Abstract
Zakat is an essential Islamic economic tool to mobilize assets to alleviate poverty and create prosperity. This paper discusses the relationship between zakat, primarily productive zakat, poverty, and welfare from the Islamic perspective. With the potential for extraordinary zakat collection, it is expected that the distribution of zakat will have a tremendous impact on improving the welfare of the mustahik. It is imperative to measure the impact of zakat distribution on mustahik, especially when using appropriate analysis. CIBEST is an analytical tool capable of measuring these impacts from two viewpoints: material and spiritual perspectives. Zakat collection organizations and academics should utilize this analytical tool more to evaluate zakat distribution programs.
Highlights
The economic contraction experienced by various parts of the world resulting from the COVID-19 pandemic has caused multi-dimensional problems
As one of the five pillars of Islam, zakat could only play an influential role in poverty reduction if zakat integrates with the strategy and development programs nationally and uses a more formidable percentage of productive zakat to enhance the use of zakat in poverty reduction (Aisyah, 2014)
Productive zakat utilization has the notion of careful planning and implementation, such as examining the roots of poverty, lack of working capital, and dearth of employment opportunities (Dimyati, 2017)
Summary
The economic contraction experienced by various parts of the world resulting from the COVID-19 pandemic has caused multi-dimensional problems. The production sector in Indonesia experienced a slowdown which boosted the number of unemployed. This phenomenon has linearity with the number of poor people continuing to grow. According to the Central Statistics Agency acknowledged as Badan Pusat Statistik (2021), the number of poor people reached 27.55 million people in September 2020, increasing 1.13 million people from March 2020. To reduce or eliminate poverty requires hard work that all components of the nation must support. In Islam, one of the efforts to reduce and eradicate poverty is zakat which functions as equal distribution of wealth
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