It was not until recently when the society felt an urgent need to provide its members who are poor and needy with the necessary protection.[1] Such a realization is natural, as any legitimate state owes its citizens the fundamental responsibility of protecting them, be it in the field of economy, politics, social, culture and others.

Hence, the welfare states of today such as Britain, the United States, France and Russia, to name a few, have striven hard to overcome the economic problems faced by various families in their respective countries. These states have devised the modern system of social security in their variant efforts to provide for those who face financial constraints, unable to financially support themselves wholly or partly. Among the objectives of this modern social security systems invented by these States are:

(i) To reduce the poverty rates; and
(ii) To improve the quality of life of citizens

The institution of Zakat, however, is a Divine obligatory sort of taxation[2] acting as the most effective measure in upgrading the financial condition of the destitute.[3] This institution strives to achieve objectives, which are broader in nature. This is because, not only does it aim at providing the society with financial security, but it also, as a whole, inculcates moral, social and spiritual values in each individual. In view of the institution of Zakat aiming at achieving broader objectives, this research therefore, seeks to prove that the institution of Zakat may not only form the basis of today’s modern social security system, but also brings some other individual benefits to the society.

The whole research however, is divided into four sections plus a final remark. The first section presents the basic idea of the present scenario of the modern social security system, while the second highlights the fundamental understanding of the institution of Zakat. The third, on the other hand, focuses on the evaluation of whether the institution of Zakat can provide a meaningful social security, while the fourth section provides a constructive justification of the fact that, the institution of Zakat is capable of providing a meaningful basis for the modern social security system; and lastly a final remark, which comes up with a summary of the research and also some possible suggestions on the application of Zakat to ensure a better social security for the contemporary society.

AN OVERVIEW OF MODERN SOCIAL SECURITY SYSTEM

The term ‘social security’ signifies the variety of material support provided for the poor and the needy in the society. Most of the countries of today (both Muslim and non-Muslim) are striving very hard towards providing a social security for their respective citizens in accordance with their needs and abilities. The modern social security system covers retirement, pension, maternity allowances, child benefits, sickness benefits, disability benefits, unemployment benefits, family income supplements, housing benefits,[4] education aids and so on. Here, I wish to highlight a few examples of modern social security systems, which are applied in some selected countries so as to enable us to grasp the main idea of the present scenario of the modern systems in providing social security for the poor and the needy in various societies around the globe.

In Britain, there are four basic categories of benefits or schemes provided for the social security of its citizen. They are contributory, non-contributory,[5] means-tested benefits and exemption from National Health Service charges.[6]

Contributory-Based Scheme

In Britain, there is a National Insurance scheme sustained upon the contributions from different sources, namely:

(i) Weekly contributions from every employee who attains the minimum age of 16 years[7] for both male and female, or the maximum age of 65 years and 60 years for male and female respectively.[8]

(ii) Complementary contributions from the government.[9]

The benefits available in this National Insurance scheme are the benefits for retirement, sickness and unemployment[10] and they are further divided into two categories:

i) Long-term basis benefits

This type of benefit include, among others:

Retirement pensions - every employee who attains the age of 65 years and 60 years for male and female respectively is to be paid for 90% of his or her working life.[11]
Widow’s allowance - a widow is entitled to receive a lump sum benefit upon the death of her husband and is also entitled to a weekly allowance, if she has a dependent or is over 45 years old at the time of her husband’s death.[12]

Invalidity pension - a benefit is payable after 28 weeks on continuous sickness of the insured, should he or she fails to work.[13]

ii) Short-term basis benefits

The short-term basis benefits are:

Unemployment benefits - unemployed person is entitled for up to 52 weeks benefits. Should he or she still fail to obtain a job, he/she may claim for an income support for an indefinite period.[14]
Maternity allowance - a weekly allowance is paid to a female for maternity purposes for 18 weeks.[15]

Statutory sickness pay - every employee is entitled to receive a sickness allowance for up to 28 weeks from the respective employers.[16]

Sickness benefit - a weekly allowance is payable to the off-work employer for sickness up to 28 weeks.[17]

Non-Contributory Based Benefits

There are many citizens in Britain who are poor and needy and are entitled to obtain material benefits from the government. This second type of scheme is non-contributory in nature, as the material and financial sources are not derived from voluntary contributions from the employers and the employee, but from the general tax revenue of the state.[18]

The benefits available for the society, which are non-contributory in nature, are as follows:

Child benefit - every child in Britain is entitled to a tax-free flat rate for male and female alike. If any child is disabled and in education, the allowance is extended up to 19 years of age.[19]
Single parent benefit - a divorcee or an unmarried woman is entitled to a tax-free allowance for her first child (in addition to the child’s own benefit).[20]
Disabled benefit - any person who is unable to work for 28 weeks and does not have any contribution in the national insurance scheme is entitled to a tax-free benefit.[21]
Attendance allowance - any mentally and physically disabled person who needs frequent aid of attendance will be paid an allowance according to the cost for attendance.[22]
Mobility allowance - any person between the ages of 5 and 80 who is due to physical disability unable to work is entitled for a tax-free allowance.[23]

Means-Tested Benefits

The third type of scheme available for the citizens of Britain is the means-tested benefits, which is also financed by the general tax revenues.[24] Various benefits available under this category are as follows:

Income supplement - An income supplement allowance is available for a person who attains the minimum age of 18 and is unemployed[25] or whose income is lesser than the amount of income fixed by the Parliament.[26]
Family credit - It is a tax-free allowance received by the low-income working families, who have at least one child at the age of below 18.[27]
Housing allowance - In Britain, almost 80% of the whole population are living in houses and Bungalows, while the remaining 20% are living in flats, etc.[28] Among them, those who are low-income families, are entitled to housing allowance.[29] The amount of allowance granted depends on the savings, income and number of children in the family.[30]
Social fund - It is established by the government of Britain with a fixed sum determined by the Parliament.[31] The function of this fund is to help the low-income families to bear funeral costs, basic costs for necessary equipment for a newborn baby, and costs for adaptation to the houses of elderly or disabled people.[32]

Exemption from National Health Service

Every pensioner is exempted from the charges for drugs, and every child below 16 or recipients of family credit or income supplement are exempted from the charges for drugs, entitled for free dental treatment, a voucher for NHS spectacles and also enjoy free school meals.[33] Other non-income citizens are also eligible for some of the above benefits.[34]

In the United States of America, the Social Security Act 1935 is the most comprehensive legislation[35], which ensures the smooth running of the social security system up to date. The central aim of this Act is to provide basic and material security for the poor and needy in the U.S.A.

This Act offers various types of benefits to the society and these benefits could generally be divided into three categories:

Social Insurance Program - It includes the provision of security for the old, survivors, disabled and mediocre.[36]
Public Assistance Program - Which includes income supplement for the needy who are old, blind, permanently disabled and also for dependent children.[37]
Child health and welfare service - This program includes material cases, cases of crippled, children and general child welfare services.[38]

The responsibility to execute these programs under the Social Security Act of 1935 is rested in the Department of Health and Social Services[39], with a complete financial cooperation by the National Government, States,[40] the employers and the employees.[41]

In Malaysia, the Government places a lot of emphasis on sustaining social security under the National Social Welfare Policy, which was adapted by the Government in 1990.[42] The role played by the Federal Government as well as its States under this national policy, are basically in the form of material assistance for the handicapped, the disabled, the destitute, the least fortunate in the society,[43] the old and so on. Sometimes, in assisting them, this policy also covers funeral expenses, certain medical services, and invalidity[44] as well. There is also a social insurance scheme in Malaysia, whereby both the employers and the employees contribute[45] according to the income, which would enable the employees to gain financial security after their retirement.

Besides, countries like Britain, the USA and Malaysia, there are many other countries rendering various material and financial assistance to help the unfortunate ones in their own respective countries, such as Taiwan, Hong Kong, Singapore and so on.[46] A quick glance at the conventional modern social security system practiced in this modern era will reveal that, emphasis is put only on material and financial assistance and providing security for the poor and the needy in the society.

Underlying Objectives of Modern Social Security System

In this materialistic world, material and monetary gains have always been among the aims of one’s life. However, it is sad to say that not everyone is able to achieve such gains in this rapid moving world. Everywhere around the globe, we still see the forgotten faces of the poor and the needy, struggling to maintain their lives. The question here is, who can help the plighted destitute?

