Islam's Response to Contemporary Issues — Page 167
Economic Peace 167 one side of the picture. The second side of the picture could be conceived by assessing the economy on a profit and loss basis. Of course, it would present many complications such as assessing wages etc. But if financial experts put their heads to it, such hurdles may be overcome. A comparison of these two would present very interesting possibilities. It is more than likely that the real culprits for the decline of standards of living could precisely be pinpointed in this way. Even without such a gigantic exercise, it is not difficult at all for one to determine the causes of such decline. I believe that because the state becomes the capitalist, it is deprived of a monitoring system to warn it of failures, wastage and blunders regarding the way it handles the state’s capital because it has no financial obligations to fulfil and can employ capital without accountability. Such a situation is rife with inherent dangers. Lack of personal interest and a warning system on the profit or loss arising from the employment of capital works havoc with the input-output ratio. The quantum of waste goes on increasing. Again, there is no check placed on the policy of channelling capital. For instance, there is no mirror for the socialist governments to judge the real rate of economic growth in comparison to the free market economies of the outside world. An added problem is that communist states require much larger expenditure on defence, surveillance and law-enforcing agencies within the country. Other things being equal, this requires a disproportionate level of expenditure on defence and the maintenance of law and order. These and other similar factors take a heavy toll on the economy. The ultimate collapse of the economy can be delayed, of course, but cannot be averted altogether.