https://doi.org/10.61650/rjme.v2i1.329
Keywords: Islamic Economy, Socialist Economy, Capitalist Economy , Economic Systems, Social Equity
Abstract
This study explores the fundamental differences between the Islamic economy, socialist economy, and capitalist economy, focusing on their theoretical foundations, conceptual frameworks, and methodological approaches. The research is motivated by the need to understand how these economic systems respond to global economic challenges and their implications on social equity and resource distribution. The study employs a qualitative research design, analyzing data through comparative analysis of relevant literature, historical documents, and expert interviews. Data collection techniques include document analysis and semi-structured interviews with economists and scholars specialized in these fields. The findings reveal that the Islamic economy emphasizes ethical investment and social justice, guided by Sharia principles, while the socialist economy prioritizes collective ownership and egalitarian distribution of wealth. In contrast, the capitalist economy is driven by market forces and individual profit maximization, often leading to significant social and economic inequalities. The research concludes that each system has unique strengths and weaknesses, contributing differently to economic stability and social welfare. Key findings include the Islamic economy's focus on moral values, the socialist economy's emphasis on social equality, and the capitalist economy's innovation and efficiency. The study contributes to the existing literature by providing a nuanced understanding of these economic systems and offering insights into their potential synergies.
References
Agrawal, R. (2022). Attaining sustainable development goals (SDGs) through supply chain practices and business strategies: A systematic review with bibliometric and network analyses. Business Strategy and the Environment, 31(7), 3669–3687. https://doi.org/10.1002/bse.3057
Alam, M. K. (2021). Independence and effectiveness of Shariah supervisory board of Islamic banks: evidence from an emerging economy. Asian Review of Accounting, 29(2), 173–191. https://doi.org/10.1108/ARA-01-2020-0005
Ali, S. N. (2021). Islamic Finance and Circular Economy: An Introduction. Gulf Studies, 5, 1–7. https://doi.org/10.1007/978-981-16-6061-0_1
Almeida, B. B. d. (2024). Rethinking the Informal Economy: Discussions in a Neoliberal Capitalist Era. Forum for Social Economics. https://doi.org/10.1080/07360932.2024.2429577
Alqashouti, B. M. (2022). THE ROLE OF ISLAMIC FINANCIAL INSTITUTIONS ON THE EMPOWERING OF THE SUSTAINABLE DEVELOPMENT GOALS: EVIDENCE FROM QATAR ECONOMY. International Journal of Economics and Finance Studies, 14(3), 99–116. https://doi.org/10.34109/ijefs.20220065
Asdal, K. (2022). From scarce resources to ‘the good economy’: a new ‘version of economization’ replacing Weber’s rational ascetism as the capitalist spirit? Journal of Cultural Economy, 15(6), 849–853. https://doi.org/10.1080/17530350.2023.2167853
Aysan, A. F. (2021). Sustainability, Trust, and Blockchain Applications in Islamic Finance and Circular Economy: Best Practices and Fintech Prospects. Gulf Studies, 5, 141–167. https://doi.org/10.1007/978-981-16-6061-0_9
Benamraoui, A. (2021). The World Economy and Islamic Economics in the Time of COVID-19. Journal of King Abdulaziz University, Islamic Economics, 34(1), 67–78. https://doi.org/10.4197/Islec.34-1.4
Besnier, E. (2024). Exploring economic empowerment and gender issues in Lesotho’s Child Grants Programme: a qualitative study. Health Policy and Planning, 39(2), 95–117. https://doi.org/10.1093/heapol/czad009
Bonizzi, B. (2020). Subordinate financialization in emerging capitalist economies. The Routledge International Handbook of Financialization, 177–187. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85127998064%5C&origin=inward
Bonizzi, B. (2022). Financialised capitalism and the subordination of emerging capitalist economies. Cambridge Journal of Economics, 46(4), 651–678. https://doi.org/10.1093/cje/beac023
Burciu, A. (2020). Social trust and dynamics of capitalist economies in the context of clashing managerial factors with risks and severe turbulence: a conceptual inquiry. Sustainability (Switzerland), 12(21), 1–28. https://doi.org/10.3390/su12218794
Chachi, A. (2021). The World Economy and Islamic Economics in the Time of COVID-19: Few Remarks and Observations. Journal of King Abdulaziz University, Islamic Economics, 34(1), 125–131. https://doi.org/10.4197/Islec.34-1.9
Chepurenko, A. (2023). PARALLEL PROCESSES AND DIVERGENT OUTCOMES: The Transformation of the Economies of Former Socialist Countries. The Routledge Handbook of Comparative Economic Systems, 411–431. https://doi.org/10.4324/9781003144366-25
Dang, H. N. (2021). Do socially responsible firms always disclose high-quality earnings? Evidence from an emerging socialist economy. Asian Review of Accounting, 29(3), 291–306. https://doi.org/10.1108/ARA-11-2020-0174
Davani, M. R. e. (2020). Ethics and economy of islamic government. Handbook of Ethics of Islamic Economics and Finance, 544–572. https://doi.org/10.1515/9783110593419-027
