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T H E P O O R PEOPLE'S PERCEPTION O F POVERTY A N D ITS IMPLICATION O N T H E REALIZATION O F ISLAMIC DEVELOPMENT IN KELANTAN, MALAYSIA Muhammad Syukri Salleh and Osman Md. Yusoff, School of Social Sciences, Universiti Sains Malaysia ABSTRACT This paper investigates the interrelationship between the poor people's perception of poverty and its implication on Islamic development strategy based on a research in Kelantan, Malaysia. The findings of the survey reveal that there are three dominant perceptions of the poor individuals (respondents) in the study: perceptions toward poverty; perceptions toward the implementation of Zakat; and perceptions toward the local rich. Given the nature of the respondents who are homogeneously poor, this paper will address the implications of the above mentioned perceptions on Islamic development strategy, particularly in Kelantan supposedly the only Islamic state in the Federation of Malaysia, ruled by Pan-Malaysian Islamic Party (PAS). This paper concludes that imposing an Islamic development strategy will become an almost impossible task in Kelantan considering the existence of the following situations: 1) the 'top-down approach' to Islamic development adopted by Kelantan government itself is not effective enough to be realized, and 2) there is no 'rigorous' effort to disseminate information and Islamic values to the general population leading to a true practice of Islam. Introduction Being a state led by an Islamic party, Kelantan is inevitably experiencing an enormous process of Islamization, including development. Since coming back to power in 1990, the Islamic government of Kelantan has embarked in Islamizing its development programs. The question remain to be answered is to what extent the Kelantanese thought is in line with the ambition of the PAS-led

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government? This paper focuses specifically on the poor people's perception of poverty in Kelantan and investigates its implications on the PAS-led government endeavor in Islamizing its development. The data for the poor people's perception was collected through a study in Bachok, Kelantan reveals that there are two contradicting perceptions towards poverty among the poor. The first says that poverty is normal in life while the second perceives poverty as the source of all problems. In addition, there is a lack of effectiveness in the implementation of Zakat, supposedly dynamic institutions in Islamic development, as well as a negative opinion of the local rich among the poor people researched. Research Methodology This research is an exploratory examination on the perception of the poor peoples towards poverty. It has several objectives: 1. To address the issue of the misconception on the term "poverty" itself as it is viewed from the point of view of "outsiders" rather than those involved in it. To help in the formulation of a true concept and definition of poverty from the point view of the poor people themselves. With this, it is hoped that a framework or method of poverty eradication can be formulated and proposed for the areas in the study. To examine the poor people's perception of wealth as a comparison to their perception of poverty. To examine their perception towards development institutions, development process, and development efforts in their areas.

2.

3. 4.

In order to achieve the above objectives, a field research was conducted in Bachok, Kelantan in September 1995. Bachok District was selected because it was noted as the district which have the highest percentage and number of poor households relative to the total number of households in the district in Peninsular Malaysia

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(Muhammad Syukri Salleh, Osman Md. Yusoff, and Zakaria Bahari 1996: 3-4). In 1992, the Federal Department of Development conducted a nationwide registration of poor households in every district in Malaysia.3 Every single household registered in the survey is qualified to get involved in a special project of Development Program for the Hard-core Poor commonly known in Malaysia as PPRT - Program Pembangunan Rakyat Termiskin.4 From the list of 1,232 poor households registered under the PPRT in Bachok district, 473 respondents were selected by means of stratified sampling. The information gathered in the survey is guided by a questionnaire design specifically for this exercise. There are several sections in the questionnaire namely: 1. 2. 3. 4. 5. 6. 7. 8. 9. Socio-economic Characteristics of the Respondents Perception of Poverty Perception of Wealth Perception of the Future Perception of the Development Institutions Perception of the Development Program for the Hardcore Poor Perception towards the development Process Perception towards Development Efforts, and Surveyors Observation/Assessment.

Due to the limitations of this paper, the subsequent discussions will concentrate on the results of the general background of the respondents; perceptions of poverty; implementation of Zakat; and the local rich, and their implications on the Islamic development efforts in Kelantan. Recommendations to overcome the problems will be given at the end of the paper.

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Socio-economic Characteristics of the Respondents The findings of the research reveal that the average age of the respondents was 53 years with 70.8% of them were in the category of 41 to 70 years old. Most of the respondents were male with 74.6% of them, while women comprised 25.4%. Majority of them were married (79.9%), some divorcees (19.0%) and the remaining were still single. It was found that they seem to be following the pattern that poor family tends to have large dependents. In this study, the average dependent children for a single household was 5.8 children. In terms of educational background, 43.8% of them have never had any formal education, 36.9% received education up to six years in primary schools, 12.5% studied until secondary schools, while 6.8% studied in religious schools. Their educational background especially those in the first two categories probably has a strong relationship with their being in the state of poverty. When asked on the reasons for them to be poor, most of the respondents gave reasons such as no education or lower level of education; lack of land, capital, and skills; sickness, no employment as well as under-employment as the main factors. These factors relate to their types of employment. The result of the survey shows that 40.9% were odd-jobs workers, 35.8% paddy farmers, 11.4% non-paddy farmers, 10.6% general labors, and 0.65% fishermen. It was found out that their average real monthly income was only RM 243.35 or US $97.73 per month (see footnote 3) with 58.7% of them had real monthly income between MR 151-300. It is significant to note here that 84.2% of the respondents had no savings at all while 15.8% had some savings in commercial banks. Kelantan in Brief Kelantan was selected in this research due to its unique characteristics. It is a predominantly Malay state located in the North-East part of the Peninsular Malaysia with a population of 1,367,600 in 1995.5 The Malay population comprised 93.8 percent of Kelantan's total population in 1990 (Government of Malaysia 1992: 30). As one of the thirteen states in Malaysia, it is well known for two things. The first

