What is socialism?
When exploring the nature of socialism, the key idea to understand is that socialism is grounded on the collective ownership of world resources by society. This means that separate entities do not have a right to control resources beyond their possessions and that every member of the society is entitled to participate in the decision-making process regarding the usage of such resources. Therefore, socialism can be defined as a system of society advocating “collective or governmental ownership and administration of the means of production and distribution of goods” (Merriam-Webster par. 2).
Types of Socialism
Socialism experienced its key stages of development in the nineteenth century. The most popular types of socialism were created to oppose capitalistic views and therefore present alternatives grounded on socialistic opinions. When discussing types of socialism, it is important to distinguish Democratic, Revolutionary, Libertarian, Market, and Eco-Socialism. The table below presents key ideas of each type of socialism:
Scientific Socialism
Marxist philosophy
Friedrich Hegel and Karl Marx initially developed the scientific approach to Socialism. Scientific socialism is divided into three main divisions such as politics, economics, and philosophy. As to the philosophy division, Karl Marx based his exploration on the dialectical theory of Hegel, and with the abandonment of the idealistic views, introduced the theory of materialism. Regarding the economy division, Marx agreed with concepts previously outlined by the Classical School of British economists, who introduced the theory of value as labor. Concerning the political division, the Marxist theory agreed with Hegel’s work as to the class struggle within the society and proposed a thesis conjuring of new societal systems – Communism and Socialism.
It is important to mention that Marxist theory was not the only socialistic theory that utilized the notion of science. It can be stated that early members of the British Fabian Society saw the necessity of the “rational and scientific reform and administration” (Vincent 96).
Islamic Critique of Marxism: Unacceptable philosophy and Failure in Practice
While Marxism has a completely anti-religious outlook on the structure of human life, Islam is grounded in the fundamentals of faith in the invisible, something that transcends natural phenomena and is incomprehensible to the regular perception. While each of these ideologies has a specific code of conduct and the outlook on the world and the future, Islam and Marxism were built on completely different concepts and systems of values expressed by their proponents.
In his book Marxism and Other Western Fallacies: An Islamic Critique Ali Shari’ati criticized Marxism for its categorical denial of any spiritual and supra-material essence of an individual and the focus on merely material needs and the triumph of the economy above other values (32). As to the unacceptable philosophy, Islam also put Marxism under major scrutiny for the confrontation of the religious faith and the dependence on the production and economy as the main focus of the civilization. Therefore, the materialistic and needs-oriented ideology shared by the proponents of Marxism does not coincide with Islamic opinions, the majority of which share a common religion-oriented worldview. It is important to examine the nature of the Islamic Economic System to trace differences between it and socialism.
What is the Islamic Economic System?
Nature of the Islamic Economic System
To define the nature of the Islamic economic system, the following quote should be taken into account: “Islamic economics aims at the study of human Falah achieved by organizing the resources if earth based on cooperation and participation” (Khan 51). In Islamic tradition, Falah is a concept that exists in both worlds; however, in the real human world in it represents survival, honor, and freedom from want. Another component of the quote given above is the ‘resources of earth’ notion. This notion exists within the framework of the Islamic economy and is associated with how the resources can be utilized to achieve Falah. Muslims believe that God created enough resources that provide a livelihood to his creatures. Following this logic, the scarcity of the natural resources is connected with the improper utilization of the available resources or their irregular distribution. This means that there is not necessarily something wrong with the resourced but that specific measures should be applied to deal with distribution to achieve Falah.
Bases in Quran, Sunnah, and Ijtihad.
Islamic economics is based on the assumption that real-life data has been ordained by the divine being. The concept of interest in the Islamic economy is strictly prohibited in the Qur’an. Furthermore, it is taught that society should completely reject not only the notion of interest but also other concepts that bear any resemblance to it. Thus, the Islamic economic system does not regard financial phenomena as important. Islam is much more concerned with the spiritual side of the economic system and states that everything the society owns was given by God. Because Islam is a religion and a set of values that regulates all aspects of human behavior and because the economy is a form of human behavior, Islam guides the economy of the countries. Muslims exhibit economic behavior in production, distribution, as well as the consumption of services or products (Islam Religion par. 8). As to Islam, economic behavior is value-neutral rather than value-free, an assumption based on the ideological background of the religion.
