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Towards Institutionalizing Zakah at Community Level

in Bangladesh: The “PARSHI” (Neighbourhood)
Model1
Dr. S. M. Ali Akkas
Email: akkas54@gmail.com, info@cdss.ingeniousbd.org
Web: www.cdss.ingeniousbd.org

1. Introduction
In a situation of poor response to the public management of Zakah fund after
enactment of Zakah Act, there should be a fresh look to the reasons why it is so and what
could be a new approach to organizing collection and disbursement of Zakah. To this
author, public management of Zakah could not gain adequate trust because of the nature
of the government and the payment of Zakah as per Zakah Act has been made voluntary.
Assuming that the present Zakah Act will continue to be with same characteristic, the
paper attempts to respond to the query in Section-1 why an initiative of the type of a pilot
scheme should be undertaken. Section-2 argues why current safety net programs can
exert very little effect on poverty alleviation initiative of the government and why a net
asset transfer mechanism needs to be put in place to effectively address the poverty issue.
Section-3 presents strengths of Zakah as an effective poverty alleviation tool. While
Section-4 deals with who should take the initiative, Section-5 illustrates how the program
should be approached. Section-6 tables a preliminary thought “PARSHI” – The
Neighbourhood Model and Section-7 provides a brief idea on how to attempt
institutionalisation of the PARSHI Model

2. Why Poverty is sustaining in Bangladesh?

2.1 Almost Non-functional Zakah Board in Bangladesh
Zakah collection by National Zakah Board has come down to few lakhs for the past
few years. Zakah administration at governmental level has virtually become
disfunctional. This reflects lack of confidence on the government machinery as regards
its eligibility of collecting and disbursing Zakah. The other most important factor for
undertaking private initiative of Zakah management is the persisting high percentage of
below poverty line population in spite of so-called successful interventions by NGOs.
This has become rather inevitable when the ultra poor could not yet been reached by the
traditional NGOs’ target group approaches. Following discussions throughout Section-2
summarises author’s recent policy research on the subject.2

1
The article was presented in a workshop “Institutionalising Zakah at Private Level” sponsored by Zakah
Forum as key-note paper.
2
Akkas, S. M. Ali (1999). Simulating Role of Zakah in Poverty Alleviation of Bangladesh under a
Dynamic Computable General Equilibrium Model, Policy Studies Series 1, Centre for Development
Studies and Services, Dhaka.

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2.2 Staggering Poverty Situation in Bangladesh

According to the Human Development Report 2004 Bangladesh has been ranked as
the second poorest ???? country of the world. About half of its population live below
poverty level in terms of per capita daily calorie intake. Poverty line defined accordingly
provides a worrisome picture of poverty situation in Bangladesh. Rural population below
poverty line is estimated to be 46% in 1993, which has declined to 40% in 1997. Below
poverty line urban population is reported to be 43.3% and 43.4% respectively during the
same period.
Rural Bangladesh
Of the total 98.77 million rural populations in 1999 (model generated), 5.2 million are
ultra poor representing 4.1%. Number of moderate poor is estimated to be 54.37 million
representing 42.7% of the rural population.3
Urban Area
Urban population is estimated to be 28.44 million in 1999 (model generated). Of this,
below poverty line urban population accounts 12.31 million. Among these huge urban
poor, number of ultra poor, very poor and moderate poor are accounted to 1.7 million, 4.1
million and 6.5 million representing respectively 6.1%, 14.5% and 22.7% of total urban
population.4

2.3 Inequality in the Distribution of Govt Transfer

The present outrage of poverty in Bangladesh is conditioned by size and growth of
population, distorted play of market mechanism, and less judicious allocation of
government transfer payment leading to a distribution mechanism which has built-in bias
to transfer resources from the poor to the rich. The study conducted by the present author
shows extremely an iniquitous distribution of government transfers depriving altogether
those household groups (landless and marginal farmers) who badly need it by any
consideration of priority. Landless and marginal farmers representing respectively 4%
and 26% of total household population get zero allocation of government transfer. On the
other hand, medium and high education household group representing 8% and 3% of
total household population appropriate respectively 34% and 38% i.e., 72% in total of
the government transfer payments effectuated in 1993, the base year of the model run.5

