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Islam and Conventional Economic Systems - Essay Example

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The essay "Islam and Conventional Economic Systems" aims to explicate on the existent differences between Islamic and conventional economic systems. The writer of the essay presents a performance analysis of Islam and conventional banks during and after a financial crisis…
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Islam and Conventional Economic Systems
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Download file to see previous pages Contrary to the conventional system, the Islamic system is based on the belief that God gives the man the power as a trustee for the needy. They allow legal ownership of property on condition of sharing with the society. Sectors of production and trade in this system are under public ownership. Customers under the Islamic system are entitled to public ownership of property. Under the conventional system, economic freedom is a dominant feature. Individuals do not meddle with the state in executing their freedom. The system allows the participation of individuals in the initiation and establishment of businesses, and professions. It allows for salary remunerations and free-will expenditure. Furthermore, it permits unrestricted economic freedom. The freedom, however, encourages exorbitant ways of generating cash such as illegal trafficking and gambling. It also encourages malpractices such as fraud, smuggling, and adulteration in business. The system allows for wealth competition and the necessity to realize high profits.
Unlike the conventional system, the Islam economic system allows limited economic freedom to individuals to earn wealth. The system differentiates between haram and halal as pertains wealth acquisition. Halal is an activity that is in line with the law while haram is activities forbidden under set regulations. The economic system forbids expenditure on luxurious lifestyles, spending extravagantly. The system encourages the wealthy to spend on the poor and the needy as a good gesture.
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