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Poverty Measurement in Malaysian Zakat Institutions: A Theoretical Survey

Author

Listed:
  • Rasool, Mohamed

    (Faculty of Business Management UiTM Melaka Branch)

  • Harun, Mohd

    (Faculty of Business Management UiTM Perak Branch)

  • Salleh, Ariffin

    (Faculty of Business Management, UiTM Melaka Branch)

  • Idris, Nor

    (Pusat Pengajian Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia)

Abstract

Economists agreed that the concept of poverty cannot be defined objectively. However, poverty in Malaysia is commonly conceptualized from the perspective of monetary or income. This is a narrow view since it does not consider other vital aspects of poverty such as vulnerability and social exclusion. It is now recognized that more attention must be paid to other factors and processes which are either constraining or enhancing the poor‘s ability to make a living in an economically, ecologically, and socially sustainable manner. This paper outlines the poverty measurement used by zakat institutions in Malaysia. Besides discussing the present had al- kifayah method, the paper presents the formulation of a multidimensional Islamic Poverty Index (IPI). The proposed multidimensional IPI in nature comprises of monetary and non-monetary indicators and is expected to capture a more realistic poverty group. Furthermore, the IPI is envisaged to reflect on the multidimensional phenomenon of poverty in a more holistic way and is expected to have an impact on zakat organizations as it gives a new perspective in measuring poverty.

Suggested Citation

  • Rasool, Mohamed & Harun, Mohd & Salleh, Ariffin & Idris, Nor, 2011. "Poverty Measurement in Malaysian Zakat Institutions: A Theoretical Survey," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 45, pages 123-129.
    • Handle: RePEc:ukm:jlekon:v:45:y:2011:i::p:123-129
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    References listed on IDEAS

    as
    1. Geoffrey A. Jehle, 1994. "Zakat And Inequality: Some Evidence From Pakistan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(2), pages 205-216, June.
    2. Nasim Shah Shirazi, 2006. "Providing For The Resource Shortfall For Poverty Elimination Through The Institution Of Zakat In Low-Income Muslim Countries," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 14(1), pages 1-28, December.
    3. Aldi Hagenaars & Klaas de Vos, 1988. "The Definition and Measurement of Poverty," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 211-221.
    4. Jehle, Geoffrey A, 1994. "Zakat and Inequality: Some Evidence from Pakistan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(2), pages 205-216, June.
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