We learn a new topic today which is Topic 4; Allocation of Resources in An Islamic Economic System. Under this topic there is a subtopic titled ‘Market and the State in Islamic Economic System’. Dr. Nahar asked the class, “How can you answer if you’re at the airport and met a white man who ask you how Islamic market differ with the Capitalism? You only have a short time to answer the question and you probably won’t meet the white man again next time.” No one really answered Dr. Nahar’s question, he then decided to explain to us himself. He told us that if we are in that kind of situation, there are two best answer we can tell the white man which are 1) the demand and supply in Islamic market work within the ‘Islamic Rules of the Game’ and 2) the existence of Islamic man.

The ‘Islamic Rules of the Game’ in the Islamic economic system are compliance with the Shari’ah which is the Islamic law. It differs with the Capitalism as Capitalism do not work according to the Shari’ah because they solely depends on the market itself. Thus, it can be said that the demand and supply in the Islamic market follow the Shari’ah. The second one is the existence of Islamic man who are also known as the economic agent in Islamic market. In Capitalism, the economic agents are called as rational economic man as they pursue based on self-interest and rationality. The Islamic man can be either consumer or producer and they are considered as the economic and moral maximizer. Islamic man can be either a Muslim or a non-Muslim. If he is a Muslim, then the ultimate goal is to achieve ‘falah’ but if he is a non-Muslim, they are to maximize economic and moral or welfare in the world.

Therefore, if you or me, myself are in the situation where we have to explain to someone in a short period of time on how Islamic market differ with Capitalism, the above answers are the best one. Dr. Nahar ended the story hoping that we will sit beside the white man in the same plane so that we can explain more about the Islamic market to him. Hahaha.

I gain a lot of new knowledge today. This topic is very interesting and making me want to learn more about it. I think that’s all from me for today. See you soon. Assalamualaikum.

Aimie Affendi
April 9th, 2019