The market capitalism and the economic system of Islam. Similarities and differences.

The market capitalism and the economic system of Islam. Similarities and differences. Essay example
Masters
Essay
Finance & Accounting
Pages 14 (3514 words)
Download 0
Nomani and Rahnema opine that the system understanding is also related to the structural nature of an economic worldview regardless whether theoretically recorded or articulated (41). Market capitalism is a system of governance for economic affairs. …

Introduction

Under the market capitalism, the price mechanism remains largely functional to maintain the reins of the market capitalism. The price mechanism is used as a signalling system distributing resources between the different market participants and users. Under the market capitalism, the workers are free to enter and are free to exist and they are at their will to earn and expand their earnings as they wish to. Market capitalism largely also relies on the political authority to develop, provide and regulate the market rules and regulations so that they encompass all related societal costs and benefits. Both systems share that an individual is entitled to keep private property, the provision of social security and economic freedom. However, it is a strikingly interesting that the economic system of Islam only allows the use or control of private property and at the same time strongly discourages applying the concept of ownership. Under the economic system of Islam and Islamic finance which have gained roots in the global finance recently (Asutay 3), the right of ownership is the exclusive prerogative of Almighty Allah and humans are only allowed to establish and exercise the control o f the private property. The economic system of Islam also suggests the state or government is responsible to provide social security to the masses and develop such employment policies so that the masses can easily access to the basic human needs. The market capitalism differs with the economic system of Islam when it comes to the distribution of wealth among the masses. ...
Download paper
Not exactly what you need?

Related papers

The Similarities and Differences between Ijarah and Leasing
Since the banking crisis around the world, many countries have shifted to an alternate banking system such as the Islamic banking system in which there is a mechanism of sharing profit and loss and using fixed service charges instead of interest charges which eases the pressure on the economy. Some prohibitions and certain guidelines have been drawn by the Shariah law, which makes a clear…
Islamic Banking as a banking system that follows the ways of Islam
As such, financial products are also designed according to such principles. Accumulating wealth is not against the law, but making money through unfair or fast means is not supported. Although Islamic banking is conservative in many ways, it is also safe. In Islamic banking, all transactions must be interest-free. There are several sets of rules for transactions, leasing, joint ventures, and…
Share Price Prediction and Analysis
The following is a critical review of such literature. In addition, the discussion applies a synthesis of two approaches/models identified to predict the share prices for Tesco Plc from the publications of the firm’s financial statements for 2008 and 2009. Lastly, this discussion attempts to test the approach by comparing these two sets of predictions with actual share prices. A concluding…
Audit of Panera Bread Company Quality Service and Market Share Process
This is because, few customers subscribe to this company and, therefore, the expenses incurred by the company compared to the revenue generated from the services rendered is relatively high. In order to decrease its liabilities, and hence portray a positive image of the company, managers may attempt to take the losses into a different account especially the expenses accounts. In addition, when…
Share Price Report
Therefore; this study will provide a sharp insight of Tesco plc and Morrison (Wm) Supermarkets PLC as discussed. 1. A plot of the share price of the project companies (Tesco plc and Morrison (Wm) Supermarkets PLC) over the study period relative to movements in the FTSE 100 index. Source: Author Source: Author 2. Assess major economic and other events that have affected these companies and their…
Microanalysis of the recent Market, economic conditions, and the outlook
The good returns in March were attributed to positive economic data on employment and retail sales. In S&P 500, stocks listed in all sectors ended the month in a positive territory led by healthcare, utilities and consumer staples sectors which were among the best performing. The investors mainly bought into stocks offering relatively high dividend yields, strong brands, and some other business…
Share Trading Assignment
Diversification of investment spreads the risk over many assets. The concept of Efficient Market Hypothesis (EMH) states that since the stock prices reflect all relevant information in the market, it is not possible for the investor to beat the market by purchasing selling stocks at inflated prices or purchasing undervalued stocks. Thus, in order to beat the market the investor will have to be…