'Any fool can make money, but it takes a wise man to give it away'

Philanthropy or if you like charity, despite being an integral part of the Muslim faith has to my knowledge not been studied adequately in terms of its social and historical contexts. Hourani noted in 1991 that "... social history is at least partly about the relationships between power and wealth, then it is curious that charity, a key expression of this relationship, has until recently, been largely omitted from the study of Islamic societies."
In her recent work, Amy Singer also notes that western scholars of Islam and the history of Islamic societies long ago took note of the discussions of zakat and sadaqa in theological literature. They studied them as religious practices and legal categories, or noted the individual actions of wealthy benefactors, but did not consider charity as a framework for historical analysis. Yet, charitable giving has been and continues to be the universal, life long obligation for Muslims, one that permeates Islamic societies both as a religious ideal and as a social practice. Since the beginnings of Islam in the early seventh century and over the ensuing fourteen centuries, across the Muslim world, the command to beneficence has been translated into concrete practices that have taken countless forms, deriving from and acquiring a distinct significance in its particular context.
It is in this context that I have chosen to speak today on Muslim philanthropy in changing times, for gratefully; we are living through an exhilarating period of Muslim political and social history. I chose this topic because I am hugely inspired by the multiple awakenings unleashed by the Arab Spring, as it is popularly called; awakenings that resonate among the Arabs but also their Muslim brothers and sisters elsewhere.
My remarks today will elaborate on that amazing spirit of self help that triggered the Arab Spring; and let loose with it multiple expectations for a better tomorrow. Expectations, in terms not just of political but also of socio-economic development; especially among women in Muslim countries whose progress has been overlooked for too long. I will go on to conclude that just as the Arab Spring found its strength in local initiative, so too can these new and multiple aspirations be met through self help. I will submit that this can be achieved faster and more effectively through the work of civil society, supported by indigenous philanthropy of which there is an unfathomed quantum in all Muslim societies. Although the study of the phenomenon of giving in its various forms is now a subject of interest and study all across the world, there is unfortunately no single reference point of collection where researchers, scholars and practitioners can seek information on this subject about Muslim societies. Individual countries, societies and institutions have their own storage points and many of them are not accessible. We therefore have a remarkable opportunity in the shape of the Muslim philanthropy digital library (MPDL) to put all our efforts into one easily accessible and recognisable repository for the use by all concerned.
Over the past few decades, Muslim societies and the world at large have come to recognise the immense inherent potential of Muslim philanthropy. This has evoked a keen interest in learning more about it and in enlarging the potential for increased benefit. We have seen the interest of financial institutions advocating venture philanthropy; of sociologists trying to gauge the genesis and the trajectory of Muslim philanthropy; of historians attempting to predict the future of Muslim philanthropy and; of development specialists endeavouring to estimate the potential to fill the development gap that affects the lives of millions of poor across the Muslim world.
We have recently witnessed in many parts of the Muslim world an awakening of the people of about their political rights. These were triggered by the lawyers' movement in Pakistan and by that brave Tunisian, Mohammad Bouazizi and by the countless courageous here in Tahrir Square and else where in Egypt. This awakening is not just in Arab countries but across many parts of the Ummah.
We know that the Arab Spring was not the result of an overnight impulse to gain control of peoples' rights and their destiny. Important among its causative factors are inequitable distribution of resources including the social, political and economic rights of populations. When it became evident that these inequities were destroying the citizenry, the entire edifice came crashing down. As these popular movements rise and resurge, they necessarily look beyond freedom and individual rights. They look with hope for those rights to translate into concrete benefit in terms of higher quality of life. Sadly, in most Muslim countries the overwhelming majority has little access to minimum social needs including reasonable quality of education, health and social mobility.
Therefore, it seems to me that the message of the Arab Spring and that of Tahrir Square is not just for a call to political awakening. It is a call for multiple awakenings. It is a call to attention for social development across the Arab and beyond. It is a call to attention to battle between moderation and extremism, to the equitable distribution of wealth and the recognition of the dignity of humanity, especially that of women. I say 'awakening' and not 'tahrir or freedom' because that is yet to be gained. That freedom goes beyond a regime change, beyond a new political order. As we have seen so often, political freedom without opportunity for social progress remains ineffectual for people who have huge expectations as they have from this fresh breeze of the Arab Spring.
But what are these expectations?
Just a quick look at some human development indicators of Muslim countries, readily shows the root cause of the problem-it is education. As is well known, education is the single most important vector that changes the destiny of nations. Sadly, the Muslim world falters badly on this. When one looks deeper, it becomes readily apparent that among various causes, the gender gap in the Muslim societies is probably the most significant factor affecting the status of education not only of women but of the entire population.
It is well known that the bulk of charity by Muslims goes towards short term relief often by way of feeding and clothing the needy. This is of course necessary but should we not also encourage philanthropists to make a longer term difference? Sadly, even when they are aware of the value of investing their philanthropy in social assets for long-term benefits, people don't know whom to entrust with their donations. Results of such investment in a school or a health clinic are not immediately visible; neither is that personal gratification as palpable as when one supports relief effort. But we need to change this attitude.
In recent times, philanthropy has come to be associated more with the broader and longer-term connotation of "social investment". The shift towards social investment signifies that philanthropy should move beyond charity towards building human and social capital that would bring about sustainable development. In other words, it should be invested in education, in enhancing social and economic opportunities for those who are less privileged, and in building strong organisations to address social ills over a longer period. To put it another way, the term "philanthropy" as used here is about "teaching people how to fish", as opposed to "giving them fish". Philanthropy for social investment entails a longer gestation period and is a more demanding enterprise than relief related charity.
While Muslim countries recognise the value of these observations, there is great need to galvanise efforts to move in the right direction. Research available in Muslim countries is scant and scattered and in most cases outdated. Imagine the huge resource and how little is known about it. In contrast, we can be sure governments know all about what foreign aid was received and where it was deployed over the past decade or more.
Time has come for governments to realise that it would be infinitely better for them to encourage their own people to give more and facilitate this by creating an enabling administrative and policy environment for giving. It means first assessing what resources are and what can be generated indigenously before reaching out for external assistance, often compromising national dignity in the process.
So I have thus far explained the immense potential for philanthropy in Muslim societies whose multiple expectations can be met more readily by this indigenous resource. I noted that for a variety of reasons, a very large part of this philanthropy is directed towards relief rather than creation of social assets for longer-term good. Also, the immense potential of philanthropy is neither well understood by governments nor harnessed adequately for national development. Consequently, governments readily seek overseas assistance with all that it entails.
While we have enough on our hands trying to make judicious use of the money available, we also have to look at the reasons that hamper the flow of money, philanthropy and charity, to institutions. It is the institutionalisation of this philanthropy that will generate social capital. The single most important element in this phenomenon is the deficit of trust. Trust between the donors and the recipients. Institutional credibility, ethics, transparency and good governance are some attributes linked to creating an environment of trust. They inspire confidence in large and small donors to channel their giving through organisations. While there are many civil society organisations that have been able to establish their credibility and thus attract donor money, the number remains on the lower end of the scale compared to funds disbursed to individuals for their welfare and relief. Individual giving wins out because person to person knowledge is more intimate, and outcome more visible. In comparison, information and knowledge about most organisations seeking such donations is not readily available.
That grand sage of philanthropy, Andrew Carnegie once said, "Any fool can make money, but it takes a wise man to give it away." It takes wisdom to ensure that your hard earned money is invested in a trustworthy cause.
Finally, let me note that the path to strategic philanthropy which promises to be a potent factor in the development of Muslim societies has been marked. The contributing factors appear mainly in the form of trust and information, both of which are interlinked. Information can fill the trust deficit and information will in turn have to be supported by solid research efforts. Let us inform the world how Muslim civilisations have nurtured the spirit of giving and caring over the centuries and that the present day flowering of generosity is but an integral part of our historical existence.