IDEAS home Printed from https://ideas.repec.org/a/abd/kauiea/v31y2018i1no5p93-104.html
   My bibliography  Save this article

Reducing Poverty and Income Inequalities: Current Approaches and Islamic Perspective الحد من الفقر وعدم المساواة في الدخل: المناهج الحالية والمنظور الإسلامي

Author

Listed:
  • Abdel-Hameed Bashir

    (Islamic Development Bank, Jeddah, Saudi Arabia)

Abstract

The Islamic approach to reducing (income) inequalities and alleviating poverty focuses on the mechanisms historically used and succeeded in reducing inequalities. Both obligatory (zakah) and voluntary (sadaqat) mechanisms are used to motivate the rich to spend generously on poverty reduction programs. It is an obligation on the rich to pay the compulsory (zakah) on their wealth but they are also encouraged to spend more above the obligatory sum by way of charity (sadaqah). In return, they are promised eternal bliss and everlasting happiness in the life to come. On the other hand, zakah evasion is considered a punishable crime (in this life and the hereafter) and denying the zakah altogether is equivalent to rejecting Islam. This belief in reward and punishment plays as a strong incentive and motivation for charitable behavior. Hence, effective collection and utilization of the proceeds from zakah and sadaqat are the mechanisms advocated by Islam to redistribute wealth and reduce income inequalities. المقاربة الإسلامية للحد من أوجه عدم المساواة (الدخل) وتخفيف وطأة الفقر يركز على الآليات الناجحة المستخدمة تاريخيا في ذلك. ولتحفيز الأغنياء على إنفاقهم بسخاء على برامج الحد من الفقر تستخدم آلتي الزكاة الواجبة والصدقات المستحبة. يجب على الأغنياء أن يدفعوا الزكاة على ثرواتهم ولكن الإسلام يشجعهم أيضا على إنفاق أكثر فوق مبلغ الزكاة عن طريق الصدقة. وفي المقابل، فإنهم وعدوا بالنعيم الأبدي والسعادة الأبدية في الحياة الأخروية. ومن ناحية أخرى، يعتبر التهرب من الزكاة جريمة يعاقب عليها في هذه الحياة وفي الآخرة وإن إنكار الزكاة يعتبر رفضا للإسلام وخروجا منه. هذا الاعتقاد في الجزاء والعقاب هو حافز ودافع قوي للسلوك الخيري. ومن ثم فإن الجمع والصرف الفعّالين للزكاة والصدقات هي الآليات التي دعا إليها الإسلام لإعادة توزيع الثروة والحد من أوجه التفاوت في الدخل.

Suggested Citation

  • Abdel-Hameed Bashir, 2018. "Reducing Poverty and Income Inequalities: Current Approaches and Islamic Perspective الحد من الفقر وعدم المساواة في الدخل: المناهج الحالية والمنظور الإسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 31(1), pages 93-104, January.
  • Handle: RePEc:abd:kauiea:v:31:y:2018:i:1:no:5:p:93-104
    DOI: 10.4197/Islec.31-1.5
    as

    Download full text from publisher

    File URL: https://iei.kau.edu.sa/Files/121/Files/153869_31-01-05-AHBashir-1.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.4197/Islec.31-1.5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2015. "The State of Social Safety Nets 2015," World Bank Publications - Books, The World Bank Group, number 22101, December.
    2. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    3. Asad Zaman, 2018. "An Islamic Approach to Inequality and Poverty مقاربة إسلامية لمشكلتي عدم المساواة والفقر," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 31(1), pages 69-92, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:abd:kauiea:v:31:y:2018:i:1:p:93-104 is not listed on IDEAS
    2. Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, C.E.P.R. Discussion Papers.
    3. Ofori, Isaac K. & Asongu, Simplice A., 2022. "Repackaging FDI for Inclusive Growth: Nullifying Effects and Policy Relevant Thresholds of Governance," MPRA Paper 111359, University Library of Munich, Germany.
    4. Rana Hasan & M. G. Quibria, 2004. "Industry Matters for Poverty: A Critique of Agricultural Fundamentalism," Kyklos, Wiley Blackwell, vol. 57(2), pages 253-264, May.
    5. Aloui, Zouhaier, 2019. "The impact of civil society and governance on poverty: Are there differences between the North and East Africa region?," MPRA Paper 95377, University Library of Munich, Germany.
    6. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    7. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    8. Ametoglo, Muriel Eyram Silo & Guo, Ping, 2016. "Inequality, poverty and inclusive growth in TOGO: An Assessment of the Survey Data," MPRA Paper 79705, University Library of Munich, Germany.
    9. Selim Raihan & Sabyasachi Kar & Kunal Sen, 2018. "Transitions between growth episodes: Do institutions matter and do some institutions matter more?," Global Development Institute Working Paper Series esid-099-18, GDI, The University of Manchester.
    10. Olivier Cadot & Jaime de Melo & Patrick Plane & Laurent Wagner & Martha Tesfaye Woldemichael, 2016. "Industrialisation et transformation structurelle : l’Afrique subsaharienne peut-elle se développer sans usines ?," Revue d’économie du développement, De Boeck Université, vol. 24(2), pages 19-49.
    11. Bhuyan, Biswabhusan & Sahoo, Bimal Kishore & Suar, Damodar, 2020. "Nutritional status, poverty, and relative deprivation among socio-economic and gender groups in India: Is the growth inclusive?," World Development Perspectives, Elsevier, vol. 18(C).
    12. Saini, Shweta & Sharma, Sameedh & Gulati, Ashok & Hussain, Siraj & von Braun, Joachim, 2017. "Indian food and welfare schemes: Scope for digitization towards cash transfers," Discussion Papers 261791, University of Bonn, Center for Development Research (ZEF).
    13. Xiaowen Xie, 2023. "Analyzing the Impact of Digital Inclusive Finance on Poverty Reduction: A Study Based on System GMM in China," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    14. Rodriguez-Alvarez, Ana & Llorca, Manuel & Jamasb, Tooraj, 2021. "Alleviating energy poverty in Europe: Front-runners and laggards," Energy Economics, Elsevier, vol. 103(C).
    15. Alexander Bick & Nicola Fuchs-Schündeln & David Lagakos & Hitoshi Tsujiyama, 2019. "Why are Average Hours Worked Lower in Richer Countries?," NBER Working Papers 26554, National Bureau of Economic Research, Inc.
    16. Ugo Panizza & Andrew Powell, 2023. "Reducing Public Debt: What Works Best?," IDB Publications (Book Chapters), in: Andrew Powell & Oscar Mauricio Valencia (ed.), Dealing with Debt, edition 1, chapter 9, pages 197-222, Inter-American Development Bank.
    17. Eriksson, Clas & Persson, Joakim, 2002. "Economic Growth, Inequality, Democratization, and the Environment," Working Paper Series 178, Trade Union Institute for Economic Research.
    18. Augustin Kwasi Fosu, 2009. "Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 726-745.
    19. Vanessa Hartmann & Konstantin M. Wacker, 2023. "Poverty decompositions with counterfactual income and inequality dynamics," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1746-1768, August.
    20. Frederick Nixson, 2006. "Rethinking the political economy of development: back to basics and beyond," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 967-981.
    21. Yasuyuki Sawada & Pan A. Yotopoulos, 2006. "Growth and Poverty Reduction Under Globalization: The Systematic Impact of Exchange Rate Misalignment," Discussion Papers 06-014, Stanford Institute for Economic Policy Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:kauiea:v:31:y:2018:i:1:no:5:p:93-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: King Abdulaziz University, Islamic Economics Institute. (email available below). General contact details of provider: https://edirc.repec.org/data/cikausa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.