Insaniah (humanistic) economics of waqf: From IR 4.0 to a human-centered tawhidic society 5.0

  • Mohd Yaziz Bin Mohd Isa Universiti Tun Abdul Razak
  • Zulkifflee Bin Mohamed
Keywords: waqf, insaniah, humanistic economics, societal benefits and shariah compliant

Abstract

This paper provides an account of the commonalities of theoretical foundations of insaniah (humanistic) economics that is prevailing in transactions of waqf (an Islamic endowment). The paper establishes the integration of the two theoretical foundations, the insaniah (humanistic) economics in the waqf transactions. Taking into accounts waqf is about preserving the usufruct (the right-of-use) of specified asset(s) by donor (waqif) so that it may benefit the society in the long run (AAOIFI, 2018), and conceptually ownership of a waqf belongs to Allah S.W.T., alone; the paper proposes a trajectory from an existing secular economics of societal transformation society 5.0 (a super smart society). The society 5.0 itself is a societal transformation plan from IR 4.0 and emphasizes on social implications, ethics and social acceptance by all stakeholders. In view of the substantial role of waqf as one of Islamic economic rites, a human-centred tawhidic society 5.0 is the common purpose in all the transformational phases. In the society 5.0, movements toward incorporating new elements from both secular and Islamic economics into existing technologies and knowledge, thereafter, designing and creating previously unknown business services are gaining visibility. Taking into accounts the scope of waqf transactions has expanded concurrently on the verge of the human-centered society 5.0 from traditional platforms due to the socio-economic demands, it becomes increasingly necessary the human-centered tawhidic-based principles is the foundation for economic activities for the ummah. Innovation is increasingly important as a driving force for economy activities, without a doubt. Underneath all this is “digitized information”, in the future, innovative information-based technologies such as Internet of Things (IOT), artificial intelligence (AI), and robotics are expected to generate new added value.

Author Biography

Mohd Yaziz Bin Mohd Isa, Universiti Tun Abdul Razak
Assistant Professor Dr.

References

AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) (2018), Waqf Governance G3/2018 Version 8.4 pp. 1-52

Biancone Paolo Pietro & Radwan Maha (2014). Shariah Compliant “Possibility for Italian SMEs”. European Journal of Islamic Finance, No. 1, December

Biancone Paolo Pietro & Radwan Maha (2016). European Companies: Evaluation for Sharia Compliance “Opportunities & Challenges”. European Journal of Islamic Finance, No. 5, June

Biancone Paolo Pietro & Radwan Maha (2018). Social Finance and Unconventional Financing Alternatives: An Overview. European Journal of Islamic Finance, No. 10, August

Biancone Paolo Pietro & Radwan Maha (2019). Social Finance and l Financing Social Enterprises: An Islamic Finance Prospective. European Journal of Islamic Finance, Special Issue Islamic and Social Finance

Binance (2019) Kegunaan Blockchain; Kegiatan Amal; https://www.biance.vision/id/blockhain/blockchain-use-cases-charity

Budiman, MochammadArif (2014), “The Significance of WAQF for Economic Development”. Jurnal Equilibrium, Vol. 2, No.1, June, pp. 19-34. https://ssrn.com/abstract=2995473

Burleson, Deeanna (2015), An unexpected journey into “humanistic” economic models https://www.saybrook.edu/blog/2015/01/16/unexpected-journey-humanistic-economic-models/

Cizakca, Murat (2016), “Waqf: Its basic operational structure.” https://infocus.wief.org

Fish R.P, Dean L. Alkire, A. Joubert Previte, N. Robertson & M.S Rosenbaum (2018). Design for service inclusion: creating inclusive service systems by 2050. Journal of Service Management, 29(5) pp. 834-858

Gohl, C. (2018), Weltethos for Business: Building Shared Ground for a Better World. Humanist Management Journal, Volume 3, Issue 2, pp. 161-186

Granados, Luis (2015), A Humanistic Economics. Louis Kelso and the Hope of Broadened Ownership https://thehumanist.com/magazine/march-april-2015/features/a-humanist-economics

Hilmiyah, Nurul, Possumah, Bayu Taufiq & Mohd Shafiai Muhammad Hakimi (2017), “Tawhidic based economy system: a preliminary conception”, Al-Iqtishad Journal IlmuEkonomi Syariah (Journal of Islamic Economics), Volume 9

Ismail Yusof &Mdh. SarifSuhaimi (2018), “The role of tawhidic paradigm in the transformation of management system”

KabadayiSertan, Alkire Linda, Broad Garrett M., Livne-TarandachReut, Wasieleski David & Puente Anne. Humanistic Management of Social Innovation in Service (SIS): anInterdisciplinary Framework. Humanistic Management Journal (2019) 4, pp. 159-185

Lambin JJ. (2014) A Humanistic Market Economy. Rethinking the Market Economy. Palgrave Macmillan, London, pp. 197-219

Martyn, Samuel &Deivasigamani, Suganya (2016), “Humanism in Economics Principles”, SSRN https://ssrn.com/abstract=2808475

Mele, Domenic (2016), Understanding Humanistic Management, Humanist Management Journal, 1(33), pp. 33-55

Novak, Michael (1997), Economics as humanism, https://www.firstthings.com/article/1997/10/004-economics-as-humanism

Obaidullah, Mohammad (2018) Promises of Blockchain for Awqaf, https://sadaqa.in/2018/02/28/blockchain-for-waqf/

Omar, Marzunhisham (2018), “Waqf: an economics perspective”, https://www.bis.org/review/r180411b.htm

Pirson, Michael (2017), Humanistic Management, Protecting Dignity and Promoting Well-Being. Cambridge University Press

Biancore Paolo Pietro & Secinaro Silvana (2016). The Equity Crowdfunding Italy: A Model Sharia Compliant European Journal of Islamic Finance, No. 5, June

Shulthoni Muhammad and Md. Saad Norma (2018), “Waqf fundraising management unit: a conceptual comparison between traditional and modern methods of the waqf institutions” Indonesian Journal of Islam and Muslim Societies, vol. 8, no. 1, pp. 57-86

Walsh, J. P. (2019), Who will it take for business to improve lives? The “man” in the mirror. Humanist Management Journal, pp. 1-7

2019, November 7. Digital technological is key. Dr. M: It will play a critical role in SDGs despite innovations. The Star (2019, November 7), pp. 2

Published
2020-08-25
How to Cite
Mohd Isa, M. Y., & Mohamed, Z. (2020). Insaniah (humanistic) economics of waqf: From IR 4.0 to a human-centered tawhidic society 5.0. European Journal of Islamic Finance, (15). https://doi.org/10.13135/2421-2172/3750