The Third Wave of ZakahOptimizing Islamic Philanthropy for Social Justice

The Third Wave of Zakah Optimizing Islamic Philanthropy for Social Justice

Amirul Hasan*

Abstract: The problem of poverty is still a major issue faced by Indonesia and other Muslim countries. The government projects and the helps from non-government organizations as well as philanthropy organizations could not help a lot. In fact, the number of the poor people remains big. The Central Statistical Bureau of Indonesia stated that total number of poor people reached 27.7 million or 10.96 percent in September 2014. Alongside with poverty there are social injustices and inequality that occurred in Indonesia. The potential of Islamic philanthropy is big indeed. One of its roles it could help to solve the problems of poverty and injustices. However, there are not many philanthropic institutions doing strategic giving and having a social justice perspective. In general the practice of philanthropy, especially Islamic philanthropy is traditional, indirect giving, provided for consumable needs only, without having concern to long-term social justice issues that contributed to poverty. In addition, the majority of Islamic philanthropy organizations are mostly focus on their own religious community and also short term charitable purposes, being hindered by their own traditional theological understanding. With such picture in dominant, the high potential of philanthropy in helping to decrease deep-rooted societal problems, is far away to achieve. The poverty remains there and there is a potential to increase religious conflicts.

Keywords: Islamic Philanthropy, Social Justice, Poverty, Zakah, Charity.

Introduction

Poverty is a latent problem that continues to engulf the southern countries, which incidentally developing countries and Muslim countries. Based on the latest data released by the World Bank (2011), for the Asia Pacific region, no less than 459.6 million people lived on less than 2 USD / day. Whereas in sub-Saharan Africa region, there are 616.6 million people living below the poverty line, South Asia (399 million), while the Middle East and North Africa (38.7 million).

This condition is far different from the North region (Europe and America) that can live in luxury, comfortable, and well-being protected by the state. Based on data released

* PhD Student, UCL Institute of Education, Life Sciences. Correspondence: [email protected]

33 INTERNATIONAL ILEM SUMMER SCHOOL / Social Justice and Poverty in Muslim World

by the World Bank as well, Gross National Income (GNI) of European countries in 2013 reached USD 35.530 per year per capita. Compare with East Asia and the Pacific that are only USD 5536, especially Africa which is only USD 1,686. This global injustice, according to Martin van Bruinessen is the impact of the economic system of capitalism and neo-liberal imposed by Western countries, countries of the former socialist and even countries of the Third World or the South. This system has resulted in severe economic crisis and widens the gap between rich and poor. The liberalism of market dynamics also destroy small businesses and caused many people to lose their jobs. This condition is exacerbated because the state was disassociated and hand over the economy-including the problem of the welfare of its citizens-to market forces. (Bruinessen, 2010)1.

Indeed the country has a responsibility for the welfare of its citizens. The state must provide social infrastructure, economics and politics for its citizens. States should ensure residents can enjoy a decent life, provide employment, facilitate access to health, as well as a means to facilitate education. Unfortunately not all the responsibility of the state runs optimally. In practice, there are many policies that do not show partiality to the weak. Not a few of the poor, both in urban and rural areas because the conditions were difficult to develop social infrastructure, economic, and political available not give them adequate opportunity to develop (Latif, 2010). The lack of jobs, high cost of health care, the poor quality of education, the high price disparity, plus social conflict and rampant corruption, is a blurred portrait that occurs in almost every developing country.

In Indonesia, the latest data released by the Central Statistics Agency (BPS), the number of poor people per September 2014 still reached 27.7 million people or 10.96 percent of the total Indonesian population of 237 million people. Although admittedly there is a decrease in the same period by 0.5 percent, the decline was not significant, given the data was released before the Government announced an increase in fuel prices. Meanwhile, the depth of poverty (P1) and poverty severity index remained at a rate of 1.75 and 0:44.

From BPS poverty data we also may know, poverty is not only possessed by the rural communities that are not able to access economic resources who are unable to access the resources of the economy. Poverty has also become an acute disease of urban communities, especially those who are not able to compete in the world of work because of limited skills. Noted, there were 10.3 million (8.16%) of urban residents are entangled poverty, compared to 17.4 million people in rural areas (8.16%). The poverty rate in urban and rural areas has its own style. Many villages that fall into the category

1 Martin van Bruinessen is professor Comparative Studies of Contemporary Muslim Societies, Utrecht University Netherland

34 Hasan / The Third Wave of ZakahOptimizing Islamic Philanthropy for Social Justice

of poor, but low income inequality. While in town, despite high economic growth, the income gap is very wide.

