Poverty Alleviation: An Islamic Perspective

Abstract Poverty is a global problem and the phenomenon is alarming in the third world including the Muslim Countries (MCs). This paper analyses Islam's view on poverty based on its ideological norms and values. Poverty has been defined from an Islamic perspective that leads to two poverty levels and hence two poverty lines which are quite different from the conventional of concepts of poverty. The basic Islamic sources suggest that Islam dislikes poverty and it provides a conducive framework for alleviation of poverty. Three broad categories of poverty alleviation measures have been analysed. First, the positive measures which include income growth, functional distribution of income, and equal opportunities to all. Second, the preventive measures which are control of ownership and prevention of malpractices in economics and business that lead to income concentration. Third, corrective measures which include compulsory transfer payments, recommended transfer payments, and state responsibility. The positive measures are expected to lead to high level income and its equitable distribution, the preventive measures are expected to limit concentration of wealth, while the corrective measures are meant for correcting imbalances in the distribution of income and wealth, and to upgrade economic conditions of the worse‐off population in the society. If these measures are applied, the problem of poverty could be solved quite substantially. The paper concludes with some recommendations with respect to poverty alleviation in the context of MCs.