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is its poor economic standard and the second is its association with the opposition Islamic Party, PAS (Party Islam Se Malaysia - Pan Islamic Party of Malaysia). Socio-economic Characteristics From socio-economic point of view, Kelantan is the least developed state in one of the most isolated regions in the country. This state has had the lowest per capita income in the country since 1970. Table 1 illustrates this statement. The ratio of per capita income for the state relative to the national average was 0.47 in 1970 and 1975. It dropped to 0.46 in 1980 and 1985 before increasing slightly to 0.47 in 1990. These rates were the lowest in Malaysia for the respective years. Unlike the development process of states on the west coast which were very much influenced by export activities of resources such as tin and rubber before 1980's, and manufacturing products in the recent years, Kelantan's economy is a predominantly agricultural based economy. 70.1 percent or 170,834 of the population involved in agricultural sector in 1970. About 65 percent of them (111,300 persons) were padi planters while 32 percent (54,600) were rubber tappers. The percentages of those involved in the agricultural sector dropped from 70 percent in 1970 to 56.1 percent (160,021 persons) in 1980. Although these percentages have dropped dramatically, in term of absolute number, it had increased slightly to 169,300 persons or 46.1 percent of the total labor force in 1990. Agricultural sectors covers a vast area of land. In 1992 for example, 134,008 hectares were planted with rubber, 78,137 hectares for padi, 64,734 hectares for oil palm, 15,511 hectares for coconut, 14,366 hectares for fruits, 8,306 hectares for tobacco and 30,012 hectares for other crops (UPENK 1993: 13). This sector contributes for about 30 to 40 percent of the state's total gross domestic products as compared to 24.5 percent for Peninsular Malaysia. These percentages, however, has been decreasing form year to year. In 1970, for example, the agricultural sector's contributions was 42.4 percent. It decreased to 36 percent in 1980, 33.4 percent in 1983 and 26.0 percent in 1990. On the contrary, the percentage contribution for the manufacturing and

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TABLE 1 MALAYSIA: Per Capita GDP and Ratio to Malaysian Average by Region and State, 1970 to 1990 REGION/ State SOUTHERN Per Capita GDP (MR $) GDP Ratio to Malaysia Average 1970 1975 1980 1985 1990 1970 1975 1980 1985 1990 900 798 1617 665 981 987 463 975 1177 881 994 1262 2916 6367 3403 3324 7783 2765 3846 4963 3709 8855 3273 4388 5249 2571 3481 2947 4848 1973 3680 752 3957 3528 4229 0.91 0.80 0.98 1.63 0.67 0.99 0.99 0.47 0.98 0.60 1.18 0.89 1.00 1.02 0.89 1.11 1.54 0.66 0.89 1.07 0.47 0.96 0.62 1.24 0.90 1.00 0.91 1.98 0.71 1.07 1.43 0.65 0.89 0.70 1.13 0.46 0.99 1.15 0.95 0.71 1.00 0.88 2.07 0.74 1.02 1.32 0.63 0.85 0.69 1.10 0.46 0.93 1.26 0.95 0.82 1.00 0.88 2.09 0.77 1.04 1.24 0.61 0.82 0.70 1.15 0.47 0.87 1.36 0.94 0.83 1.00

Johor
CENTRAL K. Lumpur Melaka N. Sembilan Selangor NORTHERN Kedah Perak Perlis P. Pinang EASTERN Kelantan Pahang Terengganu SABAH SARAWAK MALAYSIA

1102 2297 1917 4610 824 1323

979 2382

2102 2358 3194 2604 4120 2265 3649

1101 2853

589 1489 1740 1197 3182 3495 7054 3066 7195 3572 3758 1539

592 7653

1119 2292 3085 1242 3221

Note: In 1970 and 1975, data for Kuala Lumpur was included in Selangor as Federal Territory of Kuala Lumpur was none existence yet. Data for Perlis in 1970 and 1975 was included in Kedah due to administrative reasons Source: Third Malaysia Plan 1976-1980, page: 204; Fourth Malaysia Plan 1981-1985; Fifth Malaysia Plan 1986-1991, page 170-191.

construction sectors have been increasing form 8.5 percent in 1970 to 9.2 percent, 10.6 percent, and 11.0 percent in 1983, 1990 and 1992 respectively (UPENK 1993: 1-7).