Problems in the state’s inability to meet its obligations to the citizens have been widely reported, both in the private sector, and community (voluntary sector), also invited criticism from social activists. New thought arises that the public sector is strengthened in order to shore up the weaknesses of the country. The public sector actually has great potential for providing social services, supporting community empowerment agenda, and encourages policy reforms that favor small communities. The potential of philanthropy, especially those that have religious motifs (faith-based philanthropy) should be able to support and sustain the efforts of civil society in fostering prosperity and social justice.

The Potential of Islamic Philanthropy in Indonesia

Etymologically, philanthropy comes from the Greek, namely phillen (love) and anthropos (human). In other words, philanthropy means “love of fellow human beings.” Love is expressed in the form of charity to others, either in the form of money, goods, or the time to help others (Klein, 2007). The most popular philanthropic terminology is “voluntary activities in the public interest,” (Payton & Moody, 2008).

The use of the term philanthropy is attributed to Islam surfaced recently. However, the true spirit of philanthropy and the practice of Islam have been entrenched since 14th centuries ago. The essence of Islamic philanthropy has been deeply ingrained in practice of zakah, infaq / shadaqah, and waqf (endowments). Technically, the use of the term philanthropy in Islam can help us to bring the generosity of Islam into a discourse that can reach broader issues. Not just see it from the traditional discourse such as jurisprudence, but may relate to issues of social justice, advocacy, public policy, and good governance, professional, and accountable (Abu Bakar and Bamualim, 2006).

As a country with the largest Muslim population in the world, Indonesia has a very high potential for generosity. Theological concept provides moral guidance to love our fellow human beings into practice encouragement of philanthropy in society (Fauzia, 2010). Because basically, religions have an important role in encouraging social generosity. Research conducted by Riaz Hassan (2007) confirmed, that religion plays an important role in society. Religious awareness and commitment to carry out God’s commands in Muslims continue to increase in many countries.

Riaz (2007) has found that 94 percent of Muslims who he interviewed admitted to practice regular charity at a certain period. This figure is greater than most other Muslim-majority countries such as Pakistan (58%), Kazakhstan (49%), Egypt (87%), and Turkey (64%). This finding is not much different from previous research conducted by

35 INTERNATIONAL ILEM SUMMER SCHOOL / Social Justice and Poverty in Muslim World

the Centre for the Study of Religion and Culture (CSRC), that 99, 3 percent of Muslims issued a charity, donation or charity every year. Not surprisingly, when totalized charity fund in the form of zakah and alms could reach Rp 19.3 trillion in a year. Similarly, the survey Public Interest and Research Centre (PIRAC) reveal any potential tithes reach Rp3.76 trillion (Prihatna, 2006).

Although not able to achieve the maximum value of the potential that exists, the actual growth of the collection and management of zakah, infaq, and shadaqah (ZIS) in the past two decades, the trend is always a positive experience.

Table 1. National Zakah Collection Year Total Collection (IDR billion) 2010 1.500 2011 1.730 2012 2.300 2013 3.000 2014 3.200

Source: BAZNAS (National Zakah Agency)2

Interestingly, the growth of the collection is in line with the mushrooming number of ZIS management organization that emerged in the same period, either government- owned entities or private institutions. That means, does not happen “pie fight” is already among the management organization of Islamic philanthropy. It is precisely the existence of these institutions open up new niches.

The practice of Islamic philanthropy in Indonesia has long histories. Amelia Fauzia (2013), in her dissertation, “Faith and the State; A History of Islamic Philanthropy in Indonesia”, explained comprehensive about developing Islamic philanthropy in Indonesia from period to period. First, when Islamic kingdoms period in Nusantara. Such as Aceh Sultanate, the Sultanate of Banjar in Borneo, and the Sultanate of Mataram in Java. Second, when colonialism period. Here Fauzia highlight how privatization of religion can develop philanthropy practices in massive society. When this period, Islamic boarding school (pesantren) and religion institutions are supported by alms and endowments grow exponentially.

