Poverty Alleviation Through Zakah and Waqf Institutions Essay

* Islam emphasize on the importance of distributive justice through Zakah, waqf†¦ * The main objectives of Zakah are to promote stable economic growth through investments, employment and balance consumption, and the achievement of greater income equality through an equitable distribution of wealth, thereby eliminating poverty and extreme disparities of wealth between the rich and the poor. * Waqf is holding a Maal (an asset) and preventing its consumption for the purpose of repeatedly extracting its usufruct for the benefit of an objective representing righteousness and/or philanthropy for as long as its principal is preserved either by its own nature – as in land – or from arrangements and conditions prescribed by the Waqf founder. * In the past, the state would assign Zakah workers. * The first known Waqf is the mosque of Qubaa in Madinah, â€Å"which was built upon the arrival of the Prophet (Peace and blessing of Allah be upon him) followed by the purchase of the land and construction of the mosque, known today as the Prophet‟s mosque†. * There are three types of Waqf, religious Waqf, philanthropic Waqf, and posterity or family Waqf. * Religious Waqf â€Å"adds to the social welfare of the community because it helps satisfy the religious needs of people and reduces the direct cost of providing religious services for any future generation†. * Philanthropic Waqf â€Å"aimed at supporting the poor segment of the society and all activities that are of interest to people at large such as public utilities, libraries, scientific research, education, health services, care of animals and environment, lending to small businessmen, parks, roads, bridges, dams, etc†. * Posterity or family Waqf â€Å"is argued that it is charitable in essence because it gives income/usufruct to persons free of charges and improves the welfare of future generation†.