ECONOMIC RESILIENCE DURING FINANCIAL CRISIS: ISLAMIC VS. CONVENTIONAL SYSTEM

Actually economics is in practice since ancient time even though it emerged as a discipline in 1776 when a book titled wealth of nation was written by Adam Smith in 1776. Arthashastra was written by Kautilya long ago which deals with governance, economics and military strategy. Almost all religions directly or indirectly talk about how resources should be allocated and wealth should be re distributed to avoid economic inequality and achieve a balanced economic development giving justice to all the individuals in the society. The present paper lays emphasis on Islamic aspect of economics especially in its approach to deals with problem of financial crisis. Further, this paper attempts to draw a comparison between Islamic and conventional system. KEY WORDS: Islamic Economics, Conventional Economics, Riba, Mudaraba, Musharaka, Bai Muajjal, Salam, Istisna, Ijara