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The Role of Islamic Economic System in Tackling Poverty in a Society

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The Role of Islamic Economic System in Tackling Poverty in a Society International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue III, March 2019|ISSN 2454-6186 The Role of Islamic Economic System in Tackling Poverty in a Society Aminu Yakubu1, Dahiru Usman2 1Adamawa State Polytechnic Yola College of Continuing Education Islamic Studies Department, Centre for Islamic Development Management Studies (ISDE), University Science Malaysia 2Department Arabic Medium, Federal College of Education, Yola, Nigeria Abstract: - Poverty is regarded as a weapon of mass destruction Yusuf Qardawi, “the definition of Islamic economy is based in a society. It is also a major causes of social, Religious and on the divine economy. This system start from God, aims to political conflicts. It is pertinent to note that the conventional end in God, and use the mean that cannot be separated from western base economic system has failed and the world is moving the sharia of God. forward looking out for a strong and reliable system that will stand the taste of time. The west over a decade ago has suffered a Manan M.A: defines Islamic economy as: “a social science lot on the issue of financial meltdown which resulted into that studies the economics problems of the people who were objected poverty. This therefore is what prompted the research inspired by Islamic values”. to examine the role of Islamic system in alleviating poverty in the society. The study use contest analysis in analysing the data and In Islam ownership of wealth and resources belongs to Allah the corpuses is the Qur’an and Hadith of the prophet (S.A.W). lord of the world. Allah says: The also find out that the existed economy system totally failed " َوا ِهَّلِل َّس ِهَّلِل ِهَّلِل َوي ُثا ا َّسل َو َوا ِهَّلِلا َوا َأْلاَو َأْل ِهَّلِل " احديد and there is need for remedy. 10 Keywords: Role, Islamic, Economic, Tackling, Poverty, Society "For to Allah belongs the heritage of the heavens and the earth” Qur’an ( 57 I. INTRODUCTION v 10) he term poverty is a universal word that affects significant A number of Islamic scholars and western thinkers have T parts of the world population in some quotas, poverty is acknowledged that Islam has the progressive nature and being regarded as a weapon of mass destruction. The united recognised positive attitude towards prosperity. nation describes the poor as those who live on less than a Dana L.P. Asserts that religious are neutral and do nothing dollar per day. The poor people live below poverty line. neither promote nor prohibit wealth acquisition. However Poverty in many countries of the world is the major causes of other scholars strongly argue that Islam does not block social, political and unrest. development through private institutions and does permit The various modern economic systems practice in the west entrepreneurship. these ؛which is being borrowed by the Far East, the Middle East and Islam has set the following ways to stamp out poverty African seems to have no solution to the problems of poverty. includes: Zakat, Sadaqah, Waqf, Wasiyyah, Ganima, Jizya, It is no longer a news the establishment of Islamic banking. In fay`u, Mudaraba, Musharaka, etc. the west where there are few Muslims. The Islamic economic system is aimed at poverty reduction and improving the III. DIFFERENCES BETWEEN ISLAMIC ECONOMIC quality of life and equity in the society. There is the need to SYSTEM AND CONVENTIONAL ECONOMIC SYSTEM understand more of the roles of Islamic economic system in tackling the nagging poverty in the world, at the time when all The major differences between Islamic economic system and other economic system failed in that direction. This is what conventional economic system are in terms of Islamic lawful prompted me to go for the study. and unlawful activities. Islam has prohibited some unlawful financial activities which is regarded as haram in Islamic law, II. OVERVIEW OF ECONOMY such as: Riba, gambling, fraud, sale of (Algarar), selling pork meet, usury and alcohol. In conventional economic system all The word economy is derived from Greek word (gikonomio) these are accepted and practice in a society because the which refers to the management of a family or a house hold. system was design to suite human mission and demand. While One of the Greek scholar in this field @ AdamsS. 