Inadequate Government Safety Net programs

Government safety net programs are often seasonal, poorly covered and aptly
regarded as least organised in terms of leakage. The important government safety net
programs are Food for Works (FFW), Food for Education (FFE), Vulnerable Group
Development (VGD) Program for disadvantaged women, and Test Relief (TR). Among
these programs FFW is the largest, but the fastest growing and second largest program

3
Akkas, S. M. Ali (1999). Simulating Role of Zakah in Poverty Alleviation of Bangladesh under a
Dynamic Computable General Equilibrium Model, Policy Studies Series 1, Centre for Development
Studies and Services Network, Dhaka.
4
Ibid
5
Ibid

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is the FFE. The author’s same study depicts extent and coverage of the safety net
interventions. It is evident that the highest level of delivery of these programs took place
in 1995-96 distributing 1078 thousand metric tons of wheat costing Tk. 13,970.9 million
and 70 thousand tons of rice valued Tk. 907.2 million. That means, food grains costing a
total of Tk. 14,878.1 million were distributed in 1995-96. It should be noted that the
safety net programs are based on donors’ humanitarian grants with high degree of
fluctuations. At the same time, it is hardly a net transfer mechanism since FFW, the
major component of the safety net programs, is given as wage to construct and repair
rural infrastructure.6

2.4 Income Inequality through Market Mechanism

Market mechanism, if allowed to work perfectly, is considered to be the most
efficient way of allocating/distributing income and resources among the economic agents.
Thus free-play of market mechanism, without any kind of planned intervention, would
likely to create poverty for those who fail to be in the marketplace for whatever reason.
One of the basic postulates of market mechanism is that resources flow to activities or
economic agents where these can be used most efficiently. Thus market mechanism, in its
pure sense, does not allow being compassionate to specially make provision for resources
to those who are considered to be less efficient. Hence, any program for the poor
designed purely with market character are unlikely to sustain. This is simply because the
programs in question do not admit that the poor first need to be fit for the marketplace
and this happens only when they have at their disposal a basic minimum asset/capital of
their own to start with. Saying simply that the poor are efficient and that is why they are
entitled to have their access to credit is denial of the aforementioned truth. This argument
is applicable to the poor irrespective of whether they are moderate poor or ultra poor.
Crippled, physically or intellectually, do not come within the purview of this argument
because they require, in any case, doles for their survival.
However, market
mechanism has nothing to
Fig-1: Income Inequality through Market
do with poverty except the Mechanism
poor receive something by
its trickle down effects [high education HH] 2%
24%
emanated from higher 16%
[med education HH] 6%
growth. Setting safety nets 8%
[low education HH]
for the poor is an out of the 5%
8%
market solution, which has [illiterate HH] 8%
been proved to be [non agriculture HH] 17%
27%
extremely insufficient in [large farmer HH] 10%
5%
taking care of poverty. 9%
[small farmer HH] 17%
Government transfer
[marginal farmer HH] 7%
mechanism, another out of 26%

the market intervention, [landless HH] 1%

4%
works heavily against the
0% 5% 10% 15% 20% 25% 30%
poor favouring more who Shares Hp Shares hhY
are in higher income
6
Ibid.

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echelons as has already been noticed in Appendix-1.

On the contrary, Zakah is an obligatory social security arrangement for making those fit
who are unfit as market player and also a security for survival of those who will never be
fit for the marketplace.

Fig-1 illustrates clearly the income inequalities prevailing in different categories of

households. Landless household group representing 4% of total population receives only
1% of total household income. Marginal farmer household group being 26% of total
population gets only 7% of total household income. On the other hand, high education
household group representing 2% of total population receives only 24% of total
household income and medium education household group being 6% of total population
gets 16% of total household income. Thus below poverty line rural household population
consisting of landless, marginal and small farmers being 47% of total population receive
only 17% of total household income. On the other hand, high and medium education
household constituting 8% of total population receive 40% of total household income.
Income Inequalities created in the market and by intervention of government transfer
payment are pervasive. More pervasive is the role of government transfer payment than
in the marketplace.7

2.5 Marginal Success of NGOs in Poverty Alleviation

NGOs’ role is generally applauded in their effort to ameliorating poverty situation in
Bangladesh. 363 NGOs, whose statistics are available, have in their command 5,275,454
members receiving cumulative disbursement of loan of Tk. 35,279 million as of June
1997. NGOs, recently been termed as micro-finance institutions, are providing loans
without collateral to target group people who were otherwise not considered to be eligible
for bank loans. Recovery rates of loan money stand over 90% in most of the cases. There
are also government-run poverty alleviation programs providing similar as well as variant
kind of services to that of the NGOs and their performance is nonetheless inferior. In
spite of that target group approach faces challenges at least on three sustainability
grounds. These are:

Ultra poor are hardly covered by any of these target group approaches due to reasons
such as: (a) either the people targeted withdraw themselves considering the program
is not suitable to them; and/or, (b) the program organizers find them relatively too
risky to include on recovery grounds. That means, organizations’ sustainability
becomes increasingly threatened by more and more inclusion of ultra poor;

Graduation of the target group people, generally having no asset, has been
exceedingly arduous as they are put in a situation to survive on utilization of a very
small amount of loan hardly more than Tk. 5000/-. This puts borrowers’ sustainability
at stake; and,

The micro-finance institutions are mostly based on donors’ funds, which is not by
nature sustainable.

7
Ibid.

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With the above-mentioned three sustainability grounds, endorsing of “entitlement to a

basic minimum initial asset/capital” seems to be the sin-qua-non of any approach to
poverty alleviation. One can find here the real implication of introducing Zakah in the
economy as the most effective tool to eradicate poverty. Once Zakah creates this initial
asset base, only then one can expect smooth functioning of a financing scheme whatever
might be the size of loan.

2.6 Root Cause in the Failure of PAPs

It has already been mentioned that endorsement of “entitlement to basic minimum
initial asset/capital” is the sin-qua-non of any approach to poverty alleviation. Current
poverty alleviation programs lack this vital component in their program design. As a
result, all PAPs currently under application are bound to be unsustainable on grounds of
their donor dependence, inability to provide initial basic minimum ownership-capital and
less organizational sustainability due low capital productivity. Zakah creates such a
provision in an economy. It is a continuous transfer mechanism ensuring transfer of
resources from well-to-do to the poor and needy. Once this basic entitlement is granted,
access to credit adds a new dimension to graduation process of borrowers.

2.7 Need for Establishing a Reverse Asset Transfer Mechanism

Market system thus represents a transfer mechanism, which has built-in biases to
direct resources from low income to high-income groups. This trend has to be reversed.
Zakah can set such a reverse transfer mechanism.

3. Strength of Zakah as an Effective Poverty Alleviation Tool

Fig-2: Zakah Collectable in Bangladesh

160,000
110,517

140,000
100,919
91,777

3.1 Aggregate 120,000

83,751
In Million Tk.

76,080

Zakah
69,254

100,000
65,149
61,175

Receipts: Rural
57,516
53,187
49,698

80,000
47,213

and Urban
44,224

Fig-2 60,000

shows total 40,000

amount of 20,000
Zakah (Zakah 0
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

& Ushr) to be
collected in
Bangladesh Zakah Bangladesh
during the
period under

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simulation. An amount of Tk. 28,337 million may be collected as Zakah (including Ushr)
in the base year of the simulation, which stands at Tk. 47,213 million in 1998 and
becomes Tk.110,517 million in 2010.

3.2 How Much of the Poverty Gap Zakah Can Cover

Strength of Zakah as a poverty alleviation tool depends on how much of the
prevailing poverty gaps would be financed by Zakah proceeds. The strength can be
measured by portion of poverty gap that Zakah can finance at rural and urban areas. This
rural-urban segregation does not have any legal implication but it provides insights on the
effect of interventions pursued on regional basis. The information so received may help
preparing policies which will encourages resources to be transferred wherever these
would be of best use.

