Article Sidebar

Submitted
December 14, 2023
Accepted
March 26, 2024
Published
March 27, 2024
Download
Full text PDF
Statistic
Read Counter : 179 Download : 107

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This study introduces a zakat-based model aimed at poverty reduction and enhancing food security in urban settings. Drawing upon the principles of Islamic social finance, the model integrates urban farming with the utilization of zakat, charity, and corporate social responsibility funds, offering sustainable financial avenues for disadvantaged individuals and social enterprises. The primary objective of this research is to design and pilot test a practical model that not only generates consistent financial income, but also bolsters food security and advances financial inclusion.
Methodology – This study reviews various models that have used Zakat funds for economic empowerment, conduct interviews, and hold focus group discussions. It proposes a zakat-based urban farming model for poverty alleviation and community empowerment using the theory of change. In collaboration with a leading Islamic bank in Malaysia, the model was pilot tested across selected residential communities in Malaysia.
Finding – The research findings demonstrated positive impacts both at the individual participant level and within the broader community. Serving as a replicable blueprint, this project envisions the transformation of urban spaces into productive landscapes, thereby ensuring sustainable livelihood, amplifying food security, and promoting financial inclusion.
Implication – Through this Zakat-based approach, the research underscores the profound impact of urban farming in catalyzing socio-economic change and advancing efforts towards poverty alleviation.
Originality – No previous research has introduced and pilot-tested Zakat-based urban farming solutions for Islamic financial institutions as a tool for Poverty Alleviation and financial inclusion

Keywords

Zakat urban farming Islamic social finance poverty alleviation community empowerment