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Development Realities in Kelantan Kelantan is also known as one of the poorest states in Malaysia if not the poorest. In 1970 and 1976, 76.1 percent and 59.2 percent of its households lived in poverty respectively. Despite an indication of a decrease in the percentages, Kelantan poverty rate was still the highest when compared to the national rate with 35.1 percent in 1990. In spite of the fact that opposition parties led by PAS had an overwhelming political victories over the ruling National Front in 1990, it also inherited a state with poor economic development. Prior to this defeat, the ruling Barisan Nasional (National Front) led by U M N O (United Malay National Organization) and its component MCA (Malaysian Chinese Association) and MIC (Malaysian Indian Congress) had argued that the state was lacking behind compared to other states in the country due to its lack in infrastructure facilities (UPENK 1984:11). For example, the existing airport in its capital of Kota Bharu could only accommodate Boeing 737 and smaller airplanes whereas in 1983, only two-thirds of the state's households enjoyed 24 hour electricity supply. Piped water was only available to 23.5 percent of rural and 61.5 percent of urban residents as opposed to 51.2 percent and 91.1 percent respectively for the national average. One of the main factor for these deficiencies as argued by the proponent of the Barisan Nasional were not regarded as the faults of the Barisan Nasional government, rather of an administrative inefficiency, mismanagement of resources, financial crisis and corruption of the two decades rule6 by the earlier PAS government (Alias 1984 quoted in Muhammad Syukri Salleh 1995: 6). Some independent observers such as Ishak Shaari (1992), Syed Husin Ali (1978) and Rokiah Talib (1994), observed that the general backwardness of Kelantan was due to three factors. Ishak Shaari (1992: 117-184) advocated that the backwardness was related to the colonial historical factors that have incorporated Kelantan into global market system. During the colonial periods, Kelantan had been marginalized by the British due to its isolated nature but yet integrated gradually

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into a global market system through a capitalist development process. This according to him has happened through various means. First, it was done through the reconstruction of the administrative system of the state in favor of foreign administration in particular the British administration.7 Second, the state's economic structure was changed due to the emergence of new colonial production relations with capital and "free labor" 8 as important players in economic development. Third, with the introduction of the colonial economy, the subsistence economy was destroyed resulting in the important role of capital and market in the state's economy. As a result, it widened the dependency of the indigenous population to foreign capital and trades. Syed Husin Ali (1978) viewed the implications of colonialism in Kelantan from a different angle. He argued that the colonial policies had left the Kelantan society into the have and the have-not. On one hand, there were royal group who continued to enjoy the privilege of owning huge land areas, administrative power backed by the colonial administration, rich farmers and landowners associated with the palace, as well as traders-lenders who succeeded in utilizing the opportunity of the colonial economic development policies to accumulate wealth especially through the ownership of land.9 On the other hand, there were peasant farmers, renter class and wage laborers who owned limited or did not own any means of production. In fact, after years of independence from the British in 1957, attempts at redressing this unequal distribution of wealth inherited through either feudalistic, colonial or post-independence economic policies could hardly be found (Muhammad Syukri Salleh 1995: 7). Finally Rokiah Talib (1994) viewed this backwardness as a result of politico-historical factor itself. She argued that when PAS started to rule Kelantan in 1959, the development philosophy was little different from the national development philosophy dominated by the neo-classical approaches to development. However, since it was an opposition rule within a federation controlled by the then Perikatan (National Coalition) government, it posed a conflict of relationship between federal and the state governments. This conflict inevitably

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disfavored the state government in terms of funding for development programs. This actually, was viewed as the real obstacles to development experienced by the state government during its 18 years ruling of the states for losing to Barisan Nasional in 1978 election.10 Contrary to the argument put forward by the proponent of the Barisan Nasional, the twelve years rule by the coalition government from 1978 to 1990 have not improved the state's economic situations. In fact, the data showed that state's economic growth rate dropped from 6.3 percent per year from 1980-1985 to 5.5 percent per year from 1986-1988 (Muhammad Syukri Salleh, 1995: 8). The growth rate of the state's household income from 1976-1990 was the lowest in the country. Islamization Process Beginning from 1990, when Kelantan was taken back by the new PAS government led by ulamak (religious leaders) with supposedly clean leadership, introduction of Islamic development approach in the development process of the states was endeavored. Some of the stated objectives are: 1. Promoting the concept of Tazkiyah - This is a concept of self-purification based on Islamic teachings. It is combined with physical development efforts to become what they called "purification with growth". PAS intellectuals advocated that the concentration on human development, i.e. labor rather than capital, should be included in this endeavor. This should be done by having programs to uplift human's piety (Taqwa), on the basis of submission to Allah model (Ubudiyyah). To them, people with taqwa will also be proactive and productive. (Wan Abdul Rahman Wan Abdul Latiff 1991 and 1995 quoted in Muhammad Syukri Salleh, 1996). Uplifting Zuhud. It is the adoption of minimum consumption within individuals, consuming only goods and services that are really needed, rather than one's wants. In creating such consumerist behavior, starting with the gov-

2.