Hence, it has always been one of the most common purposes for any legitimate society to provide all the necessary material assistance for the unfortunate members of the society, in order to ease their burden and to enable them enjoying their lives. The execution of the modern social security system, hence, ensures the necessary material protection for the destitute towards the following principal objectives:

i) To develop a common feeling of humanity in the public in helping and providing the unfortunate with financial and other material assistance;

ii) To change the attitude of the general public and the Government in helping the poor and the needy in the society;[47]

iii) To come up with some possible material solutions for the destitute;[48]

iv) To reduce the rate of poverty in the society by helping them to be self-reliant;[49]

v) To create a more conducive and meaningful life for all citizens;[50]

vi) To curb social destruction, which often occurs because of financial crisis that usually leads to the increase of poverty and crime rates in the society.

Socio-cultural Impact of Modern Social Security System

The modern social security system basically, as we have seen, aims at sustaining the life of the poor and unfortunate ones, so as to escape from hardships and to enable them to live with happiness and dignity.[51]

There are mainly two types of schemes available under this modern social security. They are:

Contributory based-scheme, for which the public is obliged to give a partial contribution to a fund to help the poor and the needy. This scheme includes the following benefit:

Retirement pension,[52]

The rest of the benefits are usually available in countries like the U.K., the U.S.A. and so on. They are:

Maternity allowance[53]
Widow’s benefit[54]
Invalidity allowance[55]
Unemployment benefit, which is available in the U.K. for a maximum period of 52 weeks[56] while in the U.S.A. the Social Security Act 1935, provides unemployment benefit for a limited period.[57]
Sickness benefit, which is available for a limited period for workers who are unable to work due to illness.[58]

Non-contributory based scheme, for which the public is not obliged to make any partial contribution. The fund usually comes from the general tax revenue of the State.[59]

Among the benefits available under this scheme are:

Child benefit - whereby for instance, a child in the U.K. is entitled to a weekly allowance until the age of 16 years.[60]
Single-parent benefit - whereby for example, a divorcee or an unmarried parent in the U.K. is entitled to a tax-free allowance.[61]
Benefit for the old and disabled - which is available in countries like Hong Kong, Malaysia, the U.K. and the U.S.A. and many more.[62]
Income supplement - which is available for those whose income, is lower than the amount fixed by the Parliament.[63] This type of benefit is available today in the U.K. and the U.S.A.[64]
Housing benefit - which is provided for those who have a low salary.[65]
Exemption from National Health Service charges, whereby in the U.K. all pensioners, under-aged children, receiver of income supplement[66] and other needy people, are eligible to be exempted from the National Health Service charges, wholly or partly depending on the circumstances.

There are also other types of material assistance under the social security plan in many countries for the blind,[67] handicapped,[68] old folks,[69] survivors of disasters,[70] destitute[71] and other unfortunate members of the society.[72]

Sources of Modern Social Security Fund

There are numerous financial sources to back up the fund for the modern social security system so as to ensure that, the poor and the needy in the society are not overlooked. These sources are as follows:

i) Compulsory contributions from employees for the fund to help the employees in both situations; risk in the course of service and also upon retirement.[73]

ii) Compulsory contribution from employers for the fund under the above compulsory scheme.[74]

iii) In the U.K., the general tax revenue finances the non-contributory scheme, non-means tested and means-tested schemes.[75]

iv) In the U.S.A., the national government finances the assistance for the old folks, survivors or disabled and Medicare, while the States finance other programs, where, all aim in helping the poor and the needy in the society.[76]

v) In other countries, like Malaysia, Singapore, Hong Kong and so on, the fund for the contributory scheme is sustained by the partial contribution by the employees, while the others are contributed by the employers. Other programs under the social security plan are usually financed by the government with the cooperation of the general tax revenues.

Debating Issues on Modern Social Security System

Even though, it is an undeniable fact that, the modern social security system is trying to help the poor and the needy in the society to live comfortably and with dignity, there are still some aspects of it, which could be criticized:

i) First of all, the modern security system fails to cater for the insolvent with providing financial assistance to settle their debts;

ii) Secondly, even though it helps the unemployed by offering them financial assistance, such a move is unwise as it might turn them into lazy citizens[77], who would depend solely on assistance without having any kind of urge to solve their own plight. Hence, instead of providing them with such assistance, it may be better to provide them with a short-term loan to allow them to open their own businesses, which will of course be more beneficial to the unemployed, rather than giving them financial aids.

iii) Thirdly, there is also no financial assistance available under this modern system for the needy wayfarers, who are unable to maintain their costs for the rest of the journey.

ZAKAT ? ITS SOCIO-ECONOMIC FRAMEWORK

Central Idea

Zakat could well be defined as one of the five tenets of Islamic teachings,[78] which appears in the form of an obligatory tax[79] aimed at purifying a person’s soul and wealth in establishing social justice in the society.[80] This Islamic institution could be regarded as one of the principal threats to the root of today’s capitalism.[81]

Zakat is not only a form of charity but also compulsory tax collected from those who are rich and wealthy, and distributed among the right recipients as described in the Holy Qur’an. The principal objectives of Zakat are not only to reduce the rate of poverty in the society, but it simultaneously acts as a means of purifying one’s soul and wealth.

It is however, unfortunate that, the notion of Zakat is often misunderstood[82] by the people who often regard it as to be only a mean of charity given out by the rich to the poor and the needy. The reality of the application of this institution could be summed up as follows:

i) Apart from being charitable act, Zakat is also a compulsory tax imposed on the rich and wealthy at the rate varying from 25% to 20%.[83]

ii) It does not only provide financial assistance for the needy, but also purifies one’s soul so as to make it closer to Allah (swt) and also purifies one’s property and wealth so as to eliminate from one any sense of selfishness.[84]

iii) The scope of Zakat should not be narrowly interpreted today, relying only on the items specified and mentioned during the time of the Prophet (saw). In the early Islamic period, the idea of levying Zakat was on an annual savings of a prescribed amount[85], after deducting self and family maintenance and settlement of one’s debts. Since, the nation of ‘Zakatable property’ was previously understood as an annual savings of a prescribed amount, it is only fair, in the context of today’s contemporary society, to give a broader interpretation to the word, in the light of the Islamic doctrine of Masalih al-Mursalah (public interest), in order to enable us to apply the institution of Zakat in a more practical manner, towards providing a solution to the problems faced by the destitute in today’s society. Thus, ‘Zakatable wealth’ of today should also include any annual savings, which the amount is prescribed by the Shari’ah[86], be it in the form of currency or other forms of income or profits, made up from any business or other types of legal transactions.

iv) The reimbursement of Zakat should also not be narrowly interpreted to be a mere act of charity, which means to help the beggars only. Broadly speaking, Zakat is an institution aimed at eradicating poverty by providing financial protection to the poor, the needy, the old and the weak, the unemployed, the disabled, the widows and so on, regardless of whether they asked for it or not. The fact is that, Allah (swt) has determined that, in everyone’s, wealth there is a portion for the people of the above classes. Allah (swt) says to the effect:

,وفي أموالهم حق للسائل والمحروم-

"And in their wealth and possession, the right of (needy), him who asked and him who (for some reason) was deprived ".[87]

v) There is also another most common misconception of the word ‘Zakat’ among Muslims, that Zakat is being Divinely sanctioned for the Muslims only, while rendering the non-Muslims ineligible to enjoy any benefits of the Zakat institution.[88] This is not so. Responding to this misconception, there are many Scholars who have accepted the idea that, the institution of Zakat is meant to be for both the Muslims and also the non-Muslims alike.[89] This concept is further acknowledged by Abu Ja’far Mohd. B. Jarir al-Tabari.[90] Based on these arguments, it is hence a hypothetical solution that, Zakat provides the most practical solution to the problems faced by the poor and the needy in the contemporary society, as it protects each and every member of the society, regardless of difference in religious beliefs. It is very clear by the decree of Allah (swt), whereby the recipients of Zakat need not to be Muslims alone[91] M.A. Mannan, thus, further clarified it as follows:

