PDF INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE (I-iECONS 2021)

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INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE (I-iECONS 2021)

A Systematic Review on Waqf and Poverty Alleviation

Andi Triyawan

Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan Malaysia

Tel: +606 798 000 E-mail: [email protected]

Nursilah Ahmad

Asmaddy Haris

Noradilah Binti Abdul Hadi

Abstract

Waqf is one of the Islamic philantrophy instrument which has role in reducing poverty in this modern era. This study aims to analyze the extent of research that discusses waqf and the relationship to poverty reduction then the articles analyzed from 2015 - 2020. Guided by PRISMA (Preferred Reporting Items for Systematic reviews and Meta-Analyses) method this study analysing the existing literatures on Waqf and Poverty Alleviation. 25 appropriate articles were derived from Scopus and Proquest database in doing the review.

Keywords: Waqf; Poverty alleviation; model; Institution

1. Introduction

A systematic review is a literature review usually carried out by a group of experienced professionals which addresses clearly stated aims and/or research questions. Traditionally, systematic reviews examined the effectiveness of a policy intervention but more recently they have looked at wider issues such as how and why an

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intervention works, its feasibility, appropriacy and cost effectiveness. The aim is to synthesise research findings from a large number of different studies on a particular intervention or issue which can then potentially be used to inform policy and practice in the field investigated (Ridley, 2012).

On the one hand, SLR is a method of making sense of large bodies of information, and a means of contributing to the answers to questions about what works and what does not, and many other types of questin to. It also a method of mapping out areas of uncertainty, and identifying where little or no relevant research has been done, but where new studies are needed. System reviews are often used to test just a single The fundamental aim of a Systematic Literature Review (SLR) is to collect and evaluate the obtainable exploration related to the research question, consequently collecting unbiased outcomes that can be analyzed and continued. SLR is a laborious procedural review of enquiry results. The aim is to combine the prevailing works on the theme and to help constructing indication based path for experts involved in the part of study (Kitchenham, 2004). SLR is a type of research which can identify or address new questions related a subject and can provide concluding vital practical implications. For this study, Systematic Literature Review has been used to find out the existing literature related to waqf and also to identify the effect of waqf in poverty alleviation. The searching period is 2015 to 2020.

To address the research questions related to Waqf and its effect in poverty reduction, a systematic review of the peer-reviewed literature was conducted. The systematic literature review was done in line with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA, see Figure 1). To increase the merit of literature review, the literature was searched by querying Clarivate Analytics Scopus and Proquest database by using a carefully designed search string. The title, keywords or abstract of a paper was searched by using the search string-

“Waqf*” AND “Poverty Alleviation*”. The searching period was from 2015 to 2020.

Using this search string, 119 published articles were collected. Among those, 72 research papers were excluded for irrelevancy and duplicity. Remaining 58 research papers were screened by title, abstract and keywords. After assessing full text articles, 47 research papers were selected for eligibility. With proper reasons, 10 papers were excluded and finally, 25 research papers were selected for including in qualitative synthesis.

2. Theoretical Framework of Waqf

In the term sharia Waqf is a kind of giving which is carried out by holding (possession) the origin, then making the benefits for the Ummah. Moreover, Waqf fund are not inherited, sold, gifted, pawned and leased. While the way to use it is to use it according to the purpose from waqif. According to Imam Syafi'i and Ahmad bin Hambal, waqf is the release of the property represented from the possession of waqif, after the waqf procedure is complete (Kasdi, 2019). Waqif may not do anything to the waqf property, such as the treatment of the owner by transferring his ownership to another, either by exchange or not. If wakif dies, the Waqf assets cannot be inherited.

On the one hand, Waqf is defined as the legal act of waqif to separate and / or surrender part of his property to be used forever or for a certain period in accordance with his interests for the purpose of worship and / or general welfare according to sharia. The Fatwa Commission of the Indonesian Ulema Council said that Waqf is the legal act of a person or group of people or legal entities that separates part of their property for the purpose of worship or other public purposes in accordance with Islamic teachings and waqf objects are all objects, whether movable or immovable, which have a non-disposable endurance and are of value according to Islamic teachings

Waqf as one of the Islamic fiscal instruments that have existed since the early of Islam. From the historical facts showed that waqf has played various important roles in developing various social, economic, educational and cultural activities (Mohd Thas Thaker et al., 2018). Waqf has an effective role in building the community, in order to reduce dependence on government funding. Waqf is proven to be a social security instrument in community empowerment especially in Poverty alleviation.

Generally, Waqf has multiplayer effect for ummah. The multiplier effect is to measure the extent of the impact of an economic variable on the economy as a whole. A good economic variable is one that has a broad multiplier effect in the economy, for example investment, taxes, and other economic variables including zakat and waqf in the Islamic economic system (Rahmat, Z.B and Marlina, L 2020). A good multiplier effect is that it must have a value greater than one. So that if these variables change, it will be seen how much influence it has in the economy .

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Furthermore, Allah SWT explains in the Qur’an chapter Al Baqarah verse 261 that the income spent in the way of Allah (fii sabilillah), including one of which is waqf as an instrument in Islam as an instrument of community empowerment, the it will has a multiplier effect in the economy like a seed growing seven heads and each one hundred seeds (Lasmana, 2016).

Moreover, in the economic practical level, the multiplier effect of this verse is not only from the aspect of reward in the hereafter but also has an economic impact. The mechanism of the waqf multiplier effect can be explained as follows, namely cash waqf funds managed by nazir to be invested yields returns, where 10% is given to nazir as management costs and 90% of the proceeds are given to mauquf ‘alaih. The investment returns allocated for mauquf 'alaih can be divided into two sectors, namely the economic sector and the non-economic sector such as social or education. The proceeds of waqf given to the economic sector are in the form of revolving funds. The additional capital assistance provided can be used to increase production capacity, so that the production of goods and services in the economy will increase. Increasing state revenue will grow up development funds, this increase in development funds will return indirectly to an increase in waqif income.

