Exploring Cash Waqf as a Viable Approach to Reducing Poverty: A Study of Human Development in the Republic of Guinea.

                                                                      Abstract 

This study examined the usage of cash among underprivileged people in rural Guinea to help with educational poverty. Many people no longer have access to sufficient healthcare, housing or education due to government deficiencies. Additionally ineffective have been the efforts made to assist students by the nonprofit and commercial sectors. Guinea is not an exception to the general trend of poverty in Africa, which deprives people of basic requirements and causes extreme hardship. Several problems that have an impact on the growth of the Waqf institution in the Republic of Guinea and then suggest important corrective actions. These include the establishment of a specialized supervising eternity and capable management bodies to guarantee the seamless and efficient administration of the institution in the nation, as well as the adoption of general codified legislation that thoroughly regulates Waqf activities in the nation. The results are intended to help Waqf institutions and government create plans for reducing poverty that include enhancing the country’s rate of literacy and supporting education.

Keywords: Education, Financial Institutions, Guinea, Poverty, Reduction, Waqf Cash.

INTRODUCTION

Poverty is a multifaceted problem that includes issues with access to opportunities, healthcare, educational opportunities, and financial resources in addition to low income. According to Banerjee, Benabou, and Mookherjee (2006), it is a complicated social and economic phenomenon that is sustained by historical legacies, institutional flaws, and inequality in Africa as a whole. Access to needs such as clean water, food, health care, and education is severely restricted in Guinea due to poverty. Many people experience low infrastructure, high unemployment rates, and little economic possibilities, especially in rural areas. The reason for this predicament can be traced back to elated degrees of corruption, inconsideration, and insufficient dedication to initiatives aimed at reducing poverty.

Furthermore, the private sector’s attempts to combat poverty have not substantially improved the situation because they frequently fall short of reaching the most marginalized groups or just target certain areas of poverty without implementing a comprehensive plan. The private sector’s emphasis on profit margins may restrict the scope of these programs, keeping them from having the necessary broad influence. According to McKague, Wheeler, and Karnani (2015), a lack of integration between the public, business, and civil society sectors frequently causes poverty alleviation initiatives to fail. While civil society organizations may speak up for the underprivileged, they are powerless to bring about long lasting change on their own without the assistance of governments and corporations.

Furthermore, efforts to reform education in Guinea have long sought to yield socioeconomic benefits, nevertheless, the policies that underpin these reforms have frequently been unduly expansive and have not provided the resources required for effective execution (Diallo, 2019). The government has stressed that it should not be the only entity in charge of education, including funding research (Guinea Higher Education Governance).

Awqaf institutions present a special chance to support long term development in addition to giving the impoverished access to current necessities. Awqaf can be used to create institutions and support infrastructure that lower operating costs, enhance corporate governance, and support business. Waqf,, for example, can finance market regulatory agencies, information bureaus, and accounting services that help communities or society as a whole ( Elasrag, 2017). According to Oladapo, Norma, Mustafa, and Gapur (2017), the strategy for Awaf institutions calls for supporting small and medium sized businesses, advancing education, and offering healthcare to the impoverished and orphans.

Problem Statement

Like many other African countries, Guinea continues to have an extremely high rate of poverty. As of  2018/19, 43.7% of people in the country were living below the federal poverty line, indicating that poverty is still a serious problem despite some progress in measures of it. Inflation, geographical differences, and growing global commodity prices all exacerbate this issue by disproportionately affecting the poor and widening the gaps in human capital. People in poverty no longer have access to fundamental requirements of life such as education, housing, and decent health. As per University World News (2014), the administration has insisted that they are not the only ones in charge of the education industry. Because of this, the government pays very little for education, which  shows how indifferent it is to the need of pupils. Although the private sector is a viable option, its emphasis on profitability and high borrowing cost make it costly for reducing poverty in the education sector (Werker & Ahmed, 2008).

The purpose of this study is to investigate how much Guinea’s waqf institutions have aided in the human development of the underprivileged and orphans. It looks into whether these organizations are helping impacted people by funding their postsecondary education and by giving elementary school students free meals, uniforms, and textbooks in an effort to improve learning outcomes.

