Achieving Equitable Wealth Distribution Through the Institution of Zakah

Abstract

Preferment in society was exposed to the two extreme of negligence and excessiveness. Relations in Capitalism are based on monopoly, resulting in an unequal wealth distribution. In Socialism and Communism, relations are based on materialistic equality to diminish the conflicts arising from unequal wealth distribution. Islam stands in the middle course. This paper exposes the role of Zakah in the distribution of wealth and its effectiveness in combating poverty and social menace in the society. The paper is analytical with presentation based on survey of relevant literature. The paper confirms that the Zakah system provides a permanent mechanism from within the economy, to continuously transfer income from the rich to the poor and that once correctly assessed, promptly collected and properly disbursed, it plays the role of solving dangerous problems such as poverty, unemployment, catastrophes, indebtedness, and inequitable income distribution in a Muslim society. The paper recommends that Muslims rich should be encouraged to discharge their obligations.