ZAKAT AS A SUSTAINABLE AND EFFECTIVE STRATEGY FOR POVERTY ALLEVIATION: From The Perspective of a Multi-Dimensional Analysis

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Zakat as a Sustainable and Effective Strategy for Poverty Alleviation: from the Perspective of a Multi-Dimensional Analysis

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ZAKAT AS A SUSTAINABLE AND EFFECTIVE STRATEGY FOR POVERTY ALLEVIATION: From The Perspective of a Multi-Dimensional Analysis

Background à à à à à à Poverty is a persistent and multi-dimensional problem The government has attempted to implement various programs in order to reduce poverty but progress is tends to decline and slow down The potential zakat funds volume in Indonesia is quite high (Rp.217 trillion) Zakat is not only a means to improve the welfare of the poor, but it has also evolved as a sustainable practical mechanism to manage the socio-economic gap in any society Research on zakat is many but most of them are based on a single criterion, not sufficient to exsplain about effectivitas of zakat By comparing the performance of the zakat to the government programs and CSR based on comprehensive attributes altogether will be known effectiveness of zakat

The Number of People Poverty in 2004-2015 270 20 260 250 240 16,6 15,97 17,75 16,58 15,42 14,15 13,33 12,49 11,96 11,37 11,47 11,25 18 16 14 12 230 220 210 241,45 218,87 222,05 224,9 227,78 230,63 237,64 236,66 245,43 258,2 250,6 253 10 8 6 4 Total population (in million) % of poor people 200 2 190 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0

Research Purpose Determine the effectiveness of zakat progam as poverty alleviation compared with the pattern of government and CSR programs. Determine the key leverages factors.

METHODOLOGY APPROACH PARAMETERS SOURCE OF DATA Multi-criteria decision analysis Rappoverty 30 atribut consist of input, process and ouput dimensions Focus Group Discussion- World Cafe Method Qeuestionerre OBJECT 11 pattern government programs 3 pattern zakat programs 2 pattern CSR programs

RESEARCH FINDINGS

Other Distingishing Features Ordination of the Input Dimension 60 UP 40 20 Antam 0 MAZ 0 BAD 20 40 60 DD 80 GOOD 100 120 BAZ Real Programs References Anchors -20-40 -60 DOWN Alleviation Program Performance 01

Other Distingishing Features Ordination of the Process Dimension 60 UP 40 20 0 Antam DD BAD MAZ GOOD 0 20 40 BAZ 60 80 100 120 Real Programs References Anchors -20-40 02-60 DOWN Alleviation Programs Performance

Other Distingishing Features 60 Ordination of RAPPOVERTY the Ordination Output Dimension 03 UP 40 20 0-20 DD Antam PNPM BAD GOOD 0 20 40 60 MAZ 80 100 120 BAZ Real Programs References Anchors -40 DOWN -60 Alleviatiion Program Performance

Attribute Leverage Attributes of Input Dimension The understanding of the program The capacity of the personnel The stability of the regulation The character of the program The difference with other program Program unsuitability with the need Inaccuracy of targeted data Data Availability Fund Availability Fund Sources The complex requirement The criteria of the recipients

Attribute Leverage Atribut of Process Dimension Good governance Evaluation and Monitoring Reduction of funds received by the recipient Inappropriate distribution time Cost of management Organization Socialization and education Coordination between institutions Approach of program Consistency in implementing the rule Community involvement in targeting / program Planning mechanism

Attribute Leverage Atribut Output Dimension The sustainability of the program Society institution existence The increase of recipients welfare The Increase of the recipients amount Not achieved program target Inappropriate distribution

Output Input 100 90 80 70 60 50 40 30 20 10 0 Process The Kite Diagram of the Performance of Poverty Alleviation Government Pattern, Zakat and CSR PKH PJK BOS BSM Raskin Pedesaan Perkotaan PISEW PUAP Generasi Pariwisata Baznas DD MAZ Antam Pertamina

P Conclusion and Implication Performa of Zakat Compared with the pattern of poverty alleviation programs of the government and CSR, zakat programs overall show a good performance on the dimensions of input, process and output. L Leverage Factors The leverage factors mainly:the suitability of the program to the needs of the target communities, socialization and education, inter-agency coordination, consistency in the implementation of the rules, the existence of public institutions to carry out and support the program, improvement of welfare recipients, as well as an increase in the number of beneficiaries. Zakat as Raw Model Comperehensive Policy R The results of this study have important implications for determining the poverty alleviation policy. It is important to consider the pattern of zakat as a raw model for the development of poverty alleviation programs. C In designing poverty alleviation programs, it is necessary to develop a complete and comprehensive system comprising both ex-ante and ex-post indicators as illustrated by the dimensions of input, process, and output int his research.

Dr. Nafiah Ariyani Fakultas Ekonomi Universitas Sahid Jakarta Thank You!