In an increasingly interconnected world, the urgency of addressing extreme poverty has never been more pressing. With over 700 million people living in extreme poverty—defined as living on less than $1.90 a day—global efforts have focused on a variety of strategies to alleviate this dire situation. Among these approaches, a somewhat unconventional but highly promising solution has emerged from the heart of Islamic finance: the concept of Zakat. As explored in a recent study, Zakat has the potential to play a pivotal role in eradicating extreme poverty in Bangladesh, particularly within the framework of Sustainable Development Goal 1.1, which aims to end poverty in all its forms everywhere.
Zakat, one of the Five Pillars of Islam, mandates that wealthy Muslims donate a portion of their wealth—typically 2.5% of their savings—each year to those in need. This religious obligation not only serves as a means for societal wealth distribution but also fosters a sense of community responsibility and compassion among recipients and donors alike. The recent study by Arman and Rafi meticulously examines how this age-old practice can contribute to the alleviation of poverty in countries like Bangladesh, where approximately 24% of the population lives below the national poverty line.
The researchers begin their examination by outlining the socioeconomic landscape of Bangladesh, a nation that has made notable strides in reducing poverty rates over the past few decades. Despite these advancements, persistent inequalities and vulnerabilities exist, particularly in rural areas where families often depend on agriculture for their livelihood. The study identifies the nuances of poverty in these regions, exploring the underlying causes that perpetuate the cycle of deprivation and hinder economic mobility.
Arman and Rafi delve into the mechanics of Zakat allocation and its operational challenges. Unlike conventional charity, which may provide ad hoc assistance, Zakat is structured to ensure sustainable support. The scholars emphasize that, when collected and distributed effectively, Zakat can provide a consistent flow of resources to impoverished communities, thereby promoting long-term development rather than short-term relief. By establishing robust mechanisms for Zakat management, such as transparent accounting systems and effective outreach to beneficiaries, the authors of the study propose that Bangladesh could harness the full potential of this financial tool.
A crucial element the study highlights is the concept of social capital, intrinsic to the functionality of Zakat. Trust and community engagement are paramount for the successful implementation of Zakat programs. The authors argue that fostering a culture of cooperation among local communities can lead to improved resource management and greater accountability in the disbursement of funds. Through participatory approaches, beneficiaries and donors can form symbiotic relationships that nurture both economic and social empowerment, ultimately leading to a more cohesive society.
In this context, the authors also draw attention to the role of governmental and non-governmental organizations in facilitating Zakat contributions. They advocate for policies that encourage transparency and incentivize donations, suggesting that the state should play an active role in the institutionalization of Zakat as a key strategy in poverty alleviation. By integrating Zakat into broader social safety nets and welfare programs, the authors argue that Bangladesh could significantly reduce its poverty rates while also fostering a sense of civic responsibility among its citizens.
Another dimension explored in the study is the intersection of Zakat with sustainable economic development. The authors posit that investments made through Zakat can catalyze local economies by providing capital for small enterprises, educational initiatives, and health services. By channeling funds into productive activities, Zakat can stimulate job creation and enhance resilience against socio-economic shocks. The notion of linking Zakat with sustainable development initiatives reflects an innovative perspective that goes beyond mere financial aid, envisioning a future where communities can thrive independently through empowerment and resourcefulness.
Despite its promise, the authors recognize that significant challenges remain in effectively utilizing Zakat for poverty eradication. One of the primary obstacles is the lack of awareness among potential donors about the benefits and mechanisms of Zakat. Through outreach and educational campaigns, the authors aim to demystify Zakat, encouraging more affluent members of society to fulfill their religious obligations while simultaneously contributing to the collective welfare.
Furthermore, the study highlights the importance of empirical research in measuring the impact of Zakat on poverty alleviation. By collecting data on the socioeconomic outcomes of beneficiaries, researchers can provide quantitative evidence demonstrating Zakat’s effectiveness as a development tool. This data can, in turn, inform policy decisions and foster a culture of evidence-based philanthropy among both donors and recipients.
The adaptation of technological solutions, such as mobile banking and online platforms for Zakat collection and distribution, also emerges as a pivotal strategy discussed in the study. Leveraging technology can streamline the process, enhance transparency, and broaden the reach of Zakat initiatives. In an era defined by digital connectivity, harnessing technology can not only modernize Zakat practices but also engage younger generations who are more accustomed to digital transactions.
Ultimately, the study by Arman and Rafi offers a comprehensive exploration of how Zakat can be reimagined as a dynamic tool for tackling poverty in Bangladesh. By interweaving religious duty with social responsibility, Zakat has the power to transcend traditional boundaries of charity, establishing itself as a cornerstone of sustainable development strategies.
In conclusion, the research presents a compelling case for the revitalization and institutionalization of Zakat within the poverty eradication framework in Bangladesh. It emphasizes the necessity of collaborative efforts from stakeholders across various sectors to maximize the impact of Zakat. By recognizing the potential of this age-old practice, Bangladesh stands at the precipice of a significant shift in its approach toward poverty alleviation, moving away from reliance solely on foreign aid to one that emphasizes indigenous solutions grounded in community engagement and cooperation.
This dialogue on Zakat and poverty eradication is not merely a theoretical exercise but rather a clarion call for action. As we navigate the complexities of poverty in the 21st century, innovative approaches grounded in cultural practices such as Zakat could well become pivotal in shaping a more equitable and sustainable future for all.
Subject of Research: The potential of Zakat in eradicating extreme poverty in Bangladesh.
Article Title: Examining the potential of Zakat in eradicating extreme poverty in Bangladesh in the context of SDG 1.1.
Article References:
Arman, M.Y.A., Rafi, A.H. Examining the potential of Zakat in eradicating extreme poverty in Bangladesh in the context of SDG 1.1. Discov Sustain 6, 1063 (2025). https://doi.org/10.1007/s43621-025-01913-3
Image Credits: AI Generated
DOI: 10.1007/s43621-025-01913-3
Keywords: Zakat, poverty eradication, Bangladesh, sustainable development, SDG 1.1.
