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Goal 3: Elimination of Extreme Inequalities (Voluntary Action (Al-Awqaf…
Goal 3: Elimination of Extreme Inequalities
Positive Measures
Zakah
Literally: purity, growth & increase
Technically: giving of the legally stated portion of one's property to a poor Muslim
given by certain qualified categories according to certain rules & rates to qualifying categories
rates are fixed & cover a wide range of mal
Conditions
Paid by Muslim (non-Muslim pays jizyah/poll tax)
pay according to the fixed minimum amount(nisab) of property zakatable over necessities & debts
Haul: usually 1 lunar year/according to harvest/when treasure is found)
items zakatable must have lasting value
payer must have free access/full ownership of property
Recipient
al-fuqara: hard core poor among Muslims
al-masakin: unstable income
al muallafat al qulub: those whose hearts are to be reconciled/revertee
al gharimin: those who are heavily indebted (due to floods, earthquake) (option for qardul hasan for consumption)
al amil: salaries functionaries (accountants, collectors)
ibn al sabil: travelers because of Allah
fi sabil Allah: charitable works (aids, construction of mosque)
al-riqab: liberation of slaves
Issues
Contemporary issues: calculation, management & definitions of these categories to suit present times
Role of Zakat in the socio-economic & well-being: maybe in the form of collective ijtihad, the zakat institution can play a more important role in the socio-economic well-being of societies
Spiritual implications of Zakat: primarily seen as a pillar of the religion, with primarily spiritual implications for the individual
Zakat & poverty alleviation: it should not be 'over-burdened' with solving all the ills of society such as poverty
Faraid
obligatory provision of one's wealth once he dies as to how to distribute it
leads to redistribution on total wealth of deceased according to Will of God
reaffirms absolute ownership of God
1/3rd: distributed according to his will
1/3rd: distributed according to the law of inheritance
Voluntary Action
Sadaqah
voluntary charity
strongly recommended act
Al-Awqaf (the 3rd sector)
charitable endowments
transfers wealth changing rights from private to public
important social & economic functions, health & social security, construction of mosques
uses can be specified
can act as a profit generating mechanisms resulting in perpetual fund
can be in form of property & cash endowments
Al-Manihah
particular kinds of gifts in which the ownership is retained by the giver (only usufructory rights)
similar to sadaqah but ownership is retained
practiced by the Prophet as a temporary means for the wealthy to help the poor and needy
Ex: a man give his companion his goat so that he benefits from its milk and wool for a period and returns it to him
Prohibitive Measures
Prohibition of Riba'
'money lending' & those who gain by this are removed
Islam promotes return to an individual only if they work for it
money lending & charging interest is unproductive
trading & going into partnerships will help redistribute income & wealth
Prohibition of al-Ihtikar
exploitative monopoly
elements of monopoly power, manipulation & exploitation must be present
State: must ensure that no individual/group of individuals/companies are given the ability to 'corner the market' to make unfair gains
Business & market structures are available to ensure that returns are not unfairly distributed