Allama Iqbal's Economic Thought: A Critical Analysis of Capitalism, Socialism, and the Islamic Economic System

Abstract

This paper provides an analytical examination of Allama Muhammad Iqbal’s economic thought, focusing on his critique of Western economic systems—particularly capitalism and socialism—and his advocacy for an Islamic economic framework. As a visionary philosopher and poet, Iqbal critiqued the materialistic and exploitative nature of capitalism and the atheistic foundations of socialism, proposing instead an economy rooted in Islamic principles of spiritual, social, and economic justice. Iqbal's economic philosophy, deeply rooted in the teachings of the Qur’an and Sunnah, emphasizes the importance of equitable wealth distribution, the prohibition of interest (riba), the institution of zakat, and the dignity of labor. His thoughts, expressed through his poetry, lectures, and letters, present a vision of an economy that ensures material welfare while fostering spiritual development. This study delves into Iqbal's critique of the Western economic model and highlights his proposal for an Islamic economy, arguing that his vision offers a viable alternative to the current global economic system. The paper explores Iqbal’s belief in the interconnection between individual selfhood (khudi), economic justice, and spiritual growth, presenting his economic framework as a timeless guide for addressing contemporary economic challenges.