Principles of Islamic economics

Economics has developed in three stages since the 19th century. Islamic economics presents a new economic philosophy that focuses on efficient allocation of scarce resources in the context of people's obligation to establish a society run under God''s laws. Islamic economics has three main principles: Tawheed and brotherhood mean that social justice is a goal of Islam; wages should be commensurate with the amount and type of labor performed; and according to the Qur'an society has a right to redistribute private property. These principles have implications such as the prohibition of riba, fairness in work and wages, cooperation in economic activity, zaka on idle property to encourage investment and prevent the concentration of wealth, government intervention in the Islamic economy to achieve distributive justice, the use of mudaraba (a profit/loss sharing scheme) in place of interest, and the prohibition of israf (excessive or wasteful consumption). Muslim countries should combine