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7/29/2019 SOCIALISM, COMMUNISM AND ISLAMIC VIEW
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Hassam Patoli
SOCIALISM, COMMUNISM AND ISLAMIC VIEW
SOCIALISM VIEW:
Socialism refers to an economic system characterized by social
ownership of the meansof production and co-operative management of
the economy "Social ownership" mayrefer to cooperative enterprises,
common ownership, state ownership, or citizenownership of
equity.
There are many varieties of socialism and there is no single
definition encapsulating allof them. They differ in the type of
social ownership they advocate, the degree to whichthey rely on
markets orplanning, how management is to be organised within
productiveinstitutions, and the role of the state in constructing
socialism.
A socialist economic system would consist of a system of
production and distributionorganized to directly satisfy economic
demands and human needs, so that goods andservices would be
produced directly for use instead of for private profit driven by
theaccumulation of capital.
Accounting would be based on physical quantities, a common
physical magnitude, or adirect measure of labor-time in place of
financial calculation. Distribution would bebased on the principle
to each according to his contribution.
As a political movement, socialism includes a diverse array of
political philosophies,ranging from reformism to revolutionary
socialism. Proponents of state socialism
advocate the nationalization of the means of production,
distribution and exchange as astrategy for implementing socialism.
In contrast, libertarian socialism proposes thetraditional view of
direct worker's control of the means of production and opposes
theuse of state power to achieve such an arrangement, opposing both
parliamentarypolitics and state ownership.
Democratic socialism seeks to establish socialism through
democratic processes andpropagate its ideals within the context of
a democratic political system.
People often confuse "socialism" with the concept of
"communism." While the two
ideologies share much in common -- in fact communism encompasses
socialism -- the
primary difference between the two is that "socialism" applies
to economic systems,
whereas "communism" applies to both economic and political
systems. Another
difference between socialism and communism is that communists
directly oppose the
concept of capitalism, an economic system in which production is
controlled by private
interests. Socialists, on the other hand, believe socialism can
exist within a capitalist
society.
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7/29/2019 SOCIALISM, COMMUNISM AND ISLAMIC VIEW
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Hassam Patoli
CAPITALISM VIEW:
Capitalism is an economic system based on the private ownership
ofcapital goods andthe means of production, with the creation of
goods and services for profit. Elementscentral to capitalism
include capital accumulation, competitive markets, and a price
system.
There are multiple variants of capitalism, including
laissez-faire, welfare capitalism andstate capitalism. Capitalism
is considered to have been applied in a variety of historicalcases,
varying in time, geography, politics, and culture. There is general
agreement thatcapitalism became dominant in the Western world
following the demise of feudalism.
Economists (including political economists) and historians have
taken differentperspectives on the analysis of capitalism.
Economists usually emphasize the degree towhich government does not
have control over markets (laissez-faire), as well as theimportance
ofproperty rights. Most political economists emphasize private
property as
well, in addition to powerrelations, wage labor, class, and the
uniqueness of capitalismas a historical formation. The extent to
which different markets are free, as well as therules defining
private property, is a matter of politics and policy. Many states
have whatare termed mixed economies, referring to the varying
degree of planned and market-driven elements in an economic
system.
CAPITALISMS FACTORS OF PRODUCTION
This theory can be briefly stated like this: wealth should be
distributed only over those
who have taken a part in producing it, and who are described in
the terminology ofeconomics as the factors of production. According
to the Capitalistic economics, thesefactors are four:-
1. Capital:
It has been defined as "the produced means of production" - that
is to say, a commoditywhich has already undergone one process of
human production, and is again beingused as a means of another
process of production.
2. Labor:
It is to say, any exertion on the part of man.
3. Land:
This has been defined as natural resources (that is to say,
those things which arebeing used as means of production without
having previously undergone any process ofhuman production).
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Hassam Patoli
4. Entrepreneur or Organization:
The fourth factor that brings together the other three factors,
exploits them and bearsthe risk of profit and loss in
production.Under the Capitalist economy, the wealth produced by the
co-operation of these four
factors is distributed over these very four factors as follows:
one share is given toCapital in the shape of interest, the second
share to Labor in the shape of wages, thethird share to Land in the
shape of rent (or revenue), and the fourth share (or theresidue) is
reserved for the Entrepreneur in the shape of profit.
ISLAMIC VIEW
The Islamic system of the distribution wealth is different from
both. From the Islamicpoint of view, there are two kinds of people
who have a right to wealth:
1. Those that have a primary right that is to say, those who
have a right to wealthdirectly in consequence of participation in
the process of production. In other words, it isthose very "factors
of production" which have taken a part in the process of
producingsome kind of wealth.
2. Those who have a secondary right, that is to say, those who
have not taken a directpart in the process of production, but it
has been enjoined upon the producers to makethem co-sharers in
their wealth.
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