Elimination of poverty by Islamic value based cooperative model
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 29 January 2020
Issue publication date: 17 April 2020
Abstract
Purpose
The purpose of this paper examines how the challenge of poverty can be effectively addressed by broadly adopting Islamic value based cooperative model (IVCM) where the members come together to overcome and eventually eradicate the curse of poverty for themselves and for their future generations.
Design/methodology/approach
The elimination of poverty by adopting IVCM and its impact on the cooperative members, as well as its effects on major macroeconomic variables, are examined on the theoretical ground by using the general equilibrium model of demand and supply-side variables.
Findings
The IVCM for the elimination of poverty reveals that the poverty gap can be eliminated through resource mobilization, as well as by creating new and additional income, wealth and resources through collaborative efforts. Through cooperative organizations based on Islamic values and principles, eventually, the entire poverty pool can enjoy income-earning opportunities through employment or self-employment, as well as promoting skills and education, leading to breaking the vicious cycle of poverty.
Originality/value
Cooperatives in general and Islamic cooperatives, in particular, are not new in the discourse about poverty. Indeed, there are cooperatives throughout the Muslim world and beyond and there are many studies related to cooperatives and their role in development. However, this might be the first theoretical contribution that models the role and impact of cooperatives in a macroeconomic framework, and thus, advances the scientific repertoire of knowledge and understanding about the related discourse by developing a rigorous mathematical model.
Keywords
Acknowledgements
This research was supported by the academic research fund of Yong In University in 2018.
Citation
Selim, M. and Farooq, M.O. (2020), "Elimination of poverty by Islamic value based cooperative model", Journal of Islamic Accounting and Business Research, Vol. 11 No. 5, pp. 1121-1143. https://doi.org/10.1108/JIABR-08-2018-0125
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited