Top PDF Zakat as a Mode of Poverty Alleviation

Zakat as a Mode of Poverty Alleviation

Zakat as a Mode of Poverty Alleviation

It is a known fact that aggregate income of world is increasing but poor people aren’t getting benefit of it, as increased income becomes part of already rich people. Poor is getting poorer and rich is getting richer day by day, the situation in Islamic countries is even worse (Adebayo, 2011). To coup with this situation we need to find the solution for underlying causes of poverty, one of which suggested by Islam is Zakat. There is no doubt that zakat is perhaps the most effective tool to eliminate poverty and reduce income inequality, this has been proven in early Islamic times when there was not even single poor person who was eligible to receive zakat, no other system offered in this world can eradicate poverty to such extent, the western world who claims to have a welfare system is just an illusion as in western world, a lot of people live below poverty line and rich people are getting all benefits. The taxation system is unjust as it benefits rich and exploits poor (Shah, 2014). So we have to revert back towards our basics and identify where we went wrong with zakat system and make remedies. Only 37% Muslim countries have state sponsored zakat institutions out of which only 40% have made zakat collection compulsory, remaining 63% doesn’t have zakat management at state level (Powell, 2009), in these dire circumstances we can’t expect zakat system to benefit us in the way it is supposed to be. The major reasons for the failure of zakat systems where applicable is lack of proper planning and lack of proper implementation (Hoque, Khan and MUHAMMAD, 2015), In Indonesia there is rivalry among zakat institutions which is hindering progress, in Malaysia too much decentralization have made things complicated and non-uniform, In Pakistan and Bangladesh there are issues with proper implementation as competent personnel are not in charge of process and political
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Analysis on Poverty Alleviation by Mosque Based Zakat Administration in Bangladesh: An empirical study

Analysis on Poverty Alleviation by Mosque Based Zakat Administration in Bangladesh: An empirical study

Professor Dr. Masudul Alam Chowdhury and M. Kabir Hasan (2001) wrote an article entitled “The role Zakat in an interactive model of non wage labor forces activity.” He stated that Zakat is an instrument of equitable distribution that purifies wealth from selfish covetousness and brings about equality and social harmony out of goodwill, also causes wealth to increase manifold. In the article written by Idris Ali and Md. Ferdausur Rahman entitled “Poverty alleviation through Zakat” it is seen that there are 50% people of Bangladesh are under poverty line defining poverty line as a person who has not income minimum 1 dollar per day lives under poverty line (World Bank). Those writers have shown that minimum 5000 crore taka is supposed to be collected from Zakat in Bangladesh (Source: Daily Amardesh October 14, 2006). In that article it has been also drawn conclusion that by giving Zakat maintaining proper system in distribution every year, Bangladesh will be turned into a poverty free country within 10 years. But those authors have not recommended any proper system as well as they not any has given any guideline to collect Zakat by Government as well as non government way. Till today no author as well as thinker has thought Zakat management (collection and Distribution and its effect) in macro economy).
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Zakat Institution. An Alternative for Poverty Alleviation in Zanzibar

Zakat Institution. An Alternative for Poverty Alleviation in Zanzibar

Islam as holy religion has a complete model of poverty alleviation. ( Khan, 2010 ; Ali & Hatta, 2014) explained three sets of measures for poverty alleviation in Islam. Firstly; the positive measure which includes income growth, functional distribution of income and equal opportunities. The second set is the preventive measures intending to avoid wealth concentration to just a few segments of the population, and this includes control over ownership and prevention of malpractice. Thirdly; the corrective measures which established the model for wealth transfer to include compulsory transfer through zakat recommended transfer through charity and finally is the state responsibility for enforcement and provision of basic needs. Islam has made the payment of Zakat compulsory to all Muslims who meets its payment criterions and made the payment of sadaqah and the perpetuity (waqf) as free but much-emphasized ones to be crucial tools in poverty alleviation. While zakat and sadaqah are the redistributive tools, the awqaf could be utilized to develop the non-income aspect and social services of the poor like education, health and physical facilities(Kabir Hassan, 2010; Yumna & Clarke, 2011).The main tools for poverty alleviation in Islam differentiated in Table 1 below.
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Role of zakat in poverty alleviation and economic development – special field study of Maruthamunai

Role of zakat in poverty alleviation and economic development – special field study of Maruthamunai

