The role of Zakat in the provision of social protectionsocialprotection.org/sites/default/files/publications_files/Webinar presentation - The... · Presenter Elamin Ali Zakat Chamber,

Welcome to the webinar

organised by

The International Policy Centre for Inclusive Growth (IPC-IG) and the United Nations Children's Fund (UNICEF)

The role of Zakat in the provision of social protection

socialprotection.org presents:

Presenters:

Elamin Ali, Zakat Chamber, Sudan (with consecutive translation from Arabic to English, provided by Elmoiz Ismail)

Zine Barka, Université de Tlemcen, Algeria

Discussant:

Mohammad Pournik, UNDP

Moderator:

Buthaina Al-Iryani, UNICEF MENA Regional Office


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Presenter

Elamin Ali

Zakat Chamber, Sudan

Elamin Ali AbdElgadir is the Director of Statistics and InformationDirectorate in the Zakat Chamber of the Republic of Sudan. Elaminhas a long work experience in Zakat; he worked as the Director ofInformation Centre and also as the Director of Statistics andInformation Technology Directorate in the Zakat Chamber. Elaminalso worked as the Executive Director of the comprehensive updatein 2011 of targeting lists of families living in poverty in Sudan. Elaminalso participated in the implementation of the Population Census ofSudan in 2008. He holds a Master degree in Business Administration,a Postgraduate Diploma in Computer Sciences and a Bachelor degreein Statistics and Applied Sociology.


Presenter

Zine BarkaUniversité de Tlemcen, Algeria

Dr. Zine Barka is currently Professor of Public Finance and Director ofa Research Team on Public Finance at the University of Tlemcen, inAlgeria. Previously, he held the position of Director of the Faculty ofEconomics and is the founder of a Journal on Public Finance. Dr.Barka has written on various aspects of public finance particularly onthe MENA Region. Last year he presented a paper on “Zakat as aResource Complement to Cash Transfers to Face Poverty Alleviationin Algeria” at the International Conference on Social Policy in theIslamic World in Teheran, 12-13 May 2018. His research and teachingexperiences brought him on a sabbatical leave as visiting Professor toFlorida State University in 2009 – 2010 and in 2015 again. Before, Dr.Barka spent one year in 2001 at the University of Urbana –Champaign – Illinois as a distinguished Fulbright scholar.


Discussant

Mohammad PournikUNDP

Mohammad Pournik retired from UNDP in February 2013. He served as Poverty PracticeLeader at the UNDP regional centre for Arab States in Cairo from August 2009, where heprovided substantive guidance to UNDP Country Offices in the Arab region on how best torespond to challenges of socio-economic development. For most of his professional life in theUnited Nations system, Mohammad Pournik worked on issues pertaining to political economyof sustainable development and poverty reduction. He joined UNDP Iran in 1984 and hassince worked in Laos, New York, Nepal, Sudan and Yemen. In Nepal he was the regionalcoordinator for the South Asia Poverty Alleviation Programme, a multi-country interventionto link social mobilization at the local level with a supportive macro policy framework forpoverty reduction and active engagement of hitherto excluded groups into mainlineeconomic activities. In Sudan he served as Senior Economist and Poverty Reduction Advisor,while in Yemen he was the Principal Economic and Governance Advisor focusing on the linksbetween governance systems and developmental outcomes. Prior to joining the UN, heserved briefly with the Iranian Plan and Budget Organization after several years of privatesector experience. Mohammad Pournik received his academic training as an economist at theAmerican University in Washington, D.C., the School of Oriental and African Studies (SOAS) ofLondon and the University of Sussex, respectively at doctoral, master’s and bachelor’s levels.


Moderator

Buthaina Al-Iryani

UNICEF MENA Regional Office

Buthaina Al-Iryani is the Social Policy Specialist at theUNICEF Regional Office for Middle East and North Africasince 2016. She holds a PhD in Public Health, and with20 years of work experience programme management;social protection and policy; research and evaluation;youth development and participation; and HIVprevention. Buthaina is a national of Yemen.


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ZAKAT AS A COMPLEMENT TO CASH TRANSFERS TO ALLEVIATE POVERTY IN ALGERIA

Zine M. BARKA

Professor of Public FinanceDirector – Groupe de Recherche en Economie

des Finances Publiques

University of Tlemcen

Corresponding author:

[email protected]

Fatima-Zohra KIARIAssistant Professor

University of Mascara

mailto:[email protected]

Outline

I. Background information on Zakat and Algeria

II. Zakat and Poverty Reduction: Algeria’s newly established Zakat Fund at the central level and its effects on the beneficiaries.

