Waqf has been among the most stable institutions in Islamic civilization, used in funding diverse services such as education, health care, social assistance, and public services and administration throughout Muslim societies. Despite this rich legacy, scholarship to date has primarily analyzed Waqf from legal, historical, and financial perspectives, with relatively little emphasis on the role of waqf as a form of governance and a tool for achieving sustainable public policy. This article conceptualizes Waqf as a tool for Islamic governance that can be leveraged to advance social justice, support conflict prevention processes, and achieve sustainable human development. Using a qualitative conceptual research design through an integrative review of literature, the study integrates Classical Islamic Political thought, maqasid al-Shariah, Institutional Governance theory, social capital theory, and Sustainable Development discourse into a multidimensional framework of analysis. This yields the Waqf Governance for Sustainable Development (WGSD) Framework. The study demonstrates how ethically governed waqf institutions can operationalize Islamic governance principles into demonstrable outcomes on human development through investments in such areas as education, health care, entrepreneurship, environment conservation, legal services, social security and community mediation. By reframing waqf from a philanthropic endeavor to a governance institution that complements existing states institutions, while addressing issues of social justice, equity, participation and public benefit, the article provides a new dimension to the waqf literature. The study concludes that reforming waqf governance, professionally managing it, leveraging new technologies and integrating waqf policy into broader public policy creates a potent mechanism for inclusive and sustainable development and lasting peace in Muslim societies.
Tag: maqasid al-shariah
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Integrating Cash Waqf with Microfinance for Sustainable Livelihood Development in Muslim Communities
Sustainable livelihood development is a major challenge facing many Muslim communities worldwide, particularly in developing countries where poverty and unemployment levels remain high. Microfinance is seen as one of the instruments used in poverty alleviation, but the method that involves lending money and earning profits (interest-based method) is facing criticisms based on Shara compliance issues. This paper proposes cash Waqf, an Islamic social finance instrument, to enhance the livelihoods options for vulnerable Muslims. As one form of Islamic endowment, cash Waqf is a flexible fund available for productive purposes and can be operated within the framework of Shara aims of wealth protection, social equity and reduction of poverty. Qualitative research is adopted in this study, focusing on doctrinal analysis of the literature on Islamic finance, along with empirical studies concerning Waqf and microfinance. This study analyzes the cases of cash Waqf in microfinance of Malaysia, Indonesia and Bangladesh in relation to operational modes, governance and the relevant Shara-compliant financing products such as qard asan, murabah and murbaah used within a Waqf-based financing mechanism. The study reveals that merging cash Waqf with microfinance could expand financial inclusion for the needy, and could strengthen the sustainability of micro-enterprises. Yet, certain operational challenges such as inadequate governance, absence of regulatory frameworks, and lack of transparency needs to be overcome. The study proposes a conceptual framework for integrating cash Waqf, Islamic microfinance and sustainable solutions, where the participation of stakeholders and provision of a supportive environment and capacity building activities are necessary. The study concludes that integrating cash Waqf and microfinance provides a sustainable approach for livelihood development of Muslim communities, offering a sustainable solution to overcome economic challenges and promote socio-solidarity for inclusive development. The paper advances the existing literature in Islamic social finance concerning the study of Waqf as a modern socio-economic development tool and provides some findings and recommendations to scale up Waqf-based microfinance to meet the SDGs particularly Poverty Reduction and Economic Growth.