Islamic Economics Empowerment and its Role in Poverty Alleviation (A Study of Kano Metropolis)

This article is published by the Zamfara International Journal of Humanities.

Uzairu Kasim Ramadan *1 Surunbai Sani Usman *2

1, 2 Department of Islamic Studies

1, 2 Federal University, Dutsin Ma,

1   ukramadan@gmail.com 08036571774 2 ssothman99@gmail.com 07039762624

Abstract: This research examines the Islamic Economic Empowerment and its Role in Poverty alleviation, the aim and objectives of this paper is to find out how Islam as a religion identified ways to address the poverty problems in the society. The scope of the paper is the Kano metropolis, the significant the work will helps the government, stakeholders and individuals in tackling the menace of poverty among the people in Kano Metropolis. The methodology employed in conducting the paper was field works both primary and secondary sources were used. The role of Islamic Economic Empowerment was main focus and discuss in this paper, however, the research finding revealed that there are several ways responsible for fighting the poverty among peoples in Kano metropolis, the research further recommended government to properly employ the strategist laid down by the Islam in solving the problems of poverty in Kano metropolis.

Introduction

_Economic empowerment is among the factors that would contribute in reducing poverty among the Muslims, Islam urge the Muslim ummah to work hard for earning what they should rely on instead going in the street to ask somebody to help them. The Qur'an stated categorically the various ways of which a person will adopts to earn a living. Similarly the Qur'an stated historical evidence of the business and skills of Prophets of Allah. For example, Prophet Muhammad (S.A.W) was a trader and a rear of animals. Prophet Daud was an iron bender, and the Prophet Nuhu was a carpenter and also the Prophet Musa was a rear of animals. These are the typical examples of how Islam encourage for hardworking and self-reliance.

Objectives of the study

The aim of this paper is to investigate the Islamic Economic Empowerment and its role in poverty alleviation in Kano Metropolis. The specific objectives are to:

Find out the role of Islamic Economic Empowerment in poverty alleviation in Kano Metropolis.

Evaluate the rate at which the economic recession affects the economic activities of the people within Kano metropolis

Find out proper Islamic guidelines in regard of poverty alleviation. 

Evaluate the rate at which the state and stakeholders can help in uplifting the economic standard of the people of Kano metropolis.

 

Literature Review

 

Various research has been conducted in cause of this research. U.I Indabawa (2016) asserted that; there has been a significant

 

role played by endowment in Economic development.Indabawa stated that, among the ways of curtailing the poverty in the society include the creation of endowment, which will also help towards the economic development in the state and nation at large.

 

Another research by Kehinde (2012) titled “The Management of Waqf (Endowment) in Katsina State discussed the overview of Waqf in which its meaning, history origins, classification and its pillars were uncovered. He also examined endowment in Katsina state and how it is managed. The role of Zakah Commission and the problem it faced in Waqf management in Katsina were discussed.

 

Martins (2009) carried out a research titled “The Impact of poverty alleviation programmes on the informal sector in Kano Municipal Local Government Area. The researcher discussed poverty and the economy, causes of poverty in Nigeria, Poverty profile and poverty alleviation strategies. The research work explained how poverty causes a lots of social problems in Nigeria.

 

The Concept of Mudarabah

 

Mudarabah is distinct type of partnership, wherein one partner provides the capital to an entrepreneur (another partner) for investing in commercial initiatives, with the objectives of sharing profit from the commercial entity. Moreover, The word and meaning of Mudarabah was driven from the Quranic Verse of: “And others travel in the earth in quest of Allah‟s bounty... (Muzambil 20)

 

In this verse, the word of Mudarabah was used in the form of simple present (yadribuna) to mention that there are people who make their way seeking Allah‟s bounty, as Allah said in the other verse: …

 

Then when the prayer is finished, you may disperse through the earth, and seek the Bounty of Allah. (Suratul Juma'at 9)

 

In this way, we see that Mudarabah is one way of seeking Allah‟s bounty. In the Sunnah, Mudarbah was practiced in the time of the Prophet S.A.W by some of the companions and was approved by the Prophet (pbuh) as this Hadith reveals.

“Ibn Abbas (may Allah be pleased with him) reported that:

 

“When Abbas Ibn Abd al-Muttalib gave his property to someone for mudarabah, he stipulated conditions for his partner not to bring the capital onto the sea; and not to bring with him the capital crossing a valley; and not to buy livestock with the capital; and if his partner violates the conditions, he should guarantee the loss occurred

 

These conditions have been brought to the attention of Prophet Muhammad (peace be upon him) and he approved them”. On the bases of the above Verse and Hadith, Mudarabah becomes permissible and legitimate in Islamic law, which played and plays an important role in the economic and social welfare in the Islamic history.

 

Mudarabah is an ancient form of contract that refers to the pre-Prophetic period; this type of contract is between two or more parties on the bases that one part provides a capital (called Rabul Mal), and the other party provides effort( called Mudarib); the profit will be divided by the two parties in a predetermined ratio.

 

In terms of loss, all financial loss is borne by Rabul Mal, and the Mudarib loses his or her efforts.

 

This kind of partnership is considered a mercy from Allah, which emerged to fill the gap between material resource owners and non-material resource owners (skill or mind), and connect between them through useful and successful entrepreneur relationships. It is natural that Allah distributed different kinds of resources to different kinds of groups; that is no one in this world has all resources in terms of material, mental, technical etc. that fit all needs. Thus people are compulsorily in need to one another Allah says:

 

“Is it they who allocate the mercy of your Lord? We have allocated among them their livelihood in the worldly life, and have raised some of them over others in ranks, so that some of them may compulsorily be in charge to work for the other. And the mercy of your Lord is much better than what they accumulate”.

 

The implication of the verse is that entrepreneurship and partnership are social compulsory forms that increase the socio-economic activities.

Mudarabah comes ahead in the entrepreneur activities that connect between rich and poor. Mudarabah reduces poverty and promotes economic and social stability through the following points.

 

1.      Reduces the unemployment rate

2.      Promotes resource allocation and productivity

3.      Increases skills

 

4.      Promotes circulation

5.      Creates social integration of wealth

6.      Encourages   people   to   work   for   economic

independence

 

Mudarabah reduces unemployment rate, because by engaging in it, people without money- who are otherwise unemployed-will come into work by using their talents and skills to get in contract with the people having capital. There is need to enlighten the wealthiest among the people on the importance of Mudarabah and how it immensely contributed towards the massive reduction of unemployed youth in Kano metropolis and world at large. Thus, Mudarabah is an effective tool that promotes resource allocation and productivity. Mudarbah increases skills of the Mudarib by performing the daily activities, that will increase the general level of knowledge and skills in the society. Mudarabah promotes the economic circulation by investing huge amount of money on Mudarabah, which will be an income for the mudarib and other workers and suppliers in the community that will inject back in the economic circulation.

 

Mudarabah Opportunities in Kano

 

The country's recovering situation and rational stability in the recent years have attracted the eyes of many national and foreign investors to take the first-mover advantage in the country's virgin economic infrastructures.

 

The main vacant fields in which Mudarabah is more applicable in Kano include:

1.                  Agricultural Sector

2.                  Animal and livestock production

3.                  Fish farming

 

4.                  Business and Entrepreneurship advancement Mudarabah can play a significant role in fighting against poverty in Kano Metropolis, because people who are financially poor have still opportunities to work in the production of different kinds of agricultural products in Mudarabah based financing programs. There are higher opportunities in Mudarabah financing in Kano Metropolis due to the vast mudarabah applicable in different fields; in livestock, fishing, and entrepreneurship in one side.

 

From the foregoing, it is clear that mudarabah is a highly effective and practical system of business dealings, which can rapidly promote economic wellbeing by generating enormous wealth and eradicating abject poverty, owing to job opportunities and economic activities that are likely to evolve as a result of such investment of wealth.

 

However, the major challenge here is the issue of Amanah (trustworthiness) among the parties. This is because, the party conducting the business may conceal the actual profit gained in a particular period; but in the contrary when there is loss, the party will anxiously reveal it because, it does want to bear burden of the consequence.