It is quite
evident from
the Fig-3 that F ig - 3 : P e r c e n t o f R u r a l P o v e r t y G a p
c o u ld b e c o v e r e d b y R u r a l Z a k a h
Zakah
collected
from rural 1 0 0 .0 %
area can 8 0 .0 %
cover only 6 0 .0 %
14.8% of the
4 0 .0 %
rural poverty
gap in 1997. 2 0 .0 %
The coverage 0 .0 %
rises over
97

98

99

00

01

02

03

04

05

time and
19

19

19

20

20

20

20

20

20

becomes
Z a k a h /P o v e r ty G a p :R u r a l
24.7% in
2005.

3.3 Urban Zakah as a share of Urban Poverty Gap

Per capita urban Zakah receipts covers 67% of the urban poverty gap. The coverage
increases up to 84.3% by the year 2005 as seen in Table-1 and Fig-4. A more elaborate
illustration may also be seen in Appendix-IX.

Table-1: Portion of Urban Poverty Gap can be covered from Zakah

Time 1997 1998 1999 2000 2001 2002 2003 2004 2005

Zakah/Poverty Gap 67.0% 71.4% 70.7% 74.1% 74.6% 75.8% 78.5% 81.3% 84.3%

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Source: Model generated data based on simulation run of the 26-Sector CGE model.

The extremely low coverage of poverty gap by rural Zakah receipts shows severity of rural
poverty compared to urban poverty and the limitation of any poverty alleviation strategy solely
based on rural Zakah. This warrants for mitigation strategy with tools beyond Zakah with the
necessary condition that the intervention package must be rural biased and ensures net transfer of
resources primarily from the rich to poor and equally from urban to rural.

3.4 Intervention by Zakah to Eradicate Rural Poverty

Since per capita Zakah availability of rural poor is extremely low (Tk. 365/- in 1997)
compared to rural poverty gap (Tk. 3783/- in 1997), policies are to be devised so that income as
well as Zakah proceeds increase over time. Under a situation of low Zakah receipts per capita,
phased intervention strategies need to be devised to cover different categories of the rural poor
until poverty is totally eradicated. The model simulates percentage distribution of rural ultra poor
(landless households) 4% and rural moderate poor (marginal farmer households 25-26%, and
small farmer households 16-17%) 41-43% over the period of simulation. Of course, if only the
rural ultra poor are selected first for disbursing whole amount of Zakah collected in rural area, per
capita Zakah receipt stands at Tk. 4594/-(1997) which is well above the rural per capita poverty
gap. That means, with an average family size of six members each family is likely to receive Tk.
27,384/- (1997). The amount is nonetheless a small amount to create an asset base for a poor
family.

Step 1: Mobilise all rural Zakah to finance ultra poor– Cut off poverty eradication time 2
years: First year to create their asset base and 2nd year to form working capital.

The model projects that 10.5 years would be required to cover all moderate poor (marginal
farmer households and small farmer households) to bring them above poverty line if each
moderate poor family is provided with Zakah equivalent to the amount planned to be given to an
ultra poor family. Since the per capita income of marginal farmer household population is double
the amount of the ultra poor and thereby the poverty gap being smaller time to be required to
cover this group would be half i.e., 5 (five) years instead of around 10 (ten) years. The period
may lessen further poverty gap with the small farmer households is considered. Per capita income
of small farmer households being four times higher than that of the landless/ultra poor and the
poverty gap with this household group being further narrowed the actual time to be required to
cover all the moderate poor may be even less than 4 (four) years. If creation of asset base and
provision of working capital to these household groups are considered as in line with the ultra
poor, at best 8 (eight) years would be required to bring this moderate poor groups out of poverty.
At this stage it is important to recall that poverty income was defined to include only the calorie
intake. However, after having been covered all the poverty poor under this definition, poverty
may be redefined to include other essentials in the commodity bundle in phases with increase of
income level of the common people.