Zakat acts as a unique measure provided by Islam to abolish poverty from the society by making the rich live to the social responsibilities they have. In the economic sphere, Zakat prevents the morbid accumulation of wealth in a few hands and to defuse it before it assumes threatening proportions in the hands of its possessors, as it is a compulsory contribution of the Muslims to the State Exchequer.[92]

Underlying Objectives of Zakat

Every injunction, which had been revealed by Allah (swt) must have its own rationale and objectives. Hence, as regards to the institution of Zakat, Allah (swt) has sanctioned it with the aim of providing social security for the poor and the needy in the society, and to develop a balanced economic growth[93], as well as to become the act of spiritual purity and development. The principal objectives of Zakat, in other words, could be summed up as follows:

i) It is an act of purifying one’s soul, by enabling one to become closer to Allah (swt). It is thus justified in the Holy Qur’an when Allah (swt) says to the following effect:

,ولكن البر… وآتي المال على حبه ذوى القربي واليتامى والمساكين وابن السبيل والسائلين وفى الرقاب… وآتى الزكاة-

"… But it is righteousness … to spend of your substance … for your kin, for orphans, for the needy, for the wayfarer, for beggars and for the ransom of captives .. and practice regular charity (Zakat)…" [94]

ii) It is also meant to be an act of protecting the poor and the needy from any type of financial and material constraints. In other words, it strongly opposes the system of capitalism,[95] which means, it does not allow one to practice the habit of hoarding goods and wealth.[96] Allah (swt) has indeed warned people against any act of capitalism in the following sanction:

,ويل لكل همزة لمزة. الذي جمع مالاً وعدَّده. يحسب أنَّ ماله أخلده. كلاَّ لينبذنَّ في الحطمة. وما أدراك ما الحطمة. نار الله الموقدة* التي تطلع على الأفئدة. إنها عليهم مؤصدة. في عمد ممدة*-

" Woe to every scandalmonger and backbiters, who piled up wealth and layeth it by. Thinking that his wealth would make him last forever. By no means he will be sure to be thrown in to that which breaks to pieces. And what will explain to you that which break to pieces? (It is) fine of (the wrath of) Allah (swt) kindled (to a blaze). The which doth mount (right) to the hearts. It shall be made into a vault over them. In columns outstretched? " [97]

Such hoarding attitude of one's wealth is against the rules of Allah (swt) and it surely deprives the poor and destitute from their actual rights. It is thus ruled out by Allah (swt) as follows:

,وفي أموالهم حق للسائل والمحروم-

"And in their wealth and possessions (was remembered) the right of the (needy). Him who asked and him who (for reasons) was prevented (from asking) ". [98]

iii) It not only benefits the poor but also the rich. The poor and the destitute would benefit from the financial and material assistance obtained from the rich, while the rich and wealthy will be handsomely rewarded by Allah (swt) in the hereafter for their act of obedience to Allah (swt).[99]

iv) It also plays a vital role in the progress of the spiritual aspect, economy and also technology in the society, bearing in mind that, this Islamic institution of Zakat benefits both the Muslims and the non-Muslims. Dr. R.R. Marett views that, the “real progress is in charity”.[100] Aldous Hoxley, meanwhile, observes that, “technological advance” will become useless without the “progress in charity”.[101]

v) While Zakat functions as a means to eradicate poverty in the society, it also simultaneously moulds the individuals into responsible and caring persons, who are always ready to help the poor and those who are unfortunate.[102]

vi) At the same time, the institution of Zakat inculcates the spirit of brotherhood[103] in upholding social solidarity in the society.[104]

vii) It, at the same time, ensures an ideal sustainable social security for the poor, the needy, the old, the disabled, and other unfortunate individuals in the society regardless, of their religious beliefs, languages, races and so on.

viii) Finally, the Islamic institution of Zakat also creates creative individuals who are non-materialistic, self sufficient and always grateful for the bounties of Allah (swt), enabling them to experience and enjoy vast spiritual development, social solidarity and also material prosperity.[105]

Socio-economic Impact of Zakat

As we have discussed earlier, the institution Zakat does not only provide the basis for social security but also plays many other important roles in the society. The fundamental roles played by Zakat, however, could be itemized as follows:

i) It provides the society with soul and wealth purity,[106] developing the moral aspect, which mould the rich into being responsible and caring about the poor.[107] At the same time developing the spirit of brotherhood and cooperation based on goodwill in the society.[108] Moreover, it benefits the rich and the poor alike, whereby the rich will be rewarded by Allah (swt) in the hereafter,[109] the poor will be thankful for the material assistance rendered to them under the sanction of Allah (swt).[110]

ii) It also plays a vital role in providing a sustainable social security scheme in the following ways:

By providing material assistance for the poor, the needy and the destitute[111] in the society in order to fulfill their material needs , and enabling them to be self-reliant;

By catering the required assistance in the circumstances of unemployment, insufficient medical expenses, for the old, the disabled and the handicapped, as well as inadequacies to maintain one’s life, for widows and children with no parents; and so on, on the basis of needy test.

By helping other members of the society who might not be originally poor materially and financially, but nevertheless, unexpectedly facing material or financial constraints due to certain unexpected and unfortunate happenings, such as having financial difficulties during traveling, etc.[112]

iii) The institution of Zakat also relieves a person from the burden of insolvency should he or she is unable to settle the debts;[113]

iv) Zakat indeed also plays an extremely important role in protecting and helping those who are sacrificing themselves in the path of Islam, in order to uphold the Deen of Allah (swt) in this earth.[114]

After seeing the vital roles played by Zakat in the society, it is hence easy to point out its significance as summarized below:

i) The institution of Zakat benefits both the rich and the poor.[115]

ii) It creates members of the society with responsible and caring attitude;[116]

iii) It inculcates strong spirit of brotherhood, goodwill, cooperation and tolerance in the society;[117]

iv) It also provides the society with purification of soul and wealth;[118]

v) Zakat provides material and financial security for the poor and other unfortunate members of the society;[119]

vi) It provides both the Muslims and non-Muslims with material and financial protections;[120]

vii) It also seeks to relieve an insolvent from his unsettled debts;[121]

viii) Like wise it, helps those who are sacrificing themselves in the cause of upholding the religion of Allah (swt).[122]

Sources of Zakat Fund

After ascertaining how the Islamic institution of Zakat could play its role in providing social and spiritual security in the contemporary society, at this point I will examine the sources of a Zakat fund. However, before we touch on this question, it is wise to bear in our minds the following points:

i) Prior to the full implementation of Zakat, it is of utmost importance to ensure that, the sources for its fund are of tradable value and are Zakatable in nature, due to the rapid economic growth in contemporary society. In order to arrive at a determination whether the goods and properties are indeed Zakatable in nature (i.e. able to be used as a legal Zakat fund), it is important to apply, inter alia; the tradable test, which must be conducted in light of the Islamic principles of Qiyas (analogy) and Masalih al-Mursalah (public interest) so as to come up with more practical solutions on the test of tradability of the goods and properties.[123] This is to enable the society to obtain maximum benefit from Zakat in ways recognized by Shari’ah.

Hence, in order to determine whether the goods or properties used as the fund are indeed tradable and Zakatable, the following three-fold tradable test may be applied:

a) The goods or properties to be Zakatable must be in the form of additional goods, properties or profits after deducting one’s self expenditures, family maintenance and settlement of debts;

b) The goods or properties should be Zakatable on manual basis;

c) The goods or properties to be Zakatable must reach a certain amount determined by Shari’ah.

ii) Although, the modern social security system creates its fund from inter alia, taxes imposed on financially able citizens,[124] and the Islamic institution of Zakat on the other hand, also creates its fund from mandatory taxes imposed on the tradable goods and properties[125] the fact is that, Zakat still presents the society with a more ideal and practical solution compared to the modern system. This is because Zakat is not only a mere physical act of paying taxes by able persons, but it goes beyond that limit, as we find that it is also an act sanctioned by Allah (swt) Himself, embodying spiritual, moral and educational elements. Whereas, the modern social security system offers only material assistance to the needy public, the institution of Zakat not only confers material assistance, but also contains spiritual moral and educational benefits.

