Can ancient charitable practices help solve modern poverty? This paper explores the potential of *waqf*, a traditional Islamic institution of perpetual charity, as a tool for poverty alleviation, especially in developing countries. It aims to refine poverty analysis and identify ways to enhance waqf's effectiveness in fostering socio-economic development in resource-scarce regions. This could be achieved through innovation financial systems and new islamic financial products. The study suggests a new approach to poverty analysis, emphasizing the importance of integrating waqf principles into development strategies. By examining the historical and theoretical foundations of waqf, the paper seeks to identify best practices and overcome challenges that hinder its effectiveness in addressing poverty. This research offers a valuable contribution to the ongoing discussion about sustainable development and social finance. The application of Islamic principles, such as waqf, can provide alternative models for poverty alleviation that are rooted in cultural heritage and community empowerment. Further exploration of these models is crucial for achieving inclusive and equitable development.
As a publication in the International Journal of Social Economics, this paper aligns with the journal's focus on exploring the intersection of social issues and economic principles. By examining the potential of Waqf in poverty alleviation, the study contributes to the journal's broader discussion of alternative economic models and their impact on social development. The paper builds upon existing literature in social economics, offering a novel perspective on leveraging traditional institutions for modern development challenges.