Conditional Cash Transfers in Developing Economy: The Case of Muslim Countries

This paper critically analyses the relevance of directly targeted poverty reduction programmes in Muslim countries by means of conditional cash transfers (CCTs). CCTs is one of the effective tools used by governments, multinational development institutions and non-profit organisations to tackling poverty. The findings in Muslim countries suggest that CCTs programmes has been positive and that the costs are relatively affordable if implemented with appropriate programme design. In many cases, there have been positive secondary effects over and above the primary goal of poverty reduction. The paper also argues that the concept of CCT is line with the underlying principle of Islam to eradicate poverty via redistribution approach. However, none of CCT programme in Muslim countries explores and integrates the potential of Islamic solidarity-based instruments for through Zakah, Sadaqat, Awqaf and Qard Al-Hassan.