Islamic VS Capitalism VS Socialism

 

 

 

SALIENT FEATURES OF ECONOMIC SYSTEMS:

	Islamic	Capitalism	Socialism
Ownership	Allah S.W.T.	Privately owned.	The government.
Incentive	Encourages equity.	Encourages innovation and efficiency.	Less incentive for innovation and efficiency.
Decision-making	Mutual consultation.	determined by owners of wealth, property, or ability to manoeuvre capital or production ability in capital and financial markets.	Determined by the government.
Coordination	Abolition of self-interest.	Automatic working.	Controlled economy.
Goals	To establish social justice, elimination of poverty, tangible reduction in economic disparities, free society of corruption.	To make a profit.	To obtain social equality and a distribution of wealth based on one's contribution to society, and an economic arrangement that would serve the interests of society as a whole.
Philosophical Foundations	Tawhid Uluhiyyah, Tawhid Rububiyyah, Khilafah, Tazkiyyah an-Nafs, and al- Falah.	Depends on specific legal, political and ethical foundation.	People itself.
Key Operational Principles	Tawhīd (faith), 'adl (justice), nubuwwa (prophetic), the caliphate (government), and ma'ad (back/result).	Principle of “freedom”. Private property, private control of the factors of production, accumulation of capital, and competition.	The collective ownership of the means of production, central planning of the economy, and the emphasis on equality and economic security with the goal of reducing class distinctions.