BE-1401 Poverty in Brunei
Introduction • What is poverty? • Is there poverty in Brunei? • Yes. Absolute or relative? • Is there a poverty threshold? • No official threshold but many studies had been done to calculate it • Who is poor? • Different categories of poor
Problems of Poverty • Health • Mental • Social Issues • Effects on the economy
Common Causes of Poverty • Lack of education, skills and knowledge • Unemployment • Large dependency ratio in a household • ‘New Poor’?
Social Security System in Brunei • Old Age Pensions • Monthly Financial Assistance from various agencies • Physically Challenged Allowance • TAP
The system of Zakat in Brunei • Aim: To bring the poor out of poverty by raising their standard of living • The administration and organization of zakat is handled by the Brunei Islamic Council (MUIB) • Zakat law first introduced on 1st january 1969 • MUIB has appointed the Zakat Distribution Committee to steer policies and running of zakat collection and redistribution in Brunei.
Recipients of zakat in Brunei • Poor • Needy or fakir • Amils or tithe collectors • Muallaf or converts • Debtors or Al-gharimin • Ibnus Sabil; travellers or migrants
Problems • Increasing number of zakat recipients year by year • Identification of eligible recipients; selection criteria • Payment of zakat by individuals on their wealth • Coming up with strategies to get the recipients out of poverty
Causes of poverty in Brunei • Per capita net income • Percentage of non-working adults in the household (HH) • High no of dependents in the HH • Overcrowding in the HH • No/Lack of Education
Challenges • There is an immediate need of calculating the poverty threshold for Brunei • Policies and Strategies need to be carefully developed and implemented in order for the poverty eradication strategy to be successful • Give training to develop skills • Educate the poor and the public • Networking/Sharing information between agencies when identifying prospective recipients