This paper presents the role of Zakat in poverty alleviation and economic development in the community as well as in the nation. The researcher has given a special attention and field work in Maruthamunai, a village in Kalmunai Municipal Counicil of Amparai District. A variety of reforms and new ideas in the management and institutions are responsible for collecting and distributing of zakat. Zakat is a specific property with certain conditions prescribed for certain people and given to people or certain people (recipients) as well. The main aim of zakat has two dimensions i.e., spirituality (individually) and social economy to empowerment and enhance the status of the ummah (community). ( Mutiara Dwi Sari….2013) Sri Lanka as a country with minority Muslim population has a challengeable in collecting and distributing of zakat according to the state rule. If zakat is managed properly, it will certainly have positive effect on the well- being of Sri Lankan poor Muslims.Maruthamunai which researcher has focused specially is a village with 100% of Muslim population. The Zakat management has been practiced as an institutional level for last twenty years at this village with the coordination of Mosques Federation and some Dawah movements. However, Lack of coordination between all institutions of zakat management has resulted in the achievement of zakat collection and distribution does not optimum. The research will bring the reason of this backward of Zakat management into the light
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AN INTEGRATED POVERTY ALLEVIATION MODEL COMBINING ZAKAT, AWQAF AND MICRO-FINANCE

AN INTEGRATED POVERTY ALLEVIATION MODEL COMBINING ZAKAT, AWQAF AND MICRO-FINANCE

In our proposed model, we combine Islamic micro-finance with two traditional Islamic tools of poverty alleviation such as Zakat and Awqaf in an institutional set-up. The inherent nature of the proposed model may ensure equitable distribution and welfare among the poor. As the model is based on profit sharing and concessional contract modes, distribution of earnings should be allocated among different stakeholders such as depositors, shareholders, investors in the NGO. The proposed model will be financially viable and sustainable in the long run, resulting from lower default rates reduced the proper use of Zakah funds, which do not require any return. This will create a win-win situation for all stakeholders.
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Waqf for Poverty Alleviation: Challenges and Opportunities

Waqf for Poverty Alleviation: Challenges and Opportunities

The implementation of PBA system to attract more donors in contributing to the global waqf fund could be emulated and implemented in light of Maqasidshariah. As a holistic system, Islam provides various mechanisms in mobilising resources and channelling of funds in an equitable manner to all. Apart from zakat, institution of waqfplays an important role to elevate the overall economic and social development. Tracing back the role of waqf over the years, it has been a source of financing for various sectors such as administration of schools, mosques and more. It appears that this institution is highly relevant on the reinforcement to the alleviation of poverty as essentially the funds are augmented for charitable purposes for a longer period of time (infinity). Interestingly, to suit the cotemporary context, there is still a lacuna to explore any tools that are able to increase the participation of donors to the funds that can utilize for waqf purpose.
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Poverty Alleviation and Child Labor

Poverty Alleviation and Child Labor

Paid work outside of the family’s home seems different from other types of work in the present context. First, participation in paid employment is not present in our baseline dataset until age 11 and exhibits a steep rise in incidence from age 13 on. Figure 1 pictures participation rates by age for paid employment, domestic work (chores, caretaking, etc), unpaid market work in the family farm or business, and school enrollment at baseline. Work in the family farm or business rises from ages 6 to 8. In contrast to paid employment, participation rates in the family farm or business and in domestic work stay roughly level from age 10 to 16. Second, paid employment appears more rigid in its hours than other work. This is evident in Figure 2 which plots the distribution of hours worked in the last week for the control sample at follow-up. At follow-up, the mode and median hours worked for a child under 17 in paid employment is 40 hours per week. The mean is 39.7 hours per week. Third, paid employment is less apt to be combined with
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E-Governance for Poverty Alleviation: Indian Cases and Prospects for Poverty Alleviation in Uttar Pradesh

E-Governance for Poverty Alleviation: Indian Cases and Prospects for Poverty Alleviation in Uttar Pradesh

Abstract: This paper argues that initiatives in e-governance can accelerate economic development and increase empowerment of individual citizens. Initiatives in e-governance can do so by helping to bring about good governance. More inclusive governance stimulated by e-governance can help overcome massive global problems of poverty alleviation. The paper discusses the impact of specific initiatives in e-governance and how they might help address poverty alleviation in the state of Uttar Pradesh (UP) in India. Uttar Pradesh has approximately 8 percent of the world's poor population. Eighty percent of poor households in UP live in rural areas. The paper draws lessons from the customized usage of e-governance, in particular, e-choupals (in Hindi choupal means village square or rural meeting place). It argues that such initiatives can: a) Fill gaps in access to communications infrastructure; b) Enable poor people to help themselves; and c) Help re-motivate officials responsible for implementing measures to alleviate poverty. The paper presents a thematic sequence of steps and stages for incorporating e-governance as a mode of operation. The sequence is open to customization as and when required. Expected issues and constraints facing initiatives in e-governance are also outlined.
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Poverty Alleviation and Social Protection in Pakistan