Third, the period after Indonesia won its independence in 1945. Here Fauzia highlights how modern management of waqf, government concern about zakah issue, inception government zakah institution (The Old Order era and The New Order era), the growth of modern zakah institutions, government involvement and inception Zakah Act, as well as relation tax and zakah (post-New Order era).

2 BAZNAS (National Zakah Agency) is zakah management organization established by the govern- ment under Law No. 38 of 1999 which was later updated by Act No. 23 of 2011.

36 Hasan / The Third Wave of ZakahOptimizing Islamic Philanthropy for Social Justice

Fauzia explanation above, showing to us how Muslim Indonesia very closes with charity practice. Islamization in Indonesia—since 13th centuries—making philanthropy as strong tradition and have been usually practice until now. However, charity learning very pointed in Al-Quran and Hadits, and also has regulation practice in sharia (fiqih). Islam puts zakah as one of the pillars of Islam. In Islam, vertical relation (ubudiyah) has same position with horizontal relation (mu’amalah). Faith and humanity should not be separated; philanthropy not only acts of faith, but also acts of community, and vice versa.

Philanthropy for Social Justice

Indeed, the potential of very large philanthropic funds in Indonesia can sustain poverty reduction program and improving the social welfare. In fact, poverty seemed reluctant to move from this country with the largest Muslim population in the world. Welfare has not been felt by all the people of Indonesia? Where is the real problem? So many arguments and the study outlined. Starting from a very traditional culture of charity and yet focused, less professional management and untrustworthy, until the lack of state support.

On the micro level, it can be said ZIS able to reduction poverty. We do not deny the success stories of the various beneficiaries’ zakah institutions. Many of them were able to perform vertical mobility, raise living standards, and raise the degree of economy.

In a research conducted by Beik and Mintarti during July-August 2010 against 821 poor families in Greater Jakarta, there are findings that intervention zakah programs can reduce poverty (H) reached 12.8%, the level of depth of poverty (P1 and I) amounted to 19.86%, and the rate the severity of poverty (P2 and P3) respectively 30.98% and 45.14% (Beik & Mintarti, 2011). However for larger scale, there has not been in-depth research on how much the Islamic philanthropy funding able to cope with social problems, especially poverty.

The amount of funds collected by national zakah institution that reached Rp 3.2 trillion is still far from enough, to cope with social problems in society. Compare with the government allocated budget for poverty reduction, which reached Rp134.5 trillion.3 It was still a lot that has not been well targeted and is only able to reduce poverty is no more than 1 percent. As pointed out before, that poverty in Indonesia is structural poverty. They are poor because of unequal policies and social injustice.

Borrowing term “The Third Wave” that was popularized by Alvin Toffler (1980), the current zakah management has entered the third wave. First wave is when

3 Look at Directorate General of Budget, Ministry of Finance data, “Budget Poverty 2009-2014”, www.anggaran.depkeu.go.id>dja> apbn

37 INTERNATIONAL ILEM SUMMER SCHOOL / Social Justice and Poverty in Muslim World

zakah distributed for charitable donations and needs. Here Zakah accumulation from the society, distributed directly discharged to asnaf4. Distribution model was sometimes less sensitive to human dignity. Because usually dealt with long lines and overcrowded. If looking from macro economics, zakah is intended for benefit society as a pumping consumption so that society can get the purchasing power and support economic growth chart.

Second wave, when the zakah distribution is managed for society empowerment programs. Zakah utilized to solve problems of self-reliance among the poor society. Non-bankable problem partially wrapped around zakah recipient (mustahik) who’s live in the informal sector, makes them powerless to increase their effort capacity, so it takes a broader access to get capital and assistances. Another innovative program is the provision of a public good that should be the responsibility of the government.

Innovative programs from zakah management institutions were not able to run effectively when government policy is not side to poor society. This is where the zakah management institutions take on the role as a partner of government in people’s independence through policy advocacy to create social justice. In a broader sense zakah institutions also adds to the government’s policy is more side to poor society, overseeing the government’s role in the creation and implementation of policies, as well as defending the rights of communities that can be handled with policies. This is the third wave.

