The phenomenon of poverty between the Islamic economic system and the socialist economic system: A comparative analytical study

Abstract

This research aims to extract the differences that exist between the Islamic economic system and the socialist economic system in the interpretation and conceptualisation of the phenomenon of poverty in societies, as well as the solutions proposed by both systems, Islamic and socialist, to reduce, alleviate or eliminate the phenomenon. These differences are based on the specificity of each system, its principles, its composition and the sources from which it derives its perspectives and concepts on which its visions of economic and social phenomena are built. The study examines whether these visions and concepts correspond to reality or remain in the realm of imagination. The study concludes that there is a major difference between the Islamic economic system and the socialist system in the perception of poverty. The Islamic economy sees it as a universal divine law that cannot be eliminated from the creation of Allah, as it is unchangeable and immutable. It does not specifically target the individual, but rather the existence of poverty as a general phenomenon in a society. Poverty is seen as an essential part of society that cannot be completely eradicated but can be partially controlled through legitimate means such as Zakat (obligatory charity), voluntary charity, social solidarity, endowments and other methods. The Islamic economic system is comprehensive in both theory and practice, as it derives its principles from Islamic law. On the other hand, the socialist economic system views poverty from a particular perspective, a materialistic human perspective that is opposed to the owners of the means of production and capital in society. It aims to eliminate inequalities, which socialist economists regard as the highest form of economic injustice. Trade unions play an important role in ensuring that the wealth that circulates in society belongs to everyone according to their individual efforts and contributions.