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Importance of zakat in socio economic
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Based on Islamic history, there are evidence that zakat is effective in eradicating poverty. A few scholars claimed that during the period of Umar Ibn Al-Khattab and Umar Ibn Abdul Aziz poverty is completely eliminated through payment of zakat.
Al-Qardawi (1987) stipulated that Umar AL-Khattab’s aim was to change the life style of the poor that is from becoming the recipient of zakat to the giver of zakat. It is proven during the reign of Caliph Umar Abd Aziz on how zakat fund could transform the lives of poor and needy whereby there was a surplus in the zakat fund as there were no eligible recipients to receive the fund. According to Mustofa al-Khin et.al 2005, Umar’s action is in accordance to the beauty of zakat distribution which is to cater for the basic needs of the poor and needy and also to remove them from poverty and destitution.
Poverty is one of critical issues that faced by many countries in this world nowadays. This problem incurred due to the inequality in the society which can be reduced by implementation of zakat. It has been supported by the study done by Kusuma and Sukmana (2010) that mentioned about the importance of zakat in the socio-economic framework of Islam and how it can be used to reduce the inequality in the society.
Patmawati (2008) argues that zakat distribution has the ability to develop the economic well-being of Muslim society based on the evidences by a number of empirical studies of zakat. A more specific study on the impact of zakat on distribution of income for the two categories of the asnafs, the poor and the needy people in Malaysia was carried out by Patmawati (2006) whereby she finds that zakat has reduced the income inequality and poverty.
According to Hairunnizam and Radiah (2010), i...
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... is part of their social obligation towards the Muslim ummah and Islam as payment of zakat is one of the five pillars of Islam. Secondly, they believe that in part of their wealth, there are rights for poor and needy as they believe that payment of zakat could purify and sanctify their wealth and get blessing from Allah s.w.t.
Haji Abang Mohd Shibli (2005) has suggested that the government should play a responsible role in managing the Baitulmal, improving the welfare the poor in the society. However, the weakness in the system is still prevalent because zakat distribution primary objective has not been realized yet, which is the returning the rights of the have not to ensure economic equality and justice. Therefore, Azizan (2005) suggested that the poor must be motivated and encouraged to be independent and self-sustained by fully utilizing the zakat disbursement.
Greed can lead to many different situations, experiencing times of hardship, consequences, but a major consequence is poverty which is not realized through
“Global poverty is the scourge and disgrace of our affluent era” (Smith 13). Eradicating extreme poverty has always been one of the greatest challenges in the world. In fact, today poverty has become a major concern for several nations. According to Stephen C. Smith, the author of book Ending Global Poverty: A Guide to What Works, ending poverty would require eight crucial keys to escape poverty traps; to provide health and nutrition for adults to work and children to grow to their potential, provide basic education to build the foundations for self-reliance, to provide credit and basic insurance for working capital and defense against risk, to allow access to functioning markets for income and opportunities to acquire assets, to allow access to new technologies for higher productivity, to provide a stable environment to ensure sustainable development, to provide personal empowerment to gain freedom from exploitation and to empower all communities to ensure effective participation in the wider world. Thus, the purpose of this paper is to examine the term, concept, and the theoretical perspectives about poverty that are represented by Stephen C. Smith as well as presenting aspects of the issue that I wish Smith had addressed, an emphasis of questions that the author leaves unanswered will be presented, and finally an exhortation on how believers should think about the issue and how believers should respond to the issue viewed in a cognitive, affective and behavioral perception.