 

Therefore, in order to find a lasting solution to this problem; Taqwa must be highly rooted in the minds of particularly the parties conducting the business. This is because lack of the fear of Allah results in the total destruction of the business, as Allah (SWT) will not bless it; thus it remains dormant.

 

Entrepreneur/Skills Acquisition and its Role in Poverty Alleviation

 

Skill acquisition is the process of enlarging people's choice for a long and healthy life, knowledge acquisition, for a decent standard of living so as to expatiate that it is freedom from economic, social and education and access and opportunities for being creative and productive; and enjoying personal self-respect and guaranteed human rights. There are things people can do to impact their generation, they can acquire skill.

 

Skill acquisition is not left for the poor and middle class people. Even career women or professional woman and man as well as the youth can acquire these skills to make them versatile and self-sustaining and independent.

 

Asante, E. (1998) said skill acquisition means releasing human energy, it means providing an opportunity for people to make the maximum contribution to their own development and to the self-sustaining development of their communities. The skills acquisition which is a vital instrument of empowerment that seeks to provide the people with different skills, vocation and entrepreneurial ability like bead making, hat making, sewing, fashion designing, shoe making and\ making workers interested in their job and at the same perspective improving on their existing skills.

 

The Purpose of Entrepreneur/Skills Acquisition Entrepreneurship education as posited by Paul (2005) and Nwalado (2012) structured the following as the main purpose of Entrepreneurship education:

 

i.            To reduce the high rate of poverty, insecurity and violence.

 

ii.           To create job and employment opportunities for its citizenry.

 

iii.          To reduce the rural-urban migration

 

iv.          To provide the young graduates adequate training that will enable them to be creative and innovative in identifying great business opportunities.

v.           To serve as catalyst for economic growth and development.

 

vi.          To provide the young graduates with enough training skills and support that will enable them to establish a career in small and medium size business.

 

vii.          To create smooth transition from tradition to modern industrial economy.

 

Challenges Facing Skills Acquisition and Youth Empowerment in Kano

 

Entrepreneurship education has received a boost as a source of job creation, empowerment for the unemployed and the underemployed in a globalized economic challenge. For Kano, the following reasons hinder skills acquisition.

 

i.           Lack of entrepreneurial teachers, materials and equipment.

 

ii.          Non-inclusion of entrepreneurship practical programme in the school curricula.

 

iii.          Poor societal attitude to technical and vocational education development.

 

iv.          Inadequate facilities and modern equipment for teaching and learning.

 

v.          Inadequate parental care.

 

Kano State Government should concentrate, encourage and establish skills acquisition centres which deal with young graduate, unemployment and young ones to be self-employed. Because government cannot employ everyone. However, it should introduce the programme that will assist school leavers and the unemployed to acquire the necessary skills that will help them to be self employed and to be entrepreneurs of their own businesses.

 

It is sad to mention that in the Metropolis, many Youths who are considered as the working population do not have positive attitude towards becoming entrepreneurs, rather they are prepared to remain consumers instead of producers. My visit to Sani Abacha Youth Centre reveals that very few youths went to them for training towards becoming entrepreneurs. According the interview with Directorate of Youth Development (DYD) they also show that very few graduates attend the vocational training. Therefore, they suggested that intensive enlightenment programme is needed in the Metropolis in order to prepare and strengthened the minds of youth to become entrepreneurs in spirit and practice. Any society that gives entrepreneurship preference will definitely have rapid industrialization and modernization. Likewise, their economy will be accelerated; a lot of jobs will be created which in turn pave way for increase in productivity and income generation.

 

Mustapha, (2013), suggested that entrepreneurship plays a very vital role in the development of the economy in the following areas:

 

a.      Reduction of unemployment

b.      Reduction in rural urban migration

c.       Raising the standard of living

d.     Couraging capital formation

e.      Skills  acquisition  and  increase  in  the  level  of productivity.

 

Stakeholders in this respect means wealthy individuals in the metropolis as well as other important personalities. The fact is that government alone cannot solve the dilemma of poverty in Metropolis or at the national level, rather joint effort is needed between the two segments of the society. Modernization and industrialization that become vehicles for poverty reduction should be encouraged by authorities through creating an-enabling environment for the investors. Capacity building, financial support and joint venture between individual businessmen and government are the major areas of government intervention towards entrepreneurship.

