Islamic Microfinance and Rehabilitation Program for the Slum and Floating Population by the Waqf Funds: A Proposal Based on Empirical Evidences for the Muslim Countries
The waqf is an Islamic terminology that denotes the “religious bequest for charity purposes.” The main objective of this paper is to present a model to initiate the Islamic Microfinance and rehabilitation program by using the waqf funds for the slum and floating population in the Muslim countries. This paper has been prepared by collecting both primary and secondary data. Primary data were collected from Bangladesh while the secondary data were collected from various national and international sources. This paper suggested that, in addition to zakah and sadaqah; the waqf fund can also be used to introduce the Islamic Microfinance for the slum people and to rehabilitate them because the number of slum population and urban poverty has been growing among the Muslim countries gradually. This model will be executed by founding an independent Waqf Management institution by the joint venture of the government of the respective country and the national as well as International Islamic agency such as the Islamic Development Bank (IDB). Moreover, this model will be implemented through the five stages, these are the revival and registration of the waqf estate, accumulation of fund, initiating the Islamic Microfinance, rehabilitation of the slum people, and forward linkage that may help the slum people to engage and make contribution to the society. Though this model has some shortcomings, it may be a road map for starting the Islamic Microfinance and rehabilitation program by using the waqf funds for the slum and floating population.
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