017).

Which is an example of a conventional economy?

INTRODUCTION  Conventional economy is an economy that already been adopted and applied in an economic society  So, when it linked with the economy the conventional system can be considered as an economic system that has been widely practiced.

Why is production important in the Islamic economic system?

As with capitalistic systems, production is an essential element as it not only addresses the needs of consumers, but also provides employment and opportunity. Under the Islamic Economic System, production is part of the social fabric which makes it vital to society and includes a price system. 6. Wealth