Government Intervention in the Economy from the Pointview of Islamic Economic System

There is a general agreement on the necessity of establishment of government. According to the Islamic economic system, the government has specific responsibilities. Based on these responsibilities, the government is said to lead the economic activities into the basic framework of the Islamic economic activities. Furthermore, the government exercises control on economic activities to appear in agreement with the aims and principles of the Islamic economic system and also with the public interests. If economic activities do not meet the required conditions, the government will accordingly intervene in the whole economy. An example of such a case is the government’s intervention in mechanism of the market. This may eventually manifest itself in preventing hoarding and monopoly or in the restriction laid on prices to be fair.