Zakat and Poverty Alleviation in Tunisia Using the Fuzzy Approach

Zakat is one of the five pillars of Islam, which is compulsory to all the well-off Muslims, and it is given to the needy. It is used to fight poverty. This study examines Zakat’s impact on poverty in Tunisia. Using simulated data of individual well-being from Tunisian household survey in 2010, the potential importance of the Zakat to struggle with poverty is highlighted. Fuzzy Poverty Measurement is computed which shows that Zakat does reduce this measurement. The simulation results display a significant decrease of the poverty index of Tunisia’s seven regions, and poverty can be eradicated under cases West regions.

     

Does Zakat reduce poverty? Evidence from Tunisia using the Fuzzy Approach

Zakat is one of the five pillars of Islam; it is compulsory for all the well-off Muslims and is given to the needy. This study examines Zakat's impact on poverty in Tunisia. Using simulated data of individuals from Tunisian household surveys in 2010 and 2015, we measure the effect of Zakat to reduce poverty. This study uses the Fuzzy Approach to conclude that Zakat does reduce poverty. The simulation results display a significant decrease in the poverty index of Tunisia's seven regions.