Zakat and Poverty Alleviation in Tunisia Using the Fuzzy Approach

Abstract

Zakat is one of the five pillars of Islam, which is compulsory to all the well-off Muslims, and it is given to the needy. It is used to fight poverty. This study examines Zakat’s impact on poverty in Tunisia. Using simulated data of individual well-being from Tunisian household survey in 2010, the potential importance of the Zakat to struggle with poverty is highlighted. Fuzzy Poverty Measurement is computed which shows that Zakat does reduce this measurement. The simulation results display a significant decrease of the poverty index of Tunisia’s seven regions, and poverty can be eradicated under cases West regions.