Poverty Alleviation and Social Protection in Pakistan

Whilst the above mode of analysis provides explanation for rise in poverty during 1990’s, there is also a need to disentangle the effect of structural adjustment from the inher ent limitation of the overall dispensation of the country. A case in point is that of failure of investment to rise, the basic factor which explains low growth. Of course this can be attributed to the inconsistency of the policies along with law and order situation but these can not be regarded as the off-shoot of the structural adjustment program. Similarly, massive reduction in public sector expenditure is more a failure of the state to generate resources because of the particular compositional specifics of the society than an effect of the transition of the economy under the structural adjustment. Obviously, there is a need to mount more investigative pursuits with a view to understand the given constellation of the power brokers in the country and their impact on the poor, through the choices they make. Few if any research endeavour has been made to understand the power play and assess the sustainability of the interventions through critical scrutiny of their financing mechanism both in case of the Macro or household level. Most of the poverty estimates at the level of household exclusively focus on consumption expenditure with little investigation of the financing mechanism. This glossing over of survival strategy of the poor leads to equate those who have been out of poverty clutches at a point of time because of distress sale of their assets or through reckless borrowing resulting into high level of indebtedness, with those who have regular and permanent sources of income. This argument is equally valid for country level study too, because in general the sustainability of pro poor interventions has not been reckoned by researchers. An intriguing fact of the history is that Pakistan was successful in reducing the poverty level during the periods when the country received massive funds from abroad(1980s and 2000-2006)It is also not coincidence that during these periods the country was under the non democratic dispensation. In other words whatever the poverty alleviation occurred was not indigenous and hardly enmeshed with the dynamics of growth.
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Strategy for Optimizing Zakat Digitalization in Alleviation  Poverty in the Era of Industrial Revolution 4.0

Strategy for Optimizing Zakat Digitalization in Alleviation Poverty in the Era of Industrial Revolution 4.0

Overcoming the poverty problem requires a number of alternative instruments that are expected to be a solution to the problem of poverty and other economic problems. One such instrument is zakat. Zakat can be used to contribute to poverty alleviation (Shaikh, 2018). In the Islamic teachings of Shari'a zakat which functions as equity in wealth (Jajuli, 2014) it has not been dealt with seriously like poverty reduction by optimizing the collection and utilization of zakat, infaq and shadaqah in the broadest sense. As has been exemplified by the Prophet Muhammad and his successors in the golden age of Islam (Ahmad Syafiq, 2014). Through the empowerment of optimal zakat, it is expected to reduce poverty and even make zero poverty, indeed there are already institutions formed to deal with zakat, both formally and informally, as well as cooperation between government institutions and non-governmental organizations but have not been effective and efficient (Chaniago, 2017). Poverty that must be solved from the zakat system is not in the form of providing assistance to the poor for their consumptive needs, but rather in empowering the poor to get out of the vicious cycle of poverty (Furqani, Mulyany, & Yunus, 2019). For the movement of zakat, increasingly sophisticated technology makes it easier for muzaki to pay zakat, strengthens the management of zakat and provides access to mustahik for zakat distribution programs. Thus, the three dimensions of zakat, namely the dimensions of muzaki, governance and mustahik are also driven by the industrial revolution 4.0.
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Women Entrepreneurship and Poverty Alleviation in Nigeria

Women Entrepreneurship and Poverty Alleviation in Nigeria

The contribution of women is highly needed in Nigeria now that many poverty alleviation programs introduced by successive governments failed to achieve their objectives. Agbionu (2013) stated that one of the major reasons for the failure was because many of the programs were usually politically motivated with selfish interests. For instance Eyuiche (2010) stated that Obasanjo led PDP government announced a ten billion naira poverty alleviation program sometime in May 2000. The program was criticized according to the report for its political undertone. The critics confirmed that the money was used to attract voters to PDP. Specifically, the report stated that ₦3, 500 of the money was given to each of the relations of party members while the poor people were left out. Many other programs aimed at alleviating poverty in Nigeria have all failed as well because of insincerity of the policy makers and policy implementers. Some of the policies for poverty alleviation would have yielded fantastic results but selfishness, insincerity, and other social ills crippled them. This is why poverty in Nigeria has persisted and if drastic measures are not put in place to address it, it will definitely drag the name and reputation of Nigeria to the mud hence this study. In addition to the view above, McConnel (2007) is of the opinion that women have enormous potential to bring prosperity in the world and therefore encouraging women entrepreneurship is very important.
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Poverty Alleviation and Unemployment Scenario in India