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ernment's officials, they are prohibited to accept any gifts from the people as a token of appreciation for their visits. They are also encouraged to use the existing facilities such as state's cars rather than purchasing new one as long as they are still usable. Allowances and other facilities for state leaders including the Chief Minister himself and his colleagues regarded as extravagance is cut down hence avoiding corruption and abuse of power. 3. Promoting a concept of balanced human development. This is basically a development concept which gives priority to a balanced human development in terms of their physical and mental aspects with the aim of creating a comprehensive unity in the society. It involves two main characteristics: normal physical development; and a development towards "preparing a new boundary for ummah's thought based on Islam as Ad-din (Islam as a way of life)" (Wan Abdul Rahman Wan Abdul Latiff 1995: 7 quoted in Muhammad Syukri Salleh, 1996). For the realization of this concept of balanced development, the PAS government prescribe that it must be generated by three main principles: Itqaan (skill), Ubudiyyah (submission to Allah) and Mas'uliyah (accountability on whatever they do). Advocating a participatory development and collective consciousness through the concept of At-taawun (doing things together). This is a concept of working together in a collective manner to achieve common goals. The underlying idea of this concept is encouraging people to participate in the development process. From a development perspective, it is a form of development from below in which the people are encouraged to plan, to implement, to manage and to monitor development. In addition, it helps reduce the cost of development. Fulfilling the basic needs of the people - Dharuriah. One of the many efforts done in this kind of program is providing

4.

5.

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ownership of virgin lands, thus increasing the state's revenue through additional land tax collection rather than increasing the tax rate on the existing landowners. This is one of the most important objectives as it addresses the fact that the have-not needs some form of means of capital in order to improve their socioeconomic position in the society. 6. Providing the population with necessities compatible with human Fitrah (human instinct) such as increasing maternity leaves for female government staff from 42 days to 60 days (2 months). Respecting the concept of and the needfor "neutrality of the civil service". Previously, the post of Chairman of the District Councils was held by politicians, consequently, most of the decision making process regarding the development of the district as well as the well being of the people were politically motivated. With this move, the Chairman posts were returned back to the District Officers who are public administrator of the district and suppose to be neutral to all political parties.

7.

Perceptions of the Poor on Poverty, Implementation of Zakat, and the Local Rich. As mentioned earlier, this research tried to explore the perceptions of the poor people on various matters. However, for the purpose of this paper, only three aspects will be discussed: the poor people's perception on poverty; on the implementation of zakat; and on the local rich. The perception on all the three aspects, as will be shown later, has an implication on the realization of the Islamic development in Kelantan. Perception of Poverty In spite of their homogeneity in terms of academic background (never attended school or attended only primary school), occupations

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(peasants and laborers) and income (MR 151-300 a month), the poor people have two main contradicting opinions in perceiving poverty. 48.6% of them regard poverty as the source or cause of all problems while 35.3% perceive poverty as a normal phenomenon and natural in life (Table 2).
TABLE 2: PERCEPTION O F POVERTY Perception of Poverty 1. A normal natural phenomenon in life 2. It has a lot of meanings 3. It prevents from evil attributes such as egoistic, superiority complex (ujub), boasting (takabur), and arrogant 4. It is a humiliation 5. The cause/source of all problems 6. It is so arduous and painful 7. Others 8. No answer Total Frequency 167 9 11 Percentage 35.3 1.9 2.3

8 230 22 20 6 473

1.7 48.6 4.7 4.3 1.3 100.0

However, viewing from their religious perspective, 80.3% of them believe that Islam does not permit poverty. Only 19.0% believe otherwise (Table 3). They gave three reasons as to why Islam, in their opinion, is against poverty. Firstly, 87.4% of those who hold this view say that Islam encourages or rather directs them to be diligent and
TABLE 3 DOES ISLAM PERMIT POVERTY Does Islam Permit Poverty? 1. Yes 2. N o 3. Do not Know Total Frequency 90 380 3 473 Percentage 19.0 80.3 0.6 100.0

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hardworking. Secondly, 10.8% of them believe that poverty could lead to kufr (drawing near to infidelity). Thirdly, 0.8% of them think that if the Muslim ummah (people) is rich, Islam will become strong (Table 4).
TABLE 4 REASONS WHY ISLAM DOES NOT PERMIT POVERTY Reasons 1. Islam directs Muslims to be diligent and hard working 2. Wealthy ummah, strengthens Islam 3. Poverty leads to kufr 4. Other reasons Total Frequency 332 3 41 4 380 Percentage 87.4 0.8 10.8 1.0 100.0

Of all the three reasons given as to why Islam does not permit poverty, the first and the most dominant reason relates very much to the question of productivity and their survival. The reason that relates to their faith (aqidah) as reflected in the second (poverty leads to kufr or drawing near to infidelity) seems not to be very important to them. Moreover, the third reason that necessitates their contribution if they become rich is almost taken as not a reason at all. Such a pattern of perception is very much attributable to their socio-economic background. In the local socio-economic structure, they are placed on the lower social stratum or class, consequently, the most important and urgent thing for them is definitely their survival. Diligent and hardworking have proven to be one of the most effective avenues toward successful survival. Diligent and hardworking are also called for and encouraged continuously by the Malaysian government. On the other hand, they are quite apathetic or indifferent about the question of contribution to strengthen Islam. It is not only that they are still at the survival level and the way to richness is still a long distant, but they also do not find the existing rich people in their place contributing to the strength of Islam nor

