Waqf: A True of Islamic Economic Development For Humanity (2)

Waqf as Economic Matters but Being Left Out as Policy Tools
Abdul Ghafar Ismail, Bayu Taufiq Possumah
06 Rabi1, 1436H | December 28, 2014

The aim of this paper is to revisit on the possibility to reintroduce the waqf as policy instruments for economic development. This study is motivated by our findings that waqf are considered as economic matters in three aspects: ownership, tools for intergenerational transfer, investment and sources of revenue and expenditure. Subsequently, we suggest to record these activity in the State of National Account. However, the current practices of transmitting the waqf via NPO and Islamic microfinance lead us to narrow the scope of recommendation to only fiscal policy. The related policy that could contribute to a very large and significant development and welfare of the community is being left out. Therefore, in this paper, we suggest a social security policy, which is intended to achieve the prosperity of society.


5.2 How does it works
Under the contributory-based scheme of modern social security system, among the benefits available are retirement pensions, widows’ benefits, invalidity benefits, unemployment benefits and sickness benefits.This scheme operates on the basis of wilful financial contributions by the employers and the employees, while it works for the designed-people on the needy test basis. Although, waqf are the collection paid by those who are financially able, it is spent for the security of needy people in the society and for public purposes. Since beneficiaries designed under the contributory-based of modern social security system are on needy test basis hence, it is obvious that the waqf could undoubtedly provide a social security for those needy people on the basis of needy test. The only difference here is that, those needy are helped out under the modern social security system upon the contribution basis, whereas under the principles of waqf they are helped out on non-contribution basis.
The area of policy should cover the following areas:

i. Retirement scheme - it was practiced long time ago during the era of the Caliph Umar (r.a) who set up a special department to manage the retirement pension. He even once ordered the government to pay regular pensions to both Muslims and non-Muslims.26 Because, the retiree is a jobless with no income, hence it is usually considered as a needy.

ii. Widow’s benefits - it is one of the great virtues to look after the welfare of the widows as the Holy Prophet (saw) once said to the effect:
The one who looks after and works for a widow and for a poor person is like a warrior fighting for Allah’s (swt) or like a person who fasts during the day and prays all the night...” 27

iii. An invalidity benefit is for those beneficiaries who are unable to work and earn their necessities due to sickness and such a concept is also in harmony with the commandments of Allah (swt) in helping the needy, as He (swt) narrated to the following effect:
“And in their wealth and possession, the right of (needy), him who asked and him who (for some reason) was deprived”.28

iv. Unemployment benefits are meant for those who are unemployed due to crisis in the job market or under qualification. Islam has indeed indicated that, it is a moral obligation to help those who are unemployed and face difficulties as the result of that phenomenon. The Holy Prophet (saw) said to the effect:
Whoever solves the worldly difficulties of a believer, Allah (swt) will remove from him one of the grieves of the Day of Judgement. Whosoever alleviates (the lot of) a needy person, Allah (swt) will alleviate (his lot) in this world and the next ...” 29

v. There are some situations whereby some people are unable to maintain themselves as well as their families due to unexpected sickness, which hamper their ability to earn their basic necessities and needs. As such, Islam also encourages the people to help these types of needy people as we find the Prophet (saw) saying to the following effect in one of his traditions:
Whosoever alleviates (the lot of) a needy person, Allah (swt) will alleviate (his lot) in this world and the next.