After carefully digesting the two points already forwarded, let us see the proposed Zakatable goods in the contemporary world:

i) Gold, silver[126] and diamond.

ii) All sorts of monetary savings, which are derived from salary,[127] premiums obtained from legal transactions and other sources.

iii) Assets and capitals of any company or business firms.

iv) Stocks and shares.

v) Animals.[128]

vi) Any business license;[129]

vii) Hoarding articles or properties;[130]

viii) Agricultural products such as paddy, palm oil, cocoa, etc.[131]

ix) Wealth obtained from mine such as tin, petrol, natural gas, etc.[132]

Zakat : an able alternative to Social Security System

After scrutinizing both systems above, we have seen the similarities and differences on both systems. Hence, for the purpose of further analysis between the two systems, let us make a comparative evaluation on the programs designed by both systems:

i) The modern social security system provides a two-fold solution in helping the poor and the needy in the society. The two-fold solution is classified as the contributory-based scheme (whose fund is derived from willful contribution from employers and employees); the non-contributory based scheme (whose fund is created from the State’s tax revenues). The institution of Zakat on the other hand, offers a one-fold scheme, which is broader in nature. This scheme is non-contributory one, in which the needy people of the society are to be helped out by the compulsory tax (Zakat)[133] payable by the rich.[134] In other words, the needy people who are benefited by the Zakat are on non-contributory basis under the principles of Zakat.[135]

ii) The type of beneficiaries described by the modern social system such as the poor, the disable, the old, the handicapped and so on are[136] also approved by the Shari’ah in the light of the institution of Zakat under the broad meaning of Fuqara and Masakin, which means the ‘poor’ and the ‘needy’. Such broad interpretation of the above two words is based on the doctrines of Qiyas (analogy) and Masalih al-Mursalah (public interest) and will be dealt with in the forthcoming section.[137]

The dissimilarities between both the modern and the Islamic systems as we have seen so far, are undeniable. However, it must always be remembered that, the Islamic institution of Zakat offers a much wider role and scope in its application, making it to be the most suitable and practical method in providing the poor and the needy with a proper social security. In other words, among the things offered by Zakat, which are not available under the modern system are:

i) The Zakat fund helps an insolvent to settle his debts provided that, the insolvent does have sufficient financial ability to settle the debt. As al-Tabari reveals:

The insolvent is the indebted without extravagance. The rule is required to pay his debt from the treasury (Zakat).[138]

ii) It also sets up a scheme to provide necessary financial aid for the wayfarer[139] who unexpectedly faces financial risk regardless of rich or poor.[140]

iii) The Zakat fund extends its services to those needy people who are striving in the path of Allah (swt).[141] The people who are striving in the path of Allah (swt) include fellow students who are seeking knowledge, as well as those who sacrifice themselves, their property, energy and time in establishing the Deen of Allah (swt) in any manner.

iv) Zakat also relieves those who are under financial bond.[142] In the contemporary world, those who are under this category included detainees and hostages who could only be released by their captors on the payment of certain amount of ransom.

v) It also provides reasonable wages for those who are involved in collecting the Zakat.[143]

vi) Zakat also provides protection for Muslims and non-Muslims alike,[144] rendering it to be one of the most equitable means of social security. As Prof. Abdur Rahman I. Doi quotes, in support of this view that when Sayyedana Umar (r.a) was traveling to

Syria

and saw a needy Christians he (r.a.) ordered that, they should be looked after by the Zakat fund.[145]

vii) The institution of Zakat also creates a caring society,[146] inculcating the strong spirit of brotherhood, goodwill, tolerance and cooperation among the members in the society.[147]

viii) Last but not least, this Islamic institution also provides the society with wealth and spiritual purification.[148]

Practicality of the terms “Fuqara” and “Masakin”.

We have seen earlier how the modern social security system derives a two-fold solution to help the poor and the needy in the society, i.e. through the contributory-based scheme, whose fund is obtained by way of willful contributions by the employers and the employees, and the non-contributory-based scheme, whose fund is collected from the state tax revenues. We have also seen how the institution of Zakat derives one-fold method in helping the poor and the needy on non-contributory based scheme, whereby the fund is derived from obligatory taxes paid by the able citizens.

The issue to be determined before us now is, whether the type of beneficiaries prescribed by the modern social security system (such as the poor, the disabled, the handicapped and so on) are within the ambit of the Fuqara and Masakin as mentioned in the Holy Qur’an?[149] The answer is, yes, the words Fuqara and Masakin do cover all the beneficiaries prescribed under the non-contributory based scheme of the modern social security system, based on the Islamic doctrines of Qiyas and Masalih al-Mursalah. For justification, the following arguments are forwarded.

i) The beneficiaries under the non-contributory-based scheme prescribed by modern system are determined on the basis of the ‘needy test’, while the meaning of the words Fuqara and Masakin are also based on the ‘needy test’ i.e. the beneficiaries of the fund must indeed be based on the need of financial or material assistance. In fact, the broad interpretations of the two words include not only those beneficiaries prescribed by the modern scheme but also those who are not prescribed by it, but it includes any person so long as one falls within the definition of needy. Hence, it is only natural to deduce from it the notion that the definitions of beneficiaries under the modern social security system falls within the broad interpretation of the words Fuqara and Masakin in the Holy Qur’an at 9:60.

ii) The broad interpretation of the words Fuqara and Masakin are also shared by some Islamic dictionaries for example, Abdullah Yusof Ali has interpreted the word Miskin as ‘needy’, and Faqir is as someone who is in financial need’.[150] Bassam Sulaiman also shares the same view as Abdullah Yusuf Ali on the interpretations of the definition of the words Faqir and Miskin.[151] The dictionary in Islam on the other hand, defines the word Faqir as the ‘poor’ and Miskin as one who has no property whatsoever.[152] Another encyclopedia defines the word Faqir as a beggar, a dependent or the one who is in need as opposed to Ghani or a rich,[153] while another encyclopedia of Islam defines the word Miskin as the poor, the most needy, miserable or the person whom it is an obligation for believers to support.[154] Therefore, the broad definitions and interpretations of the word Faqir and Miskin given by the above dictionaries and encyclopedias of Islam further enhance the view that, the ambits of both words cover the poor and the needy, who not only cover the prescribed beneficiaries under the modern system, but also other beneficiaries besides it.

iii) The fact that both Faqir (the poor) and Miskin include anyone who is in need of material or financial assistance (which of course includes those beneficiaries prescribed by the modern social security system) is further strengthened by the fact that, even the modern English dictionaries give broad interpretations of both words. For instance, The New Shorter Oxford English Dictionary defines a ‘poor’ as a person who is unfortunate, needy, destitute or indigent or the one who is lacking or procure comforts of necessities of life, or the one who is having less than is wanted or expected.[155] The same dictionary also defines the word ‘needy’ as the one who is ‘poor’, destitute or a person without necessities.[156] Meanwhile, Webster’s New Twentieth Century Dictionary defines ‘poor’ as the one who is poor, or needy or indigent, or money less or insolvent, lacking pleasure or comfort. It also defines ‘poor as the one who is lacking material possessions or having little or no means to support one self.[157] The same dictionary defines the word ‘needy’ as the one who is poor or not having enough to keep up an adequate standard of living.[158]

Based on all these logical arguments, it is of no surprise that we have finally came to the conclusion that, the words Fuqara and Masakin as mentioned by Allah (swt) in the Holy Qur’an at 9:60 indeed carry broad interpretations, based on the doctrines of Qiyas and Masalih al-Mursalah, so as to include anyone, who is in need of financial or material assistance, which of course include also the prescribed beneficiaries determined by the modern social security system.

Can Zakat Provide A Social Security for the Multi-Religion Needy Society?

The modern social system was invented based on conventional thought in order to cater for the poor and the needy in the society, regardless of their race and religion. The question here is, can Zakat and its fund offer similar protection to the poor and the destitute in today’s modern society, which is multi-racial and multi-religious?