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helping the poor. Contributing to the strength of Islam and helping the poor, in the poor people's opinion, are not prerequisites for becoming rich. Of the 19.0% in Table 3 who believe that Islam permits poverty, two main reasons were given for their conviction. 67.8% of them say that poverty is actually a test from Allah while 22.2% say that poverty culminates in their contention on what Allah has decided upon them (see Table 5).
TABLE 5 REASONS F O R ISLAM PERMITTING POVERTY Reasons 1. Most of the Prophets, Companions, and Pious people live in poverty 2. Poverty is a test from Allah 3. Poverty culminates in 'accepting' (redho') Allah's wills 4. Poverty provides opportunities for the rich to help the poor. 5. Other reasons Total Frequency 4 61 20 3 2 90 Percentage 4.4 67.8 22.2 3.3 2.3 100.0

Among the two groups of opinion, more than half are not sure about their future (58.8% of those who believe that Islam permits poverty and 50.6% of those who believe otherwise). However, in comparison, of those who believe that Islam does not permits poverty, 31.8% feel that their future is bright while only 17.6% feel that their future is bleak. On the other hand, of those who believe that Islam permits poverty, 25.6% feel that their future is bleak while only 15.6% feel that their future is bright. In general, it could be concluded that those who believe that Islam does not permit poverty have an optimistic view of their future as compared to those who believe that Islam permits poverty (Table 6).

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TABLE 6 PERCEPTION OF THE POVERTY AND THE FUTURE Perception of the futureDoes Islam permit poverty?

Bright
1. Yes 2. No Total (%) 14 15.6 121 31.8 135 27.8

Bleak 23 25.6 67 17.6 90 19.1

D o Not Know 53 58.8 192 50.6 192 53.1

Total (%) 90 19.1 380 80.9 470 100.0

Perception of Zakat and Its Implementation Although considered by the authority as the hard-core poor, only 20.1% of all the respondents have been given zakat while the majority (79.5%) have not (Table 7).
TABLE 7 RECEIVING ZAKAT Have you ever received Zakat? 1. Yes 2. Never 3. N o answer Total Frequency 95 376 2 473 Percentage 20.1 79.5 0.4 100.0

TABLE 8 FORMS OF ZAKAT RECEIVED Forms of Zakat 1. Zakat al-fitri 2. Zakat on Property 3. Zakat on Agricultural harvest Total Frequency 46 43 6 95 Percentage 48.4 45.3 6.3 100.0

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The zakat given to the poor people are especially in the form of zakat al-fitri - individual alms (48.4%), zakat on property (45.3%) and zakat on agricultural harvest (6.3%) (Table 8). Most of these zakat however are not given by the religious authority but by Muslim individuals. As compared to 81.1% who were given zakat by the Muslim individuals, only 12.6% were given by amil (zakat collectors) and 6.3% by Islamic Religious Council.(Table 9)
TABLE 9 SOURCES OF ZAKAT Sources 1. Islamic Religious Council 2. Zakat Collectors (Amil) 3.Individuals
Total

Frequency 6 12 77 95

Percentage 6.3 12.6 81.1 100.0

This phenomenon leads to at least two important conclusions. Firstly, the Muslim individuals seem to give away zakat directly to the poor rather than to the Islamic Religious Council despite legally, the Muslims should pay their zakat to this authority. Secondly, the Islamic Religious Council itself does not seem to have distributed zakat effectively; only a handful of the poor people such as the respondents in this research, receive zakat from the Islamic Religious Council. If the second conclusion is logically attributable to the first,
TABLE 10 THE EFFECTS OF ZAKAT YES The Effects of Zakat 1. Lessen the burden of living 2. Freeing oneself from poverty 3. N o effects at all Freq. 65 2 31 Percentage 13.7 0.4 6.6 Freq. 408 471 442 NO Percentage 86.3 99.6 93.4

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then one is interested to know why do the Muslim individuals are not giving zakat to the Islamic Religious Council. The lack of confidence of the Muslim individuals towards the Religious Council is due to the ineffectiveness of the religious authority in collecting, distributing and managing zakat. According to 86.3% of the respondents, the implementation of zakat in their area is not effective and could not lighten their burden. 99.6% of them also say that zakat, as it is implemented in their area, could not relief them from poverty. In fact 93.4% say that the implementation of zakat in their area does not have any significant impact on their life (Table 10 opposite page). Due to the absence of a systematic management of zakat, there are also, among other things, inconsistency in the distribution of zakat. Although 75.8% and 9.5% of those who are given zakat regard themselves as poor and hard-core poor respectively, another 14.7% are those who regard themselves as neither poor nor rich (moderate) (Table 11). On the other hand, 63.8% and 3.7% of those who regard themselves as poor and hard-core poor respectively have never been given any zakat. In other words, while there are people who see themselves as neither poor nor rich (moderate) but are given zakat, there are a substantial number of those who regard themselves as poor and hard-core poor hence deserving zakat have never received any zakat whatsoever.
TABLE 11 PERCEPTION OF OWN STATUS AND RECEIPT OF ZAKAT PERCEPTION OF OWN STATUS Have youever received Zakat? 1. Yes 2. Never Total (%) Very Poor 9 9.5 14 3.7 23 4.9 Poor 72 75.8 240 63.8 312 66.2 Moderate 14 14.7 115 30.6 129 27.4 2 0.5 2 0.4 5 1.4 5 1.1 Rich Don't Know Total (%) 95 20.2 376 79.8 471 100.0

