Using Waqf for Socio-Economic Development in Bangladesh: Potentials, Challenges, and Policy Directions

Abstract

Waqf an Islamic voluntary endowment has played significant roles in the socio-economic spheres of Muslim people all over the world since advent of Islam. Waqf as social institution became dormant in Muslim majority countries during colonial era as it could not function properly. Now Muslim scholars and policy makers have realized that revival of waqf as a strong social institution can act as catalyst in mobilization of funds in poor Muslim majority countries for financing social projects including much needed poverty alleviation. As the third largest Muslim majority country in the world, Bangladesh can explore waqf as an effective tool in social development such as poverty alleviation, employment generation, and improvement in education and health services. Though a large number of waqf exists in Bangladesh during over few centuries, they could not play effective roles following mismanagement and lack of proper structuring and innovation. With proper structuring and administration, waqf can be a boon for Bangladesh, a natural resource poor country blessed with 160 million people with 24% poor people. As Bangladesh lags behind key social development indicators in terms of poverty alleviation, inequality, education and health services, waqf may emerge as an effective tool in managing and financing social projects. Given this, the present paper aims to examine current status of waqf and its immense potentials for achieving Sustainable Development Goals (SDGs) in Bangladesh. The paper would also recommend policy for making waqf as a viable tool to finance social projects so as to bring sustainable benefits for both Muslim and non-Muslim members of the community.