As an economic student will learn in the first economics lesson, i have to start with the definition of the economic problem which is the fundamental view of the economy. In Capitalism they believe that there is unlimited wants and limited resources therefore the focus of the economy should be production, so they believe in producing more and more for people to consume. So, today I’m going to focus on the Islamic economic system.
We know that Islamic economic system derived from the Quran and the Sunnah and over a thousand years of history of its implementation. Based upon this we need to demonstrate to them how Islam is not just a religion like the others but is a comprehensive ideology able to deal with the current crisis’s that humanity is faced with. In Islam, we are focuses on the distribution of wealth not just the production. For example, the problem of poverty that happened in this current year. It will be solved by ensuring that basic needs of every individual are satisfied completely. There are enough resources in the world to satisfy the basic needs of everyone. Islam looks at every individual by himself rather than the total of individuals who live in the country. It looks at him as a human being first, who needs to satisfy all of his basic needs completely. Besides, I want to touch briefly here about the concept of loans and Riba – people don’t realize the exploitative nature of Riba. In Islam loans are given for ethical reasons with the intention of achieving a reward from Allah. The Prophet (saw) said: "Every loan is a sadaqah". In capitalism the one who gives the loan, shares the profit but not the loss, this is very unfair and unjust. In Islam if you want to share the profit then you must share the loss also – this is the model of Partnerships or company structures in Islam. Like Mudharabah - where someone invests and the other person works and they share the profit and loss. Moreover, Islam has an equity based system when both sides share the risk and the reward is fair unlike the oppressive Riba based system. Today interest based debts are crippling people and entire nations.
By the Implementation of Islamic Economic system, it can help to solve the problems that happened in this country. This is because it can reduce the burden to people by providing a comfortable and happy life to them. Therefore, the problem can be addressed effectively. So, the people in this country can live in peace and harmony without difficulty. Last but not least as a student of economics, we need to take steps to implement the Islamic economics system in this country for our own benefit.