General

Comparison between Islamic and Capitalist Economic Systems

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No. Islamic Economic System (Khilafah) Capitalist Economic System (Kenya, America etc.)
1. Emanates from the Shari’ah (Qur’an and Sunnah) Emanates from Secularism (separating religion from life)
2. No Freedom of Ownership –Measurement is Halal (Permitted) and Haram (Prohibited) Freedom of Ownership –Measurement is Profit and Loss
3. Economic Problem is Distribution of Wealth Economic Problem is Scarcity of Goods and Services
4. Economic Policy is to ensure that citizens are guaranteed their basic needs as individuals (food, clothing and shelter) and as society (security, education and health) and enable them to meet their luxury needs Economic Policy is to ensure factories produce immense goods and services. Factories are sustained by reducing or removing taxes and given loans to continue running.
5. Used currency is gold and silver standard or intrinsic paper money (money backed by an amount of gold and silver exactly to its nominal value) Used currency is US dollar and paper money (money NOT backed by an amount of gold and silver exactly to its nominal value)
6. Revenues are Booty, Kharaj, Ushr, Zakat etc. Revenues are from taxes (PAYE,VAT,NSSF,NHIF etc), and Interest Based Loans
7. It is Prohibited: to hoard wealth, monopoly in trade, usury, gambling, deception and fraud in trade, participate in alcohol, drugs, brothels, insurance and shares companies etc. It is Permitted: to hoard wealth, monopoly in trade, usury, gambling, deception and fraud in trade, participate in alcohol, drugs, brothels, insurance and shares companies etc.
8. Economy is gauged by the easiness to meet the basic needs of an individual and society Economy is gauged by the easiness by factories to produce and the sales of goods and services
9. Citizens’ are valued based on their religiousness Citizens’ are valued based on their contribution in producing goods and services
10. Person’s wage is dependent on the benefit that is realized from his effort Person’s wage is dependent on his minimum cost of living in a day
11. Benefit is anything that has a characteristic of meeting the needs of humanity Benefit is anything that incur profits whether it has or does not have a characteristic of meeting the needs of humanity
12. Wealth is property and effort to produce it Wealth is property with no effort to produce it
13. Citizens are slaves of Allah (swt) Citizens are slaves of factories owners
14. Money is a medium of exchange used in buying goods and services Money is a commodity like other goods and so it is sold and bought

 

The time is now to join the call for the resumption of the Islamic way of life by establishing an Islamic State of Khilafah on the method of Prophethood. The Khilafah will ensure the Islamic ideology and its systems are comprehensively executed in order to be the source of genuine tranquility and prosperity to humanity. Contrary to the current situation under the invalid secular colonial capitalist ideology in which everyone is running fast with both the rich and the poor plotting against one another since its economic system is founded on speculation

Ali Nassoro Ali

Member of the Media Office of Hizb ut Tahrir in Kenya