Monash University Malaysia is jointly owned by Monash University and the Jeffrey Cheah Foundation Business Sustainability: Waqf and Zakat Contributions Presentation for the International Conference on Islam, Science and Sustainable Development: Maqasid al-shari'ah & Humanity's Wellbeing 6-7 Oct, 2015 Ibrahim khalil Yunus Ali Mohammed Shaiban
Poster Content Sustainability OR sustainable development? Sharia Definition of waqf Sharia Definition of Zakat Curiosity?? Socio- economic dimensions Waqf Zakat Waqf and Zakat integration in achieving sustainable development Concluding remarks
Sustainability _ On going perspective 3
Debate.. Sustainability/ Sustainable development The concept of sustainable development entails wide studies and creative ambiguity, which has precisely, makes it useful for bridging the gap between nogrowth environmentalists and pro-growth developmentalists. However, the debate is still raging between the conceptual framework of sustainability and sustainable development, but there are some notable differences that make sustainability and sustainable development separate concepts. Sustainability attempts to approach issues with an environmentalist aspect whereas sustainable development attempts to approach issues with a business aspect or infrastructure aspect. Moreover, sustainability is focused mainly on reducing consumption and changing our lifestyles to save the environment. On the contrary, sustainable development focuses on establishing infrastructure that will effect in induce a steady incline of economic growth and social development while keeping the environment clean (Malawi, 2011). Debate continues. 4
So what is the Islamic perspective/ objectives i.e., (Maqasid al- Shariah)?? Islam as a way of life covers all aspects of human life regulates the relationships between God, Human, and Nature. Human is viewed as a trustee (khalifah) and a witness (shahed). Nature is created by God (Allah) for the benefit of humans 5
Therefore, Contd Hence human role and responsibility is to ensure that all resources, physical and human, are utilized in a reasonable, equitable, and sustainable manner. human activity is given a transcendent dimension; it becomes sacred, meaningful, and goal-centered. Examples: NO approval for the useless cutting of trees whether we can benefit from their fruits or not. Disapproves of wasteful use of water, even if there is no scarcity of it. 6
Contd Encouragement of human beings from all faiths and nations to cooperate and exchange knowledge and wisdom (Hikmah) to establish a better and prosperous life and construct the world (Emmartu al Kawn). Thus every other use of resources which results in its destruction are rejected by Islamic injunctions. All of these are precisely mentioned in various verses of Qur an and the traditions. Based on the above : Islamic conceptual framework of sustainable development, is based on several factors such as: people, norms and values 7
Waqf Islamic Endowment Waqf is one of the most important Islamic instruments to achieve economic and social development. It is an act of protecting something, by preventing it from becoming the property of a third party, or refraining from undue use and disposal of any property from which others can benefit or use its returns for any purpose as long as it exists (Manan, 2005). Types/conditions.are out of scope for this paper 8
Waqf in the primary sources Those who spend their wealth (in Allah s Cause) by night and day, in secret and in public, they shall have their reward with their Lord. On them shall be no fear, nor shall they grieve (Al-Quran, 3:274). )إذا مات االنسان انقطع عمله إال من ثالث صدقة جارية وعلم ي نتفع به وولد صالح يدعو له(. The Prophet (s) said: When a man dies his acts come to an end, except three things, recurring charity, knowledge (by which people benefit), and pious offspring, who pray for him.
Waqf and its role in socio-economic waqf asset may not be sold or transformed its ownership by any means in accordance with the opinion of the majority of scholars remains in the waqf domain perpetually and any new waqf will be added to that domain, meaning that waqf assets are only liable to increase (Mochammad & Dimas, 2011). socio- economic development has a great implications in achieving sustainable development and thus reducing the government expenditure and ease a burden from the public treasury of the state Furthermore, waqf institutions has a potential role in providing kindness, social justice, promoting innovation and social development without interference of the state (Mazrul, 2012). 10
Socio- economic Waqf Turkish Model Waqf in Turkey is not limited to the poor and needy. BUT.. - Meeting the need of wayfarers and pilgrims, Raising orphans, Providing scholarships to students, educating apprentice artisans toward mastery, helping the bankrupt or those with excessive debt, covering marriage expenses for needy couples, sheltering animals, taking care of widows, hungry and the destitute, sick and the disabled, running health care, sports and educational programs, producing candles for mosques, taking care of the environment, paving roads, enlightening streets, paying a neighborhood's taxes, supporting retired sailors, subsidizing the cultivation of rare roses, operating commuter ships, lending to small businesses, helping prisoners, and providing toys to children of poor families. 11
Zakat _ Socio economic contributions Zakat is one of the five pillars of Islam, "(Al-Quran, 9:60). 8 channels: Poor Destitute- Who are in charge - Those whose hearts are to be reconciled / Free those in bondage, Burdened with debt in the Way of Allah and for the wayfarer 12
Waqf and Zakat institution in socio- economic development: Enhancing economic progress Reducing government expenditure Preventing deficit finance Socio-economic significant of waqf and Zakat institutions Equitable distribution of wealth Eliminating poverty *Enhancing capabilities. *Employment. *Financing lower incomes groups. 13
Curiosity 1. Is it wise to regulate Waqf and Zakat? 2. Is there really a substantial contribution for zakat and waqf in sustainability?
Competing Hypothesis Despite the integrated role for Waqf and Zakat, it has been argued that the current institutional framework for Waqf and Zakat could not be used to determine the impact of these funds in achieving sustainable development schemes. According to Nasim (2014), Waqf and Zakat institution have not been taken seriously by most Muslim countries. Only a few Muslim countries such as Sudan, Yemen, Saudi Arabia, Libya,, Pakistan, and Malaysia have compulsory Zakat management through governmental bodies, while other countries such as Egypt, Jordan, Iran, Bangladesh, Bahrain and Iraq have formed specialized state institutions where participation of the Waqf and Zakat institutions is voluntary. Many countries have the safety net programs for the very poor and vulnerable but no country has made the institution of Waqf and Zakat as a part of their poverty reduction strategy. Therefore, in order to activate the role of Waqf and Zakat institutions, the optimal use of their funds should be ensured for the continuation self-generated income and stable inflow of external funds that can support the needs of the community activities and enhancing sustainable development. In addition, there is a strong need for proper planning, management and integration of these institutions for the purpose of poverty reduction and economic growth across Muslims country. 15
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