In the basic structure of society, the state and the market have the power and the means to determine and control the distribution of rights and obligations, and share on the benefits in the community. Social injustice caused by government authorities as well as more market attention than the group of marginalized communities who are powerless and lack of access to political and economic power. Therefore, the practice of philanthropy needs to be directed to support community initiatives in pushing the government and the market in order to change its policies (Craig, 2005).

Philanthropy should be directed to community development, in particular to eradicate the roots of structural poverty. So we focus on addressing the problem of poverty and injustice from the root of the problem, not of its impact. When we discuss the problem poverty of farmers, we offer solutions that not only provide agricultural tools that can improve the productivity of agricultural produce. At the same time we also have to consider the government’s policy on agriculture. How can the government defend and protect small farmers, such as; controlling fertilizer and rice prices for welfare. The simple is completing structural injustice spectrum extends from the activities of policy advocacy, community capacity building, social action, lobbying, networking, until studies that support.

4 Asnaf is people who are entitled to receive zakah accordance with the guidance and zakah sharia. Look Qoran At Tawbah: 60.

38 Hasan / The Third Wave of ZakahOptimizing Islamic Philanthropy for Social Justice

The concept of Social Justice Philanthropy (SJP) is intended to reduce the gap between the rich and the poor. SJP also be interpreted as an effort to deliver the community achieves a more equal distribution of power in the political, economic, and social. National Committee for Responsive Philanthropy (NCRP, 2003) SJP termed as “the practice of donating to non-profit organizations that work for structural change and improve their chances of a less prosperous, politically, economic, and socially”.

So what distinguishes traditional philanthropy and social justice philanthropy? Articulation is often used to see the distinction SJP is “advocacy versus services”. Traditional philanthropy, usually only focus in provide services programs (charity) and to avoid political issues. FKS while it focuses on the political issues which include democracy, human rights, and justice (Prihatna, 2006). In simple terms we can see the difference from the following table:

Table 2. The Differences Traditional Philanthropy and Social Justice Philanthropy Traditional Philanthropy Social Justice Philanthropy Motif Individual/Religion Public, collective Orientation Urgent need Long-term need Form Direct service Support social change Feature Repeated activities Activities solved injustice structure Impact Treat symptom Treating the root caused Example Gave farm tools Fertilizer price policy advocacy

Source: Andi Agung Prihatna (2006) with adjustment

However, in research projects conducted CSRC 2006 revealed, at least there are two main problems that hamper mobilization and optimization of Islamic philanthropy fund for social justice. First, the culture problem of society’s charity. And second, capacity issues of Islamic philanthropic institutions. Most of the Muslim community in Indonesia is still running traditional charity. They still give a direct donation to zakah recipient (mustahik). Donations still in the form of services or consumptive products (Abu Bakar and Bamualim, 2006). This scattered donation course has limited usefulness value. Donation collected could not change significantly poverty suffered.

Related with the management of Islamic philanthropy institutions, managerial factors and professionalism are the main obstacles. There are still many Islamic philanthropy institutions that still ignore the aspects of transparency and accountability in order to improve public trust. In addition, the ability of philanthropic institution or in this case in making programs from the zakah organization is still very minimal based on social justice issues. They are still “delighted” to run charity programs, which can be directly compared to the utilization of long-term programs such as policy advocacy.

39 INTERNATIONAL ILEM SUMMER SCHOOL / Social Justice and Poverty in Muslim World

However, in recent years, we should appreciate a number of institutions of Islamic philanthropy that began play in social justice issues with advocacy approach. Some zakah organizations, such as Dompet Dhuafa, have had advocacy division, although the portion of the program and its budget is still small if compared with charitable programs and empowerment.

Reflection

The public has an important role in eradicating poverty and creating prosperity. In the context of social justice, Kuntowijoyo, humanists from Gadjah Mada University, as quoted by Hilman Latif, proposed two kinds of justice, namely “distributive justice” which became the basis of social democracy, and “productive justice” which became the basis of economic justice. An actor in distributive justice is the state, while the actor in the justice productive is the private sector that has much potential resources to carry out social responsibility and redistribution of welfare.