Research Objectives

1. To look at how the waqf institution in the Republic of Guinea improves education for the underprivileged. 
2. To look into the methods employed to reduce poverty through the cash waqf endowment.
3. To offer advice on how to make waqf programs that deal with poverty and better education.

LITERATURE REVIEW 

The subject of this research has been the subject of numerous worthwhile and pertinent investigations. A few scholarly publications, and papers  have been helpful for this theme, although others are just marginally related to the topic under investigation.

Poverty Alleviation

According to Singleton (2003), poverty reduction in developing nations mostly refers to direct interventions that fix infrastructure shortcomings and provide missing facilities. These interventions are frequently funded by loans from non governmental organizations. As health and education improved, the building of infrastructure became less of the primary emphasis of attempts to reduce poverty in the 1970s (Domfeh & Bawole, 2009). However, Fukuda Parr (2006) contends that establishing social justice, promoting education and opposing prejudice are all important components of poverty alleviation measures that go beyond economic growth and redistribution.

A change in the methods used to reduce poverty resulted from the global financial crisis and recession as well as the disparate economic experience in East Asia, Latin American, South Asia, and Sub Saharan Africa ( World Bank, 2000). World Bank (2000) states that while enabling more market driving solutions, there was a greater emphasis on enhancing economic management. In 1990, the World Bank (2000) outlined a dual strategy that included providing basic health and education services to the impoverished while also fostering labor intensive growth through economic openness and infrastructural investment. This was covered in the World Development Report. Nevertheless, the efficacy of these techniques for reducing poverty was hampered by the overemphasis on economic growth and the inadequate treatment of socio-political issues  (World Bank, 2000).

Three primary groups comprise poverty alleviation efforts in Guinea: Government, Private Sector and Non Government Organisation (NGO) initiatives. Initiatives such as “Investing in Education”  “Promoting Agriculture Development” and “ Improving Government and Anti Corruption Measure” have been brought forth by the Guinean government. Furthermore, through long term development planning, the government concentrates on structural adjustment measures targeted at lowering poverty among the impoverished.

Cash Waqf for Poverty Alleviation

A cash waqf has a specified goal, just like other waqf systems. The capital is invested using Islamic financial practices and the gains from these investments are used to fulfill the designated waqf purposes (Bulut & Korkut, 2016). Muslims have long utilized waqf institutions for a variety of ways to spread the cash waqf model throughout the empire, having first established it in the fifteenth century (Saiti, Dembele, & Bulut, 2021). Despite the widespread use of cash waqf throughout the Ottoman Empire, Cizskca (2000) pointed out that the nature of credit transactions made it possible to completely eradicate RIBA. Academics have disagreed about whether cash waqf goes against Islamic law’s  ban on interest and the waqf custom of immovable property. Despite religious objections, a number of Islamic academics and practitioners acknowledge the practical and economic necessity of cash waqf and support its use (Ibrahim, Amir & Masron, 2013).

Additionally, cash waqf endorsements were deemed lawful by Ottoman courts, who also regarded borrower return as profit as opposed to interest. As old waqf based credit systems were superseded by contemporary financial institutions, the use of cash waqf decreased over time. Waqf has nevertheless attracted attention once more as a socioeconomic development strategy (Sait & Lim, 2006). Waqf founders ( waqif) provide monies to trustees “mitawallo”, who then invest them in profitable ventures. According to Beik and Arsyianti (2013), cash waqf is a feasible method of reducing poverty because the gains from these investments are utilized to find initiatives and businesses that help regular people.

Waqf, especially cash waqf, is promoted as a viable and successful strategy to combat poverty in numerous studies. Saifuddin et al. (2014), for instance, looked at cash waqf’s capacity to reduce poverty in Malaysia and discovered that it has been effective in doing so, particularly in contemporary times. Amuda and Embi (2013) examined the utilization of waqf properties, state funds, and sadaqat ( charitable giving) in the context of Organization of Islamic Cooperation OIC, nations in order to increase employment and decrease poverty. To further evaluate how cash waqf could assist small and medium sized business SMEs as an alternate strategy for reducing poverty in developing nations, Masyita et al. (2005) created a cash waqf model.Cash waqf plays a vital part in lowering poverty in nations like Guinea when it is managed well. It may mobilize community resources for the greater good and give underprivileged folks financial support.

