Evaluating the Role of Human Development Components on Poverty, and Income Distribution from an Islamic Perspective (Case Study: OIC member countries)

Askari, Muhammad Mahdi; Meisami, Hossein

Evaluating the Role of Human Development Components on Poverty, and Income Distribution from an Islamic Perspective (Case Study: OIC member countries)

Authors

¹ Assistant professor, Faculty of Economics and Islamic Studies, Imam Sadiq University (I.S.U.), Tehran, Iran

² M.A. Student of Islamic Studies & Economics, Faculty of Economics and Islamic Studies, Imam Sadiq University (I.S.U.), Tehran, Iran

Abstract

An overview of the economy-related verses and narrations reveals the fact that
reducing poverty and improving income distribution are among the most important
economic goals of Islam and subsequently Islamic economics. On the other hand,
Islam has underscored the importance of the components of human capital like
education and health. However, a quick glance at the current situation of the Muslim
countries shows something different. In fact, there is a big gap between Islamic
teachings about income inequality and poverty, and the present condition of Islamic
countries. Having gone briefly over the Islamic literature on poverty, inequality and
human capital, the present study examines the impact of the various components of
human capital on the income inequality and poverty rate in Islamic countries.
Statistical results, using least-squares estimation technique in a multivariate linear
regression, indicate that enhancing the components of human capital in the Muslim
world, will reduce poverty and change income distribution toward equality.

Keywords