Desai, R. (2024). Outlines of a geopolitical economy of Chinese socialism against US-led capitalist imperialism: a reply to ‘China’s development path, 1949–2022’ by Mick Dunford. Global Discourse, 14(2), 347–354. https://doi.org/10.1332/20437897Y2023D000000034
Forste, K. M. (2022). Urban agricultural economy of the Early Islamic southern Levant: a case study of Ashkelon. Vegetation History and Archaeobotany, 31(6), 623–642. https://doi.org/10.1007/s00334-022-00892-z
Ghaouri, M. H. (2023). Waqf-Linked Islamic Fintech Microfinance as a Business Enabler in Post-pandemic Economy: The Experience of Hal Microfinance, Kenya. Studies in Systems, Decision and Control, 470, 357–370. https://doi.org/10.1007/978-3-031-28314-7_30
Goudarzi, S. (2020). Economic system justification predicts muted emotional responses to inequality. Nature Communications, 11(1). https://doi.org/10.1038/s41467-019-14193-z
Haberler, G. (2023). Theoretical Reflections on the Trade of Socialist Economies. International Trade and Central Planning: An Analysis of Economic Interactions, 29–46. https://doi.org/10.2307/jj.8306239.5
Hametner, M. (2022). Economics without ecology: How the SDGs fail to align socioeconomic development with environmental sustainability. Ecological Economics, 199. https://doi.org/10.1016/j.ecolecon.2022.107490
Haneef, M. A. (2021). The Circular Economy and Its Possible Collaboration with Islamic Economics and Finance. Gulf Studies, 5, 73–90. https://doi.org/10.1007/978-981-16-6061-0_6
Hariyanto, E. (2020). Effectiveness of the economic system to Zakat and Waqf for empowerment of the Ummah in Indonesia. International Journal of Advanced Science and Technology, 29(6), 1910–1916. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85084458992%5C&origin=inward
Hassel, A. (2021). Growth and welfare in advanced capitalist economies: How have growth regimes evolved? Growth and Welfare in Advanced Capitalist Economies: How Have Growth Regimes Evolved?, 1–451. https://doi.org/10.1093/oso/9780198866176.001.0001
He, L. (2020). Environmental economic dispatch of integrated regional energy system considering integrated demand response. International Journal of Electrical Power and Energy Systems, 116. https://doi.org/10.1016/j.ijepes.2019.105525
Healy, G. (2021). Touring the socialist world: The political and cultural economy of China’s outbound tourism, 1956–1965. Twentieth-Century China, 46(1), 83–102. https://doi.org/10.1353/tcc.2021.0005
Hipp, A. (2024). Innovation and Growth of a Socialist Economy: New Evidence from Revised Data. Eastern European Economics. https://doi.org/10.1080/00128775.2024.2322949
Islam, M. M. (2024). Islamic Marketing and Circular Economy to Foster Sustainability of Product Life Cycle Enhancement. Contributions to Management Science, 125–141. https://doi.org/10.1007/978-3-031-61778-2_7
Jara, J. N. (2024). Ecofeminism and the Popular Solidarity Economy in Latin American Social Work: Resistance to the Patriarchal and Capitalist System. The Routledge International Handbook of Feminisms in Social Work, 587–597. https://doi.org/10.4324/9781003317371-57
Kateb, I. (2023). Earnings management practices and effectiveness of auditing mechanisms in Islamic and emerging economies. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-01-2023-0013
Kato, T. (2022). Islamic and capitalist economies: Comparison using econophysics models of wealth exchange and redistribution. PLoS ONE, 17(9). https://doi.org/10.1371/journal.pone.0275113
Kelemen, K. (2024). The role of the socialist second economy experience in an entrepreneurial career after 1989. Journal of Contemporary Central and Eastern Europe, 32(2), 293–309. https://doi.org/10.1080/25739638.2024.2374152
Li, Y. (2020). Market Socialism in Belarus: An Alternative to China’s Socialist Market Economy. World Review of Political Economy, 11(4), 428–454. https://doi.org/10.13169/WORLREVIPOLIECON.11.4.0428
Li, Y. (2023). FADE-AWAY OF SOCIALIST PLANNED ECONOMY: CHINA’S PARTICIPATION IN THE WTO. International Economic Law with a Human Face, 453–478. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=75949125177%5C&origin=inward
Liang, H. (2024). Energy management system based on economic Flexi-reliable operation for the smart distribution network including integrated energy system of hydrogen storage and renewable sources. Energy, 293. https://doi.org/10.1016/j.energy.2024.130745
Lokmanoglu, A. (2024). Monetary economics, illicit economies, and legitimation: The case of Islamic state. The Rule Is for None but Allah: Islamist Approaches to Governance, 167–186. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85210316362%5C&origin=inward
Lungu, A. (2024). Foreign Direct Investments in the Post-socialist Economies of Central and Eastern Europe. Springer Proceedings in Business and Economics, 85–100. https://doi.org/10.1007/978-3-031-58967-6_8
Madhukullya, S., Mahanta, A., & Hazarika, A. (2024). Navigating Aging in Mumbai’s Modern Urban Landscape: A Study of the Upper Economic Class. Assyfa Journal of Multidisciplinary Education, 2, 63–78.
