Socialism, Capitalism and Islamism

Some thinkers have viewed and likened Socialism in the beginning of the last century to Islamism in the dawn of the century we are currently in. According to their view, Islamism—as an economic system, that is—is destined to fall down.

Indeed, there seems to be a stark resemblance with the emergences of socialism and Islamism in their respective epoch. But as history notes, both the view and the analogy are weak, inapt, and invalid.

In between these two isms, there has stood Capitalism. While it is true that Islamism as a socio-economic system long predated the two, its so-called modern Islamic financial system emerged only recently--arguably with the experiments in Pakistan and Iran.

The core of the Islamic views on banking and financing in its modern state, however, is as good as old, dating to the era of the jihbizs (individual bankers) and the Prophet (pbuh).

The case was different with Socialim. One needs only to go back to the very fundamental factor that explains why this economic system, such as the one practiced in the former USSR, North Korea, and Mao's China, has failed : the absence of market as well as the necessary prerequisitary market mechanism (eg. for calculation of prices and profits), as a result of grave errors of denying private property, and more importantly—human beings as individuals.

The major difference lies in the fact that Capitalism and Islamism do not conflict with each other. This may sound a bit surprising or counter-intuititive to one not familiar with either of the isms under question. It may sound rather too loud an assertion; but it really does not, because not only can they live side by side, they have been so; especially today with more and more sharia compliant products entering the capital market.

Revisitation to the basic tenets of the former and a comparative look at the religiously-sanctioned Islamic teachings on social exchanges (muamalah) will not only be refreshing and interesting, but also crucially important.

However, that said, there is one other thing in common. Both Capitalism and Islamism have been seriously and regrettably mistaken and misunderstood. I cannot venture that one same power has been attacking these two great isms. But the damages it has caused seem akin.