Step 2: Mobilise all rural Zakah to finance marginal farmer households and then small farmer households (moderate
rural poor) to create their asset base. The second year to form their working capital. Cut off poverty
eradication time 10.5 years.

Step 3: Redefining poverty to include other essentials in the commodity bundle in phases with increase of income level
of the common people.

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3.5 Interventions by Zakah to Eradicate Urban Poverty

Urban poverty gap is
estimated to be Tk. 2,666 in Fig-4: Percent of Urban Poverty Gap could be
1997. That means both urban covered by Urban Zakah
ultra and very poor can be
covered by Zakah receipts 100.0%
each year. Per capita Zakah
receipts by urban ultra and 80.0%
very poor being Tk. 3,756 they 60.0%
can be brought under 40.0%
immediate intervention for
poverty alleviation. If so, per 20.0%
household annual Zakah 0.0%
receipts would be around Tk. 1997 1998 1999 2000 2001 2002 2003 2004 2005
22,536. In 1999 per capita
Zakah receipts by urban ultra Zakah/Poverty Gap:Urban
and very poor would be Tk
4,221 which would lead to a per household annual Zakah receipts of Tk. 25,326. The amount, if
provided at a time, should form an initial capital for running at least a subsistent level livelihood
possibly without requiring further help in the next year.

Table-2: Interventions to alleviate urban poverty

Time 1997 1998 1999 2000 2001 2002 2003 2004 2005
Per capita Zakah receipt by
ultra poor 12,686 13,957 14,255 15,382 15,950 16,669 17,744 18,881 20,076
Per capita Zakah receipt by
very poor 5,337 5,871 5,996 6,471 6,710 7,012 7,464 7,943 8,446
Per capita Zakah receipt by
ultra & very poor 3,756 4,133 4,221 4,555 4,723 4,935 5,254 5,591 5,945
Per capita Zakah receipt by
moderate poor 3,409 3,750 3,830 4,133 4,286 4,479 4,768 5,073 5,395
Source: Model generated data based on simulation run of the 26-Sector CGE model.

Assuming that ultra and very poor are covered in the first year of urban intervention
for poverty alleviation, all moderate urban poor can be covered immediately in the next 1
(one) year. That means, within two years time it would be possible to eradicate income
poverty (in terms of calorie intake). This will allow release of urban Zakah money from
the third year to make available for eradication of moderate poverty in rural Bangladesh.
This strategy, if pursued, will lessen the period of eradicating poverty of rural moderate
poor to 5 (five) years instead of 10.5 years.

4. Who Should Take the Initiative?

The first five verses of suratul Baqara tell clearly about who should take the initative
and why. The fifth verse categirically says about those who should take this initiative will
surely prosper. The translation of the verses read as follows:
“A.L.M.
This is the Book, in it is the guidance sure, without doubt, to those who fear God;
Who believe in Unseen, are steadfast in prayer, and spend out of what We have provided for them;

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And who believe in revelation sent to thee, and sent before thy time, and (in their hearts) have the assurance of the
Hereafter.
They are on (true) guidance, from their Lord, and it is these who will prosper.”

Whoever possesses the above qualities can join their hands in taking the initiative.
Not necessarily that initiators must be the persons with nisab level income only. Anybody
who wants to contribute (including Zakah) to the cause of Allah out of his or her income
can be member of the Parshi. The Zakah Fund administration can help organize the
Parshi.

5. How the Program should be approached

The program would be more than establishing charitable centres covering area of
population that forms neighbourhood. Basis of the program would be the notable sayings
of the Prophet (S.M) that “those who go to bed leaving their neighbours unfed are not
Muslims”. This will be an initiative, which will work for a hunger-free community able
to discharge their duty as vicegerents of God. The program components may include
Zakah assistance to eligible persons with a view to build enabling environment for them
so that they are able to lead a sustainable livelihood. Assistance, capacity building, socio-
economic and religious orientations for discharging the responsibility of vicegerency
would be some of the important functions of the program. It would be ideal if the
neighbourhood community can be based centring a mosque.