Qur’an and the Sunnah provide Muslims with the framework of economic behavior and how society should be organized. The chain of rules called the Shariah to define the Islamic economic system in terms of regulation and constitution. Sunnah explained the application of the economic rules by Prophet Muhammad, who provided them as guidance for humankind.
Historical Application of The System
Originating in the middle of the twentieth century, the history of the Islamic economic system was tightly bound to Islamic financial practices. However, in the history of its application, Islamic economics experienced the tension caused by the contrasting ideas between practice and theory, forcing the discipline to divide into two directions such as the aspiration-focused approach (oriented towards the ideal of Islamic economics) and the reality-focused approach (targeted at achieving the feasibility of Islamic economy and the acceptance of the already existing practices) (Shinsuke 114). Thus, the history of the Islamic economics application revolved around the dynamic relationship between reality and aspiration. Throughout its development, Islamic economics facilitated the emergence of different concepts connected with charity, money, and property. These concepts included notions such as Riba, Gharar, and Zakat – all of which came from religious writings such as the Sunnah of the Prophet Mohammad.
Apart from being connected to the oldest Islamic financial practices, the historical application of the economic system implied the involvement of the family, the government, and the society as well as the close interactions between them. Furthermore, the concept of mutual sacrifice has been distinguished as a crucial contributor to the market as well as to the management and maintenance of the family relations. The lack of people’s willingness to sacrifice for others’ sake may potentially cause a decrease in the human input into all institutions such as the market, society, and the government (Chapra par. 10).
Comparison of Socialism with Islam concerning
Private and Public Ownership
When comparing private and public ownership in Socialist and Islamic frameworks, it is important to distinguish its major differences. In Islam, private ownership is completely guided by the Qur’an, which states that ownership of any objects belongs only to God while separate individuals are only given the right of possession and not ownership. Public ownership in Islam is designed in such a way that all members of the society can use resources, which should not be restricted or limited by the government’s attempts to monopolize them.
As to the similarities, both Islam and Socialism have specific restrictions when it comes to ownership. Despite the availability of the restrictions, their nature is significantly different. Islamic view on ownership and economic freedom does not coincide with socialist ideas. For example, in socialist societies where the government controls the majority of the operations people never expect any charitable help from others in cases of emergency. Contrary to this, Islamic societies support the concept of charitable donation, which implied that those individuals that make more money than others are responsible for diminishing the shortcomings experienced by the less privileged members of the society.
Materialism and Non-Material Targets
It is important first to mention that in comparison with Islamic ideologies, Socialism relies on materialistic ideas and concepts. The father of Socialism, Karl Marx, explained all historical events through the interaction of materialistic elements. Furthermore, there is a total rejection of religious and non-material targets within the socialist framework as Engels stated “matter is the only real thing in the world” (qtd. in Chaudhry par. 17). Thus, it can be concluded that various stages of human development are grounded in the relationships between different economic forces, which means that there is no place for God in the socialist theoretical framework.
Contrary to the socialist views, Islam believes in both material and non-material aspects of human life. In Islamic tradition, there are no antagonistic relationships between different classes that compete with each other for material goods. Moreover, Islam does not believe that all past historical events can be defined by the “interplay of economic forces” (Chaudhry par. 18). In Islam, the value of the economic system lies in the moral and spiritual development of the society, although the achievement of material success through fair work is considered important and valuable.
Individualism and Totalitarianism
In a socialist society, the ruling of the bourgeoisie is completely abolished and substituted with the totalitarian power of the middle or proletariat class. Therefore, some of the fundamental rights and civil liberties are suppressed by the totalitarian power, making people to only regard themselves as members of the society and not separate individuals with rights and the freedom of decision-making. To fit in the society, a person is forced to comply with common ideas and beliefs that present the basis for their existence within the totalitarian regime. The suppression of individualistic ideologies is what makes a social state very powerful in terms of economy.