Poverty Alleviation and Unemployment Scenario in India

SGSY, launched in April 1999, aims at bringing the assisted poor families (Swarozgaris) above the poverty line by organizing them into Self Help Groups (SHGs) through a mix of Bank credit and Government subsidy. In this scheme IRDP and other programmes have been included. Under this scheme, poor are granted bank loans and subsidies to establish small enterprises. This scheme is centrally sponsored on 75: 25 basis, by centre and states. From this programme about 121 lakh self-employed persons were benefited upto 2009. Rs. 27183 crore was spent on this plan in 2008-09.
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The Role Of Forestry In Poverty Alleviation In Kenya

The Role Of Forestry In Poverty Alleviation In Kenya

The overall objective of this paper is to determine the role played by forestry in alleviating poverty in Kenya. It also seeks to examine and analyse the extent of poverty among people living in Cherangani Hills, West Pokot; assess the benefits of forestry to rural communities; investigate the relationship between forest dependence and poverty and to make policy recommendations on ways of enhancing the contribution of forests in alleviating poverty. Two methods were used to derive data for the study. Secondary data was obtained by review of existing literature related to the subject while primary data was obtained through a survey among 200 households. The survey was based on Multistage sampling procedure. Data was collected through a structured questionnaire, an interview schedule and discussions with key informants and analyzed using descriptive statistics and regression analysis techniques. The findings revealed that 69.5% of the population had incomes falling below the official poverty line. Two categories of forest products had a net effect on rural poverty; timber products were mainly commercialized and traded by people with sufficient capital, while the poor mainly utilized non-timber forest products. The findings further revealed a significant positive relationship between poverty level and household size. There was a significant difference in poverty level among households having forestry as a source of income compared with those without it. On the basis of these findings, it was concluded that forests act to ameliorate the incidence of poverty in the study area. It was recommended that to further enhance this contribution, it was imperative to undertake conservation programmes that were sensitive and responsive to community needs and that aimed to strike a balance between utilization level of forest resources and their renewable rate.
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Poverty and it's Alleviation: Lessons for Nigeria

Poverty and it's Alleviation: Lessons for Nigeria

Africa is wallowing in abject poverty in spite of its abundant natural and mineral resources endowment. Besides, the level of inequality that have been during the colonial era gradually rosedue to majority engaged in subsistence agriculture, lack of industries and the actions of the privileged few at the helm of affairswidened the gap between the poor and the rich. Studies by Kolenikov and Shorrocks (2003); UNU/WIDER (2000); Addison and Cornia (2001);Canagarajahet al, (1997); Kanbur and Lustig (1999) have shown the prevailing income inequality in developing countries in general and specifically in Nigeria which has contributed significantly to poverty situation. This income inequality is reinforced by actions of leaders and those closer to power that diverts societal resources for personal use, and as such deny the masses .of the benefits accruable from the distribution of national income. Unbelievable, in 1996 and 1997, Nigeria was ranked one of the most corrupt countries in the world with corrupt perception index of 0.69 and 1.75 respectively (Transparency International, 1996,1997). But in 2009, 2010 and 2011, the corruption perception indices for Nigeria were respectively 2.5, 2.4 and 2.4. The World Bank (2012), stated that the poverty headcount of Nigeria is 62.6%. Poverty has really been raised by the actions of the leaders with respect to myopic perception and corruption.
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Agricultural Expenditure and Poverty Alleviation in Nigeria

Agricultural Expenditure and Poverty Alleviation in Nigeria

Poverty, because of its multidimensional nature, does not lend itself to easy definition. In defining poverty, however, Robertson (1980) and Giddens (1996) argued that a distinction should be made between subsistence or absolute poverty and relative poverty. Robertson (1980) defined absolute poverty as lack of basic requirements to sustain a physically healthy existence, that is, sufficient food and shelter to make possible the physically efficient functioning of the body. According to Nobbs (1984), relative poverty is the relative deprivation which people suffer from when or because they are unable to enjoy things, which the majority of the people in that particular society enjoy. Again, Chamber (1995) defines poverty as the lack of physical necessities, assets and income. Comprehensively, according to World Bank (2010), poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical and security, lack of voice and insufficient capacity and opportunity to better one’s life. Invariably, poverty has both income and non-income dimensions.
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Poverty alleviation in India and Kerala: An overview

