Need for Effective Mobilization, Institutionalization and Utilization of Philanthropy and Humanitarian Aid in OIC Countries

Abdul Ghafar Ismail, Salman Ahmed Shaikh


Muslim majority countries are by and large poorer than non-Muslim majority countries in general. Muslim population constitutes a quarter of the global population, but its share in the total global poor population remains higher than one-third of the total global poor population. Most of the Muslim majority countries have very low per capita incomes and national savings. This hampers the development of vibrant financial institutions and to kick-start economic growth. High incidence of poverty leads to weak financial development and low capacity of government to mobilize tax revenues. Thus, the poor countries with weak financial and public sector are vulnerable to remain in poverty trap. In this scenario, it is important to have resources flowing into the poor countries on non-commercial basis and which can provide the basic funds required to ensure saving human lives and providing basic education and health to the poor population. In this paper, we discuss the need for human centred economic development, both in goal setting as well as in policy making. We highlight the Islamic injunctions on pure altruism and how Islamic worldview and institutions can help in contributing towards effective mobilization, institutionalization and utilization of social savings and philanthropy for humanitarian assistance. We also look at the state of development assistance, aid and concessional debts in selected OIC countries. Finally, we discuss the role of Islamic social and redistributive institutions to effectively mobilize, institutionalize and utilize the social savings.


Philanthropy, Humanitarian Aid, Poverty, Zakāt, Waqf

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