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Perception Towards the Local Rich In general, the poor people do not have a good perception of the local rich. 84.1% of them say that the rich do not help the local poor. Only 14.0% say that the local rich used to help them (Table 12), either in
TABLE 12 LOCAL RICH'S AIDS FOR THE LOCAL POOR Is there any rich individuals in your area helping the poor? 1. Yes 2. N o 3. N o answer Total Frequency 66 398 9 473 Percentage 14.0 84.1 1.9 100.0

TABLE 13 THE FORMS OF RICH'S AIDS TO THE LOCAL POOR Forms of Aids 1. Donations 2. Zakat 3. Financial and Goods 4. Others Total Frequency 11 7 42 6 66 Percentage 16.7 10.6 63.3 9.1 100.0

TABLE 14 GENERAL OPINIONS OF THE POOR TOWARDS THE LOCAL RICH Opinions 1. Generous 2. Humble (Tawadho') 3. Stingy 4. Arrogant, egoistic and selfish 5. Others 6. N o answers Total Frequency 55 54 106 811 175 2 473 Percentage 11.6 11.4 22.4 7.1 37.1 0.4 100.0

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the form of cash and goods (63.3%), donations (16.7%) and zakat (10.6%) (Table 13). In addition, 22.4% of all the respondents viewed the local rich as stingy and 17.1% viewed them as egoistic and selfish. Those who viewed the rich in their respective villages as generous and humble are only 11.6% and 11.4% respectively (Table 14). IMPLICATIONS O F THE FINDINGS Based on the findings of our research and the above discussions, there are at least three problems facing the PAS-led government of Kelantan at the moment especially in regard to its endeavor in realizing Islamic development. Firstly is the confusion about the meaning of poverty as not only seen from the normal eyes or perspective but especially also seen from the Islamic point of view. Secondly it is the inefficiency of the zakat management, and finally the unhelpful role of the local rich. While the first problem relates intimately to philosophical and doctrinal problem, the second relates to the incompetency of one of Islamic development institutions, and the third to the problem of the local social relationship. Implication 1 The misconception of poverty can negatively affecting the development process in any country particularly in Kelantan in its Islamic development efforts. One of the major implications is on the identification of target groups in development programs. Who are the real poor that deserve help from the government programs? This is a question of an ideological gap between a "perceived need" of the poor by the government and "the real need" as defined by the poor people themselves. Wrong identification of target groups and their real problems in a development program such as the PPRT consequently can lead to wrong prescriptions or remedies to the poverty issues. In other words, development budget will go to wrong groups of people resulting in the ineffective use of funds. This is a form of waste of resources and efforts. The example of this "ideological gap" is in the PPRT program which prescribe certain measures to help the poor (see Footnote 4). These measures can be considered as the perceived need of the poor by the government planners. However, the findings shows that

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although majority of the respondents (77.7%) feels that PPRT is a part of the solutions to their poverty problems, majority of them (71.9%) feels that as target groups in the poverty eradication program, their opinions should be taken into account by the government. In fact, 27.5% of them say that they know their problems and the solutions better than the government planners. The only thing lacking on their part is the means to solve their poverty problems. Thus, the poor people's opinions should really be taken into account by the state and federal governments in their future development efforts. Implication 2 - Zakat is supposed to be an effective Islamic development institution in a poverty eradication program. It has been used effectively during the Prophet Muhammad's time in distributing wealth among the ummah. If Zakat is used effectively, it can promote the creation of a caring society where you have a situation of reliance or interdependence between the rich and the poor people. The state government in their Islamizing development efforts can use it in promoting balanced development in which the wealth of the ummah is shared accordingly. In other words, the zakat from the rich can be used by the poor to enhance their socio-economic standing provided that it is collected, distributed and managed properly. It is very unfortunate that the current Kelantan state government led by PAS failed to exploit or fully utilized zakat as a means of Islamic instrument to accomplish the goal of balanced development as indicated by the respondents in the study. A proper management of zakat would not only help in realizing the goal of balanced development but also in strengthening the aqidah of the people especially the poor individuals. If the poor people believed in zakat institution as one of the solutions or ways out of their poverty problems, it would strengthen their aqidah (belief) and would avoid them from becoming kufr as zakat is one of the five Pillars of Islam.11 Implication 3 - As indicated earlier, the study reveals that the poor people look at or perceive the rich people in their areas as stingy, arrogant, and self-centered individuals. It is possible that the same feeling is shared by the poor people in other parts of Kelantan or in

