Comparison Concept With System Capitalism And Socialism

Abstract

The development of the global economic system has revealed various issues such as income inequality, financial crises, and moral degradation in economic activities. Capitalism and socialism are considered unable to provide comprehensive solutions, leading to the emergence of Islamic economics as an alternative system that integrates material and spiritual values. This study aims to analyze the concept of Islamic economics, examine its scope, compare it with capitalism  and  socialism,  and  identify  existing  research  gaps.  This  research  employs  a qualitative approach with a descriptive-analytical method through library research, utilizing relevant academic literature as data sources. The results indicate that Islamic economics is a Sharia-based economic system that emphasizes justice, balance, and holistic welfare (falah). Its scope includes micro and macroeconomics, Islamic finance, wealth distribution, and fiqh muamalah. Compared to capitalism and socialism, Islamic economics has unique characteristics by combining market efficiency with social justice while rejecting exploitative practices such as riba (interest). However, gaps remain between theory and practice, along with limited empirical studies, indicating the need for further development to ensure the relevance of Islamic economics in the global economic system.