Zakat Analysis

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BROAD PROBLEM AREA
Islam is a religion which guides us about all aspects of social life through Quran. Quran also give guidance about financial and economic structure. Figures point out that only 20% of the world's inhabitants live at a high level of comfort and luxury, whereas the vast majority of the people are facing poverty, ignorance, malnutrition, and several of them live on less than a dollar a day. The breach amongst the two lives is growing day after day. The spreading of that gap is supported by certain policies which disturb the income and wealth of both parties. The strange thing that such situations are originating in the same country, where there are areas / segments / groups harshly facing the displays of the low living standards, whereas others live in the similar country in entirely different life of luxury and wealth. All of this is due either to the procedures leading to poor distribution of income and wealth, or policies that would widen the income gap or both.
Zakat is mandatory on all Muslims men and women who own a specified limit of wealth, to pay each year a recommended share from capital or savings like farm produce, livestock, business, cash and valuable metals such as gold and silver. The Quran has mentioned Zakat more than eighty times. It is a duty from Allah similar to the duty of ‘Salat’.
The Zakat, if observed and performed as ordered by Allah, is capable of eliminating poverty and income inequality in the Muslim populations. As one of the pillars of Islam, Zakat can eradicate poverty and accomplish the equality in distribution of income among the fellows of the Muslim community.
It is adequate to note that the financial assets in banks for the rich Arabs, their amount is valued is more than 1190 ...

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Zakat can prove to be a real blessing if it is used for productive and constructive purposes to the permanent benefit of the poor. Then only will it encourage investment and savings. Distributing money among the poor and needy directly after taking them from the rich is not enough at all.
Zakat is the basis of our economy. If we make use of this Islamic institution in an intelligent way, do away with the old feudal system and wipe out corrupting, the country can be changed into a true welfare state.
TECHNIQUE
The data is collected through various articles and journals which are related to the Zakat and its impacts on economies of different countries.
TIME/BUDGET
This research is thoroughly based on reading articles and journals from different sources which are related to how Zakat impact the economy of a country and the research takes approx 2-3 weeks.

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