How Zakat can Reduce Poverty
Introduction
Islam is the religion and way of
life that was revealed to humanity by our creator, Allah (swt) .Since Allah
(swt) is the one who created the heavens and the earth, and out of His
unlimited mercy to mankind, He also revealed to us a way of life and a
religion, Islam, that give us peace and happiness in our lives here on earth
and in the afterlife. Islam was revealed as a practical religion that covers
all aspects of our lives, and it is intended to be implemented in our lives. It
brings peace and justice to earth, after all, who is more just and wise than
Allah (swt), the creator of the heavens and the earth, the most knowledgeable?
As such, when implemented honestly
and correctly, Islam provides solutions to all problems that are faced by humanity.
One of the most widespread and dangerous problems faced by humanity is that of
poverty, hunger and starvation. There is nothing more horrifying than the
realization that as we live our happy lives here, millions of our fellow human
beings live in hunger and face starvation. The majority of the world population
today lives in poverty. It is clear that the world system we have set up today
is unjust and inhumane. Otherwise, how can we allow this situation to continue
with less than 10% of the world population controlling over 90% of the wealth
and resources on this earth?
Islam, revealed to humanity over
1400 years ago, came with the most just and easy solution to the problem of
poverty, hunger and starvation in this world. If Islam is implemented in the
world today, the problem of poverty, hunger and starvation would be completely
eliminated within a year. Islam, revealed to us by Allah (swt), the most
knowledgeable, wise and just, solves the problem of poverty and hunger through
several methods:
The Obligatory Zakat
Islam makes it obligatory on every
Muslim to pay a certain “tax”, called Zakat, on their accumulated wealth. The
money collected from this Zakat is to be distributed among the poor and needy.
The Arabic word “Zakat” means both
‘purification’ and ‘growth’. One of the most important principles of Islam is
that all things belong to Allah (swt), and that wealth is therefore held by
human beings in trust. Our wealth is purified by setting aside a proportion for
those in need, and, like the pruning of plants, this cutting back balances and
encourages new growth in our wealth.
Zakat is due on accumulated wealth
that has been in the possession of a person for at least one year. There are
rules on how to pay Zakat on each type of possessions, such as gold, animals,
crops, shares and so on. A certain percentage of each type of these possessions
is to be paid as Zakat. Note that the Zakat is taken from excess wealth that a
person is accumulating and has had in their possession for over a year. It is
not paid on income. Therefore, people whose save nothing after covering their
expenses with their income do not pay Zakat, and in fact may be eligible to
receive Zakat money from others if their income does not cover all their needs.
The Zakat is to be distributed among
people of the following categories, depending on need:
1) The Destitute: Those who don’t
have material possessions nor means of livelihood.
2) The Poor: Those with insufficient
means of livelihood to meet basic needs.
3) The Indebted: Those who are in
debt and have difficulty repaying it.
4) Stranded Traveler: The traveler
who does not have enough money to complete their journey.
5) To Free Slaves: Zakat money is to
be used to purchase slaves and free them. 6) New Muslims: Those who are new to
Islam and require help to integrate themselves into the Muslims community.
7) In the Path of Allah: Zakat money
can also be spent in the path of Allah. This can include many things, basically
any project that helps Muslims or Islamic causes.
cool Zakat Workers: Those whose job
it is to collect and re-distribute Zakat money get their salary from the Zakat
money.
How
Can Zakat Eliminate Poverty and Starvation?
If Islam was implemented in the
world today, starvation would be eliminated from the planet within the first
year. The Zakat due on agricultural products ranges from 5% to 10% of the
produce. There is also Zakat due on various types of animals such as sheep,
cows and camels. Imagine if 5%-10% of all agricultural production in the world,
plus the required amounts on animals are distributed among the hungry and
starving people of this world. The problem would be solved immediately. In the
system we have today, some nations intentionally spoil a part of their
agricultural production in order to maintain high prices for their produce. Can
you see the difference between the system driven by human greed and the Islam
which was imposed by Allah (swt), the most gracious and most merciful?
In addition, Islam can solve the
problem of poverty. Consider the Zakat due on money. Zakat is due at 2.5% on
money that has been in one’s possession for over a year. Now consider this
simple fact: Forbes Magazine reported that in 2004 there were 587 billionaires
worldwide, with a combined net worth of $1.9 trillion dollars. If in 2004 these
587 richest people in the world paid zakat, we would have had $47.5 billion
dollars distributed among the poor.
This calculation has just considered
less than 600 individuals on this earth. What about if everyone contributed to
a global Zakat fund in the same way? The total world GDP (summation of gross
domestic product of all countries in the world) was estimated in 1999 to be
$27,357.9 billion dollars. The 2.5% Zakat on this would amount to $683.95
billion dollars annually. These are just ball park figures to give the reader
an idea of how much money Zakat can generate.
This Zakat money should not only be
distributed for immediate relief to the poor. It can also be given in the form
of small business loans. For example, poor farmers can be given loans or even
grants from this Zakat money to enable them to purchase the equipment and
materials they need to lift them out of poverty. The same can be done for small
business owners, or for the poor to set up small workshops or factories to lift
them out of poverty once and for all. Within a few years, poverty would be
eliminated or at least greatly reduced.
Optional Charity
As discussed earlier, the obligatory
Zakat imposed by Islam can easily solve the problems of poverty and starvation
in the world. However, in addition to that, Islam greatly encourages Muslims to
give extra charity. For example, the Prophet Mohammad (pbuh) once said that the
person who sleeps full while his neighbor sleeps hungry is not a true believer.
Islam also always encourages charity in all situations. For example, for the
persons who are not able to fast in Ramadan, they are required to feed some
poor people for each day they do not fast. And there are many such examples.
Examples of Charity in the holy Qur’an
and the Sunnah
Allah (swt) says:
“And be steadfast in prayer and
regular in charity.” (Al-Baqarah 2: 110)
Allah (swt) says addressing the
Messenger of Allah, Muhammad (pbuh):
“Of their goods take alms (charity),
so that you might purify and sanctify them, and pray on their behalf.”
(At-Tawbah 9: 103)
When the Messenger of Allah,
Muhammad (pbuh), sent one of his companions to call the people of Yemen to
Islam, he asked him to tell them the basics of Islam, among which was: “… and
tell them that Allah has made obligatory on them a charity that is taken from
their rich and given to their poor…” (Bukhari and Muslim)
Allah (swt) says:
“So he who gives (in charity) and
fears (Allah), and (in all sincerity) testifies to the Best, We will indeed
make smooth for him the path to Bliss. But he who is a greedy miser and thinks
himself self-sufficient, And gives the lie to the Best, We will indeed make
smooth for him the Path to Misery; Nor will his wealth profit him when he falls
headlong (into the hell fire).” (Al-Layl 92: 5-11)
Allah (swt) says:
“By no means shall you attain
righteousness unless ye give (freely) of that which you love; and whatever you
give, Allah knows it well.” (Aal `Imran 3: 92)
Allah (swt) says:
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