We have already seen that Zakat in practice is a compulsory tax, accumulated for those whose income and property has reached to a certain amount. However, as regards to the question whether it is able to cater for multi-religion society or not, the Ulama or Islamic jurists have mixed views on it. Some of them are of the opinion that, Zakat is a compulsory tax collected from Muslims and it is therefore, should provide social security for Muslims only.[159] However, the majority of the Ulama are of the view that, Zakat is an Islamic institution, which not only provides social security for the Muslims, but also for the non-Muslims who are poor and needy, regardless of differences in religion, color or sex. This view is indeed justified by the following evidences:

i) The words of Faqir and Miskin mentioned in verse 9:60 are ‘Am (general) in nature so as to include any ‘poor’ or ‘needy’ person be them Muslims or non-Muslims. It is indeed justified by the case when the second Caliph of Islam, Sayyedana Umar (r.a.) once saw a Jew begging from other people due to old age and financial constrain. He (r.a), upon witnessing this situation recited the Holy verse[160] which means:

“undoubtedly the Zakat is for the poor and the destitute.”[161]

He (r.a.) then said that, the recipients of Zakat must not necessarily be Muslims only, but should also be extended to the non-Muslims.[162]

ii) Once, the second Caliph (r.a.), in another occasion, saw some Christian lepers. He (r.a.) ordered that they should be given Zakat and be looked after by the property.[163]

iii) During the period of Sayyedana Abu Bakar (r.a.) the first Caliph, Khalid ibn Walid (r.a) wrote in respect of the Christian inhabitants of al-Hira in

Iraq

, saying that:

Any old man incapable of work or anyone who has suffered from any calamity, or any person who was rich and suddenly became a pauper asking for charity from his people, Jizyah must not be collected from him. He and his family, as the contrary, should be maintained through the Baitul Mal of Muslims.[164]

iv) The First and Second Caliph (r.a.) of Islam had also established an organization for social security, which functioned for the betterment of the needy, both Muslims and the non-Muslims.[165]

v) Imam Zufar (r.a.) ruled that, the non-Muslims who are needy and poor should also be helped out of the Zakat fund, which may bring them closer to Muslims.[166]

vi) The Maliki and Zaidi Schools of law are also of the opinion that, the non-Muslims who are poor and needy should also be given the opportunity to share the benefits of the Zakat fund, so as to soften their hearts in order to become more friendly and closer to Muslims.[167]

vii) Shaikh Shaft al-Din al-Nawawi also expressed that it is a common obligation to help the needy and feed the hungry[168] regardless of their religion.

viii) Shaikh Shamsuddin Ramli, meanwhile, acknowledged that:

The non-Muslims are like Muslims when it comes to relieving them from their sufferings. It is essential for all Muslims to remove any harm coming to them. Apart from food or clothing of the needy non-Muslims, it is also Fardu Kifayah to help them in the treatment of their sickness and giving fees to the doctors, and buying medicine etc.[169]

ix) Prof. Abdur Rahman I. Doi accepts the view that, although the non-Muslims do not contribute to the Zakat fund they should be assisted by it.[170] He went on to say that non-Muslims are indeed part and parcel of the Islamic State. Hence, it is the responsibility of the state to provide social security for all Muslims and non-Muslims alike.[171]

All the above-mentioned justifications prove that the Islamic institution of Zakat and its fund is able to provide a meaningful social security for all members of the society, regardless of their color, race, sex and religion. As long as one falls within the definition of needy and destitute he could be aided out by the institution of Zakat.

Can Zakat Provide a Basis for the Modern Social Security System? An Analytical Submission

Under the contributory-based scheme of modern social security system, among the benefits available are retirement pensions, widows’ benefits, invalidity benefits, unemployment benefits and sickness benefits.[172] This scheme is operated on the basis of willful financial contributions by the employers and the employees, while it works for the designed-people on the needy test basis. Although, Zakat is the collection of compulsory tax paid by those who are financially able, it is spent for the security of needy people in the society. Since beneficiaries designed under the contributory-based of modern social security system are on needy test basis hence, it is obvious that the Zakat could undoubtedly provide a social security for those needy people on the basis of needy test. The only difference here is that, those needy are helped out under the modern social security system upon the contribution basis, whereas under the principles of Zakat they are helped out on non-contribution basis.

Here, I would like to analyze with a justification that the beneficiaries under the contributory-based scheme of the modern social security system could be catered by the institution of Zakat on the needy test basis. The justifications are as follows:

a) As regards to the concept of retirement pension, it was even practiced long time ago during the era of the Caliph Umar (r.a) who set up a special Dewan or department to manage the retirement pension. He even once ordered the government to pay regular pensions to both Muslims and non-Muslims.[173] Because, retired is a jobless with no income, hence is usually considered as a needy. Thus, those who are considered as a needy surely deserve Zakat.

b) As regards the widow’s benefits, it is one of the great virtues to look after the welfare of the widows as the Holy Prophet (saw) once said to the effect:

الساعي على الأرملة و المسكين كالمجاهد في سبيل الله أو كالذي يصوم النهار ويقوم الليل

The one who looks after and works for a widow and for a poor person is like a warrior fighting for Allah’s (swt) or like a person who fasts during the day and prays all the night...” [174]

Thus, such welfare is also on the needy test.

c) An invalidity benefit is for those beneficiaries who are unable to work and earn their necessities due to sickness[175] and such a concept is also in harmony with the commandments of Allah (swt) in helping the needy, as He (swt) narrated to the following effect:

,وفي أموالهم حق للسائل والمحروم-

And in their wealth and possession, the right of (needy), him who asked and him who (for some reason) was deprived.[176]

d) Unemployment benefits are meant for those who are unemployed due to crisis in the job market or under qualification.[177] Islam has indeed indicated that, it is a moral obligation to help those who are unemployed and face difficulties as the result of that phenomenon. The Holy Prophet (saw) said to the effect:

من نفس عن مؤمن كربة من كرب الدنيا نفس الله عنه كربة من كرب يوم القيامة، ومن يسر على معسر يسر الله عليه في الدنيا والآخرة

Whoever solves the worldly difficulties of a believer, Allah (swt) will remove from him one of the grieves of the Day of Judgement. Whosoever alleviates (the lot of) a needy person, Allah (swt) will alleviate (his lot) in this world and the next ...” [178]

e) There are some situations whereby some people are unable to maintain themselves as well as their families due to unexpected sickness, which hamper their ability to earn their basic necessities and needs. As such, Islam also encourages the people to help these types of needy people as we find the Prophet (saw) saying to the following effect in one of his traditions:

ومن يسر على معسر يسر الله عليه في الدنيا والآخرة

… Whosoever alleviates (the lot of) a needy person, Allah (swt) will alleviate (his lot) in this world and the next….[179]

Furthermore, Shaikh Shamsuddin Ramli, in support of his view said that, in the case of a person facing hardship due to sickness or any other cause, which results him in becoming poor and needy. Such a person regardless of religion should be assisted, not only by providing cloth and food, but also with all the necessary aids of medical treatment.[180]

On the other hand, under the non-contributory based scheme of the modern social security system, the beneficiaries may be helped based on the fund financed by the compulsory tax imposed on those who are materially and financially able.[181] Indeed, both the modern security system and the Islamic system of Zakat offer such scheme. The only difference that exist between the two systems is that, under the modern system the beneficiaries have been ‘specified’, whereas the institution of Zakat covers unlimited category of beneficiaries under the broad application of the words Fuqara and Masakin[182] upon the application of the needy test, which of course, includes not only the beneficiaries specified under the modern social security system, but also any person of the society so long as he/she falls under the meaning of needy and destitute, regardless of one’s religion, race, sex or even colour.

A closer look at the application of the notion of the institution of Zakat will reveal that, it besides acknowledging the limited recipients specified by the modern system, also extends its helping hand to the other type of needy people living in the society.

i) For instance, the institution of Zakat does not oppose the material and financial assistance for the under aged children under the modern social security system as they are considered among the needy in the society. The Holy Prophet (saw) in fact, encouraged the people to look after the needy children when He (saw) said to the effect:

أنا وكافل اليتيم في الجنة هكذا..

