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Assumptions of islamic economics :

A. Belief in islamic man


Islamic man is conceived as economic and moral maximizers,
persumed to be individualistics, co-operative and socially
responsible.It rejects the classical doctrine of economic man
considered to be highly individualistic and comparative,motivated
by self interest and maximizing profit

View of islamic man is indispensable for the functioning of the


islamic economic system.Without islamic man,islamic socio
economic framework can not be evolved

B. Lack of harmony of interst


Islamic believes in human limitations and frailities. The chance of
exploitation of the weak by the rich is not alowed here..The Quran
has repeatedly asked the rich to discharge their duties towards
the poor. Any failure on there part justifies the intervention of
lslam,the state which is required to correct the problems of
externalities as well as to achieve allocative and distributive
justice . IN islam ,the lack of harmony of interst is seen in terms of
human limitations and weakness.

C. Relative ownership of private property

Islam allows private ownership of property , but subjects the


owner to restrictions preventing him fromusing the property as a
tool of exploitation of the poor. His ownership of anything and
everything is relaive not absolute . therefore, violation of any of
the principle justifies the intervention of the state to regulate
and control private property to theadvantage of the greatest
number of the people in a community.

D. Disbelief in historical mechanism Islam rejects the marxist materialistic and interpretation of the
history according to which the economic event determines the
forces of social and political life . Islam doesnt belief in class
conflict .Islam recognizes the existence of different classes of
people and differences in income among them.Islam is based in
the Quranic doctrine of Tawhid all life is one That means ,Islam
does believe neither in the harmony of class interest nor in the
class conflict It beleives in mutual trust and active cooperation in
all aspects of life

E. Disbelief in consumers or producers sovereignty -

Islam disapproved both the consumer and the producers


sovereignty. The exploitation of resources or their use is
conditional in the sense that both producers and consumers

benefit themselves equitability not for exploiting or holding others


in subjection.Islam maintains a blance between exaggerated
opposites.

When voluntary co- operation is not forthcoming due to the


current social and economic realities the state in an economy is
justified in introducing control and equitable competition. The
nature and scope of such co-coperation ,control and competition
will however ,be subject to normative control imposed by shariah