Formation of Islamic & Capitalistic Types of Economic Regimes

Authors

1 Assistant Professor of Economics, Department of Economics, Tarbiat Modares University, Tehran, Iran

2 Graduate Student, Department of Economics, Tarbiat Modares University, Tehran, Iran

Abstract

Man's behavior has always been influenced by his moral beliefs. Generally
speaking, a person's mind set or mentality is affected and also affects his
surroundings. Assuming that we can separate the three phenomenon of religion,
moral values and environment, we can presume a triangle based on which a person's
complete behavior and attitudes are attributed to. The impact of religion and moral
values on man's behavior is so profound that it can produce a whole new economic
attitude in a society. A materialistic mind set tends to create a capitalistic economic
system while an Islamic mentality seeks to create an economic system based on
Islamic values. In other words, the way we view government, price system,
distribution of production factors, monetary and fiscal tools and others, are all
affected by the basic premises of an economic system. Therefore, considering such
impacts, it is important to study the various effects of Islamic values and capitalism in forming economic regimes, social institutions and various economic and business
tools.
In this paper, we review the difference between the values based on religious beliefs
and those based on a capitalistic system, and explain the formation of different
economic regimes based on their values. Based on our research, a solely-profitseeking
mentality directs people to a capitalistic economic system while a mentality
based on religious virtues directs them to an economic regime based on moral
values.

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