This paper presents a single model integrating “Zakat, Awqaf and Micro-Financing†on Islamic principles and concepts that could work as an Islamic alternative to poverty alleviation. The paper analyzes three separate models of
Poverty alleviation is a much talked-about issue in contemporary politico-economic discourse across the globe. Many NGOs and other types of organizations are striving hard to address this issue but their success story is not as encouraging as one might perceive. Fundamental to their limitation is the basic fact that they are using secular and value-neutral methods to achieve their goals. In recent days Microfinance has emerged as a dominant mechanism for poverty alleviation.
The Islamic approach to poverty alleviation is mainly done through the redistribution of wealth to fulfill the basic needs of the poorer strata of the society. However, even though this approach has been successful in mitigating absolute poverty, the emphasis of the system is simply the fulfillment of basic needs and not towards the creation of viable financial systems. While the redistribution of wealth can sometimes lead to a system of providing subsidized credit to the poor, there is no viable Islamic compatible system of creating sustainable financial intermediation among the poor.
The Microcredit approach has proven to be a versatile, effective and efficient alternative for poverty alleviation. Unfortunately, the cost of running such programs is high. This paper proposes a model that highlights the use of
In most developing countries of the world, financing micro-enterprises (microfinancing) is considered a “new paradigm†for bringing about development and alleviating poverty. Bangladesh is one of the biggest
This paper attempts to identify the problems of resource utilization of selected Muslim funds of Northern India.
The provision of microfinance is a high-cost operation because of its target clients. They are in need, not only of financing, but of education, training, and direct guidance for preparing their first investment plans/steps, health care, child care, psychological re-habilitation and immediate provision of essential consumer goods.
This study focused on the entrepreneurial characteristics of the marginal poor of Bangladesh. From the target group, 21 families have been taken as samples and three potential inputs have been supplied to the sample families in order to carry the study. The inputs were small business capital, indigenous technology, and training to build up moral capacity. Over five years, the impact of inputs on the growth of the economy of the marginal poor was observed. This paper argues that only business capital cannot create a sustainable environment.
Agriculture, or more specifically, the rural sector, occupies an important place in the economy of Bangladesh. Unfortunately, the majority of rural people live below the poverty line. Due to the dearth of required employment opportunities a bulk of the labor force is either unemployed or without work.