I and the person who looks after an (needy) orphan and provides for him will be in paradise…. [183]

The under aged children are income less and thus, they are considered as a needy to maintain themselves sufficiently. The Holy Prophet (saw) emphasized to look after any need people living in the society. He (saw) said to the effect:

الساعي على…و المسكين كالمجاهد في سبيل الله

The one who looks after and works for … (the) poor person is like a warrior fighting for Allah’s (swt) cause….[184]

ii) The Islamic institutions of Zakat also shares the same notion with the modern social security system that, single parents (such as those who lost their spouses through death or divorce) should be financially and materially helped out, as the Holy Prophet (saw) said to the effect in one of the traditions that:

الساعي على الأرملة و المسكين كالمجاهد في سبيل الله

The one who looks after and works for a widow and for poor is like a warrior fighting for the cause of Allah (swt).[185]

iii) As far as one’s disability is concerned, Islam has also encouraged fellow human beings to look after those who are helpless and disabled in order to sustain a meaningful life. In Islam, it has always been a responsibility of the able person to remove all hardships from the disabled and helpless, as we find the Prophet (saw) mentioned to the effect in the coming tradition:

من نفس عن مؤمن كربة من كرب الدنيا نفس الله عنه كربة من كرب يوم القيامة، ومن يسر على معسر يسر الله عليه في الدنيا والآخرة. والله في عون العبد ما كان العبد في عون أخيه

Whosoever removes a worldly grief from a believer, Allah (swt) will remove from him one of the grieves of the day of judgement. Whosoever alleviates (it from) a needy person, Allah (swt) will alleviate (his lot) in this world and the next.... Allah (swt) will aid a servant so long as his servant aids his brothers…” [186]

iv) Zakat also shares the policy with the modern social security system that, financial and material assistance to the income supplement should also be reserved for a person whose income is low and insufficient to support his own family. Indeed, Islam regards it as a duty, which has to be shouldered by those who are financially and materially secured. The Prophet (saw) expressed in one of the traditions that one who removes the grief of another will obtain the help from Allah (swt).

v) The very idea of providing free health service for those who are unable to pay for medical and health treatments (such as by providing medicines, subsidizing in treatments, sick-beds accommodations at clinics and hospitals, food for those who are hospitalized, etc.) is very much in line with Islamic principles, teachings and belief. The institutions of Zakat, in fact, is also in favor of providing even more extensive assistance in this regard, by providing total exclusion from medical expenses and so on. Moreover, in the view of Shaikh Shamsuddin, both the Muslims and the non-Muslims are entitled to any kind of assistance under Zakat.[187]

vi) Other types of beneficiaries under the modern social security system who are entitled to obtain benefits such as attendance allowance, mobility allowance, invalid care allowance, housing benefits, social funds and so on[188] are indeed recognized under the Islamic institutions of Zakat.

Practicality of Zakat in the Contemporary Socio-economic & Cultural Reality

It has already been acknowledged in the light of our earlier analysis that, the institution of Zakat provides material and financial assistance for the modern needy society as a whole, regardless of one’s religious belief, color, race or even sex. This phenomenon presents us with the clear idea that Zakat could act as an ideal solution towards helping the poor and the needy in the modern world of today. The next question to be answered is, how can we turn this fact into a reality? Hence, in materializing this noble aim, the following logical methodologies could be adopted:

i) Inculcation of the significance of Zakat

It has already been realized that Zakat contains more significance towards not only the material aspect, but also social, moral and spiritual aspects of the society as compared to what is offered under the modern social security system. Zakat, as we have already seen, also extends its role to each individual in the society who is poor and needy, regardless of one’s sex, religion, race, color or whatsoever reason may be. Hence, in order to educate and inculcate such phenomenon and ideas of Islamic institution of the Zakat, exhibitions and seminar dialogues could be held for the public and government officials around the globe. This effort must always be accompanied by publishing of writings, articles and journals in propagating the idea and significance of the institution of Zakat in the contemporary society.

ii) Correction of the misconceptions about Zakat

The well-known misconception about the institution of Zakat, which portrays it as an institution for beggars and low-class people should be rebutted in upholding that Zakat is a form of social security provided for those who are poor and in order to transform them into self-reliant. Such material and financial assistance is indeed a duty and an obligation upon those who are able materially and financially, as it is aimed at assisting and accommodating these unfortunate members of the society, making them welcomed and not to degrade their personalities.

iii) Pragmatic application of the rules of Zakat based on the Islamic principles.

It is undeniable truth that the society is always developing and changing with culture, thinking and so on. Hence, in sustaining the development and changes, there is a need to apply the rules of Zakat in the light of the Islamic concept of Siasah al-Shari’ah’ which stresses the application of all Islamic principles based on the doctrine of Qiyas (analogy) and Masalih al-Mursalah (public interest). Such move is needed in order to ensure a successful application of the Islamic rules of Zakat based on the doctrine of Siasah al-Shari’ah, in order to provide financial and material protection for the poor, the needy and the unfortunate in today’s society, which inter alia, surely eliminates one’s hardship while securing a comfortable life for all. It is indeed in line with Qur’anic principles where Allah (swt) says:

يريد الله بكم اليسر ولا يريد بكم العسر-

"… God (swt) intends every facility for you; He does not want to put you in difficulties…"[189]

Final Remarks

Finally, it is sincerely submitted at the final stage of this research that, the Islamic institution of Zakat is unique and is capable of providing practical and ideal solutions for the contemporary world, in the provision of social security for the least fortunate ones, regardless of their religious beliefs, races, languages, colors and sexes, and without any discrimination.[190]

Hence, in my concluding remark, I would like to come up with some possible suggestions on the applications of Zakat in today’s society and also some aspirations from this divine institution of Zakat.

Summary in General

i) The institutions of Zakat is expressly a non-contributory based scheme whose fund is paved by the collection of compulsory taxes collected from those who are financially and materially able, aimed at providing social security for the poor and the needy in the society, regardless of their religious beliefs, sexes, races and nationalities or whatever reason may be.[191]

ii) The institution of Zakat does not only provide a material security for the needy but it also ensures significance to one’s spiritual, social and moral aspects.

iii) The proper application and administration of Zakat does not only guarantee a meaningful social security and solidarity[192] but also provides an ideal treatment to the today’s most common threat of the capitalism.[193]

iv) In achieving all the above significance, it is hence, extremely essential for the Ummah to administer the rules of Zakat in the light of the Islamic principles of Siasah al-Shari’ah, whose operation is based on the Islamic doctrines of Qiyas and Masalih al-Mursalah. In order to rescue the unfortunate ones and provide them with a comfortable life, Allah (swt) says:

يريد الله بكم اليسر ولا يريد بكم العسر-

"… Allah (swt) intends every facility for you. He (swt) does not want to put you in difficulties…"[194]

v) Based on the analysis, it is admitted that, the institution of Zakat is able to provide not only the basis for the modern social security system, but also many other significances for the human lives not only in this world, but also in the hereafter, as proved earlier.

Possible Suggestions towards Practices of Zakat in the contemporary Reality.

Towards an application of the institution of Zakat in ensuring a better social security to the contemporary society, the possible suggestions are as follows:

i) It is extremely important to highlight that the institution of Zakat besides being able to provide for the needy with material and financial security, also possesses its own other significance in social spiritual and moral aspects of human lives. This institution does not provide a meaningful social security for the Muslims only, but for non-Muslims too. It is hence, possible to inculcate these significances in the hearts of today’s society through writings and publishing articles and magazines, and also through organization of exhibitions, seminars and dialogues, which could be held for both the public and also the government officers.

ii) The misconception that Zakat is an institution, which caters for the beggars and low class citizens, should be refuted. This is because, Zakat in the view of the Shari’ah is an obligatory tax imposed upon the materially and financially able persons, in helping the unfortunate ones (the poor and the needy) towards upgrading their lives based on the spirit of brotherhood. It is not meant to downgrade the position of the poor and the needy in the society. Moreover, the fund of Zakat should not be disbursed as a charity to the poor, but it should be utilized accordingly with the aim of upgrading the life of the needy and paving the way of brotherhood between the rich and the poor.

iii) The administration and application of the rules of Zakat should be done on the basis of Siasah al-Shari’ah in an effort to meet the demands of the ever-developing society. Such a move is aimed at ensuring that Zakat remains as the most ideal and practical solution for the society, designed to provide social security system to all citizens, regardless of their religious beliefs, races, colors or sexes.