III. Field investigation about the Zakat Fund in a mid-size town in the West of the country named Mascara.

IV. Conclusion on the key results of the study and its limitations.

I. Background information on Zakat and Algeria

• The Muslim countries inherited an important pillar in the practice of religion, that is Zakat for fighting against poverty.

• Many studies in Pakistan, Malaysia and Indonesia have documented the positive link between Zakat and poverty alleviation.

• Our study looks at Zakat funded cash transfers as an additional policy

to fight poverty.

ZAKAT AS A RESOURCE COMPLEMENT TO CASH TRANSFERS TO FACE POVERTY ALLEVIATION IN ALGERIA

Some Facts

• Algeria: 42 million inhabitants

• Unemployment Rate: 11.70 % in 2017

• The Ministry of Family and Solidarity is responsible for the policies ofsocial transfers and assistance

• 20% of the total budget

• However: challenges in terms of effectiveness


II. Zakat and Poverty Reduction in Algeria

• Zakat is one of the five pillars of Islam on which stands the structure of Islam.

• It is obligatory for every Muslim to pay a "tax", called Zakat al mal, on accumulated wealth or related to the saved money.


• The Ministry of religious Affairs and Waqf has announced that the “nissab” of Zakat for the year 1439 of the Hegira corresponding to 2017/2018 has been set at 552.500 DA, (4.648,69 USD).

• The rate of Zakat is 2.5% of money and goods reaching the “nissab” at the end of a year (valued at the current price the day of the Zakat collection).

• Zakat can be considered as an Islamic Safety Net to combat poverty and enhance welfare in the society.


The Zakat Fund: 2003The collection is done by banks and in mosques by Zakat Committees.


0

20

40

60

80

100

120

2003200420052006200720082009201020112012201320142015

Number of beneficiary families (in Thousands)

0

100

200

300

400

500

600

700

800

900

20032004200520062007200820092010201120122013

Total National Zakat (in Millions AD)

Distribution of Zakat Proceeds at the National Level

The persons entitled to receive Zakat are clearly mentioned in the Coran (8 in total).

The Zakat Funds are distributed according to the ministerial order as follows:

• 50% go to the Fuqara (the poor), Al-Masakin (the needy);

• 37.5% directed to investment;

• 12.5% to the management of Zakat Fund expenses.


0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Figure 3: Total of Zakat Proceeds in Mascara in 106Da

Source: Prepared by researchers based on the data of Table (06).


Number of beneficiaries Percent

Gender

• Men

• Women

48

102

32 %

68 %

Age

• 18-30

• 31-50

• More than 50

30

75

45

20%

50%

30%

Family status

• Single

• Married

• Widowed

• Divorced

15

51

43

41

10%

34%

28.7%

27.3%

Type of Income

• Earned income

• Temporary income

• State benefits

• No sources of income

30

27

63

30

20%

18%

42%

20%

Impact of Zakat on

• Consumption

• Elimination of debts

• Coverage of medical costs

• Investment

99

12

39

0

66%

8%

26%

0%

Total 150 100%

This survey is based on a sample of 150 beneficiaries of Zakat Fund in Mascara city in 2017.

Table 3: Profile of beneficiaries of Zakat fund surveyed

Source: compiled by Authors based on Mascara Zakat fund database for 2017.


Challenges

• In many Islamic countries, Funds are facing corruption in the disbursement of Zakat: nepotism, political interference…

• Lack of effective monitoring system.

• Some people don’t want to pay Zakat through the government due to the lack of trust in government institutions.


Conclusion

• To expand fully the effects of Zakat onalleviating poverty and hardship it isnecessary to start having a data base on thelocal population.


• The Website of the Ministry of Religious Affairs does not provide much information about Zakat.

• Here are some shortcomings found on the Website of the Ministry:


• Data on collection of Zakat starts in 2003 and ends in 2009,

• Beneficiaries: from 2003 to 2005,

• Zakat allocated to investments from 2004 to 2009,

• Algerians living abraod: the window does not open,

• How Zakat is spent: nothing on the window, nothing is mentionned at the local level, except data on the accounts to be credited at the 48 districts.


Discussion


Q&A

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Documents

The role of Zakat in the provision of social protectionsocialprotection.org/sites/default/files/publications_files/Webinar presentation - The... · Presenter Elamin Ali Zakat Chamber,