We certainly should not abolish charity programs as the implementation of traditional philanthropy, no matter what because that practice has been running and rooted in society for thousands of years. An especially in Southern or developing country, where the state has not been optimal to serves the citizens. However, optimizing the potential of philanthropy for structure and social change should be encouraged.

Although the practice of social justice philanthropy in Indonesia is still encountered many challenges, it is nothing impossible that could be applicable, as the growing of middle class, and massive increasingly access to get information. Poverty is a common enemy that must be solved with massive and strategically. The programs that are run must have sustainable and long-term. As civil society organizations, institutions of Islamic philanthropy should be able to stand in line with country in order to “fastabiqul khairat” (compete in goodness) to empower communities.

References Abu Bakar, Irfan and Bamualim, Chaider S. (ed) (2006). Filantropi Islam dan Keadilan Sosial; Studi tentang Potensi, Tradisi, dan Pemanfaatan Filantropi Islam di Indonesia (Islamic Philanthropy and Social Justice; Study about Potency, Tradition, and Utilization of Islamic Philanthropy in Indonesia). Jakarta: CSRC. Alterman, Jon B. and Hunter, Shireen. (2004). the Idea of Philanthropy in Muslim Context. Washington: CSIS. Beik, Irfan Syauqi & Mintarti, Nana. (2011). “Zakah Development and Its Role in the Poverty Alleviation: A Report from Indonesia” in Moh. Arifin P & Noor Aflah, Zakah for Poverty Alleviation, Jakarta: Forum Zakah. Bruinessen,Martin van. (2010). “Globalisasi Neo-Liberal dan Kedermawanan Islam” dalam Hilman Latief. Melayani Umat; Filantropi Islam dan Ideologi Kesejahteraan Kaum Modernis. (“Neo-Liberalism Globalization and Islamic Philanthropy” in Hilman Latief. Serving People; Islamic Philanthropy and the Modernist Prosperity Ideology). Jakarta: Gramedia.

40 Hasan / The Third Wave of ZakahOptimizing Islamic Philanthropy for Social Justice

Craig, Gary. (2005). “Delivering Social Justice through Philanthropy”, Alliance, Vol.10 No. June 2nd, in http://www.allavida.org/alliance/jun05f.html Direktorat Jenderal Anggaran Kementerian Keuangan, “Anggaran Kemiskinan 2009-2014”, (Directorate General of Budget, Ministry of Finance, “Budget Poverty 2009-2014”), www.anggaran.depkeu. go.id>dja> apbn Fauzia, Amelia. (2010). “Religious Giving di Indonesia: Studi Kasus Filantropi Islam”. Dialog No. 69 Tahun XXXIII. (Religious Giving in Indonesia: Case Study Islamic Philanthropy”). Dialog No. 69 Year XXXIII. Page 51-64. Fauzia, Amelia. (2013). Faith and State; A History of Islamic Philanthropy in Indonesia. Leiden-Boston: Brill Hassan, Riaz. (2007). “On Being Religious: Patterns of Religious Commitment in Muslim Societies”. The Muslim World, Vol.97. Page 437-478 Klein, Kim. (2007). Fundraising for Social Change, fifth edition. San Francisco: Jossey-Bass. Latief, Hilman. (2010). Melayani Umat; Filantropi Islam dan Ideologi Kesejahteraan Kaum Modernis. (Serving People; Islamic Philanthropy and the Modernist Prosperity Ideology). Jakarta: Gramedia. Media Indonesia Edition April 26th, 2015 NCRP. (2003). “Understanding Social Justice Philanthropy”. Payton Robert L. & Moody, Michael P. (2008). Understanding Philanthropy; Its Meaning and Mission. Bloomington: Indiana University Press. Prihatna, Andi Agung. (2006). “Philanthropy and Social Justice in Indonesia”, in Chaider S. Bamualim, Cheyne Scoot, et al, Islamic Philanthropy and Social Development in Contemporary Indonesia. Jakarta: CSRC-Ford Foundation. World Bank, Data and Equity, http://povertydata.worldbank.org/poverty/region/MNA World Bank, Economy and Growth, http://data.worldbank.org/topic/economy-and-growth https://www.youtube.com/watch?v=eN8Y-hnF3aQ http://worldbank.org/UrbanPoverty-What is Urban Poverty.htm. http://www.bps.go.id/linkTabelStatis/view/id/1488

41