Aspirations

It is sincerely hoped that, the Islamic institution of Zakat could slowly gain the recognition of the modern world as the most ideal and practical solutions in helping the poor and the needy living in the contemporary society. Such aspiration is not just based on the commandments of Allah (swt), but also based on the fact that it may cater for each and every individual in the needy society, the Muslims and the non-Muslims alike, as justified earlier in this short research. Zakat is engineered to upgrade the material and financial status of the needy, which is further enhanced by some other added significance such as in the aspects of social, moral and spiritual. Zakat operates on the Islamic concept of brotherhood aims at strengthening the unity of the nation. Furthermore, as its application is based on the principle of Siasah al-Shari’ah, it is not impossible to see the institutions of Zakat emerges as the most ideal and practical solutions in providing the contemporary society with the perfect social security, accepted by each member of today’s world.

[1] See John L. Irwin, Modern Britain, An Introduction, 3^rd Edn., Coutledge, London, 1994, at p. 73.

[2] Mahmoud Abu-Saud, Contemporary Zakat, Zakat and Research Foundation, Ohio, 1988, at p. 193.

[3] Abdur Rahman Shad, Zakat and Ushr, Kazi Publications, Lahore, 1986, at p. 13.

[4] See John L. Irwin, op. cit., at p. 80; see also “Social Security” in Michael Mann (ed.) Mac Millan Student Encyclopaedia of Sociology, Mac Millan Press, London 1983.

[5] John L. Irwin, loc. cit.

[6] See Thomas, et. al., infra at p. 304f.

[7] John L. Irwin, op. cit. at p. 80.

[8] Thomas and Dorothy Wilson (eds) The State and Social Welfare, Longman, London, 1991 at p. 301.

[9] John L. Irwin op.cit., at p. 80.

[10] See ‘Social Security’ in David Jary and Julia Jary, the Harpers Collins Dictionary of Sociology, Harper Collins Publishers, LTD, New York, 1991.

[11] See Thomas, et.al., op. cit., at p. 302.

[12] Ibid.

[13] Ibid.

[14] Id., at p. 303.

[15] John L. Irwin, op. cit., at p. 80.

[16] Thomas, et. al., op. cit., at p. 303.

[17] Ibid.

[18] Ibid.

[19] Ibid.

[20] Ibid.

[21] Ibid.

[22] Ibid.

[23] Ibid.

[24] Id. at p. 304.

[25] John L. Irwin, op. cit., at p. 80.

[26] Thomas, et.al., op. cit., at p. 304.

[27] Ibid.

[28] John L. Irwin, op. cit., at p. 81.

[29] Thomas, et. al, op. cit., at p. 304.

[30] Ibid.

[31] Ibid.

[32] Ibid.

[33] Id, at p. 305.

[34] Ibid.

[35] See Social Security Act of 1935, Jack C. Plano, Milton Greenberg, The American Political Dictionary, 9^th. Edn. 1993, at p. 509.

[36] Id., at p. 508.

[37] Ibid.

[38] Id., at p. 509.

[39] Ibid.

[40] Ibid.

[41] Ibid.

[42] See, Sixth Malaysian Plan 1991-95, Kuala Lumpur, 1991 at p. 371.

[43] Ibid.

[44] Howard Jones, Social Welfare in Third World Development, MacMillan Education Ltd., London 1990 at p. 44.

[45] Ibid.

[46] Here material and financial assistance refer to the ‘social security’.

[47] Jack C. Plano, et. al., op, cit., at p. 509.

[48] Charles Zastrow, An Introduction to Social Welfare, Wadsworth Publishing Co., California, 1986 at p. 33.

[49] Sixth Malaysian Plan, op. cit., at p. 380.

[50] Charles Zastrow, op. cit., at p. 3.

[51] Nelson W.S. Chow, “Social Security in Hong Kong”, (ed) John F. Jones, in The Common Welfare in Hong Kong’s Social Services, the Chinese University Press, Hong Kong, 1981 at p. 117.

[52] Thomas, et. al., op. cit., at p. 302.

[53] John L. Irwin, op. cit., at p. 80.

[54] Thomas, et. al, op. cit., at p. 302.

[55] Ibid.

[56] Id., at p. 303.

[57] Jack C. Plano, at. al., op. cit., at p. 442.

[58] Thomas, et. al., op. cit., at p. 303.

[59] Ibid.

[60] Ibid.

[61] Ibid.

[62] See in Nelson, op. cit. at p. 117, Sixth Malaysian Plan, op. cit. at 0. 371; Thomas, et. al., op. cit. at p. 303 and Jack C. Plano, et. al., op. cit., at p. 508.

[63] Thomas, loc. cit., at p. 304.

[64] Ibid.

[65] Jack C. Plano, et. al., op.cit., at 0. 508.

[66] Id., at p. 305.

[67] Diana M. Dinitto, Social Welfare, Politics and Public Policy, Prentice Hall, New Jersey, 1991 at

[68] Sixth Malaysian Plan, op. cit., 1991 at p. 371.

[69] Jack C. Plano, et. al., op. cit., at p. 508.

[70] Ibid.

[71] Sixth Malaysian Plan, op. cit., 1991 at p. 371.

[72] Ibid.

[73] Thomas, et. al., op. cit., at p. 301.

[74] Id., at p. 302.

[75] Id., at p. 302f.

[76] See in Jack C. Plano, et. al, op. cit, at p. 509.

[77] Jack C. Plano, et. al, op. cit, at p. 443.

[78] Dr. Abdul Aziz bin Muhammad, Zakat and Rural Development in Malaysia, Berita Publishing, Kuala Lumpur, 1993, at p. 1.

[79] Mahmoud Abu- Saud, op. cit., at p. 193; see also M.A. Mannan, infra, at p. 220.

[80] Dr. Abdul Aziz bin Muhammad, op. cit., at p. 1.

[81] M.A. Manan, Islamic Economics, Theories and Practices, Sh. Muhammad Ashraf Publishers, Lahore, 1001 at p. 220.

[82] Ibid.

[83] Ibid.

[84] Ibid.

[85] Also included in ‘Zakatable properties’ are gold, silver, animal, agricultural products, etc.

[86] The annual savings is made after deducting one’s self and family maintenance and settlement of debts from one’s income or property.

[87] See al-Qur’an at Ch. 51:19.

[88] Ibd. Qudama, al-Mugghni, Cairo, 1348 AH Vol. 11 at p. 653f, as quoted in Abdur Rahman I.doi, Non-Muslims Under the Shari’ah, A.S. Noordeen, Kuala Lumpur, 1990 at p. 111.

[89] See in Abdur Rahman I.doi, loc. cit., at p. 110f.

[90] Al-Tabari, Tafsir al-Tabari, Vol. 2, Cairo (n.d.) at 159 at quoted in Id., at p. 111.

[91] See the words Fuqara and Masakin at 9:60 of the Holy Qur’an which do include any needy and destitute regardless of one’s religion.

[92] M.A. Mannan, op. cit., at p. 284.

[93] Saad Abdur Sattar al-Harran, Islamic Finance Partnership Finance, Pelanduk Puboications, Malaysia, 1993 at p. 121

[94] al-Qur’an, Ch. 2:177.

[95] M.A. Mannan, op. cit., at p. 220.

[96] Ibid.

[97] See al-Qur’an, Ch. 104:1-9.

[98] See Id., Ch. 51:19.

[99] El-Gouri, A.M., Riba, Islamic Law and Interest, (u.p.) Temple University, 1982 at p. 251ff.

[100] As quoted in Id., at p. 285.

[101] Ibid.

[102] See in M.A. Mannan, op. cit. at p. 284.

[103] Mahmoud Abu Saud, op. cit., at p. 40.

[104] A.A. Islahi, “Islamic Distribution Scheme, A Concise Statement” (ed.) Dr. F.R. Faridi, et.al, in Journal of Studies, Vol. 5, No. 1, 1993 at p. 109.

[105] See A.A. Islahi, op. cit., at p. 109.

[106] Dr. Abdul Aziz bin Muhammad, op. cit., at p. 1.

[107] M.A. Mannan, op. cit. at p. 284.

[108] A.A. Islahi, op. cit., at p. 109.

[109] El-Gourt, op. cit. at p. 251ff.

[110] A.A. Islahi, op. cit., at p. 109.

[111] See al-Qur’an, Ch. 9:60.

[112] See al-Qur’an, Ch. 9:60.

