Was the Waqf Beneficial for Muslim Society?
By
Arshad Alam, New Age Islam
29 November
2022
Possibly
It Hindered the Economic Development Of The Muslim World
Main
Points:
1. Waqf is
sacred endowment created for a specific purpose
2. Although not
Islamic in its origins, its use was widespread in the Muslim world
3. Due to its
very nature, the institution was rigid and hence could not adapt to the demands
changing times
4. It hindered
the amalgamation of large capital which was essential for kick-starting the
industrial age
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The Sachar
Committee, way back in 2006, told us that the total value of all Waqf
properties in India was around 60 billion Indian rupees. In today’s value, it
would have only gone north. Many Muslims have argued that if this money was put
to better use, like funding of health and education, then the situation of
Indian Muslims would materially change for the better. But this is better said
than done, largely because the nature and function of Waqf is not fully
understood by Muslims themselves. There was a time when the Waqf functioned as
charitable institutions which also provided for some public works, but since
the 16th century at least, these Waqfs have ceased to perform those functions
and became one of the many reasons why Muslim societies could not progress.
The origins
of this institution is obscure; but one thing is certain is that it did not
have an Islamic root. Waqf like institutions were present in the Roman Empire
as well as amongst the Sassanians. And it appears most likely that the early
Islamic society borrowed this institution from the Sassanids. Although it was
later theologically justified as devoting a property to Allah, there is no
record of earliest Muslims instituting any such grant. The earliest Waqf in
Muslim societies therefore date after the establishment of the empire, rather
than during the period of the Rashidun Caliphate. But once Muslims adopted it,
they made wide use of it. Through this institution, they funded hospitals,
madrasas, caravan Sarais, etc. Instituting a Waqf was simple: the
property was bequeathed in perpetuity to God and a manager was appointed for
overseeing the property. This property could generate income which was to be
spent for welfare purposes; part of the income thus generated went to the
family of the founder of the Waqf.
Thus, apart
from serving an important function, Waqf was also a means to provide for the
financial fortunes of the future generation. Over the years, the latter
function dominated the former. Thus, in many cities of the Muslim world, like
Algiers and Istanbul, Waqf properties formed nearly 30-50% of all real estate.
Since all Waqfs were exempt from taxation, this only meant that the state had
less and less revenue to operate with. The presence of this institution, which
served the important purpose of social service, therefore also had its
downside: that of limiting the value of state revenue. Although a huge empire,
but the Ottomans were forced to take loans from other countries and foreign
banking consortiums.
Becoming a
mechanism of tax evasion was one of the many malfunctions of the Waqfs. The
very nature of the institution made it rigid and hence unsuited to the changing
economic realities. Once a Waqf was instituted, its purpose could not be
changed or altered. Many Muslims, for example, established caravan Sarais
throughout the silk route during the middle-ages. These Sarais served
traders and their animals for a fee, the proceeds of which went to the upkeep
of the building and to the children of the founder. However, as the silk route
changed over time, these Sarais felt into disuse and could no longer be
financially viable. But, owing to the fact that the Waqf was created for the
specific purpose of serving traders and merchants in perpetuity, there was no
legal way to change the nature, function or the purpose of these Waqfs.
Similar is
the case in India. It is all very good to feel proud about the value of Waqfs
and to what better uses it can be put. But the reality is that the very nature
of these properties will not allow Muslims to put them to a different use.
Certainly, there are issues like government encroachment of Waqf properties.
Huge number of them are also lying unused due to litigation which takes decades
to solve. But even without these factors, the very nature of Waqf would make it
extremely difficult to liquidate the property or to change its use. If someone
instituted a madrasa as a Waqf, then it has to perform that function in
perpetuity. God forbid if the founder also mentioned some books that he thinks
should be taught in that madrasa, then those books also cannot be removed from
the curriculum even after hundreds of years. It is this rigidity that makes
Waqfs unsuitable for our times. However, Muslims of the time cannot be faulted
for not planning ahead hundreds of years. The fault lies with us, the
present-day Muslims, for rooting for the revival of Waqfs without realizing its
negative effects.
The late
middle-ages was the time when banking consortiums were coming up throughout the
Western world. Merchants and traders were coming together, pooling resources
and establishing banks with huge capital which gave impetus to the upcoming
industrial revolution. Something very opposite was going on in the Muslim
world. They had the resources but these were increasingly getting locked up in
immovable assets through the creation of Waqfs. The financial resources
were therefore locked up and its very nature made it obligatory that it could
not be used for any other purpose. Moreover, different Waqfs could not be
merged together unless the founder had left explicit instructions to do so;
which was very rare. Even when some Muslims realized their folly, it was too
late and many did not speak up fearing the clergy who had by now declared these
Waqfs as sacred institutions. Moreover, since Waqfs could only be created by
the wealthy, this only meant that the elite of Muslim world bound itself within
a rule which was no longer beneficial. Also, this institution was not
beneficial for the children of the rich as the latter got dependent on the
largesse provided by the Waqf and hence did not do anything meritorious in the
lives.
Today in
India when we talk about the potential value of Waqf properties and how it can
change the fate of Muslims, we must take into consideration its historical
nature into account. The only way in which all the money that is locked up in
various Waqfs can be put to better use it by a willingness to change the
‘sacred’ character of these institutions. But are there enough Muslims willing
to take this call?
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A regular contributor to NewAgeIslam.com, Arshad
Alam is a New Delhi based independent researcher and writer on Islam and
Muslims in South Asia.
URL: https://newageislam.com/islamic-society/waqf-beneficial-muslim-society/d/128514
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