Publication:
Modelling effective zakat management for the 'stans' of Central Asia and establishing pandemic resilience
Abstract
'Stans' is an ancient Persian word meaning land, country or nation. This chapter begins with a review of the historical basis of zakat management in Islamic practice and provides a brief historical account and status of zakat practices in select countries in Central Asia. The section thereafter focuses on benchmark international zakat management models before providing recommendations for the development of an effective zakat management model within Central Asia. The economic shocks resulting from the pandemic have forced many in the region into situational poverty. If left unchecked, this may easily regress into chronic poverty, undoing the significant growth that these countries have experienced over the last decade. Existing social programmes have limited the impact of economic loss. Since the collapse of the Soviet Union, they have an opportunity to revive this history and once again empower their nations with Islamic social finance instruments. Effective zakat management models in Indonesia and Kuwait, for example, provide different dimensions to social impact. The Indonesian model of BAZNAS provides the most comprehensive methodology for governance, risk management and replication. BAZNAS' strategy for digitalization and collaboration suggests a strong model for development within Central Asia. Through an effective zakat model, it is expected that Central Asian nations will be better protected against economic disruptions and provide a safety net for vulnerable communities in the region. These conclusions and recommendations in this chapter are limited to the information available in the literature. Further study is required through primary research to understand better what the challenges are in zakat modelling. Locals may also be surveyed to determine their levels of zakat knowledge and their concerns for institutional zakat collection and disbursement.
Keywords
BAZNAS , Digitalization , Islamic social finance , Pandemic , Social impact , Zakat
Citation
Mahomed, Z. (2022). Modelling effective zakat management for the 'stans' of Central Asia and establishing pandemic resilience. In M. Kabir Hassan, Aishath Muneeza & Adel M. Sarea (Eds.), Towards a post-Covid global financial system lessons in social responsibility from Islamic finance (pp. 143-159). United Kingdom: Emerald Publishing Limited.
Publisher
Emerald Publishing Limited