Poverty, hunger and inequality in the context of Zakat and Waqf

Abstract

The purpose of this paper is to clarify the differing roles of zakat and waqf in poverty alleviation, hunger, and inequality. It aims to provide a blueprint for harnessing zakat and waqf as alternatives to remedy these social ills. The paper is a qualitative research project, performed through analysis of literature regarding current confusion points pertaining to the areas of infaq, sadaqah, zakat, cash waqf, corporate waqf, and traditional waqf. An ideal social safety net is attainable by focusing on poverty, giving special attention to economic empowerment programs. Zakat should play a supporting role in abating hunger for people in the transition while counterbalancing inequalities created by market imperfections. Since zakat funds cannot be used for social infrastructure development, traditional waqf should fulfil these needs among vulnerable people. Additionally, contemporary forms of cash waqf and corporate waqf are essential in mobilizing resources for social infrastructure development. In contrast to existing literature, this paper provides an alternative blueprint for Islamic social investment and transfer, clearly delineating the roles of infaq, sadaqah, zakat, and waqf. Different Islamic social investment and transfer tools should function like prongs, each acting in a separate sphere, working to serve the same ultimate purpose.