IDB/IRTI LECTURE. CAPITALISM, SOCIALISM, THE WELFARE STATE, AND ISLAM. PROF. KHURSHID AHMAD. MIHE, MARKFIELD, LEICESTER. NOVEMBER 6 TH , 2007. INTRODUCTION. 1.1 Comparative Economic Systems Rise and Fall of the Discipline Capitalism: the Challenge from Socialism
THE WELFARE STATE, AND
PROF. KHURSHID AHMAD
MIHE, MARKFIELD, LEICESTER
NOVEMBER 6TH, 2007
“As mankind approaches the end of the millennium, the twin crises of authoritarianism and socialist central planning have left only one competitor standing in the ring as an ideology of potentially universal validity: liberal democracy, the doctrine of individual freedom and popular sovereignty… In its economic manifestation liberalism is the recognition of the right of free economic activity and economic exchange based on private property and markets.”
Yegor Gaidar, former Prime Minister of Russia in his address to the International Economic Association, Moscow, August 1992 said:
“Henceforth books on Comparative Economic Systems will be found on the shelves dealing with Economic Development.”
- The expected adoption of the American Model of Capitalism by the entire world did not materialise.
“The search for an alternative Capitalism is fruitless in a world where Capitalism has become utterly dominant, and no final crisis is in sight or, short of some ecological catastrophe, even really conceivable. The socialist alternative has lost its creditability, while contemporary anti-capitalist movements seem to lead nowhere… Those who wish to reform the world should focus on the potential for change within capitalism. There are different capitalisms, and capitalism has gone through many transformations. Reform does, however, require an engagement with capitalism and cannot be accomplished by movements that stand outside it and merely demonstrate against it.”
James Fulcher, Capitalism: A Very Short Introduction, Oxford University Press, 2004, p 127.
The Russian Scenario
Source: Comparative Economics In A Transforming World Economy
By J. Barkley Rosser Jr. and Maria V. Rosser, Second Edition, The MIT Press, Cambridge, Massachusetts, 2004. p 296.
All under the umbrella of one civilizational paradigm of SECULARISM
3.1.1 Development/ Affluence/ Welfare
3.1.2 Power/ Control/ Supremacy
3.1.3 Freedom/ Democracy/ Participatory System
3.1.4 Innovation/ Technology
3.2.1 Injustices/ Contradictions/ Conflicts and Rivalries
3.2.2 Exploitative/ Colonial/ Hegemony
3.2.4 Inefficient/ Wasteful
RELATIVE SHARES OF WORLD MANUFACTURING OUTPUT
— Source: PAUL KENNEDY The Rise and Fall of Great Powers, Random House, New York, 1987.
— Source: PAUL KENNEDY The Rise and Fall of Great Powers, Random House, New York, 1987, p. 149.
4.2.1 THE PRESENT POSITION IS THAT THE TWENTY TWO DEVELOPED COUNTRIES OF THE WORLD HAVE 87 PERCENT OF WORLD GDP WHILE THE REMAINING 160 COUNTRIES HAVE TO LIVE ON ONLY 13 PER CENT. INEQUALITIES BETWEEN THE DEVELOPED AND DEVELOPING COUNTRIES AS WELL AS WITHIN THESE COUNTRIES ARE INCREASING, MAKING RICH RICHER AND THE POOR POORER. THE WORLD IS BECOMING MORE UNJUST AND EXPLOITATIVE.
(WORLD DEVELOPMENT REPORT 2006, EQALITY AND DEVELOPMENT, THE WORLD BANK, 2006, P.64-65)
Source: Rosser and Rosser, opt. Cit, p.131.
Source:Rosser and Rosser, Page 44
5.2.1 TAWHEED (UNITY OF GOD)
5.2.2 RABYBIYYAH (DIVINE SYSTEM OF SUSTENANCE)
5.2.3 RISALAH/ PROPHETHOOD AND GUIDANCE
5.2.4 AAKHIRAH (LIFE- HEREAFTER/ ACCOUNTABILITY)
5.2.5 ISTIKHLAF (VICEGERENCY/ STEWARDSHIP)
5.2.6 TAZKIYYAH (PURIFICATION AND GROWTH)
5.2.7 KAFALAH (MUTUAL SUPPORT/SOCIAL SOLIDARITY)
5.2.8 ‘ADALAH AND QIST (JUSTICE AND EQUITY)
5.2.9 FALAH (WELLBEING/ HERE-HEREAFTER)
5.3.1 HOLISTIC/ COMPREHENSIVE/ INTEGRATED
5.3.2 VALUE BASED IDEALS AND OBJECTIVES: CLEAR STATEMENT OF MAQASID-E-SHARIAH PROVIDING THE VALUE FRAMEWORK FOR ECONOMY AND SOCIETY.
FOCUS ON MAN AND NOT MERELY ON WEALTH/ PRIORITY FOR HUMAN DEVELOPMENT AND WELLBEING.
5.3.6 JUSTICE AND EQUITY FOR ALL
MAJOR PRINICIPLES AND PROCESSES OF AN ISLAMIC ECONOMY