 

Islamic Injunctions towards Skills acquisition

 

Islam encourage people to acquire skills because the Prophets and Messengers of Allah embrace the skills in many instances. Thus, they left behind the great legacy to the yet unborn generation. Allah says:

 

And we certainly gave Dawood from Us bounty. (We said). “O mountains, repeat (Our) praises with him, and the birds (as well)” And we made pliable for him iron. (Saba'i 9)

And the Prophet Musa (AS) who engaged in the rearing animals for eight years. “Indeed, I wish to wed you one of these, my two daughters, on (the condition) that you serve me for eight years, but if you complete ten, it will be (as a favor) from you (Qasas 27)

A Hadith of Prophet (SAW) said:

 

“Allah did not send any prophet but shepherded sheep. His companion asked him, did you do the same? The prophet replied “Yes, I used shepherd sheep of the people of mecca for same Qirats.

 

Hard Work and Endurance

 

Obviously, it is highly imperative for parents and guardians to inculcate the spirit of hard work and endurance in the minds of the youths ranging from embracing hand work, farming, and business activities. This could be seen in the way Prophets and Messengers of Allah embraced hard work and specialized in some economic and technical works. Thus, they left behind a great legacy for the yet unborn enerations, the value of hard work. For instance prophet Dawud (AS) specialized in using iron the by making a lot of products including bulletproof helmet. (Al-Anbiyai: 80) Saba‟ 10-11).

 

So is Prophet Musa (AS) who engaged in rearing of animals for the period of eight years as a dowry to marry a woman.

 

“Indeed, I wish to wed you one of these, my two daughters, on [the condition] that you serve me for eight years, but if you complete ten, it will be [as a favour] from you. And I do not wish to put you in difficulty. You will find me, if Allah wills, from among the righteous (Qasas 27).

 

In another verse Allah the Most High says;

 

In a Prophetic Tradition; The Prophet Muhammad (S.A.W) said;

 

It is better for one to cut fire wood and carry it on his back than to go round asking peoples. (Sahih Bukhari: Kitabul Iman)

In the light of the above, it is to understood that whatever is designed as a mean of opportunities could be valueless in the absence of hard work and endurance. This is because, whenever a society only thinks of enjoyment without working towards it, it will turn to be an unrealistic expectation that yields no result.

 

So also Western pattern of doing things is being heavily imported into our cultural norms and values, which becomes a threat to the continuity of our beautiful pattern of attaining economic independence and prosperity.

 

Findings

 

The findings of the paper stated that, there is a great role play by Islamic Economic Empowerment in alleviating Poverty among the Muslim Ummah in Kano State. Furthermore, the paper suggested the various ways of which if applied could bring positive change towards the poverty alleviation. These ways include; Mudaraba, Skills acquisition/Entrepreneur, Hard work and endurance. These ways will positively change the life system of the society as well as reduce the grudges in the heart of the poor.

 

Recommendation

 

The following are the recommendations based on the findings of the study:-

 

i.        There is need for the government to vigorously pursue a sustained youth centre development strategy capable of tackling the structural causes of youth poverty such as endemic corruption, unemployment, illiteracy, rural migration etc.

 

ii.     Government should formally support and standardize the management of zakat collection among Kano Muslims, which is part of the sources of alleviating poverty in Islam. This would be a source of help to the government of the day to achieve her goal of poverty eradication in the state.

 

iii.    Government should create an enlightenment programme that will educate especially rich Muslims in Kano, who are mostly not well informed about the importance of Waqf and its Socio-economic development in the state.

 

iv.     There is need to broaden the opportunities available to the poor youth within and outside Kano Metropolis, and ensure that every one of them has access to basic needs of life, food, portable water, clothing shelter, basic education etc.

 

v.      Government must make serious efforts towards creating job opportunities as it is the major component in taking poverty out of the society. This is because, no sector one will check without them complaining about lack of staff or manpower, which generally affects the efficiency of the government agencies.

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