waqf funds and poverty
199351315
Islamic Microfinance and Rehabilitation Program for the Slum and Floating Population by the Waqf Funds: A Proposal Based on Empirical Evidences for the Muslim Countries
The waqf is an Islamic terminology that denotes the "religious bequest for charity purposes." The main objective of this paper is to present a model to initiate the Islamic Microfinance and rehabilitation program by using the waqf funds for the slum and floating population in the Muslim countries. This paper has been prepared by collecting both primary and secondary data. Primary data were collected from Bangladesh while the secondary data were collected from various national and international sources. This paper suggested that, in addition to zakah and sadaqah; the waqf fund can also be used to introduce the Islamic Microfinance for the slum people and to rehabilitate them because the number of slum population and urban poverty has been growing among the Muslim countries gradually. This model will be executed by founding an independent Waqf Management institution by the joint venture of the government of the respective country and the national as well as International Islamic agency such as the Islamic Development Bank (IDB) Moreover, this model will be implemented through the five stages, these are the revival and registration of the waqf estate, accumulation of fund, initiating the Islamic Microfinance, rehabilitation of the slum people, and forward linkage that may help the slum people to engage and make contribution to the society. Though this model has some shortcomings, it may be a road map for starting the Islamic Microfinance and rehabilitation program by using the waqf funds for the slum and floating population.
Basharat Hossain
169374363
The Role of Cash Waqf in Poverty Reduction: A Multi country Case Study
Poverty is a severely debilitating problem affecting many countries in the Muslim world. The fight against poverty and alleviating it from the society are imperative. Its reduction and alleviation not only depend on economic and social policies, population size and resource endowments but also on the types of economic undertakings being pursued. This case study explores the potential of faith based endowments cash waqf to reduce the level of poverty in Somalia. It analyses critically the cash waqf models existing in two selected Muslim countries in relation to the socio economic situation in Somalia. In line with existing literature, the study adopted the waqf shares scheme. This scheme seems to be appropriate to Somalia for several important reasons. It is relatively easy to raise funds from the public via traditional collections of money by cash or mobile payment systems which are widely used in Somalia. It is argued that the funds generated could be used to create employment opportunities, and as a result, many poor Somalis will be empowered financially, socially and educationally.
Buerhan Saiti Abdiwali Jama Salad Mehmet Bulut
169383301
Waqf Resource Mobilization for Poverty Alleviation Based on Maqasid Framework
This study is part II of our first study that seeks to adapt the framework practiced by various MDBs particularly International Development Association on (IDA) to the potential establishment of global waqf fund as this framework is proven effective (The excellent and valuable research assistance of Eman Adam is highly appreciated) The framework revolves around the IDA operations with replenishments, allocation of funds by implementing specific formulas, and the determination approach, which is mainly to monitor effectiveness of the earlier processes. The study proposes to integrate Islamic vision of development based on Maqasid al Shariah with IDA principles for the allocation of funds for a potentially global waqf fund. The objective is to create more effective approach for raising and using resources for a global waqf fund.
Khalifa M Ali Hassanain
169219041
Waqf Resource Mobilization for Poverty Alleviation Based on Maqasid Framework
This study adopts the framework practiced by various multilateral development banks (MDBs) particularly International Development Association (IDA) to explore the potential establishment of a global Waqf fund, as this framework is proven effective. The framework revolves around the IDA operations with replenishments, allocation of funds by implementing specific formulas and the determination approach, which is mainly to monitor effectiveness of the earlier processes. The study proposes to integrate Islamic vision of development based on Maqasid al Shari'ah with IDA principles for the allocation of funds for a potentially global Waqf fund. The objective is to create more effective approach for raising and using resources for a global Waqf fund.
Khalifa MohamedaeAli
38392751
A STUDY ON SOURCES OF WAQF FUNDS FOR HIGHER EDUCATION IN SELECTED COUNTRIES
The waqf concept has nowadays been utilized to meet various purposes including housing, poverty alleviation, financing and also for education. In general, the ultimate aim of the waqf concept is to bring benefit to the society. This study aims at reviewing literatures on the sources of waqf funds for higher education in selected countries such as Malaysia, Indonesia, Turkey and United Kingdom. Adopting the content analysis methodology, it is found that there are significant numbers of waqf and endowmentbased universities that have implemented the waqf principle in their education system. Nonetheless, they have their own unique mechanism. This study also observed that waqf fund has successfully upgraded the education system in these countries and provides opportunity for the poor and needy. Hence, it is suggested that the waqf board of higher education institutions further promote the utilization of waqf as it brings fairness and benefits to society.
Adam Akademi
157193642
A study on sources of Waqf funds for higher education in selected countries
The waqf concept has nowadays been utilized to meet various purposes including housing, poverty alleviation, financing and also for education. In general, the ultimate aim of the waqf concept is to bring benefit to the society. This study aims at reviewing literatures on the sources of waqf funds for higher education in selected countries such as Malaysia, Indonesia, Turkey and United Kingdom. Adopting the content analysis methodology, it is found that there are significant numbers of waqf and endowment based universities that have implemented the waqf principle in their education system. Nonetheless, they have their own unique mechanism. This study also observed that waqf fund has successfully upgraded the education system in these countries and provides opportunity for the poor and needy. Hence, it is suggested that the waqf board of higher education institutions further promote the utilization of waqf as it brings fairness and benefits to society. Keywords: Waqf Funds, Higher Education Institutions, Malaysia, Indonesia, Turkey, UK
Dzuljastri Abdul Razak Nor Azizan Che Embi Marhanum Che Mohd Salleh Faaza Fakhrunnas
55476642
Integration of waqf Islamic microfinance model for poverty reduction: The case of Bangladesh
Purpose This paper aims to develop an integrated waqf based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications. Design/methodology/approach The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs. Findings The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs. Research limitations/implications Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result. Practical implications The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states. Originality/value The present paper has developed an IWIMM for poverty reduction.
Mohamed Aslam Haneef Ataul Huq Pramanik Mustafa Omar Mohammed Md Fouad Bin Amin Aliyu Dahiru Muhammad
59571939
Waqf for Poverty Alleviation: Challenges and Opportunities
This Study seeks to adapt the framework practiced by various MDBs particularly international Development Association (IDA) to the potential establishment of GobalWaqf fund as this framework is proven to be effective. The framework revolves around the IDA operations with replenishments, allocation of funds by implementing specific formulas and the determination approach which is mainly to monitor effectiveness of the earlier processes. Apart from this framework, it is suggested that a good governance system also plays a vital role in the raising and managing of the global waqf funds. This research is purely qualitative in nature by studying the mechanisms used in IDA and other MDBs and drawing their examples and experiences. The lessons learnt are meant to complement further the fundamentals of Waqf. This study finally proposes indicators that integrate with the targets of an Islamic vision of development, which could facilitate the allocation of funds. The steps to raise funds for global waqf fund are also proposed with the objective of creating more effective approach for raising of funds for a global Waqf fund.
Khalifa M Ali Hassanain
168980876
Role of Waqf (Endowment) Funds in Financing Small Projects
Abstract Purpose: The purpose of this paper is to show the role of charity sector by enabling unemployed through Islamic endowments. One of the most important endowment kinds is cash waqf, which was authorized by Maliki position and others. This paper focuses on endowments fund as a type of cash waqf. Background: Most of the important challenges, that face the Islamic nation, have been reflected in the economic side. Most importantly are: the decline in per capita in GNP, the widespread of poverty and the prevalence of the phenomenon of unemployment which represents a grave danger that increased among youth. The rate of unemployment requires necessary treatment or else it will be hotbeds for terrorism, corruption, and crimes. Global experience has shown that the most successful method for the treatment of unemployment is through microfinance. But these kinds of projects require funding which Islamic governments failed to provide. We need to search for new sources of financing. Design/ methodology/ approach: The study reviews the extant literature relevant cases and provides some successful experiments in selected Islamic countries. Findings: The paper adopted several methods of formatting endowment funds: at the case of keeping standing endowment funds or by establishment of new endowment funds, also in the case of funding the small entrepreneurs by the waqf owner himself. Research implications: To activate endowment funds we suggest developing it to a financing instrument for microfinance. Keywords: Cash waqf, endowment funds, small projects, microfinance Introduction Our Islamic nation faces enormous challenges, and it's very difficult to numerate them all now. Economy is one of these affected fields, starting from the decline in per capita in GNP, the widespread of poverty and the prevalence of the phenomenon of unemployment which represents a grave danger of being run rampant in youth. This situation requires urgent treatment, in order not to push naive people to be hotbeds of, corruption, crimes and ultimately terrorism. Problem Identification Most successful method to treat unemployment, according to Global experience, is through the rehabilitation of the unemployed by enabling them to carry out their small projects. These projects require funding which governments failed to do. For example, all efforts including government effort cover just about 10 percent of microfinance market in Pakistan in 2013 (Shirazi Others, 2015) We need to search for new sources of financing. Unfortunately we always forget the hadith of our prophet, peace is upon him, (left you on the right path, its night clear as its day, and no one deviates it, only mortal) This path began with organizing the whole of human life, including the economic side of this life, half of Fiqh is the transactions, and enacted a lot of tools to treat the problem of poverty of Zakat and Wqaf, etc. Objectives of Research The purpose of this paper is to show the role of charity sector by enabling the unemployed through endowments. So, the research aims to shed light on the role of one of endowments (cash waqf) and its role in microfinance. Methodology and Structure of Research To achieve the purpose of this study, the researchers used inductive method to cover the issue and its aspects, as they will resort the deductive method to obtain the necessary rules with regard to the issues of cash waqf. There have been some researches tackled the relationship between waqf and microfinance (Amuda, Others, 2016; Dakhli, 2016; Mohamed et al. 2015; Shabana, 2011; Shirazi et al. 2015) This research differs in suggesting the cash waqf as a fund. To achieve research goals, the research is divided into four sections, the first section deals with small enterprises in terms of the concept, the second one shows the opinions of Fiqeh (or rule) in cash waqf, the third section explains the role of waqf funds as a kind of cash waqf (financing) foxing on some successful experiments in selected Islamic countries.
Usama Alani Mohamad T S Algodah, Mahmoud Saleem Alshwaiyat
204959316
The Role of Ethical Theory in Corporate Governance of Waqf Institutions Towards Poverty Alleviation: A Case Study of Zamfara State, Nigeria
Despite the abundant resources at the disposal of the most populous nation in Africa, poverty is still rampant in that region of the world. Efforts from the public, private and voluntary sectors to ameliorate the problem of poverty have so far largely failed to yield positive impact. This is because these efforts are not supported with good governance due primarily to ethical factors such as corruption; investment factors such as insufficient and costly access to funds; and lack of efficiency represented misallocation of resources evidencing bad governance. Waqf institution has historical good records of governance in ensuring poverty alleviation among the poor. However, there is hardly any study that investigates the corporate governance of modern waqf institutions in relation to poverty alleviation. The present study used "Governance" to examine the relationship between ethics, investment and efficiency as embedded in ethical theory with the corporate governance of waqf institution towards poverty alleviation in Zamfara State, Nigeria. The study adopted multiple regression technique through SPSS version 20 to analyze the relationships between governance as a dependent variable and ethics, investment and efficiency as independent variables on the other hand. The quantitative sample of the study consisted of 370 officials of the waqf institution through the 17 emirates in Zamfara State, Nigeria. The result showed that investment and efficiency have remarkable statistical significance level with efficiency having higher beta value than the other variables in the context of this research. It is therefore, suggested that ethics especially, should be practically taken with intense interest in order to forestall the potential long run effect on the governance of the institution. Also, it is hoped that the findings would help the policy makers in waqf institutions and the Nigerian government to reformulate as well as rejuvenate corporate governance in their policies and strategies towards poverty alleviation programs for effective handling.
Hakeem B Oladapo Mustafa Omar Norma Md Saad Gapur Oziev