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Salim, K., Abdul Hamid, B. ., Mahomed, Z. ., & Hassan, W. . (2024). Zakat-based urban farming: A tool for poverty alleviation, community empowerment, financial inclusion, and food security. Review of Islamic Social Finance and Entrepreneurship, 3(1), 1–19. https://doi.org/10.20885/RISFE.vol3.iss1.art1
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adnan, M.A. & Ajija, S.R. (2015). The effectiveness of Baitul Maal wat Tamwil in reducing poverty: The case of Indonesian Islamic microfinance institution. Humanomics, 31(2), 160-182. https://doi.org/10.1108/H-03-2012-0003
  2. Anwar, M. K., Ridlwan, A. A., & Laili, W. N. R. (2023). The role of Baitul Maal wat Tamwil in empowering MSMEs in Indonesia: A study of Indonesian Islamic microfinance institutions. International Journal of Professional Business Review, 8(4), e0913-e0913. https://doi.org/10.26668/businessreview/2023.v8i4.913
  3. Azman, N. H. N., Masron, T. A., & Ibrahim, H. (2021). The significance of Islamic social finance in stabilising income for micro-entrepreneurs during the Covid-19 outbreak. Journal of Islamic Monetary Economics and Finance, 7, 115-136. https://doi.org/10.21098/jimf.v7i0.1307
  4. Bahri, E. S., Ali, J., & Aslam, M. M. M. (2022). A bibliometric analysis of the conceptual model of asnaf entrepreneur Success. International Journal of Economics, Management and Accounting, 30(1), 225-251. https://doi.org/10.31436/ijema.v30i1.1012
  5. Cumbers, A., Shaw, D., Crossan, J., & McMaster, R. (2018). The work of community gardens: Reclaiming place for community in the city. Work, Employment and Society, 32(1), 133-149. https://doi.org/10.1177/0950017017695042
  6. Doyle, G. (2022). In the garden: Capacities that contribute to community groups establishing community gardens. International Journal of Urban Sustainable Development, 14(1), 15-32. https://doi.org/10.1080/19463138.2022.2045997
  7. Drobniak, A. (2012). The urban resilience–economic perspective. Journal of Economics and Management, 10, 5-20. https://www.ue.katowice.pl/fileadmin/_migrated/content_uploads/1_Drobniak_The_Urban_Resilience_%E2%80%93_Economic_Perspective.pdf
  8. Glover, T. D. (2021). Healthy garden plots? Harvesting stories of social connectedness from community gardens. International Journal of Environmental Research and Public Health, 18(11), 5747. https://doi.org/10.3390/ijerph18115747
  9. Farooq, S., Waqas, H. M., & Kunwal, N. (2019). Welfare impacts of microfinance on entrepreneurship and financial sustainability: A case study on Islamic and conventional micro financing. Pakistan Journal of Social Issues, 10. https://uog.edu.pk/downloads/journal/X/1.pdf
  10. Hashim, N., Mohamad, A., & Othman, A. (2020). The challenges encountered by zakat recipients entrepreneurs. International Journal of Zakat and Islamic Philanthropy, 2(1), 157-164. https://journal.zakatkedah.com.my/wp-content/uploads/2020/03/Vol2_1_16.pdf.
  11. Hassan, N. M. (2015). Do capital assistance programs by zakat institutions help the poor? Procedia Economics and Finance, 31, 551-562. https://doi.org/10.1016/S2212-5671(15)01201-0
  12. Hassan, N. M., & Rom, N. A. M. (2016). Mobile entrepreneur program by zakat institution: An exploratory study. The Social Sciences, 11, 7494-7497. https://docsdrive.com/?pdf=medwelljournals/sscience/2016/7494-7497.pdf
  13. Islam, M. S. (2021). Role of Islamic microfinance in women’s empowerment: Evidence from rural development scheme of Islami bank Bangladesh limited. ISRA International Journal of Islamic Finance, 13(1), 26-45. https://doi.org/10.1108/IJIF-11-2019-0174
  14. Jackson, E. T. (2013). Interrogating the theory of change: Evaluating impact investing where it matters most. Journal of sustainable finance & investment, 3(2), 95-110. https://doi.org/10.1080/20430795.2013.776257
  15. Joremi, L., Muda, R., & Kamaruddin, J. N. (2021). Enhancing financial management practices for zakat micro-entrepreneurs in the new normal through impact-focused framework: A conceptual Paper. Advances in Business Research International Journal, 7(1), 159-169. http://dx.doi.org/10.24191/abrij.v7i1.14303
  16. Khamis, M. R., Hashim, M. J., Arifin, N. A. M., Kamarudin, M. F., Radzi, F. M., & Rahman, A. A. (2021). Factors determining the success of ASNAF entrepreneurs through the ASNAF Entrepreneurship Program. Empirical Economics Letters. 20(8). 1327- 1338. https://oarep.usim.edu.my/jspui/bitstream/123456789/15365/1/Factors%20Determining%20the%20Success%20of%20ASNAF%20Entrepreneurs%20through%20the%20ASNAF%20Entrepreneurship%20Program.pdf
  17. Koomson, I., Villano, R. A., & Hadley, D. (2020). Effect of financial inclusion on poverty and vulnerability to poverty: Evidence using a multidimensional measure of financial inclusion. Social Indicators Research, 149(2), 613-639. https://doi.org/10.1007/s11205-019-02263-0
  18. Korth, M., Stewart, R., Van Rooyen, C., & De Wet, T. (2012). Microfinance: Development intervention or just another bank?. Journal of agrarian change, 12(4), 575-586. https://doi.org/10.1111/j.1471-0366.2012.00375.x