[113] Ibid.

[114] See Abdullah Yusuf Ali, (Eng, Trans.) The Holy Qur’an at n. 1320.

[115] See Saad Abdul Sattar al-Harran, op. cit., at p. 122.

[116] See M.A. Mannan, op. cit., at p. 284.

[117] See A.A. Islahi, op. cit., at p. 109.

[118] See Dr. Abdul Aziz bin Muhammad, op. cit., at p. 1.

[119] See al-Qur’an, Ch. 9:60.

[120] See Abdur Rahman, Idoi, op. cit., at p. 110f.

[121] See al-Qur’an, Ch. 9:60.

[122] See Abdullah Yusuf Ali, (

Eng.

Trans.), The Holy Qur’an, at n. 1320.

[123] Goods and properties here also include savings, products and so on.

[124] Besides the mandatory taxes imposed, the modern social security scheme also derives its fund from Contributory Benefits scheme which sources come from willful contributions made by employers and employees.

[125] Although, the fund of Zakat is from mandatory taxes determined by Allah (swt), it is also impliedly and simultaneously accepts willful contributions from the public.

[126] See Abdur Rahman Saad, op. cit. at p. 68.

[127] Dr. Abdul Aziz bin Muhammad, op. cit., at p.1.

[128] Abdur Rahman Saad, op. cit. at p. 70.

[129] Business license refers to any form of trade, see Id. at p. 68.

[130] Id. at p. 72.

[131] See generally Dr. Abdul Aziz bin Muhammad, op. cit, at p. 1f.

[132] See Chika Umar Aliyu, “Fiqh al-Muamalat and the Need for Islamic Economies: A Clarification of Misconception”, (ed.) Dr. F.R. Faridi, op. cit., at p. 94.

[133] See Mahmud Abu Saad, op. cit., at p. 193.

[134] The three-fold tradable test mentioned before this is to determine whether the goods or properties are Zakatable or not.

[135] See al-Qur'an Ch 9:60 where all the identified beneficiaries are non-contributory based.

[136] See Ibid.

[137] See Thomas, et. al., op. cit., at p. 303ff, Jack C. Plano, op. cit., at p. 508f and the Sixth Malaysia Plan, op. cit. at p. 380.

[138] Cited in al-Qardhawi, Fiqh al-Zakat, Vol. at p. 623.

[139] Mahmud Abu Saud, op. cit. at p. 173ff. The principal authorities in the Qur’an are at Ch. 9:60, 30:38, and 8:41.

[140] Note that the interpretation of the word Masakin is very broad.

[141] See al-Qur’an, Ch. 9:60 together with n. 1320 of Abdullah Yusof Ali, op. cit.

[142] See al-Qur’an, loc. cit.

[143] Ibid.

[144] See Abdur Rahman I. Doi, op. cit. at pp. 110ff, 117.

[145] Al-Baladhuri, Kutub al-Buldah, at p. 177 as cited in Ibid.

[146] See M.A. Mannan, op. cit. at p. 284.

[147] See A.A. Islahi, op. cit. at p. 109.

[148] See Dr. Abdul Aziz bin Muhammad, op. cit. at p. 1.

[149] See both categories in al-Qur’an, Ch. 9:60.

[150] See Abdullah Yusuf Ali, The Holy Qur’an at 9:60.

[151] See Faqir and Miskin in Bassam Sulaiman Abughosh, et. al., Glossary of Islamic Terminology, Taha Publishers Ltd. London, 1993.

[152] See Faqir and Miskin in Thomas Patrick Hughes, Dictionary of Islam, London, 1985.

[153] See Faqir in H.A.R. Gibb, et. al., Shorter Encyclopedia of Islam, Netherlands, 1974.

[154] See Miskin in M. Th Houtsma, et. al, (eds), The Encyclopedia of Islam, London, 1936.

[155] See ‘poor’ on Lesley Brown, (ed) The New Shorter Oxford English Dictionary, Clarendon Press, Oxford, 1993.

[156] See ‘needy’ in Ibid.

[157] See ‘poor’ in Noah Webster, Webster’s New Twentieth Century Dictionary of the English Language, Prentice Hall Press, New York, 1983.

[158] See ‘needy’ in Ibid.

[159] Ibn Qudamah Muwaffiq al-Din bin Qudamah al-Madiri, Al-Mughni Cairo, 1348 AH, Vol. 1 at p. 370 as cited in Abdur Rahman I. Doi, op. cit. at p. 111.

[160] al-Qur’an, Ch. 9:60.

[161] As mentioned in Abdur Rahman I. Doi, op. cit. at p. 110ff.

[162] See Abu Yusof, Kitabul Kharaj, at p. 144, as quoted in Abdur Rahman I. Doi, op. cit., at p. 111.

[163] Al-Baladhuri, op. cit., as quoted in loc. cit., at p. 117.

[164] Abu Yusuf, op. cit. at p. 144 as quoted in Abdur Rahman I. Doi, loc. cit.

[165] See in Abdur Rahman I. Doi, loc. cit.

[166] Id., at p. 110.

[167] Ibn. Qudama, op. cit., see in Id at p. 111.

[168] Al-Nawai, Al-Minhaj, as quoted in Abdur Rahman I. Doi, op. cit. at p. 118.

[169] Ramli Shamsuddin, Nihayatul Muhtaj ila Shahrul Minhaj, Bulaq, 1292 SH. Vol. 8 Sy 46, as quoted in Abdur Rahman I. Doi, loc. cit.

[170] See Abdur Rahman I. Doi, loc. cit. at p. 117.

[171] Id., at p. 110.

[172] See Thomas, et. al., op. cit. at p. 301.

[173] Al-Baladhuri, op. cit. as cited in Abdur Rahman I. Doi, op. cit. at p. 117.

[174] Sahia al-Bukhari (Trans.) Dr. Muhammad Muhsin Khan, Vol. 111, Kazi Publications, Lahore, 1983, No. 35 at p. 23.

[175] See Thomas, et.al., op. cit. at p. 302.

[176] See al-Qur’an at Ch. 51:19.

[177] See John L. Irwin, op. cit., at p. 80.

[178] Sahih Muslim as compiled in Al-Nawawi, Forty Hadith (Trans.

Eng.

) Ezzeddin Ibrahim, IIFSO, 1985, No. 36, at p 114.

[179] Ibid.

[180] Ramli, Shamsudin, op. cit., at p. 46, as quoted in Abdur Rahman I. Doi, op. cit. at p. 118.

[181] See Thomas, et. al., op. cit., at p. 303.

[182] See al-Qur’an, Ch. 9:60.

[183] Sahih al-Bukhari, op. cit., No. 34 at p. 23.

[184] Sahih al-Bukhari op.cit., No. 34 at p. 23.

[185] Id., No. 36 at p. 24.

[186] Ibid.

[187] Ramli Shamsuddin, op. cit. as cited in Abdur Rahmaan I. Doi, op. cit., at p. 118.

[188] See Thomas, et. al., op. cit., at p. 303f.

[189] See al-Qur’an, Ch. 9:60.

[190] al-Qur’an Ch.2:185.

[191] See the Holy Qur’an, at 49:11.

[192] See al-Qur’an

Ch.

9:60, the words Fuqara and Masakin refer to the ‘poor’ and the ‘needy’ in the society, regardless of their religion, race, sex, or color.

[193] See Mahmoud Abu Saud, op. cit.. at p. 38ff.

[194] See M.A. Mannan, op. cit. at p. 220.

Socio-economic Justice for All

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Friday, March 22, 2013

Social Security for all humanity? moden paradigm & the 'zakat' solution

AN OVERVIEW OF MODERN SOCIAL SECURITY SYSTEM

Means-Tested Benefits

Exemption from National Health Service

Sources of Modern Social Security Fund

Debating Issues on Modern Social Security System

Central Idea

,وفي أموالهم حق للسائل والمحروم-

After scrutinizing both systems above, we have seen the similarities and differences on both systems. Hence, for the purpose of further analysis between the two systems, let us make a comparative evaluation on the programs designed by both systems:

,وفي أموالهم حق للسائل والمحروم-

أنا وكافل اليتيم في الجنة هكذا..

Final Remarks

Summary in General

Aspirations

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