Definition and Meaning: Capitalism and Islam
Islamic views on capitalism can be seen through Quranic support for private property, commercial honesty, competition, and a tempered concern for the disadvantaged. Encouraging ethical practices in commerce, these elements shape Islamic economic thought which contrasts with Western practices often perceived as overly profit-driven and dismissive of human welfare.
The Hadith also highlights the virtues of pious merchants, presenting commerce as a moral endeavor when conducted ethically. This view encourages economic activity while ensuring fairness, justice, and social responsibility.
Etymology and Background
The term “capitalism” is derived from the Latin word “capitalis” which means “of the head,” and refers to assets that can generate income. The integration of capitalism within Islam requires careful consideration of religious doctrines relating to wealth and fairness, based in the Quran and Hadith.
Historical Facts
Islamic economics, as a modern discipline, has grown since the 1970s and aims to identify concepts that are authentically Islamic while accommodating contemporary economic requirements.
- Early Islamic society: Prophet Muhammad (SAW) himself engaged in trade, showing commerce balanced with faith and ethics.
- Ottoman Empire: Islamic principles in economics influenced trade regulations emphasizing fairness and social justice.
Cultural Differences and Similarities
In Western capitalism, profit maximization often overlooks ethical considerations. In contrast, Islamic economics integrates social welfare, redistributing wealth fairly, supporting the underprivileged, and emphasizing collective well-being.
Synonyms
- Islamic Economic System
- Sharia-compliant Economics
- Ethical Trade in Islam
Antonyms
- Capitalistic Materialism
- Profit-Driven Capitalism
Related Terms
- Riba: Prohibition of interest charging in financial transactions.
- Zakat: Mandatory almsgiving reflecting on socially responsible redistribution of wealth.
- Waqf: Charitable endowment providing long-term public benefits.
Exciting Facts
- First Islamic Bank: Dubai Islamic Bank, established in 1975, is the first full-fledged Islamic bank dedicated to Sharia-compliant banking.
- Modern Islamic Finance: The growth of Islamic finance markets indicates the potential for ethical banking to meet global financial needs in a just manner.
- Economic Thinkers: Al-Ghazali’s work on economic justice and Ibn Khaldun’s cycles of civilizations emphasize the importance of ethical considerations in economic policies.
Quotations
- “Whosoever earns his wealth through honesty and hard work shall be rewarded.” - Prophet Muhammad (Hadith)
- “Trade and commerce should reflect Islamic values of honesty, reliability, and fairness.” - Umar ibn Abdul Aziz (8th-century caliph)
References and Suggested Literature
- Modern Islamic Banking: Principles and Practices by Imran Ahsan Nyazee.
- Islamic Capitalism and Finance by Murat Çizakça.
- The Economy and Religion of Islam by Asad Zaman and Imad-ad-Dean Ahmad.
- Finance and the Good Society by Robert J. Shiller, examine concepts that align with Islamic economics.
Translations
- Arabic: الرأسمالية والإسلام
- Turkish: Kapitalizm ve İslam
- Urdu: سرمایہ داری اور اسلام
- Persian: سرمایهداری و اسلام
- Indonesian: Kapitalisme dan Islam
- Bengali: পুঁজিবাদ ও ইসলাম
In the varied landscape of economic systems, the principles of Islam offer a bridge between profitability and ethicality. Capitalism under the prism of Islamic values presents an enriching tapestry where faith and function coexist harmoniously, forging a pathway for socially responsible commerce.
Farewell Thought: May we strive to blend prosperity with compassion, and profit with purpose.
Author: Mustafa ibn Jamil
Published on: October 4, 2023