1923) the Islamic economic system is a divine inspiration that purify define economics as a science of wealth which studies the human being in this world and here after, its standard is process of production and accumulation of wealth. While the suitable to every nation at every giving time. definition of Islamic economy; Islamic scholars have defined Islamic economy as follows: www.rsisinternational.org Page 168 International Journal of Research and Innovation in Social Science (IJRISS) |Volume III, Issue III, March 2019|ISSN 2454-6186 IV. THE DIRECTION OF ISLAMIC ECONOMIC SYSTEM or eligibility criteria for giving sadaqah to needy. Allah has AND CONVENTIONAL ECONOMIC SYSTEM granted Aljannah to those who spend their wealth in charity Allah says; The direction and aims of the two economic system partially " َوا َّل ِذي َه َصبَ ُزوا ا ْبتِ َغا َء َو ْج ِه َربِّ ِه ْم َوأَ َقا ُمىا ال َّص ََلةَ varies many times, the Islamic economic system led to َوأَ ْو َفقُىا ِم َّما َر َس ْق َىا ُه ْم ِس ًّزا َو َع ََلوِيَ ًت َويَ ْد َر ُءو َن success and lawful earning in this world and hereafter, and it بِا ْل َ َل َى ِت ال َّليِّ َ َت أُو َل ِ َ َل ُه ْم ُع ْقبَ ال َّدا ِر ") الزعد .also aimed at discouraging unlawful earning and spending The system intended to serve Allah by following his guide )22 and inspiration. “And those who are patient, seeking The direction of the conventional system is based on countenance of their lord, and satisfaction in this world and has no focus on hereafter, and establish prayers spend from what we the system did not derived from any inspiration rather from have provided for will have a good the born of a human mine that can changed at any time due to consequences of home “Qur’an 13:22” absence of inspiration in the system. However, the system was Allah describes in the above mentioned verse the good unable to solve the economic crisis and challenges facing the qualities of his true believer who are always looking for his entire world. mercy, offer Sallah, spend form their wealth which we have V. DEFINITION OF POOR provided then and they secretly and publically derived evil with good. Such people were granted a great reward which is According to United Nation Millennium Development Goal Jannah. (2005) Abu Huraira (R.A) reported Allah’s Messenger S.A.W says “The poor are defined as individuals living in households with “charity (Sadaqa) does not decreases the wealth and servant command over no more than $1 per day person valued at who forgives, Allah add respect to him; and the one who international price.” shows humility, Allah elevates him in the estimation (of Definition of poverty in Islam: in Islam poverty is “fakr” People).(Muslim 6264) plural form “fukara” which means the inability of human from the above verse and prophetic tradition we can being to sustain themselves. comprehend that Islam has given us the way of impacting on the life of our fellow human being and boosting the economy VI. HOW ISLAMIC ECONOMIC SYSTEM REDUCES of our society: POVERTY IN A SOCIETY iii. WAQAF: waqaf literary means “detention” technically Islam has designed some economic system that will help to detention of speaker a property in the ownership of waqf and reduce poverty in a society, practicing such system will have devoting its project in charity of poor or other good deeds. positive impact on economy apart from the reward from Allah lord of the world. The economic system set by Islam to reduce Waqaf is also a source of revenue which is dedicated for poverty are charitable and non-charitable endowment. supporting charitably welfare activities and it boost the circulation of fun in society. In the history of Islam, waqf has Charitable Endowment played a vital role in different aspect of life such as health, Islam encourages Muslims to practice charitable endowment education e.t.c the system therefore contributes significantly to strengthen their societal living and to empower their to the economy of a state because of the massive reduction in economic wellbeing. The act of charity in Islam was government expenditure which will lower the government encouraged to help others to express mercy, brotherly love borrowing demand and higher burden. and affection to human for the sake of Allah. iv-Wasiyyah (Bequest/Wills) i- Zakat (Hamza Afzat Butt 2016) “zakat is the obligation that A will is a transaction which comes in to operation after the an individual has to donate a certain portion of wealth each death of the testator. Theprophet S.A.W has encourage year to the poor”. Islam is religion of social practice that Muslim to do bequest as stated in this hadith: make zakat as one of its pillars so that society can impact on life of the poor. The main objective of paying zakat is to “It is a duty of a Muslim who has create balance in the society and prevent the poor and the something to bequest not to let two needy to die on hunger, circulation of wealth of wealth in right pass without writing s bequest society will overcome or reduce the poverty rate. about it” Bukhari. ii-Sadaqah: is a voluntary offering which is considered as a The Wasiyyah gives the testation an opportunity to help the sign sincere faith.
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