Likewise, waqf which is managed and developed by Pesantren Gontor into business units that give a multiplayer effect on the community, especially in terms of poverty alleviation.

From Diagram above showed that Pesantren Gontor as Nazir waqf developed waqf by creating Business unit.

There was around 30 business unit being established and many poor people in charge in those units. They obtain an income in every months. By increasing an income they can got a welfare in their live to fulfill their family’s needs like foods, education, health.

3. Content Analysis

The systematic review process includes the keywords selection method, information sources, study selection, sectional search and eligibility criteria. In Figure 2.1, we can see that with the initial search of Scopus publications by using the previously mentioned search string, 50 published research papers were obtained. After that, the same search string was used to search Proquest publications where 69 research papers were identified. We can also that the searching period was limit to publish year 2015 to 2020 and additional 5 articles were identified through scanning the reference lists of publications recovered through the databases to ensure significant studies were not missed.

After collecting the research papers, the researcher carefully studied those papers for the purpose of excluding the irrelevant and duplicate papers. In this stage, 72 published articles were excluded. For the sectional search, the articles were screened by keywords and title and as a result, 58 research papers were screened for the next stage. At eligibility stage, 47 papers were set aside for full text assessment. At this stage, the researcher assessed full text of 47 research papers and excluded 10 articles with proper reasons. Finally, 25 research papers were selected for

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In the subsequent, descriptive statistics for sampled studies are provided. Table 2.1 shows the timeline for the sampled publications for the period of 2015-2020. In this study, the sample contains 25 publications; 8 of them (32%) were found from 2020 and 7 of them (28%) was found from 2019, 3 of them (12%) were found from 2018, 5 of them (20%) from 2017. Only 1 of them (4%) were found both 2015 and 2016. The number of literature increased from 2015 to 2020 shows the underlining significance of the survey related to Waqf and Poverty Alleviation. It also shows the concentration and concern of researchers in the subject.

Table 2.1 Number of Publications by Year

Year Publication Count

2015 1

2016 1

2017 5

2018 3

2019 7

2020 8

Total 25

Source: Scopus and Proquest

We can analyze from the development of research on waqf in table 2.1, it can be seen that an increase in the number of studies after 2015 was as much as 90% of the sample. So, it seems that research interest in waqf is increasing rapidly. On the other hand, the impact of the crisis in many countries has made waqf a solution to the problem of poverty.

Figure 2.2: A word cloud with keywords, abstracts and titles (25 sample papers)

A word cloud (see Figure 2.2) with keywords, abstracts and titles in the 25 sample papers was created using website Wordcloud.com which reflected the major subjects related to Waqf. Figure 2.2 identified the major areas

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and subjects in association with Waqf. The 25 articles in the sample were published in different indexed journals.

Table 2.2 (see Appendix) ranks the citations of top-ten references by Scopus and Proquest citation count. Here, the author considered citation count only according to the references of Scopus and Proquest. Cross-checking the citation ranks with Google Scholars’ numbers revealed different results (generally higher in Google Scholars’).

However, for avoiding self-citation and for reliability, only Scopus and Proquest numbers are reported. For the purpose of constructing visualization network of the occurrences of terms in those 25 selected articles, VOS viewer software was used. In the terms network shown in Figure 2.3, the intensity of the lines that connect the nodes represents the intensity of the relationships of the most frequent terms in the articles in the sample. In this network, the words like waqf, cash waqf, poverty alleviation, waqf intitution, islamic microfinance, financial institution, waqf land, islamic endowment, higher education, muslim society and Human Development are interconnected to each other.

Figure 2.3: VOSviewer-Network Visualization of the Occurrences of terms

4. Findings

The 25 selected articles were carefully assessed to categorize the research methods, research period, samples and determinants used in those articles (See Table 2.3 in Appendix). There are several studies have been identified that some researchs are done on single country such as Malaysia, Indonesia, Nigeria, Bangladesh, Somalia (Ahmad, 2015; Diniyya, 2019; Gundogdu, 2019; Hasan et al., 2019; Hassanain, 2014; Hydara, 2020; Mukhitdinova &

Khadzhaev, 2020; Muneer & Khan, 2019; Abdiwali Jama Salad, 2018). From the literature review, it can be seen that different researchers used different research methods while investigating waqf and poverty alleviation. Some studies are Qualitative resarch that used content analysis method such as Ghazali et al., 2021), Ihsan et al (2016), Sulaiman & Alhaji Zakari (2019), Haneef (2018), Kachkar (2017), Khan (2015), Mikail et al (2017), Mukhitdinova

& Khadzhaev (2020), Zakaria et al (2013). Several researchs proposed a model (Bin & Anwar, 2018; Che Mohd Salleh et al., 2020; Kachkar, 2017; Laallam et al., 2020) another one used system dynamic model (Dian Masyita et al., 2005).

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370 5. Conclusion

The main objective of this study on is to conduct a systematic literature review Waqf and Poverty Alleviation.

The PRISMA method was used to achieve the objective using the Scopus and Google Schlolar for articles searching.

The results show that not much studies were being done on Waqf and Poverty alleviation. Huge potentials are available for future researcher to work in the area to narrow the gap and discover more findings.

Acknowledgements

The study would like to acknowledge the financial support of University of Darussalam Gontor for the Research Grant.

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