6. “PARSHI” – The Neighbourhood Model - An Overview

PARSHI is a Bengali word, which means neighbours. In Islam taking care of
neighbours has great religious importance. If family is the first tier of Islamic society then
neighbourhood should be the second tier. Normally PARSHI comprises approximately
forty families surrounding a Muslim. PARSHI can be used to mean in broader sense as
well. Then it would mean next locality, village, Union Parishad, Thana, District,
Division, Province or even a country. From the viewpoint of Zakah administration and its
management the wider meaning of PARSHI has great implication.
So far as program components are
Prayer
concerned, PARSHI may consist of the
following program objectives as outlined Assistance
in the adjacent figure. These program Rearing
objectives clearly spell out nature and PARSHI Raising
dimensions of the neighbourhood model. Resourcefulness
Along with establishing salat (prayer) and Society
zakah (assistance), caring (rearing, Savings
raising, resourcefulness), organisation Honesty
building for economic wellbeing (society, Humanism
savings), promoting human virtues Investment
(honesty, humanism) and undertaking income generation activities (i.e., investment) are
major activities of the model.

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6.1 Creation of a Zakah Forum

Zakah Forum may be formed with the persons intending to pay Zakah in each area of
Parshi operation. The Zakah payers should have the belief and understanding that
payment of Zakah individually does not correspond to the Quranic injunction of
establishing Zakah. Moreover, the Zakah payer should have the feeling that taking care of
economically unsound neighbours is a religious obligation. People with this mentality
forming a Zakah Forum can then think for institutionalizing Zakah at local level and can
start implementing Parshi Model.

6.2 Attempting Institutionalisation of the PARSHI Model – A Practical Way

Forward
Motivated by the spirit of discharging the responsibility of Muslim with the role of vicegerent
of Allah in this world one or few Zakah payers may select their own area preferably centring
mosque to start operation. Selecting an area around prospective Zakah payer(s)’ own habitation
forms necessary condition of PARSHI. In essence this is a self imposed responsibility motivated
by the world view of Islamic philosophy. Institutionalisation of the PARSHI should start first
on experimental basis. One or few areas may be selected preferably centring mosques where
Zakah payers (shahib-e-mal) want to organise themselves under the proposed Zakah Forum (ZF)
to collect and disburse Zakah as ordained in the Holy Quran. Wherever applicable mosque
committee may take this responsibility. An effective motivation that establishing Zakah is a
compulsory religious obligation should be the starting task. This should be followed by forming
Zakah Forum with the Memorandum of Understanding that ZF would be a comprehensive
platform taking care of specific socio-economic and religious activities which will build a model
for hunger-free Muslim community capable of discharging responsibility as vicegerent of God.

Institutionalizing collection and disbursement of Zakah at private level was

emphasized in a seminar organized by Zakah Forum in July 2000. In that seminar
“Parshi” (neighborhood model) – a concept of Islamic community development - was
also presented, discussed and agreed upon for implementation on a pilot scheme basis.
The present author was requested in that seminar to develop a detail modus operandi of
the “Parshi” concept to fit to the requirements of its implementation as a pilot scheme.
This paper is a response to that exigency bringing forward a workable design that can be
thought of for experimentation.
6.2.1 Who Should Take the Initiative?
Since institutionalisation of Zakah by the state authority under the present socio-
political context is not encouraging in Bangladesh, initiative should come from private
level who believe in and do have the commitment to the role as vicegerent of Allah.
Fortunately Zakah Forum has come up with that commitment. There are initiatives
particularly by the Masjid Council for Community Advancement (MCCA) which are
utilising Zakah money by undertaking some important social welfare activities. It has
based some areas of Manikgang and implementing a number of programs including
religious teaching, education, health and sanitation and income generating activities. This
program needs to be continuously observed and monitored and seen how this can bring

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Zakah into picture and made it an integral part of self-engineered local process of Islamic
community development.
The first five verses of Suratul Baqara tell clearly about who should take the
initiative and why. The fifth verse categorically says about persons taking initiative who
will surely prosper. The translation of the verses read as follows:

“A.L.M.
This is the Book, in it is the guidance sure, without doubt, to those who fear God;
Who believe in Unseen, are steadfast in prayer, and spend out of what We have
provided for them;
And who believe in revelation sent to thee, and sent before thy time, and (in their
hearts) have the assurance of the Hereafter.
They are on (true) guidance, from their Lord, and it is these who will prosper.”
Whoever possesses the above qualities can join their hands in taking the initiative.
Not necessarily that initiators must be the persons with nisab level income. Anybody who
wants to contribute (including Zakah) to the cause of Allah out of his or her income can
be member of the Zakah Forum.
Community development institution building falls under category of action research.
A research body should in any way be involved with the process. While MCCA may
continue to implement the program as it is, Centre for Development Studies and Services
(CDSS) may take the responsibility in taking care of implementation status of only those
initiatives undertaken on pilot basis. Accordingly, CDSS may be provided with monetary
supports for its technical inputs from Zakah Fund. Terms of Reference for the CDSS
should be carefully developed and agreed upon by the Zakah Forum, and CDSS may be
assigned the task as per TOR.

6.2.2 How the Program should be approached

The program would be more than establishing charitable centres covering area of
population that forms neighbourhood. Basis of the program would be the notable sayings
of the Prophet (S.M) that “those who go to bed leaving their neighbours unfed are not
Muslims”. This will be an initiative, which will work for a hunger-free community able
to discharge their duty as vicegerents of God. The program components may include
Zakah assistance to eligible persons with a view to build enabling environment for them
so that they are able to lead a sustainable livelihood. Assistance, capacity building, socio-
economic and religious orientations for discharging the responsibility as vicegerent
would be some of the important functions of the program. It would be ideal if the
neighbourhood community can be based centring a mosque.

6.2.3 “PARSHI” – The Neighbourhood Model

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An Overview
PARSHI is a Bengali word, which means neighbours. In Islam taking care of
neighbours has great religious importance. If family is the first tier of Islamic society then
neighbourhood should be the second tier. Normally PARSHI comprises approximately
forty families surrounding a Muslim. PARSHI can be used to mean in broader sense as
well. Then it would mean next locality, village, Union Parishad, Thana, District,
Division, Province or even a country. From the viewpoint of Zakah administration and its
management the wider meaning of PARSHI has great implication.

So far as program components are concerned, PARSHI may consist of the following
program objectives as outlined in Fig-5.

Abbreviating PARSHI/
The Program Objectives
Program Components:
Prayer 1. Establishing Salat

Assistance 2. Establishing Zakah

Rearing
PARSHI
Raising 3. Caring
Resourcefulness
Societal 4. Socioeconomic uplift
Savings
Honesty 5. Promotion of Human
Humanism Qualities & Human
Human Rights Rights
6. Income Generation
Investment through Growth
Promotion

These program objectives clearly spell out nature and dimensions of the
neighbourhood model. Along with establishing salat (prayer) and zakah (assistance),
caring (rearing, raising, resourcefulness), organisation building for economic wellbeing
(societal, savings), promoting human virtues (honesty, humanism) and undertaking
income generation activities (i.e., investment) are major activities of the model.

Institution of Zakah at Private Level – The Zakah Forum

There should be an institution of Zakah at private level. The persons intending to pay
Zakah at private level in an organized manner should run this. The Zakah payers should
have the belief and understanding that payment of Zakah individually does not
correspond to the Quranic injunction of establishing Zakah. Moreover, the Zakah payer
should have the feeling that taking care of economically unsound neighbors is a religious
obligation. People with this mind can then think for institutionalizing Zakah at private
level. Memorandum of Understanding of the institution should spell out that the
institution would be a comprehensive platform taking care of specific socio-economic
and religious activities which will build a model for hunger-free Muslim community

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capable of discharging responsibility as vicegerent of God. Fortunately, there are people

in Bangladesh who believe in this concept and have set up an institution of Zakah, which
is called Zakah Forum.

