1993, when the United Nations General Assembly designated this day to promote awareness of the need to eradicate poverty and destitution in all countries.
In a world characterized by an unprecedented level of economic development, technological means and financial resources, that millions of persons are living in extreme poverty is a moral outrage. Poverty is not solely an economic issue, but rather a multidimensional phenomenon that encompasses a lack of both income and the basic capabilities to live in dignity.
What is poverty?
The World Bank defines poverty as an "unacceptable human deprivation in terms of economic opportunity, education, health and nutrition, as well as lack of empowerment and security."
Persons living in poverty experience many interrelated and mutually reinforcing deprivations that prevent them from realizing their rights and perpetuate their poverty, including:
- dangerous work conditions
- unsafe housing
- lack of nutritious food
- unequal access to justice
- lack of political power
- limited access to health care
In the Multidimensional Poverty Index 2018 there are three dimensions defined of poverty. Which are mentioned in the figure below:
Source: (Initiative et al., 2018)
Poverty in the world
Today, more than 780 million people live below the international poverty line US$1.90 a day. More than 11% of the world population is living in extreme poverty and struggling to fulfil the most basic needs like health, education, and access to water and sanitation, to name a few. There are 122 women aged 25 to 34 living in poverty for every 100 men of the same age group, and more than 160 million children are at risk of continuing to live in extreme poverty by 2030.There were 821 million chronically undernourished people in the world last year, up from 811 the previous year. One in nine people in the world now faces hunger
Poverty in Pakistan
Pakistan faces many challenges which include poverty, food insecurity and continuous natural and manmade disasters. As per the latest poverty estimates, 24% of Pakistan's population lives below the national poverty line; which includes 31% in rural areas and 13% in urban areas. Further, 38.8% of the national population is poor based on the multidimensional poverty index (MPI) ; 54.6% in rural areas and 9.4% in urban areas (Balochistan Drought Needs Assessment (BDNA) Report (February 2019) - Pakistan, 2019)
Role of individuals and poverty alleviation
Islam has emphasized on brotherhood and hence there lies some responsibilities on every individual Muslim to do efforts for Poverty Eradication.
Zakah: Islam presents a unique and obligatory measure to alleviate poverty by the institution of zakah. Zakah is a compulsory for redistribution of income and wealth from the better-off Muslims to the worse-off Muslim population of the society. Anybody denying obligation of zakah ceases to be a Muslim. The main objective of zakah is to alleviate poverty. Five out of eight prescribed heads of expenditure of zakah are meant for the alleviation of poverty, that is, for the poor, the needy, the debtors, the slaves (to free them from captivity), and the travellers in need. The remaining three heads are the administrative cost of zakah, "those whose hearts are made inclined" (to Islam), and in the way of Allah. Although eight heads for spending zakah revenue have been mentioned in the Qur'an, "There is general agreement that the first priority in the use of zakah funds has to be accorded to the alleviation of poverty through assistance to the poor and the needy".
The rates of zakah are: 2.5% for asset for Gold, 52.5% for silver, 10% of the crops in agriculture if irrigated by rainfall, and 5% if irrigated by the farmer; 20% for the treasure trove; and different rates for different categories of livestock. Zakah has to be institutionalised by the state. The state machinery will collect zakah from the owners of nisabs, and disburse the zakah revenue to the eligible population. Zakah can be paid individually only if its collection is not institutionalised, or if allowed by the state to pay a part of it personally.
Zakat is to help the poor to stand on their on feet, instead of meeting their consumption needs. Zakah may usefully be paid to equip the interested and able-bodied poor people with necessary capital for venturing into small enterprises, to expand the existing small activities they have, to supply necessary inputs to farmers in the agricultural sector, to help the disabled persons to make equity investment, to finance education of the poor students, and so on. Paying an amount which is equivalent to one year's subsistence in this form, instead of cash for consumption, may help them stand up on their own feet to meet their needs in years to come. Such income generating payments from zakah funds may further be supplemented occasionally from future zakah revenue, if surplus funds are available after supporting others (Sadeq, 1997)
Waqf: "Waqf is a continuously usufruct giving asset as long as its principal is preserved. Preservation of principal may result from its own nature - as in land - or from arrangements and conditions prescribed by the Waqf founder."
Kinds of Waqf:
- Religious Waqf: Mosques and real estate confined for providing revenues to spend on mosques' maintenance and running expenses are in the category of Religious Waqf. Religious Waqf, in any society and for any religion, adds to the social welfare of any community because it helps satisfy the religious needs of people and reduces the direct cost of providing religious services for any future generation.
- Philanthropic Waqf: It aims at supporting the poor segment of the society and all activities that are of interest to people at large such as public utilities for the poor and needy, libraries, scientific research, education, health services, care of animals and environment, lending to small businessmen, parks, roads, bridges, dams etc.
- Posterity or Family Waqf: It started shortly after the death of Prophet SAW during the reign of Umar (635-645), the second caliph. In this case, the revenues of Waqf must first be given to their own children and descendants of the waqf founder and only the surplus, if any, should be given to the poor.
Waqf can be given for poverty eradication whether its large of small, should be encouraged. Awqaf institutions can play an important role, if their size devoted to social welfare activities can be increased. (Khan, 2012)