An empirical study on the influence of Islamic values in poverty alleviation

Purpose
This study aims to shed some light on the roles of Islamic values and principles in encouraging households to enhance their livelihood and, therefore, alleviate their poverty.

Design/methodology/approach
A structured and tested socio-economic questionnaire instrument was randomly distributed to 102 randomly selected households from the state of Penang in Malaysia. Data collected were analysed using one-way ANOVA tests.

Findings
The results indicated that poverty can be fought with commitment, faith and guided principles based on faith. While the self-reliance degree remains indispensable in the development progress of individuals, communities and societies, dependence on others leads to disappointment and failure.

Research limitations/implications
This study has its own limitations. First, the study did not consider the gender factor in the analysis. Second, only cash transfer (role of the government) was considered in the study, although other roles such as taxation and social services are probably equally important. Third, the discussion did not pay attention to how the proposed three constructs (Micro, Meso and Macro) are related. Lastly, as proposed by an anonymous reviewer, the present study did not take in consideration how Islamic philosophy perceives the share of responsibility to the three proposed constructs. Does Islam give similar weight to each of them?

Practical implications
<i>Sadakah</i> and <i>Waqf</i> should be integrated with the financial systems to halt any misuse of the financial assistance offered to the poor.

Social implications
Government assistance remains indispensable through providing the necessities of comfort and well-being to the hardcore poor such as housing, health-care facilities and cash transfer.

Originality/value
This study enhances the understanding of how religious adherence and Islamic values influence households’ well-being and paves the way for further research on this crucial issue.