Initiation of International Working Group on Zakat Core Principles

Dr Irfan Syauqi Beik

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Global target to reduce poverty by half in the year 2015 may not be achieved failure of MDGs

Worsening income disparity

New direction on poverty alleviation and income gap reduction policy is needed the role of zakat is extremely important

Optimization of zakat instrument is in the best interest of the Islamic world

Introduction

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1,8 – 4,34 % of the GDP

Kahf

study

(1989)

Economic Potential of Zakat

3

Level of zakat management is different from one to another OIC countries some countries are in the advance level while some others are in the early stage or even pay no attention towards zakat

Zakat is still not optimized as tool to increase global welfare

There is no standardized global zakat governance

Present Condition

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Quality of zakat management is determined by the quality of its governance

Zakat governance which is reflected by globally agreed principles will be the reference for comparison of zakat performance among countries

As a standard to overcome various issues in global zakat management

The importance of zakat governance

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Regulatory framework

Institutional performance

Human resources

Interpretation of fiqhuz zakah

Global cooperation

Global Issues in Zakat Management

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Obligatory vs voluntary zakat system

The role of the state vs the role of civil society

Regulator vs operator of zakat management

Level of regulation

Regulatory Framework

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Various types of collection and disbursement mechanism and system

Issue of efficient and effective amil institution

Institutional capacity

Global standard of institutional performance

Impact of zakat distribution towards poverty and inequality reduction depends on the quality of zakat management

Institutional Performance

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Different level of human resource quality

There is no global standard for human resource requirement

Absence of global code of conduct

Human Resources

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There are many cases where fiqh of asnaf is defined using different parameters across the countriese.g. various definitions of fakir, miskeen, and fi sabilillah

Inside vs cross countries zakat distribution

Fiqh Interpretation

10

Global cooperation is not optimum

Several forums attempting to unite strengthen global zakat cooperation:

- International Zakat Mu’tamar

- IZO (International Zakat Organization)

- World Zakat Forum (WZF)

Global Cooperation

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To

overcome

these 5

issues

Response to Global Issues of Zakat Management

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The Presence of IWGZS

Producing Core Principles of Zakat Management

Supervision and Consultation

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Thank You

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