 Methodology

As an exploratory research, it looks at how it affects schooling through document analysis. Furthermore, some individuals were subjected to in depth interviews: the first group were waqf institution officials, and the third was a graduate student from higher education institutions in Guinea. We used a phenomenological technique to analyze the transcriptions of the interviews.

Discussion of Key Findings

This section addresses the research objectives mentioned in the introduction and explores the study’s major findings. This study’s main goals were to investigate the potential applications of the waqf institution in particular, monetary waqf for human development and poverty alleviation in Guinea. The accomplishment of these goals which emphasize the contribution of waqf to improving socioeconomic development and education has been made possible by the literature evaluation and research formulation.

The waqf system has been instrumental in providing basic services to the state at free cost throughout Islamic history. A substantial decrease in government spending is necessary for the waqf system to be successfully modernized, especially in sectors like social welfare, healthcare and education. Additionally, this would help to reduce or eliminate riba (interest) in financial transactions as well as the public sector’s shrinking. According to Cengiz Toraman et al., the money waqf model had a significant impact on the continuation of the Ottoman social structure, particularly in a culture where gifts and endowments provided all funding for necessities like welfare, health care and education, 

Islahi (1992) highlighted the necessity of creating a worldwide Muslim foundation that could supply public benefit on a bigger scale in order to internationalize the voluntary institution of waqf. This could help with problems that the Muslimm world faces, such as illness, illiteracy and technological shortcoming. Monzer Kahf (1998) promoted the role of waqf in socioeconomic development by emphasizing how it may establish and support a third sector that is apart from both the public authority based and the privately profit driven sectors. In addition to providing defense and public utility services in some situations, this third sector may concentrate on important fields like social welfare, health and education.

The potential of cash waqf to change current institutional frameworks was expounded upon by Chowdhury et al. (2011). Cash waqf has the potential to improve institutional performance by enabling a more dynamic and efficient management structure that is in conformity with Shariah regulations. Moreover, improved networking and coordination across various sectors could result from the modernisation of waqf institutions, enhancing overall socioeconomic outcomes.According to Tahir (2010), the creation of a waqf bank might have a major positive impact on society if there is enough political will, especially in terms of financial inclusion and the reduction of poverty.

In conclusion, waqf, especially in Guinea, has the potential to be a revolutionary instrument in contemporary socioeconomic systems. Waqf might be a key player in reducing poverty, advancing social welfare, and boosting education with modernisation and international cooperation, as demonstrated by its past effectiveness in supplying necessities without putting undue strain on the government. The creation of waqf banks and other uses of the untapped potential of waqf institutions might significantly improve Guinea’s socioeconomic conditions and help the most disadvantaged citizens.

                                                           CONCLUSION                    

Based on the previous discussion, the overall conclusions of this study suggest that there exists a feasible framework for waqf instruments that can be successfully employed to finance education in Guinea. To find the best model for advancing the nation’s socio economic growth, more research on the cash waqf system is required.

According to the study’s findings, cash offers a workable and long term way to reduce poverty and advance human development in Guinea. Cash waqf has the ability to support government efforts in meeting the short and long term requirement of underprivileged populations by offering a consistent and dependable source of money for basic services. Modern waqf institutions, strong governance, and engaged community participation can position waqf Africa in Guinea as a major in poverty reduction and long term contributor to the financial, economic and social development of the nation.

It is imperative to concentrate on developing waqf institutions, raising public understanding of the advantages of waqf and encouraging cooperation within Guinea and with foreign partners in order to fully realize this potential.by doing this, the waqf system can develop into a crucial component of the country’s plans for overall development and reducing poverty.