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other part of the country. The feelings or attitudes towards the other group in the society is in contrast to the state government's effort to apply the concept of At-taawun (doing things together) in which people are encouraged to participate in development process in a collective manners. Although the two groups can be found in the same environments or areas, it seems that they are working and living in two separate ways. The rich are engrossed in accumulating and expanding their wealth while the poor are busy trying to make end-meets. The impassionate feelings toward the poor by the rich, or the jealousy by the poor towards the rich people eventually could lead to social-class conflict if steps are not taken to remedy the situations. This can be anticipated in a situation where the rich is getting richer, and the poor is getting poorer and left out in the development process which benefits mostly one group of the society, in this case the rich and the able individuals. Recommendations The preceding sections discussed some of the real challenges faced by the PAS-led government in Kelantan in their Islamic development endeavors. This section of the paper will discuss and put forward some recommendations to overcome the three major problems or implications mentioned earlier so that an effective realization of Islamic development could be accomplished. Recommendation 1 - In the case of the first problem, no better way should be undertaken other than disseminating a true understanding about poverty as seen from the Islamic viewpoint. The contradicting perceptions among the poor should be erased so that the mind of the poor, as the target group, could be coordinated to collectively accomplish the realization of Islamic development. For some individuals, poverty is an unfortunate predicament as being portrayed by those who perceive that poverty is the source of all problems, even though to Islam, poverty is not totally an evil circumstance. History has witnessed that during the time of Rasulullah (sallallahu-alaihi-wassalam), there were ahl-suffah, the Companions of Rasulullah (sallallahu-alaihi-wassalam), who were unemployed and

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materially very poor but have never been requested by the Prophet to work, let alone to be rich. In fact there was one of them named Sha'labah, who wanted to be rich but was disapproved by Rasulullah (sallallahu-alaihi-wassalam). In other instance, however, Rasulullah (sallallahu-alaihi-wassalam) disagreed with the intention of the rich Sayyidina Abdul Rahman bin 'Auf to be poor. In fact Rasulullah (sallallahu-alaihi-wassalam) and Amirul-Mukminin Sayyidina Umar Ibn Khattab (radhiallahu-anhu) used to insist on certain poor peoples to work. Sha'labah, like Qarun in the time of Prophet Musa (alaihissalam), proved to have destroyed his Islamic faith when eventually he became rich. But Sayyidina Abdul Rahman bin 'Auf, in contrary, with his richness and generosity has became like a 'bank' for Islam and the Muslims, by being one of the main financial contributors to the then Islam and Islamic society. The unemployed poor who were asked by Rasulullah (sallallahu-alaihi-wassalam) and Sayyidina Umar Ibn Khattab (radhiallahu-anhu) to work proved that, out of their poverty, they had burdened the society by begging and depending on others even for their basic necessities respectively. In conclusion, there are people who must stay poor if richness means deviation and straying from their faith, as has happened to Sha'labah and Qarun. But on the other hand, there are people who must be rich if richness could strengthen his faith, Islam and his fellow Muslims as has been exemplified by Sayyidina Abdul Rahman bin 'Auf. Similarly, one has to work if poverty means troubling his fellow people and straying his faith from the true path of Islam. Poverty, therefore, is neither a source of all problems nor a normal phenomenon and natural in life. It is a more complex issue which not only has to be explained clearly by the PAS-led government in Kelantan, but also to express the government's stand on it through a systematic and effective dissemination mechanism so that realization of Islamic development could come smoothly into reality. Recommendation 2 - In the second case, zakat implementation system in the state certainly has to be reviewed thoroughly and an effective operational system must be formulated. The prevailing centralized zakat system, where zakat collections and distributions

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are being dominated by the Islamic Religious Council at the state level, has proven to be ineffective in not only collecting the zakat but also in reaching the poor at the distributional stage. As such, and as zakat collected must be spent in the collection calendar year while its distribution must be done among the locals rather than the outsiders, the centralized system must be replaced with a decentralized system. This involves what we call a localization of zakat, where zakat must be collected and distributed locally, from the local rich to the local poor. Such a system would not only ensure a lightening of the poverty problems in the specific local areas, if not eliminating them at all, but also building up a sense of responsibility among the members of the society to overcome their problems in a collective manner. In addition to the above proposition, the distribution of zakat could be done in various effective and productive ways, rather than merely distributing them directly to the poor individuals. For example, with the agreement of the receivers of zakat (Asnaf) who will act as shareholders, the zakat could be pooled and invested collectively in more productive ventures. Rather than receiving zakat for their final consumption (short term benefits), the poors are ensured with a continuous and long term flow of benefits while continuously enjoying the right of ownership in the investments ventures. With this, zakat as an important institution of development in Islam could be fully utilized in realizing the Islamic development endeavors in the state. Recommendation 3 - Apart from overcoming the problems of poverty through the localization of zakat system as proposed above, the local rich also have to be mobilized in other ways to help the poor people in their respective areas. Taking a consistent pool of financial and commodity contributions from the rich could be one of the ways. By setting up a sort of fund for the local poor, these contributions could be mobilized in fulfilling both the short and long-term needs of the poor. Such an endeavor would not only help overcoming the problems of poverty in the state, but also harmonize the rich-poor social