Recently, in India the more powerful people have been depriving the poor of their mere wealth. According to the author, " million living below the poverty line is that the public exchequer is being looted, and that the money earmarked for development is going into the pockets of the rich and the powerful."(2 Bunker). This portrays that the donated and tax money that has been put forth for the poor is going into the high authority pockets. This leads to a greater gap between the rich and poor. The ones that deserve more are being deprived and tormented of their rights. Only 17% of the development money is reaching the poor the rest is taken by the corrupt officials. This is also shown when the article states, "Thousands of schools, dispensaries, roads, small dams, community centres and residential quarters have been shown to be complete on paper, but in reality are incomplete, inhospitably unutilized and abandoned."(1 Bunker). It is evident that the government is showing these facilities have been provided to seem diligent on paper. However, the basic necessities which is a citizens right have been taken away from the poor. Many rights including the voting rights of the poor village people are snatched by the officials. The poor do not have the right to true information of where the money for the poor from the government is being spent. It is because false receipts and vouchers
Everyone knows what the word poverty means. It means poor, unable to buy the necessities to survive in today's world. We do not realize how easy it is for a person to fall into poverty: A lost job, a sudden illness, a death in the family or the endless cycle of being born into poverty and not knowing how to overcome it. There are so many children in poverty and a family's structure can effect the outcome. Most of the people who are at the poverty level need some type of help to overcome the obstacles. There are mane issues that deal with poverty and many things that can be done to stop it.
Muslims are expected to give alms to the Muslim community that amount to 2.5% of one’s income. The principle of knowing that all things belong to God is essential to purification and growth. Zakāt is obligatory for all Muslims who are able to do so. Currently,Muslims are living under secular governments and must pay taxes to them. So the zakat is in addition to their secular taxes. Because there is no central Islamic state, each person must choose where to give his money.
In order to sustain a vibrant economy, the government needs to help the poor with their resources. The poor are poor not because they don’t work, but because government has failed to provide wages that American families can survive on. Cost can be an issue but the cost to subsidize the workers with low-wage jobs are higher (Kukathus 49). Acknowledging ethical and reli...
In my opinion, I think poverty cannot be eradicated because forty percent of the world’s population is at poverty level, which means 2.8 billion people. In addition, it is difficult to eradicate poverty since there are many corrupt officials when the governments
The problems of high poverty and income inequality exist due to apathy and disengagement with reality. This disparity needs to correct because if not, it will lead to the destruction of society. The problems are best corrected through teaching efforts focused on job training, furthering education, delayed gratification, emphasis on marrying later in life, and control of consumption.
In conclusion, Carnegie has proposed solution of distribution of money to community and ambitious poor people, which could successfully implemented in his times, however, in present time, somehow it may be hard for riches to implement this solution in the changed economy where competition has increased, businessmen tends to develop their business permanently and old people is being aged creating new factor for social tension. Nevertheless, this does not mean that Carnegie’s solution could not be implemented at all. Rich man, who has high morality, will always manage to share his money to community.
Most people of the society still blame the poor for their own predicament. They believe that "if there is a will there is a way". However, they do not think about their government that might had made bad decisions and policies that could actually harm successful development. This causes of poverty and inequality are usually less discussed and often neglected. We must recognize the effects poverty could have on the society and seek ways to create better understanding and resolve the issue before it is too late.
The study performed restricted to the culture of Pakistan. Similar studies can be conducted in other geographical contexts to add the applicability of beyond budgeting in such cultures.
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
Our group have been assinged to discuss on the topic above but in Islamic Banking perspectives. Therefore, before going any further, let us clarify definition of the Principles of Islamic Banking and clarify what are the elements involve in the Principles of Islamic Banking. Beside, we will also do some comparison of product or services offered by both banks which are conventional and Islamic banking. Apart from that, we will also clarify the problems or challenge faced by the agency which practices the Islamic banking in their agency.
As one of the biggest problems facing the world today, poverty continues to have significant negative implications for the society. The effects of poverty are extremely severe and far-reaching, so much so that it was one of the top Millennium Development Goals agreed upon at the Millennium Summit of the UN back in 2000 (Hatcher, 2016). To understand the effects that poverty has on the society, one must critically analyze the societies in which poverty is rampant, as well as analyze poverty from the relative perspectives that it presents. The core aim of this paper is to develop a holistic understanding of poverty and elaborate on the diverse ways in which it continues to affect societies across the world.