Formation of Local PARSHI

Institutionalisation of the Parshi should start first on experimental basis. Initially
interested Zakah payers (shahib-e-mal) may form local Parshi within a mosque
command area. Imam of the mosque or a Zakah payer may assume the leadership of the
Parshi. Each and every adult, male and female, should eventually be made member of the
Parshi. But initial members of Parshi would comprise with only of those who perform
salat five times a day. Praying five times a day shall be the necessary condition for being
a member of the Parshi. For the Muslims having income above nisab level i.e., sahib-e-
mal they can be members of the Parshi if the person subscribes the view that paying
Zakah is a religious obligation and the person is ready to pay Zakah. Parshi may be
divided into number of sub Parshis or Parshi Mahallas with one or few sahib-e-mal in
each Mahalla taking care of certain number of below poverty level households.
Therefore, Parshi Mahalla would be the lowest unit under Parshi taking care of all the
socio-religious and economic wellbeing of the Mahalla.

Conducting Baseline Survey of the Parshi

After formation of the Parshi a baseline survey will be conducted to identify and
assess Zakah payers and amount of Zakah to be collected along with people with below
nisab level income and their poverty gaps. The survey will be a comprehensive one to
collect complete demographic data of all households in the Parshi area, practice of their
religion, their education status, and their health and sanitation conditions. On the basis of
the baseline survey Parshi Mahallas would be formed phase by phase.

Orientation on the Role of Muslim as Vicegerent

During or after Jum’a congregation on each Friday, orientation program can be
organized to provide religious discourse on the necessity for establishing Salat and
Zakah, infaq fi sabilillah, and responsibility as vicegerent towards building Islamic
society (ummah) around a Muslim. This should be followed by motivational programs
with a view to introduce with Parshi concept, its necessity and modus operandi.

Making Mosque a Centre of all Parshi Affairs

None of the aspects of human life is beyond boundary of Islam - a concept to be
clarified to each member of the Parshi. Social, economic and cultural life of the Parshi
members must be organized in the light of the sayings of the Holy Quran. A true model
of Islamic community is to be built up within the Parshi area as a model case. The Parshi
should develop within a very short period time as a society, which is educated,
prosperous, hunger-free and peaceful in terms of social security, tranquility and cohesion.

Making Zakah a vehicle for Comprehensive Parshi Development Program

Mechanism of paying Zakah would be associated with a comprehensive Parshi
development program. This will help build up capital base of the below nisab level

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people so that they can come out of poverty quickly and can lead a prosperous economic
life helpful to carryout the role of vicegerent in a meaningful way.

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Zakah Board Activities

Program
Management
To be run by CDSS in
association with MCCA initially
for 3 years

PARSHI
Pilot Program 1

Other Activities Parshi

Parshi

Mosque

Parshi Parshi

Program Steps PARSHI Program

Components
Prayer 1. Establishing
Formation of Local PARSHI P
Salat
A Assistance 2. Establishing
Conducting Baseline Survey of Zakah
the Parshi Rearing
R Raising 3. Caring
Resourcefulness
Orientation on the Role of S Societal 4. Socioeconomic
Muslim as Vicegerent Savings uplift
H Honesty 5. Promotion of
Making Mosque a Centre of all Humanism Human Qualities
Parshi Affairs Human Rights
6. Income
Making Zakah a vehicle for Generation
comprehensive Parshi I Investment through Growth
Development Program Promotion

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7. Conclusion and Policy Recommendations

The foregoing analysis confirms that Zakah can be an effective tool for poverty alleviation in
Bangladesh. This presupposes readiness of the Bangladesh society to pay Zakah the way it has
been prescribed in the holy Quran. Islamic Foundation may undertake awareness-raising-program
demonstrating effectiveness of Zakah as a successful poverty alleviation tool. It can select few
villages for implementation of a pilot scheme based on Parshi Model concept. This is certainly a
preliminary concept and requires refinement, elaboration and giving concrete shape through
discussions. The practical process of refinement of the idea would be through lessons learnt from
field level application.

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