Académique Documents
Professionnel Documents
Culture Documents
1.Pure Market
Economy
2.Pure Command
Economy
Role of Government
Little or No role of
government
Freedom of choice
No freedom of Choice
Ownership of
resources
Private sector
State/Public sector
Price determination
Which Sector
answers the basic
economic questions
Private sector
3.Islamic Economic
system
4.Mixed Economy
Government creates
laws and regulates
business activities
Limited freedom of
choice given
government controls
Owner of Everything is
ALLAH
Price should be sets in
Islamic way Normal price
Owner of everything is
ALLAH
Disadvantages
Disadvantage
1. No freedom of choice for consumers or producers
Advantage
Disadvantage
Disadvantage
Only Islam Permitted things you can
produce.
Profit should be Normal.
Interest is prohibited.
In Afghanistan government is not so much active to provide jobs to every person and also rich
people are becoming rich with their money and selling the products in high price in market and
there is no Law to ask them and stop them from selling low quality products in market. And poor
people are getting poorer day by day. Islam essentially allows economy to operate freely
according to the market forces subject to Islamic restrictions and guidelines on production.
Distribution, Marketing, investment trade, exchange, wages etc. the state can also further
interfere in this free economy to restore equilibrium and establish justices and other Islamic
objectives. In an Islamic economy, there is an allowably constraints an entrepreneur can
produce only permitted things. Profit should be in normal in such an economy after giving
proper wages to the laborers in accordance with Islamic principles. Some forms of trade
practices, exchange, investment, and land tenancy in agriculture are prohibited in Islam. It also
disallows monopoly and hoarding as social evils. The aforesaid restrictions make free economy
in Islam qualitatively different from capitalism. Islam cannot be said to be capitalistic only
because it allows forces of demand and supply to operate in the economy. Forces of demand
and supply operate in the economy. Forces of demand and supply are fundamental economic
forces, which were operational even before capitalism. Islam prohibits interest. This requires a
total reorganization of the economy, Banking, investment, exchange, business and international
trade. In Afghanistan Islamic economy system is best. Because we are Muslims and we should
follow the Islamic economy systems and Islamic economy system is best system all over the
world. Non-Muslims use Islamic rule in there economy so we have our religion and it is best
economy system so we should follow Islamic economy system.