MODEL OF THE ECONOMIC DYNAMICS OF A CAPITALIST ECONOMY. (2024). The Works of Nikolai D. Kondratiev: Volume 1, 1, 255–258. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85206022609%5C&origin=inward
Muhammed, I. A. (2024). INFORMAL ECONOMY, ISLAMIC FINANCE DEVELOPMENT, AND SUSTAINABLE DEVELOPMENT IN MUSLIM-MAJORITY COUNTRIES. Journal of Islamic Monetary Economics and Finance, 10(1), 193–220. https://doi.org/10.21098/jimf.v10i1.1987
Musa, G. I. (2020). The impact of islamic capital market on malaysian real economy. Jurnal Ekonomi Malaysia, 54(2). https://doi.org/10.17576/JEM-2020-5402-08
Musari, K. (2023). The evolution of waste bank in Indonesia: An (Islamic) local wisdom based on circular economy towards a climate-neutral economy. Perspectives on the Transition Toward Green and Climate Neutral Economies in Asia, 234–249. https://doi.org/10.4018/978-1-6684-8613-9.ch014
Nguyen, C. P. (2023). Institutional frameworks and the shadow economy: new evidence of colonial history, socialist history, religion, and legal systems. Journal of Industrial and Business Economics, 50(3), 647–675. https://doi.org/10.1007/s40812-023-00274-0
Nuredini, B. (2022). BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY COMPARATIVE APPROACH BETWEEN CAPITALISM, SOCIALISM AND ISLAMIC ECONOMY. Corporate Governance and Organizational Behavior Review, 6(4), 208–220. https://doi.org/10.22495/cgobrv6i4sip2
Nursaid, N., Haanurat, A. I., & Rahman, A. (2023). Exploring the Shari’ah economic learning model through virtual learning: Initiatives and challenges. Assyfa Journal of Islamic Studies, 2.
Panayotakis, C. (2021). Beyond the Capitalist Workplace: How the Production of Surplus across the Economy Keeps Producers Divided. Review of Radical Political Economics, 53(1), 77–94. https://doi.org/10.1177/0486613420915982
Piškurić, J. (2020). “The system of socialist democracy and development of the socialist economy strives for the formation of economically strong municipalities” or, How the Municipality of Ljubljana Vič-Rudnik Was Formed. Dileme: Razprave o Vprasanjih Sodobne Slovenske Zgodovine, 4(1), 155–175. https://doi.org/10.55692/d.18564.2020.5
Raimi, L. (2023). Halal Entrepreneurship in Islamic Digital Economy from a Cultural Perspective. Contemporary Discourse of Halal and Islamic Entrepreneurship: Trends and Future Opportunities, 115–132. https://doi.org/10.1007/978-981-99-6427-7_8
Rinaldi, F. (2021). Economic feasibility analysis and optimization of hybrid renewable energy systems for rural electrification in Peru. Clean Technologies and Environmental Policy, 23(3), 731–748. https://doi.org/10.1007/s10098-020-01906-y
Rodríguez-Gallegos, C. D. (2020). Global Techno-Economic Performance of Bifacial and Tracking Photovoltaic Systems. Joule, 4(7), 1514–1541. https://doi.org/10.1016/j.joule.2020.05.005
Rusydiana, A. S. (2021). Islamic Moral Economy: A Scientometric Using R. Library Philosophy and Practice, 2021. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85109832153%5C&origin=inward
Saripudin, U. (2020). The Zakat, Infaq, and Alms farmer economic empowerment model. Library Philosophy and Practice, 2020, 1–13. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85083726075%5C&origin=inward
Shoaibeth, R. D. (2020). Financial policy in the Islamic economy-Special reference to financial policy ahead of Ali Bin Abi Talib. International Journal of Innovation, Creativity and Change, 10(11), 41–49. https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b%5C&scp=85079663182%5C&origin=inward
Sidek, S., Abdullah, M. R., & Leong, E. C. (2024). SUSTAINABLE DEVELOPMENT IN BUSINESS. In Sustainable Development in Business. Universiti Putra Malaysia Press. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85207535598&partnerID=40&md5=4a56734b799c5a5e4cfe2984340b28a8