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relationship. While the rich are given an opportunity to fulfill their social responsibility to help the poor, the poor people are avoided of being obsessed with jealousies and instead felt at ease with the existence of the rich. The harmonization of the rich-poor social relationship eases an establishment of an Islamic society, hence the significance of the realization of Islamic development in the state of Kelantan. Conclusion This research has clearly indicated that imposing Islamic development strategy by means of "top-down" approach will become an obstacle to Kelantan state government. This is considering the fact that there are existence of misconceptions of poverty either by the government as well as by the general public. This is particularly true as poverty has always been perceived by, looked at and defined by outsiders who are not poor individuals. Poverty definition has been confined to what we thought it is all about rather than the real thing as experienced by the poor people themselves. Thus, the question of "perceived need" and the "real need" of the poor should be addressed properly by the government in order to have an effective policy prescriptions. The findings of the research has also indicated the true perceptions of the poor towards poverty, towards the implementation of zakat as instrument of achieving balanced development, as well as their perceptions towards the local rich. Until we have a rigorous effort to disseminate information and Islamic values to the general population in the form of "bottom-up approach" of Islamic development, which would eventually lead to a true practice of Islam, Islamic development as propagated by the state government of Kelantan would inevitably remain a political slogan to the general population especially to the poor people in the state.

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Notes 3. Poverty Line Income in 1995: MR 425 per month for a household size of 4.6in Peninsular Malaysia, MR 601 for a households size of 4.9 in Sabah, and RM 516 per month for a household of 4.8 in Sarawak (Government of Malaysia 1996). For the Har-core Poor Line Income in 1992, the Federal Department of Development (KADA 1994) defines as per capita income of MR35 per month or less for a households size of 5. This means the monthly household income for the hard-core poor is merely MR 175. Please note, as of June 13,1996, the currency rate is MR 2.49 = US $1.00. 4. In this program, the head of household will be given a choice of program that they really want in order to reduce their burden of meeting their needs. These include: cash reward, capital borrowing (to start a small business activities), agricultural projects, house rehabilitation or restoration projects and the most preferred means of help; cash reward which was transformed into shares in the National Trust Fund - Amanah Saham Nasional (ASN/ASB). In the later program, the poor households could receive dividend aside from having a savings in their account. 5. The state of Kelantan is located in the East Coast of Peninsular Malaysia sharing boundary with Thailand in the north, Perak in the East and Pahang and Terengganu in the south. It has a total area of 14,931 square kilometers (Khoo Teik Huat 1980 quoted in Ishak Shaari 1992). The state administration is divided into 9 districts known as Jajahan: Kota Bharu,Pasir Puteh, Tumpat, Bachok, Pasir Mas, Macang, Tanah Merah, Kuala Kerai and Hulu Kelantan, and a small jajahan Jeli. The state's population is unevenly distributed among the district with 80 percent of the population resided in the 6 jajahan in the north which cover only 20 percent of the total land area. On the other hand, the remaining 20 percent of the population lived in the 3 district which covers 80 percent of the total land area. The total population of the state has been steadily increased at a rate of 2.7 percent per year since 1970 with a population of 686,266 to

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1,181,680 people in 1990 and estimated to be 1,367,600 in 1995 (UPENK 1984, and 1993;and Government of Malaysia 1992) 6. Prior to its present rule, PAS had already governed the state from 1959 to 1978 before conceding defeat to Barisan Nasional in 1978 general election. The main issue used by the Barisan Nasional during the election campaign was the incompetency, corruption and mismanagement of the state by the PAS government. Ironically, the same argument was used by PAS during the election campaign in 1990 and with the same theme, they managed to topple the Barisan Nasional coalition led by UMNO. 7. In 1895, the British had been successful in penetrating and intervening in four Malay states of Perak, Selangor, N . Sembilan and Pahang by signing agreement that each states must accept a British Resident. This was viewed as an alternative to outright annexation which came to be known as "indirect rule". These states were known as the Federated Malay States (FMS). Kelantan, Perlis, Kedah, and Terengganu became under the British control after 1909 agreement and known as Unfederated Malays States (UMS). Development in Kelantan was not done at a rate comparable to FMS by the British as it had no tin mine reserves (Osman Md. Yusoff, 1995:67). 8. "Free labor" in this context refers to Kelantanese whose traditional economic and social relationships with the Malays authorities were weakened by the colonial administrative, land tenure, judicial and financial systems, thus, freeing them from the obstacles to development. This obstacles were said to have hindered them from progressing economically. Nevertheless, they faced different form of obstacles in term of colonial policies towards the indigenous people (for further discussion, see Ishak Shaari, 1992: 181-182). 9. According to Syed Husin Ali (1978: 30), in 1957,20 percent of the cultivated land in Kelantan was owned by 14 foreign companies, most of which were British-owned, from 40,263 acres of rubber estates in Kelantan in 1969,46.1 percent were owned by Malaysian whereas 49 percent belong to British companies and the remaining 4.9 percent by Singapore based companies (Chander 1969: 30 quoted in Syed

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Husin Ali 1978: 30). In fact, in 1970 in Kota Bharu out of 1,541 acres of land owned by the Malays, more than 20 percent was owned by the royal families (Ibid.). 10. See Footnote 4. 11. The five pillars of Islam are: 1. Syahadah, declaration that Allah is the God Almighty and Prophet Muhammad is the Messenger of Allah; 2. Performing compulsory prayers during five specific time in a day; 3. Fasting in the month of Ramadhan; 4. Paying Zakat (Alms) to the needy; and 5. Pilgrimage to Makkah for those who can afford the trip.

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