  19. Maîtrot, M., & Niño‐Zarazúa, M. (2017). Poverty and wellbeing impacts of microfinance: What do we know?. WIDER Working Paper 190. https://dx.doi.org/10.2139/ssrn.3076781
  20. Mathur, O. P. (2013). Urban poverty in Asia. Asian Development Bank. https://www.adb.org/sites/default/files/publication/59778/urban-poverty-asia.pdf.
  21. McGuire, L., Morris, S. L., & Pollard, T. M. (2022). Community gardening and wellbeing: The understandings of organisers and their implications for gardening for health. Health & Place, 75, 102773. https://doi.org/10.1016/j.healthplace.2022.102773
  22. Muggah, R. (2012). Researching the urban dilemma: Urbanization, poverty and violence. Igarapé Institute. https://igarape.org.br/en/researching-the-urban-dilemma-urbanization-poverty-and-violence/
  23. Murdad, R., Muhiddin, M., Osman, W. H., Tajidin, N. E., Haida, Z., Awang, A., & Jalloh, M. B. (2022). Ensuring urban food security in Malaysia during the Covid-19 pandemic—Is urban farming the answer? A review. Sustainability, 14(7), 4155. https://doi.org/10.3390/su14074155
  24. Nettle, C. (2016). Community gardening as social action. Routledge.
  25. Ngahdiman, I, N., Terano, R., Mohamed, Z., & Sharifuddin, J. (2017). Factors affecting urban dwellers to practice urban agriculture. International Journal of Advanced Research. 5, 1580-1587. http://dx.doi.org/10.21474/IJAR01/4872
  26. Nurzaman, M. S., Annisa, N., & Hendharto, R. G. (2017). Evaluating the productive-based zakat program of BAZNAS: Case study of Western Indonesia. Working Papers-Puskas Baznas, 1. https://doi.org/10.37706/ijaz.v2i1.17
  27. Rogerson, C. M. (1998). Urban agriculture and urban poverty alleviation: South African debates. Agrekon, 37(2), 171-188. https://ageconsearch.umn.edu/record/54788/files/05%20Rogerson%20-%20Junie%201998.pdf
  28. Rahman, M. M., Jafrullah, M., & Islam, A. T. (2008). Rural development scheme of Islami Bank Bangladesh Limited (IBBL): Assessment and challenges. International Journal of Economics, Management and Accounting, 16(2). https://doi.org/10.31436/ijema.v16i2.148
  29. Rosalina, H., & Bahri, E. S. (2022). Optimizing disbursement of zakat funds for asnaf entrepreneurs. ITQAN: Journal of Islamic Economics, Management, and Finance, 1(1), 1-7. https://doi.org/10.57053/itqan.v1i1.1
  30. Shiyuti, H. A., & Al-Habshi, S. M. (2018, November). An overview of asnaf entrepreneurship program by Lembaga Zakat Selangor, Malaysia. In 6th ASEAN Universities International Conference on Islamic Finance (AICIF), Manila, Philippines 14th & 15th November. https://dx.doi.org/10.2139/ssrn.3299107
  31. Sunan Ibn Majah 2198, Book 12, Hadith 62. https://sunnah.com/ibnmajah:2198
  32. Tacoli, C., McGranahan, G., & Satterthwaite, D. (2015). Urbanisation, rural-urban migration and urban poverty. London, UK: Human Settlements Group, International Institute for Environment and Development. https://www.iied.org/sites/default/files/pdfs/migrate/10725IIED.pdf
  33. Thornton, P. K., Schuetz, T., Förch, W., Cramer, L., Abreu, D., Vermeulen, S., & Campbell, B. M. (2017). Responding to global change: A theory of change approach to making agricultural research for development outcome-based. Agricultural Systems, 152, 145-153. https://doi.org/10.1016/j.agsy.2017.01.005
  34. United Nations Development Programme. (2017). Scaling up Islamic microfinance in Bangladesh through the private sector: Experience of Islami Bank Bangladesh Limited (IBBL). https://www.undp.org/publications/scaling-islamic-microfinance-bangladesh-through-private-sector-experience-islami-bank-bangladesh-limited-ibbl
  35. Verrinder, N. B., Zwane, K., Vaca, S., & Nixon, D. (2018). Evaluative tools in impact investing: Three case studies on the use of theories of change. African Evaluation Journal, 6(2), 1-9. https://doi.org/10.4102/aej.v6i2.340
  36. World Bank. (2014). Global financial development report 2014: Financial inclusion. World Bank Group. https://documents1.worldbank.org/curated/en/225251468330270218/pdf/Global-financial-development-report-2014-financial-inclusion.pdf
  37. Weijermars, B. (2014). Microfinance: The road to development. Wageningen University. https://edepot.wur.nl/300781
  38. Wulandari, P. (2019). Enhancing the role of Baitul Maal in giving Qardhul Hassan financing to the poor at the bottom of the economic pyramid: Case study of Baitul Maal wa Tamwil in Indonesia. Journal of Islamic Accounting and Business Research, 10(3), 382-391. https://doi.org/10.1108/JIABR-01-2017-0005
  39. Wulandari, P. & Kassim, S. (2016). Issues and challenges in financing the poor: Case of Baitul Maal Wa Tamwil in Indonesia. International Journal of Bank Marketing, 34(2), 216-234. https://doi.org/10.1108/IJBM-01-2015-0007
  40. Yaacob, A. C., Mohamed, S., Daut, A., Ismail, N., & Don, M. A. M. (2013). Zakat disbursement via capital assistance: A case study of Majlis Agama Islam Johor. Journal of Emerging Economies and Islamic Research, 1(2), 42-61. https://doi.org/10.24191/jeeir.v1i2.9121