Capitalism is a system that deals with capital and breaks down to the understanding of a given state economy. However, to sum-up the information above; capitalism is a system that is economic, classified through private ownership of commodities, whose prices are determined by decisions made privately in a competitive market. The private decisions also determine the amount of production of goods and their distribution.
Islam and capitalism have raised a matter of concern on the world’s believe and attributes towards capitalism. Consequently, the capitalism issue has raised concern about whether capitalism has a foundation in the Islamic world, or just but a little issue to concentrate. However, according to John L. Esposito (Esposito 161), Islam does not dwell much on the issues of capitalism. To the Islam, private ownership of goods and private control of the production and supply is not capitalism. However, by the definition, the Islam act is capitalism hence laying a foundation for capitalism.
Also, in the Islamic world, capitalism exists in both the grass root form of its origin and also in the new forms that came in through the presence of western culture inspiration. The grass root portrays the origin to the history of Mohammed being a business person who worked hard to earn a living from the business investments that he privately owned. Consequently, the presence of the European powers and investors in the Islamic world has played a part in the spread of capitalism. Moreover, the Islamic world slowly embraced the art of capitalism, setting a foundation for the system in their world. The history of the origin of trade in the Islamic world also lays the foundation of capitalism. Furthermore, the trade cycle influences the market control hence the continuity of the system. The history of trade describes the presence of a group of entrepreneurs who were capitalistic. The capitalistic known as the Kdrimi influenced the trade in the Islamic world. The emergence of the group was promoted by the relationship of the Egyptian merchants with the Western merchants. Due to their wealth, the group was able to spread the capitalistic traits to other Islamic markets such that, the native Islam embraced the capitalism system hence laying its foundation in the Islam world (Labib 81).
The Islamic believe in private ownership as a way of putting an end to poverty has laid the foundation of capitalism in the Islamic state. According to the Holy Islam book, in the Siirat al-Bakara, private ownership of property would be a source of wealth since the book related capital to trade. Also, the private ownership of property influenced believes that it would lead to poverty eradication (Muhammad 107). However, there are various Islam, who views the capitalism another negative side. They argue out the disadvantages such as oppression to those who are less fortunate in the society, poor wages for people working in the privately owned firms and the insult to the free economy of the Islam world. Nevertheless, the capitalism still exists such that the free economy does not get its free will; the poor continue to be poor, and the rich continue to be rich. These hence describe the capitalism foundation in the Islamic world.
The political system in the Islamic world also plays a part in the capitalism issue. A large number of Islamic states attribute their political system with the guidelines from the holy book in each and every aspect. Also, the holy book as stated above gives guidelines on the aspect of capital, business and trade. The attribution hence influences the economic system for the given state such that; if the politics of the state comply with the guidelines of the Holy book about private conducting of trade and market control, then the law applies. Through such attribution, capital gains foundation in the Islamic world.
- Esposito.L.John: What everyone need know Islam p. Oxford University Press. U.S.A Oxford University Press. 2013 print.
- Labib.Y.Subhi. The Journal of Economic History, Vol. 29, No. 1.The Tasks of Economic History Mar., 1969
- Muhammad Akram Khan. What Is Wrong with Islamic Economics? Analyzing the Present State and Future Agenda U.K Edward Elgar Publishing Inc. 2013 print.