Siu, R. C. S. (2020). Policy Dimensions of Progressive Institutional Change: Lessons from China’s Construction of a Socialist Market Economy. Journal of Economic Issues, 54(2), 472–479. https://doi.org/10.1080/00213624.2020.1752543
Somers, M. R. (2020). The moral economy of the capitalist crowd: Utopianism, the reality of society, and the market as a morally instituted process in karl polanyi’s the great transformation. Humanity, 11(2), 227–234. https://doi.org/10.1353/hum.2020.0017
Tase, M. (2022). The Effect of Perceptions on Tourism: An Econometric Analysis of the Impacts and Opportunities for Economic and Financial Development in Albania and Kosovo. Sustainability (Switzerland), 14(13). https://doi.org/10.3390/su14137659
Trung, D. Van. (2021). Social Enterprises Development in the Vietnamese’s Socialist Oriented Market Economy. Review of Economics and Finance, 19, 271–280. https://doi.org/10.55365/1923.X2021.19.38
van Zanten, J. A. (2021). Towards nexus-based governance: defining interactions between economic activities and Sustainable Development Goals (SDGs). International Journal of Sustainable Development and World Ecology, 28(3), 210–226. https://doi.org/10.1080/13504509.2020.1768452
Vieira, P. A. (2023). Divergent Trajectories: Latin America and East Asia in the Capitalist World-Economy. Colombia Internacional, 113, 23–59. https://doi.org/10.7440/colombiaint113.2023.02
Walker, R. F. (2024). The discursive emergence of ‘the market’ in capitalist political economy: crisis system and the Longue Durée. Journal of Critical Realism, 23(1), 1–17. https://doi.org/10.1080/14767430.2023.2289783
Watkins, J. S. (2020). Islamic finance and global capitalism: An alternative to the market economy. Islamic Finance and Global Capitalism: An Alternative to the Market Economy, 1–524. https://doi.org/10.1007/978-3-030-59840-2
Whiteside, H. (2024). Capitalist political economy and the political economy of capitalisms: 2022 Rik Davidson/Studies in Political Economy Book Prize. Studies in Political Economy, 105(1), 1–17. https://doi.org/10.1080/07078552.2024.2325284
Yeo, Y. (2022). Varieties of State Regulation: How China Regulates Its Socialist Market Economy. Varieties of State Regulation: How China Regulates Its Socialist Market Economy, 1–204. https://doi.org/10.1163/9781684176243
Yoshihara, N. (2021). On the labor theory of value as the basis for the analysis of economic inequality in the capitalist economy. Japanese Political Economy, 47(2), 190–212. https://doi.org/10.1080/2329194X.2021.1952081
Yousefpour, A. (2020). A fractional-order hyper-chaotic economic system with transient chaos. Chaos, Solitons and Fractals, 130. https://doi.org/10.1016/j.chaos.2019.109400
Yurtseven, M. (2021). Islamic finance system as a catalyst for sustainability in the economy. Islamic Finance and Sustainable Development: A Sustainable Economic Framework for Muslim and Non-Muslim Countries, 285–303. https://doi.org/10.1007/978-3-030-76016-8_12
Zeitun, R. (2024). Do product offering and service quality affect customer satisfaction in Islamic and conventional banks? Evidence from an oil-based economy. Journal of Islamic Marketing, 15(11), 2959–2987. https://doi.org/10.1108/JIMA-10-2022-0285
Zhang, Z. (2020). The Spreading of Stalin’s Issues on the Socialist Economy in the Soviet Union in China in the 1950s and the Discussion on the Issue of Basic Economic Principles During the Transitional Period Triggered by Such Spreading. Historical Perspectives on Chinese Economics (1949–2011), 1–9. https://doi.org/10.1007/978-981-15-8163-2_1
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Nursaid Nursaid
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Chat Now