Poverty alleviation in India and Kerala: An overview

However, it was only towards the late 1980s, that there emerged a need to define the different dimensions of poverty. While implementing centrally sponsored poverty alleviation programmes, the Urban Basic Services for the Poor (co-funded by UNICEF and the Government of Kerala), and the Community Based Nutrition Programme (co-funded by UNICEF) in 1987-88, the Kerala Government had to conduct surveys in selected towns and villages so that the benefits of this project could be directed to the poorer households. On the basis of this survey, a set of nine criteria were identified with which the poor could be identified: (1) substandard house or hut; (2) no access to sanitary latrines; (3) no access to safe drinking water; (4) family having at least one child below five years of age; (5) family having at least one illiterate adult member; (6) family getting barely two meals a day or less; (7) family having alcoholics or drug addict; (8) family having one or no earning member; (9) socially disadvantaged groups such as SC/ST (Scheduled Castes/Scheduled Tribes). In 1992, this 9-point criterion was used to identify the poor in Alappuzha Municipality and later in 1994, was used as criteria for all urban areas in the state. According to this approach, a household was considered to be in ‘risk’ if their responses satisfied 4 out of the 9 criteria. Concurrently, in rural Kerala, particularly in the economically backward district of Malappuram, the concept of neighbourhood groups (NHGs) was being experimented. As part of a community based nutrition and poverty alleviation programme funded by UNICEF, poor women were encouraged to save and lend by forming NHGs (John 2009).
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Infrastructural Development, a Panacea to Poverty Alleviation

Infrastructural Development, a Panacea to Poverty Alleviation

In their desire to source for means of livelihood, the poorly educated youth have taken to all vices including but not limited to; internet fraud, robbery, and kidnapping. Many of them have become ready recruits as political thugs and foot soldiers for insurgencies because such activities have provided them quick sources of sustenance and even wealth acquisition. The insurgency in the Northern regions of Nigeria has been fueled and sustained through mass recruitment of poorly educated enthusiasts who sincerely held the view that education was evil. They were motivated by the assurance of a source of livelihood by their leaders which had served as a sure way of getting out of poverty. As reported by Lawal and Azeez, (2013), many of the few well trained Nigerians have become impoverished for lack of full employment. They have left the local institutions for overseas institutions where they are exposed to better infrastructure and conditions of service. Their exit has resulted in brain drain and depletion of the Nations Human resource capacity.
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The Role of Micro Credit in Poverty Alleviation

The Role of Micro Credit in Poverty Alleviation

Similar the totals average of monthly saving before credit utilization was Rs, 135000 and totals average of monthly saving after credit utilization was increased and reached to Rs, 400000. This study also concluded that all the results are highly significant and due to micro credit the literacy rate of several families have increased and some was remained unchanged. On the basis of pair t-statistic the null hypothesis is rejected (ho: lesser the role of micro credit, lesser would be the chances of poverty alleviation) and accepted the alternative hypothesis that (HI: higher the role of micro credit, greater would be the chances of poverty alleviation). This study shows that micro credit plays very vital roles in poverty alleviation and government and regulatory authority should try to increase the volumes of micro credit and subsidized the micro credit institutions to facilitate and enlarge the volume of credit. The government should stop misuse of the poor people caused by expensive informal credit. As compared to informal loans, Government should provide small and inexpensive loan to the poor people of the country at relatively lower cost. Socially and economically viable projects should be financed. To create greater employment opportunities. To improve standard of living on sustainable basis and reduce accelerate growth and poverty, which is the most important objective of this report.
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Poverty Alleviation in Indonesia (An Empirical Review)

Poverty Alleviation in Indonesia (An Empirical Review)

Within a few decades before the economic crisis of 1997-1998, Indonesia made considerable progress in tackling poverty is measured from the level of consumption. The crisis in the late 1990s showed how vulnerable such advances. To expand the progress that has been achieved and move forward again, the definition of poverty need to be developed further by recognizing the reality of poverty dynamics in a broad and multi-dimensional it. Redefinition of poverty leads to strategic choices that are different from a policy based solely on fulfilling the needs "of the population chronically poor." (UNDP Poverty Report 2001).
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Rural finance for growth and poverty alleviation

Rural finance for growth and poverty alleviation

The critical policy issues thus are: (i) continuing to make credit available at current levels (or higher levels if a faster rate of growth is desired) while ensuring the financial survi[r]

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