Declining social exclusion through faith based economic systems : An example from Islamic wealth redistribution practice

Abstract

This study aims to examine, how a faith-based economic system can be utilized in declining social marginalization through wealth redistribution. To explore the religious positions in this kind of social finance the world's major religions are referred. Especially, the Islamic way of wealth management focused in depth. The compulsory tax of ‘zakat’ and other optional and occasional charities propounded by the Islamic economic system is considered as a viable solution for poverty and inequity manifestations. The progress of this kind of activity within the Muslim minority of Sri Lanka is reflected in this study. This study adopted to a mixed method of qualitative and quantitative approach. And to achieve the hypothetical results used both printed and field data samples from various parts of Sri Lanka. The study found that the faith-based economic systems have positive contributions to mitigating pledges of the underprivileged households and sharing in the process of socio-economic development profile of the authority indirectly. And, it could be revealed that this kind of economic system plays a vital role in minimizing the gap between wealthy and needy people through equitable wealth distribution and redistribution practices and helps to uplift the social status of people with economic dilemmas. This study may accelerate the rate of zakat payers in the future, as well as it will be passionate for well-wishers and authorities who are interested in poverty-fighting measures. Further, the study will be useful for trustees and volunteer organizations which dedicate to eliminating social discrimination, and it can be able to encourage fraternal societies to practice similarly.