Poverty from an islamic economics perspective : concept, measurement, and treatment

Abstract EN

The Problem of poverty has been a dilemma in capitalism.

On the very concept scholars widely differed as to what poverty is all about.

Following this difficulty in the concept is, of course, the difficulty involving measurement and eradication.

On the other hand, Islamic Economics challenges this problem.

However, the writings on this topic have been taken partially or handled by scholars most of whom are not trained in Economics.

This research paper aims at shedding light on the problem of poverty from an Islamic perspective; by discussing its concept, measurement, and treatment.

In this endeavor the main departure from traditional Economics is that poverty is conceived as a hindrance to the practice of Ibada.

Its measurement can be taken by considering the Nisab of Zakat as an index representing the best of all indices as Zakat is a transfer from wealthy to poor people, therefore, directly reducing poverty.

Although there are different zakatable items, 85 grams of gold or its money equivalent is considered the poverty line.

The treatment of poverty is undertaken at all levels of human existence, i.e., individually, socially, and at the state and Ummah levels.