Symposium on Islamic economy

Islam differs from Capitalism in that interest is banned in the Islamic system and thus it can keep private enterprise going. Capitalism espouses the idea of private enterprise, but the actual results of the Capitalist system show that private venture's cannot be sustained. Furthermore, the principles and presumptions of Capitalism differ from those of Islam. Islamic free enterprise is situated within a framework of social values. Capitalist theory has people competing in material gain. Muslims, by contrast, do not act this way. Production is regulated in the shari`a . Mechanisms for spreading wealth are part of the Islamic system. The rates of zaka may vary under differing circumstances. There should be moderation in consumption. A number of questions arise when interest is taken out of the banking system. Interest, in fact, plays no allocative role in the economy. Without interest, inflation and unemployment can both be effectively stifled. There may, however, be a need