Reviving Infaq As A Mechanism to Accelerate Socio-Economic and Human Capital Development

Abstract

Infaq is a charitable mechanism that has been applied since the time of the Prophet PBUH until today. The role of infaq is important in Islamic economics with regards to asset and wealth redistribution and poverty elimination. Historically, the practice of Infaq in upholding Islamic teachings perceivable when some of the companion (sahabah) volunteered to infaq their services and wealth for sustainable development of da'wah for the benefit of the ummah. The continuance of the infaq practice and Islamic philanthropy during the post-khulafa ar-rashidin caliphate noticeable during the Ottoman period when an estimated of 30,000 infaq-based institutions were developed to aid the nation-wide public financing. Generally, the concept of infaq is not limited to certain categories of wealth. It should be expanded and cultivated because by having a systematic infaq management will eradicate the poverty that results from improved human capital development. Hence, this paper aims to explore the effectiveness of infaq practices and its potential as a mechanism to promote socio-economic and human capital development. This paper presents a contextual study through reading materials and current interview. It is believes that establishing infaq practices might serve as a benchmark for accelerate the socio-economic and  human capital development.