Zakat: Solution to economic issues

As the month of Ramadhan approaches the foundation of two pillars of Islam namely Roza and Zakat becomes strong. While the Roza which deals in abstaining oneself from all acts of eating, drinking and carnal desires for purification of body and soul and to learn self control, Zakat deals in purification of wealth by freeing oneself from the greed of money and wealth and using it for the needs of the poor. It is observed that the Roza or fasting is practiced in full swing, however the institute of zakat still needs to be strengthened looking at the present status of the community. 

Study conducted by the Action Aid (India), in collaboration with the Jahangirabad Media Institute and the Indian Social Institute, New Delhi, to examine the social, economic and educational conditions of Muslims gives following report:

Many Muslim localities lack basic infrastructural facilities such as proper roads, sewage systems, banks, dispensaries, health facilities, schools, etc. Many Muslim children also drop out of school because their families' poverty forces them to start earning at a young age. 86.4% of the children do not receive any sort of financial aid for their education. Unemployment is a major problem for most. Also the percentages of Muslim children procuring studies in civil services are almost zero. In terms of occupation, 21.2% respondents are casual unskilled labourers, 13.9% are skilled labourers, 3.4% are self-employed professionals, 7% are self-employed owners of small businesses, 0.4% are self-employed artisans, 20.3% are domestic or household workers, 2.4% are engaged in government service, 5.9% are engaged in private service and 14.2% are engaged in other miscellaneous occupations. The survey discovered that a very large proportion of the respondents live in very dismal economic conditions. 30.4% reported an annual household income of less than Rs.10,000, 24.4% between Rs. 10,001-Rs.20,000, 7.5% between Rs.20,001-Rs.30,000, 3.8% between Rs.30,0001-Rs.40,000, 1% between Rs.40,001-Rs.50,000 and 5.6% above Rs.50,000. Their lack of awareness of financial aid schemes for education is evident from the fact that 70.3% do not know about their existence. 40.7% live in regular houses, but a significant 27.6% live in jhuggis in slums, and 33% in rented accommodation. 46.1% respondents live in one-room houses, 9.1% in houses with two rooms, 27.3% in houses with three rooms, and 14.3% in houses with four rooms.

Obviously, the issue of Muslim poverty is linked to general economic policies and structures. Hence, it obviously cannot be effectively tackled on an adequate basis without structural economic transformations. The solution for this transformation is the Zakat system.

There is a famous Hadith in Sahih Bukhari and Sahih Muslim, that states that Prophet Muhammad saw said, “Islam stands on five pillars. The first is the testimony of faith in the unity of Allah and that Muhammad( saw) is His prophet. The second is maintenance of daily five prayers (salat). The third is giving zakat. The fourth is fasting in the month of Ramadan and the fifth is Hajj when finances allow.”

The third pillar of Islam is zakat through which the Creator has given the responsibility of taking care of the poor and needy to the rich and well off section of the society. This is the way to ensure all sections of the society are taken care of.

 Zakat which means giving annually a fixed amount of the earnings to the poor, indigent, who work on [administering] it, those whose hearts are to be reconciled,  to [free] those in bondage, and to the debt-ridden, and for the cause of God, and to the wayfarer.

The quran says

"True piety is this: to believe in God, and the Last Day, the Angels, the Book, and the Prophets, to give of one’s substance, however cherished, to kinsmen, and orphans, the needy, the traveler, beggars, and to ransom the slave, to perform the prayer, to pay the zakat.” (Qur’an 2:177)

The literal meaning of Zakat is ‘to cleanse’ or ‘purification. This means it is a process of purifying the wealth by allowing it to flow. Like running water in stream is cleaner than the standing water in a pond. Similar is the case of wealth which is in constant flow in the society. Also the possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth. 

Money is considered most beloved and cherished by many and zakat is the way to free oneself from the greed and love for it. The irresponsible attitude of the rich, who squander huge amounts of money to attain luxuries in an attempt to satisfy their endless carnal desires, causes the uprising of crude souls, leading to chaos and eventually turning the social welfare system upside down. Also the circulation of capital solely in the hands of the rich inevitably leads to them becoming richer at the expense of the poor, who then become even more stricken. Experiences have shown that such a society is destined to become a hotbed for social conflict.  Hence it is said in the Quran

“Spend generously for the cause of God, and do not cast yourselves into destruction by your own hands. And know that God loves the doers of good.” (Quran 2:195)

It is human nature to find life’s security in wealth and hence uses number of ways to ensure it through fixed deposits, insurance schemes and investments assuring future benefits with interest and money-hoarding becoming widespread. But Islam stresses on investment in the Account of God, not for the God but for His creations, who are in need of it. One of the most important principles of Islam is that all things belong to God, and human beings are just trustees of the wealth and possessions they hold. Hence the way to dispose out His wealth should be in the manner prescribed by Him, which can be gathered from the Holy Quran, the final guidance for whole mankind. The Quran says:

“That which you give in usury in order that it may increase on people’s property has no increase with God; but that which you give in charity, seeking God’s countenance, has a manifold increase”. (Quran 30:39)

Interest involves the rich ignominiously becoming richer, leaving the poor trapped in poverty. Though, on the surface, wealth may seem to increase with interest and money hoardings, in actual fact, it fails to deliver prosperity which is, instead, promptly taken away by the Creator and replaced with gradual deterioration. As opposed to this zakat  is aimed towards acknowledging the rights of the poor and eliminating obstacles that hinder these rights and prosperity guaranteed by the Creator.