To compare Islamic economics with conventional economics (capitalism and socialism), we would critically evaluate both systems based on several common criteria. These criteria are selected because both systems have their own distinctive features in providing mechanism and solutions to the real-world problems. Hence, with the common criteria of comparison, it is hoped that we could clearly see the difference between Islamic economic system and the conventional economic system.
What are the criteria which we are going to use in our attempt to evaluate the two economic systems?
We found that Islamic economics and the conventional economics are different in term of these six criteria:
1. Definition of economics.
2. Ownership of property.
3. Role of government.
4. Incentive mechanism.
5. Organization of decision making.
6. Activities – consumption, production, distribution and exchange.