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What is IslamicEconomics

Systems?Main characteristic of the Islamic economic system.

“Islamic economics” is defined a complete system that prescribedspecific pattern of the economics behavior for all individual andsociety with in the Islamic way of life.

2009

Qulb e abbas JAFSHAH

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The recently development toward Islamization, is to eliminate the interest –based transition particularly from the banking sector in general from thewhole system of the economics. Broadly speaking “Islamic economics” is

defined a complete system that prescribed specific pattern of theeconomics behavior for all individual and society with in the Islamic way of life. Now, here we discuss the main characteristic of the Islamic economicsystem.At the core of the Islamic economic system lies on the rule specified by theshariha namely the codification of injunction given by the HOLY QURAN and the TRADITIONS of the PROPHET MOHAMMAD. The blue prints of economic policy follow the rule, which are compatible with the shariha thekey elements of the Islamic economic system are as.In Islamic system individual rights are a consequence of human obligationsand not an antecedent to them. When these obligations are fulfilled, certain

rights are gained. First the duty and then the rights of the individual, toperuse his economic interests with in the frame works of the shariha.The property rights are base on three principles. Firstly The ALLAHA is theowner of the whole land individual has been given the rights of thepossession as a trust. Secondly, property is only a mean of achievinghighest objectives and all members of the society share the naturalresources at man’s disposal. Finally, these rights of society and of individual are protected by the shariha through the limitations imposed onthe disposition of the property and the wealth resulting from it, called theprinciple of invariance.Islam gives guidance in all economic relation, exchange of goods on the

base of contracts. The freedom to contracts with in the frame works of theshariha and remain faithful to their stipulations deeply emphasized inIslam.The QURAN prohibits strongly the payment and receipt of interest (riba)Interest (riba) refers to the addition to the amount of principle of a loan onthe basis of time for which it is loaned or of the time for which the paymentis deferred. There is now a consensus of the opinion among Muslimscholars that prohibition extends to any and all forms of interest. Theysignify the additional money charged in money –money type exchange or the uncompensated increase in a commodity-commodity transition.Islam exalts work and considers it as an inseparable dimension of faith

itself. Idleness conversely is viewed as a manifestation of unbelief in theIslam. All persons are exhorted to work in order to earn for themselves andno one physically and mentally able is allowed to become a liability to hisfamily or the state through idleness and voluntary unemployment.

Wealth itself is considered as an important means by man’s ultimateobjective. It is the highest blessing bestowed on man and every-one isencouraged to strive for it. Beside this the method to earning, possessingand disposing the wealth is defined by the shariha. The rules relating to

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extravagance in consumption, waste, the obligation of sharing andinheritanceThe role of state in the Islamic economics ensure; first, that everyindividual has equal access to the natural resources and means of livelihood; second, the everyone has equal opportunity to use the

resources included education, skill and technology. Third, the market isbased on the rule of justices that is the authority ensures equal proportionin exchange. (Islam greatly emphasis market-network in ethical and moralrules of behavior operation under the authority works within the shariha).Forth, the transfer takes place from those more able to use the economy’sresource to those less able, according to the rules of shariha; and, lastlythe laws of inheritance, which ensured the distributive justice for the nextgeneration.The state is responsible to design the economic policy with in theframework of the shariha that is required in order to guarantee theattainment of these objectives and to meet the necessary expenditure

associate with the performance of its duties through taxation andutilization of national resources.

 

REFERANCE1.Sardar, Ziauddin., The Future of Muslim Civilization. Croom Helm,London.

2.Chapra, Umer., The Economics system of Islam, University of Karachi,Karachi.3.Khan, Mohsain., Mirakhor, Abbas., ed., Theoretical Studies in Islamic Banking and Finance, the institute for research and Islamic Studies, TexasU.S.A.

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