ZAKAT: AN EFFECTIVE TOOL TO ALLEVIATE HUNGER AND POVERTY IN ISLAMIC WORLDSTUDENTS NAME: ABDIHAKIM SHARIF ABDIKADIRSTUDENT ID: 10091240COURSE NAME/CODE: THS 401A proposal submitted in partial achievement for the requirement of the award of bachelor diploma of Islamic Banking, Economics and Finance at Islamic On-line College.April, 2019Zakat: An efficient instrument to alleviate starvation and poverty in Islamic WorldAbstractHunger and Poverty are among the many main challenges confronted by the Islamic world. Eradication of utmost starvation and poverty is the primary Millennium Improvement Targets (MDGs) on this planet yearly.
But, no substantial progress was made. Zakat, an Islamic financial establishment established in 9AH is an efficient instrument to alleviate starvation and poverty in Islamic World. This paper intends to discover, how Zakat if used successfully might help alleviate starvation and poverty in Islamic World. Key phrases: Zakat Establishment, Effectiveness, Starvation and Poverty Alleviation, Islamic Financial System.1.zero Introduction Starvation and poverty is deepening the crises on this planet. Governments and Help organizations are but to finish this financial disaster not attributable to insufficient assets but in addition absence of ethical uplift and unsustainability of their packages.
This disaster will not be spared within the Islamic world. Greater than half of OIC member states are categorized as much less developed international locations. Civil strife and terrorism warfare in Islamic world has displaced extra folks leading to famine. States and Help companies couldn’t cater for the wellbeing of all of the displaced folks. Starvation and poverty continues affecting extra.Zakat, an Islamic establishment has traditionally proved to resolve the issue of poverty in Islamic world. Throughout the intervals of Umar bin Khattab and Umar bin Abdiaziz, poverty was utterly eradicated to such an extent that there was nobody to obtain Zakat. The last word objective of all Islamic teachings is to be a blessing for mankind. That is the first function for which the Prophet (peace and blessings of Allah be upon him) was despatched to this world (Al-Qur’an 21:107). The 5 primary Maqaasid of the Shariah clearly states what constitutes a blessing for mankind. They’re preservation of religion, soul, wealth, dignity and progeny (Auda, 2008).In Islam, poverty is outlined as a person failure to satisfy any of the 5 primary Shariah Aims (Maqaasid). of life that’s primarily based on Maqasid SyariahZakat falls below wealth as a blessing establishment to handle revenue inequality and unjust allocation of assets. That is to make sure man lives in a blessed life free from poverty and starvation. Within the Islamic world, vital progress has been made in poverty alleviation. But poverty degree is excessive for a substantial variety of international locations. The quantity of people that dwell below $1.25 a day within the OIC member international locations is sort of 150 million as of 2002-2010 knowledge. 19 out of the 57 OIC member international locations are within the low-income nation group with a complete inhabitants of almost one-fourth of OIC area. Their mixed whole GDP is barely four.5 % of the entire GDP of OIC international locations. (COMCEC, 2013)1.1 Drawback StatementAllah created the world to worship Him alone. I didn’t create the Jinn and the Mankind besides to worship Me. Poverty and Starvation lead man to go astray and worship prosperous folks. This monetary worship degrades man and deteriorates his poverty. Zakat Establishment is established to free man from the bondage of worshipping his fellow human to Allah, the creator of all. It has traditionally proved to resolve the issue of poverty and starvation throughout the intervals of Umar bin Khattab and Umar bin Abdiaziz. This paper factors out the position of Zakat in assuaging Starvation and Poverty in Islamic world. It describes; Conceptual understanding of Zakat as an Establishment of starvation and poverty alleviation. Conceptual understanding of starvation and poverty. OIC states method to Zakat Grass root Approaches to Zakat1.2 Aims This paper goals to current a transparent understanding of the position of Zakat establishment in starvation and poverty alleviation in Islamic world. 1.2.1 Particular Aims To look at scope of Zakat as an financial pillar of Islam. To explain alternatives of creating Zakat To search out out challenges of creating Zakat1.three MethodologyDescriptive method shall be used on this paper to explain ideas and discover out the variables figuring out the connection between Zakat establishment and starvation and poverty downside. The primary sources of this examine are Islamic Muamalat and Islamic economics. 2.zero Literature Review2.1 Idea of ZakatLinguistically, Zakat means to develop. It additionally means to purify. The primary which means is construed as to trigger progress in wealth or enhance in reward. That is supported by the hadith of the prophet (peace and blessings be upon him), No wealth decreases due to Sadaqa (Zakat). This suggests enhance in wealth and multiplication of reward. The second which means to purify implies purifying the human soul from sins as effectively the vice of avarice. In line with Shariah, Zakat refers to a decided share of wealth prescribed by Allah to be distributed to eight deserving classes, poor and needy amongst them. (Hussein, 2017)