                                                                  References

1. Ab. Aziz, M. R., Johari, F., & Yusof, M. A. (2013, September). CASH WAQF MODELS FOR FINANCING IN EDUCATION. reseachgate, 835-842. https://www.researchgate.net/profile/Muhammad-Ridhwan-Ab-Aziz/publication/257811881_CASH_WAQF_MODELS_FOR_FINANCING_IN_EDUCATION/links/02e7e525e104b90593000000/CASH-WAQF-MODELS-FOR-FINANCING-IN-EDUCATION.pdf.
2. Aldeen, K. N., Ratih, I. S., & Herianingrum, S. (2020, August 28). Contemporary Issues on Cash Waqf: A Review of the Literature. International Journal of Islamic Economics and Finance, 3(2), 119-144. https://doi.org/10.18196/ijief.3236
3. Banerjee, A. V., Bénabou, R., & Mookherjee, D. (2006). Understanding Poverty EDITED. Oxford University Press. http://digamoo.free.fr/banerjee2006.pdf
4. Cobbinah, P. B., Black, R., & Thwaites, R. (2013, August 9). Dynamics of Poverty in Developing Countries: Review of Poverty Reduction Approaches. Journal of Sustainable Development;, 6(9), 25-35. doi:10.5539/jsd.v6n9p25
5. Diallo, M. S. (2017, December). BASIC EDUCATION REFORMS IN GUINEA: CONTEXT AND CONCERNS. West East Journal of Social Sciences, 8(3), 283-296. https://www.researchgate.net/profile/Mamadou-Saliou-Diallo-2/publication/338579643_Basic_Education_Reforms_in_Guinea_Context_and_Concerns/links/658c4c1d2468df72d3dd532a/Basic-Education-Reforms-in-Guinea-Context-and-Concerns.pdf
6. Elasrag, H. (2017, July 1). Towards a new role of the institution of waqf. Journal Equilibrium, 2(1), 19-34. https://mpra.ub.uni-muenchen.de/80513/1/MPRA_paper_80513.pdf
7. HIGHER EDUCATION GOVERNANCE IN GUINEA. (n.d.). World Bank Group. https://documents1.worldbank.org/curated/ru/156411497589131009/pdf/116325-WP-GovernanceNoteweb-PUBLIC.pdf
8. Oladapo, H. B., Norma, S. M., Mustafa, O. M., & Gapur, O. (2017, August 10). Cash Waqf as an Alternative Panacea to Poverty Alleviation An Overview of Human Development in Nigeria. TUJISE Turkish Journal Of Islamic Economics, 4(2), 83-90. DOI: 10.26414/tujise.2017.4.2.83-90
9. Saiti, B., Dembele, A., & Bulut, M. (2021). The global cash waqf: a tool against poverty in Muslim countries. reseachgate, 13(3), 277-294. https://www.researchgate.net/profile/Burhan-Uluyol/publication/347524614_The_Global_Cash_Waqf_A_Tool_Against_Poverty_in_Muslim_Countries/links/6022bb3c458515893992ef88/The-Global-Cash-Waqf-A-Tool-Against-Poverty-in-Muslim-Countries.pdf
10. Saiti, B., Salad, A. J., & Bulut, M. (2019). The Role of Cash Waqf in Poverty Reduction: A Multi-country Case Study Buerhan Saiti, Abdiwali Jama. google scholar, 21-34. https://doi.org/10.1007/978-3-030-10907-3_3
11. Sano, M. A. A., & Kassim, S. (2021). Waqf governance in the Republic of Guinea: legal framework, issues, challenges and way forward. Scholarly Journal, 13(2), 94-210. DOI:10.1108/IJIF-03-2020-0064
12. Werker, E., & Ahmed, F. Z. (2008, April 1). What Do Nongovernmental Organizations Do? journal of economic perspectives,, 22(2), 73-92. https://pubs.aeaweb.org/doi/pdf/10.1257%2Fjep.22.2.73
13. Wheeler, M. K., Hamann, R., Hall, M., & Ell, E. W. G. (2015). ReseachGate. An integrated approach to poverty alleviation: roles of the private sector, government and civil society., 129-145. https://www.researchgate.net/profile/Kevin-Mckague/publication/274195413_An_Integrated_Approach_to_Poverty_Alleviation/links/5518c16d0cf2f7d80a3e318d/An-Integrated-Approach-to-Poverty-Alleviation.pdf