Author : Umi Karomah Yaumidin
Abstract :
This paper anafyzes, the role of zakat as an effective program to eradicate poverty. First, this paper examines the conventional approach to dealing with poverty, in particular it analyses the role of economic growth in relation to poverty and inequality. Then there is an analysis of the role and scope of zakat in dealing with the problem of poverty. Given the pervasiveness of poverty in Muslim countries, it is important to investigate how the institution of zakat can be used in contemporary times to alleviate poverty. The result of this study shows that although Indonesia began tackling poverty in the 1970s, its achievements in poverty reduction have been inadequate. This study also found that Indonesia still has serious problems in reducing poverty although the role
and management of zakat in Indonesia is essentially successful in terms of the capability of zakat institutions to create pragmatic variations in zakat utilisation.
Keywords: Poverty Alleviation, Zakat, Islam, Indonesia, Malaysia