I want to hear voices of people that reflect their views about the relationship between economics and freedom within the Islamic context. Feel free to write about historical or modern-day economic policy or policies in enhancing or diminishing freedom and prosperity in their country or region. They may propose policy recommendations, emphasizing the principles of property rights, free trade, globalization, etc. within the context of Islamic economic thinking.
Does anyone have any non-biased, educational theories about Islam and Economics? Best answer goes to the most concise answer, thanks!
2007-11-12 11:07:42 · 6 answers · asked by stephen 1 in Social Science ➔ Economics
Muslim countries have economic systems set up by western colonial powers so they are not different than those in the west. During the the middle ages, when the Islamic empire was powerful, Christian countries also baned interest so a comparison between the systems can not be done empirically.
As I understand the system instead of loaning money a "creditor" becomes a part owner of a business venture, much like buying stock or a venture capital firm, so firms can get financing. however this would not work with consumer loans.
2007-11-12 13:11:06 · answer #1 · answered by meg 7 · 0⤊ 0⤋
Islam does not allow the charging or payment of interest - from: http://islam.about.com/library/weekly/aa022200a.htm
"Muslims are not to deal in interest. "Those who devour usury will not stand....Allah has permitted trade and forbidden usury.... Allah will deprive usury of all blessing, but will give increase for deeds of charity...." (Qur'an 2:275-6) "O you who believe! Devour not usury, doubled and multiplied. But fear Allah, that you may really prosper." (3:130) This prohibition is for all interest-based transactions, whether giving or receiving, whether dealing with Muslims or non-Muslims. It is reported that the Prophet Muhammad (peace be upon him) cursed those who pay interest, those who receive it, those who write a contract based on it, and those who witness such a contract."
The problem is that trying to conduct modern economic affairs without the concept of interest is an impossibility. Interest is not simply charging money for loans, it is an indicator of the proper realationships of applied resources over time and is useful in many applications, if not most, if not all.
2007-11-12 11:20:42 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Answer to your question could be wrote as a Dissertation. But in short, I could say that in contrast to capitalism, Islam acknowledge every proprietorship as an entrusted goods from Allah (our God), hence should be used according to His law, for example, not to bear any interest to a debt, not to Invest in any unblessing sectors such as gambling no matter how profitable it is, not to be used to exploited others, etc. This is the source of the philosophy of Islamic Economy that can be translated further to any Islamic Economy laws.
2007-11-12 14:12:22 · answer #3 · answered by rachmadi triono 2 · 0⤊ 0⤋
interest is banned ... so if a muslim needs a loan to buy a car, an Islamic Banks buys him a car on 0% interest terms, but with higher price (that compensates for 0%).
Another feature of islamic economies is reliance on oil exports and lower participation of women in the workforce.
2007-11-12 11:24:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The obvious point to make is that interest on money is banned in Sharia law. That must make capitalism very difficult because enterprise depends upon business loans and returns on invested funds.
2007-11-12 11:12:43 · answer #5 · answered by Anonymous · 1⤊ 0⤋
nice try; i'm trying out for the essay contest, too but i'm getting nowhere.
2007-11-12 15:18:09 · answer #6 · answered by sunni_grl 1 · 0⤊ 0⤋