Is Zakat Important in Reducing Poverty?

Abstract

Poverty is a problem in all countries especially in several countries in ASEAN. Some policies taken to diminish the poverty have not yet effective considering the poverty is still high in ASEAN countries. Considering ASEAN countries have a predominantly Muslim population who annually spend some of their wealth for zakat, it is important to study whether zakat can be effective to be used as one of alternative policy to improve the rate of economic growth which will ultimately have an impact on poverty alleviation as well. This study uses panel data analysis to compare the effect of zakat on economic growth in several ASEAN countries, namely Indonesia, Malaysia, Brunei Darussalam and Singapore from 2010 to 2015. The results show that zakat have a positive but not significantly effect on economic growth. Thus, it is recommended for the government to improve the implementation and evaluation of zakat distribution so that zakat can directly improve the welfare of people, and hence improve the economic growth in ASEAN countries.

Increasing the Role of Zakat Institutions in Poverty Reduction Through Productive Zakat Programs in Indonesia

“…The study, therefore, proposed that the management of zakat in Malaysia can be referred to as a best practice model by other countries to reduce the poverty of zakat recipients. Mahfuzha et al (2019) examined the effect of zakat on economic growth in four countries in South East Asia, including Indonesia, Malaysia, Brunei Darussalam, and Singapore, over a period of six years from 2010 to 2015. The study concludes that zakat has a significant positive effect on the economic growth of the countries.…”

Zakat dalam Model Ekonomi Makro (Solusi Ketimpangan dan Pertumbuhan Ekonomi)

“…Menurut Barizah & Rahim (2011) dalam Saad et al, (2014), secara ekonomi, membayar zakat akan memberikan pengaruh yang baik pada beberapa dimensi ekonomi, seperti konsumsi agregat, tabungan dan investasi, penawaran agregat tenaga kerja dan modal, pengurangan kemiskinan dan pertumbuhan ekonomi. Meski zakat memberikan dampak positif terhadap pertumbuhan, namun tidak signifikan, terutama di wilayah negara ASEAN, Mahfuzha et al,(2019), menyatakan bahwa zakat berpengaruh positif tetapi tidak signifikan terhadap pertumbuhan ekonomi. Oleh karena itu, disarankan kepada pemerintah untuk meningkatkan pelaksanaan dan evaluasi penyaluran zakat sehingga zakat dapat secara langsung meningkatkan kesejahteraan masyarakat, sehingga dapat meningkatkan pertumbuhan ekonomi di negara-negara ASEAN.…”

Zakat and Income Inequality in Indonesia: Panel Data Analysis in 34 Provinces

“…Several indicators can be used to assess economic development in a region, one of which is economic growth (Mahfuzha et al, 2019). However, positive economic growth does not always guarantee the resolution of various problems that exist in the country, such as issues of justice and welfare.…”