Comparative Economic Systems: A Brief Review
AbstractThis paper analytically compares the theoretical foundations of major economic systems i.e. Capitalism, Socialism, Mixed economy (a hybrid of Capitalism and Socialism) and the Islamic economic system. The research identifies that lack of an ethical base, unbridled pursuit of self interest in production as well as in consumption and interest based financial and monetary system are the major problematic issues in the current economic order. Socialism promises to create heaven on earth, but takes fundamental human rights and profit motive away and in the extreme case, it gives way for an autocratic regime. The paper provides brief outline of Islamic Economics and explains that Islamic economic system is a blend of natural features present in Capitalism i.e. right to private property, private pursuit of economic interest and use of market forces etc. Along with this, Islamic economic system uses some distinct features derived through Islamic economic teachings i.e. Interest free economy, moral check on unbridled self-pursuit and provision of socio-economic justice to achieve the goals of Socialism as far as is naturally possible without denying individual freedom and profit motive.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42499.
Date of creation: 28 Feb 2012
Date of revision:
Economic Systems; Capitalism; Socialism; Communism; Islamic Economic System;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-ARA-2012-11-17 (MENA - Middle East & North Africa)
- NEP-HPE-2012-11-17 (History & Philosophy of Economics)
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