The Role of Capitalism in the Islamic World

THE ROLE OF CAPITALISM IN THE ISLAMIC WORLD
Name:
Institution:
Course:
Tutor:
Date:
Capitalism
The world socialist movement defines capitalism as a social system inherent in all countries around the world (World Socialist Movement, 2015). In a capitalist society, the means of productions are owned by a small group of people otherwise referred to as capitalist class. Majority of people, referred to as working class, are forced to trade their skills for a salary. Goods produced by the working class are then sold in the market at a given profit. Such profits benefits the capitalist class given that they are able to sell the products at a higher price as compared with the actual cost of labor. In this regard, the capitalist class exploits the skills of the working class while reinvesting their profits which by extension results in wealth accumulation. According to Astrom (2011), Islamic economies can lead to a shift in this paradigm. He goes further on to state that Islamic economies are not necessarily backward in term of political, economic, social and environmental matters (Astrom, 2011, p. 80).
The structure of Islamic capitalism
Astrom (2011) argues that Islamic economies have medieval roots. These sentiments are shared by Weber who is of the opinion that capitalist emerges as a core aspect of European Reformation that changed the rational capitalistic behavior of individuals in the society. Robertson (1933, p. 45) is of the opinion that rational capitalism was a secular scientific development adopted by Western Europeans from the Islamic economies, denying that rational capitalism was a product of Christianity. More specifically, rational capitalism is seen as having originated from Syrians and Muslim Arabs.
In addition, Weber seems to disregard all the non-Western cultures such as Islam, labelling them as "non-rational". The Islamic scriptures do not condemn any principle, deny property, or deter the development of the so-called capitalistic exchange-economy as well as its related practices and institutions. In this regard, it is argued that both Prophet Mohammed of Islam as well as his successors and companions were businessmen. This perception is supported by Astrom (2011, p. 76) by asserting that the Islamic economics is established on the knowledge originating from the fundamental sources of Islamic religion, namely, Sunnah-sayings, the Quran, as well as prophet Mohammed’s living habits.
Islam and capitalism
The Islamic scriptures encourage and recognize e...