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

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.