Islamic economy, on the other hand, does not agree with the complete rejection of individual rights and believes in the democratic form of government, as mentioned in the Qur’an. People living in the Islamic state are granted some freedoms and civil liberties that are crucial in a democracy. If one is to examine the history of the struggle between the state and religion in the majority of Western societies, it can be concluded that the denial of any religious ideologies as components of economy and politics was the mutual characteristics shared by many states. In contrast to this, Islamic states did not eliminate religious ideas from social affairs and managed to prosper in those times when the Western part of the world went through the so-called ‘dark ages.’
Therefore, Islam managed to achieve a balance between individualistic and collectivistic views. It is believed that God appointed each person as the ruler of the land. To exist in a fair society, one must perform the duties to sustain God’s trust. Lastly, the Islamic perspective on the structure of the society is divided into three concepts: individual development and progress, the right to learn and transmit knowledge, and the understanding of how the Islamic society works.
Equality: Socio/Economic Justice vs. Philosophy of Absolute Equality
Socio-economic justice is the key concept that has created a basis for the majority of Islamic teachings. All of the ideas presented in the Qur’an revolve around people living with each other in peace and fulfilling the mutual responsibilities fairly and honestly to make sure that falah is achieved. As to these teachings, the Qur’an states that injustice in society will lead to destruction. Sunnah, the collection of Prophet Muhammad’s sayings, also strongly advocates for social and economic justice in the society, and completely disapproves of injustice. The result of injustice, according to Sunnah, is not destruction but darkness.
Because Islam does not ground its economic laws on scientific knowledge and discoveries, it manifests the structure of the society through specific socioeconomic ideas that do not coincide with any distinct branches of science. For example, when Islam discusses the increase of interest in monetary means, only then it applies scientific knowledge about the sphere of economics. Without the involvement of the scientific interpretation of the issue, Islam usually evaluates its socioeconomic effects and decides whether it will be unjust to prescribe it in society. This means that at times of dealing with specific economic and social problems, Islam rather implements a moral investigation instead of the scientific one. Like any other religious ideology, Islam is concerned with the disparities existing between simple human needs and economic wealth. While Qur’an commands absolute equality before God for all people regardless of their class, it disregards absolute equality of economy and wealth. Therefore, income differences are allowed and are considered natural for a well-functioning society and the economy (Kenny and Koylu 76). On the contrary, it is important to mention that the Qur’an emphasizes absolute equality for all members of society in terms of the distribution of natural resources. Because according to the Islamic faith all creatures were created by God, all of them possess equal rights to access the resources of the earth, which were also given by God.
When comparing socio-economic justice in Islam to that of socialism, it is important to mention that equality for all is one of the key principles of socialism. Socialism does not agree with the fact that people are different and implies equal treatment for all, except for the police and the law (Poulo par. 2). Therefore, in many ways social and political justice within the framework of socialism cannot work efficiently due to the abandonment of the inherent differences with which people are born. In practice, socialism supports the philosophy of absolute equality, although it gives it some explanation.
Absolute equality in the socialist society is needed because the demands of the community may go across with the idea of justice. Therefore, absolute equality is required for justice to overcome the desires of the community to reach a certain outcome. The second reason is that not all inequalities may undermine the community. In this sense, some members of society may be ‘equally unequal’ in some respects when there is no danger for society overall.
Conclusion
The analysis of the Islamic economic system in comparison with socialism has given some interesting results. As the background for the findings, it is important to mention the key difference between the two ideologies analyzed in this paper. The most important difference between Islam and socialism is the attitude towards the idea of faith. While Islam is concerned with the spiritual and moral aspects of human life and integrates religious ideas into the political and economic operations, socialism disregards any religious teachings and focuses on the material phenomena and the acquisition of monetary means and strengthening the economy.
As to the public and private ownership, both ideologies imply some restrictions although they are different. For example, in the socialist society people are not expected to make charitable donations while Islam implies the making of such donations for achieving Falah. Individualism is not recognized by the socialist society where all people are considered equal ‘components’ of the community that does not have any individualistic rights. Islam, on the contrary, supports both collectivism and individualism and recognizes the importance of helping other people while preserving personal beliefs and ideas. Therefore, there is no place for complete totalitarianism in Islamic society. Socioeconomic justice in Islamic society is achieved through moral rather than scientific investigation. Contrary to the socialistic views, Islam does not fully support absolute economic and wealth equality for all people and agrees with the idea that individuals can gain monetary values through fair means.
Works Cited
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