EVALUATING THE IMPACT OF ZAKAT: A FRAMEWORK FOR POVERTY ALLEVIATION AND ECONOMIC GROWTH

Abstract

Poverty continues to be an issue globally, impacting millions of people across the world. More than 8.5% of the world's population, as reported by the World Bank, lives on less than $2.15 a day. Although traditional poverty-reduction strategies have shown some success, they tend to silt up at its complexity. Zakat, an obligatory form of Islamic almsgiving, presents an exciting new direction for poverty reduction. This study reviews available metrics, focusing on how to enhance tools for better economic growth and poverty alleviation measurements across diverse demographic groups. Current approaches focus largely on short-term outcomes related to poverty reduction and equality. However, they generally lack the inclusion of long-term impacts, gendered dimensions, and the multidimensional nature of poverty. The study finds that while zakat programs significantly alleviate poverty, their impact could be enhanced through improved governance, increased public awareness, and the adoption of gender-sensitive and technology-driven strategies. It concludes by proposing a comprehensive framework for evaluating zakat’s effectiveness, emphasizing the need for longitudinal research, gender inclusivity, and advanced tools such as spatial analysis. Policymakers are urged to adopt these recommendations to strengthen zakat distribution systems, fostering greater social equity and economic mobility in alignment with Islamic principles.