Islam and Conventional Economic Systems Essay Example | Topics and Well Written Essays - 1000 words

Islam and Conventional Economic Systems - Essay Example 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 th e 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.