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HUMAN WELL-BEING TO BE REALIZED BY ENSURING THE ENRICHMENT OF THE FOLLOWING FIVE INGREDIENTS FOR EVERY INDIVIDUAL.
Din Faith
Nafs Self
Aql Intellect
Nasl Posterity
A STRONG MOTIVATING SYSTEM TO INDUCE THE INDIVIDUAL TO RENDER HIS BEST IN HIS OWN INTEREST AS WELL AS THE INTEREST OF THE SOCIETY RESTRUCTURING OF THE WHOLE ECONOMY WITH THE OBJECTIVE OF REALIZING THE MAQASID IN SPITE OF SCARCE RESOURCES. A POSITIVE AND STRONG GOAL-ORIENTED ROLE FOR THE GOVERNMENT
CFS
Secular & separates Religion from other Parts human life In socialism govt. enjoys economic freedom but in capitalism Individuals
IFS
Belief in unity of God & relates this belief to economic Life of a man Restrictive freedom is allowed in the light of Shariah both by the govt.
3. Ownership of means
enjoys freedom. Socialism-state ownership, Capitalism-individual ownership Socialism-profit of the society Capitalism-Individuals profit Socialism-No competition Capitalism- Logical & unethical competition Socialism-Equal Capitalism Unequal Riba or Interest Intellects brain storming of the economic problems of mens life Capitalism concentration of income & economic power in few hands. Inefficiency
&/or individuals Allah is the exclusive owner. Man is the caretaker of the property Welfare of both here and hereafter.
5. Competition
Logical Competition and financial co-operation Equitable Interest Free; PLS, Zakat & Compensation based Devine book Al-Quran & Prophets(SM) speeches Maximum & equitable Distribution of economic opportunities and higher production in the society Ensure social & environmental welfare Part of Profit or Loss
9. Result
10. Social & environmental welfare 11. Owners exception in respect of respect of investment 12. Lender or Banks expectation in terms of dept financing 13. Modes of Investment
Do not consider the social & environmental welfare Dividend or part of profit in case of equity financing Interest
This prohibition is based on arguments of social justice, equality, and property rights. Islam encourages the earning of profits but forbids the charging of interest because profits, determined ex post, symbolize successful entrepreneurship and creation of additional wealth whereas interest, determined ex ante, is a cost that is accrued irrespective off the outcome of business operations and may not create wealth if there are business losses. Social justice demands that borrowers and lenders share rewards s well as losses in an equitable fashion and that the process of wealth accumulation and distribution in the economy be fair and representative of true productivity.
Shariah approved activities : Only those business activities that do not violate
the rules of Shariah qualify for investment. For example, any investment in businesses dealing with alcohol, gambling, and casinos would be prohibited.
Definition of Economics
Prof. L. Bobbins -Economics is a science which studies human behavior as a relationship between ends end scarce means which have alternative uses.
Definition of Islamic Economics 1. Islamic Economics is that branch of knowledge which helps realize human well-being
through an allocation and distribution of scarce resource that is in conformity with Islamic teachings without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalances- Oman Chapra. 2. Islamic Economics aims at the study of human falah achieved by organizing the resources of the earth on the basis of co-operation and participants (Muhammad Akram Khan). 3. Islamic Economics is the Muslim thinker's response to the economic challenges of their times. In this Endeavour they are aided by the Quran and the Sunnah as well as by reason and experience- M Negatullah Siddiq. 4. Islamic Economics is the science of how man uses resources and means of production to study his worldly needs according to a predetermined code given by Allah (SWT) in order to achieve the greatest equity- Princes Muhammad Al-Faisal Scud.
5. Islamic Economics is a social science which studies the economic problem of the people imbued with the values of Islam. It is a composite social science which studies the problem of production, distribution and consumption through integrative system of exchange and transfer overtime and their social through integrative system of exchange and transfer overtime and their social and moral consequences in the light of Islamic rationalism. It assumes the presence of Islamic man. M.A. Mannan.
3. Moral values and guiding factors for all Economic activities. 4. Maximum equitable utilization of human and material resources given by Allah 5. Human dignity and respect of Labour. 6. 'Maximum freedom for economic activity within a just framework. 7. Equitable distribution of wealth and income and disciplined private ownership. 8. Simplicity economy and austerity in expenditure. 9. Adal and Ihsan (Justice and kindness). 10. Strict prohibition of Riba, Interest and Usury in all forms.
Deposit Products of Islami Bank: 1. Al-wadeeah Current Deposits 2. Mudaraba Savings Deposits 3. Mudaraba Special Notice Deposits 9
4. 5 6. 7. 8. 9. 10. 11.
Mudaraba Term Deposits Mudaraba Hajj Savings A/c Mudaraba Savings Bond Mudaraba Special Savings Scheme Mudaraba Monthly Prft Dep Schemes(MMPDS) MUDARABA MUHOR SAVINGS A/C Mudaraba Waqf Deposit A/C Mudaraba Savings Deposits(RDS)
1. 2. 3.
UNDER CAPITALISM Economic Laws are like physical laws Positivism: Economics is a positive science as like as biology, physics which have no value, value neutral Motive for More: Pecuniary interest. Man is rational economic
1. 2. 3.
UNDER ISLAM Economic laws are like natural laws Economics is value oriented. Permissible & prohibition have to be observed Man does not work for only personal interest. He has to secure the interest
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4.
5. 6. 7.
being. Survival of the fittest, destruction of the poor Market Oriented: Market can solve all the problems. Poors need is not reflected in the market. Demand is backed by purchasing power. Result is the mismatch in resource allocation. Little concern for poor humanity Nearly 100 corporate of countries control the world economy in the name of globalization. BBC reports 35 million people in USA live below poverty line (not getting two meals a day)
of this world & the world hereafter. 4. Market can solve major problem but not all. At least 20% economic problems to be solved by the government. Communism prescribes 100% solution by government. Capitalists leaves it 100% to market. Major concern for poor. Poverty alliviation by Zakat, Sadaqa & gives emphasis on economic progress No conentration of wealth in few hand. Wide dispersal of wealth & property None can live below poverty line if Islamic economic system is established
5. 6. 7.
The End
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