Achieving Poverty Alleviation in Jordan through the Islamic Institution of Zakat

The past decade has demonstrated an exponential growth in the levels of poverty across the Middle East. In Islam, poverty alleviation is prefaced through the pillar of Zakat. The combined impact of Zakat includes: social... [ view full abstract ]

The past decade has demonstrated an exponential growth in the levels of poverty across the Middle East. In Islam, poverty alleviation is prefaced through the pillar of Zakat. The combined impact of Zakat includes: social harmony and justice, social security and the promotion of self-respect. Zakat ensures social justice by bringing financial equity between various stratas of society. Estimates imply that the combined monetary potential is between USD 25 billion and USD 1 trillion annually. Through an institutionalized system of collection, Zakat can aid tremendously in alleviating poverty found across the Middle East. I will discuss a policy proposal for a Poverty Alleviation Model applicable to Jordan. According to the United Nations Development Program, Jordan's economic system has faced a number of challenges and therefore poverty rates increased from 13.3% in 2008 to 14.4% in 2010. The institutionalization of Zakat within Jordan would make the country's economic system one of the strongest in the region. I will address the following points:

- Practices for managing and governing Zakat collection across the Middle East;
- The effectiveness of Zakat-based poverty alleviation models within the Middle East; and
- The potential/effectiveness of a newly institutionalized Zakat-based Poverty Alleviation Model for Jordan.