{"id":3029,"date":"2024-12-14T11:42:02","date_gmt":"2024-12-14T11:42:02","guid":{"rendered":"https:\/\/rajaalmarzoqi.com\/rajaalmarzoqi\/?p=3029"},"modified":"2024-12-15T16:26:49","modified_gmt":"2024-12-15T16:26:49","slug":"endowments-and-their-role-in-social-justice-and-sustainable-development","status":"publish","type":"post","link":"https:\/\/www.rajaalmarzoqi.com\/?p=3029","title":{"rendered":"Endowments and their role in social justice and sustainable development"},"content":{"rendered":"
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Endowments are one of the most important development tools that help achieve balanced development and the highest economic return for society if they are well organized. Muslims were pioneers of this industry, which in successive eras was one of the development tools that Islamic countries relied on to meet the needs of society in previous centuries, and part of the Islamic civilization and sciences in which Muslims excelled in those bright eras in the history of the Islamic world was supported by endowments, as these endowments contributed to the development of many sciences, the fruits of which the whole world is reaping in this era. This experience in endowments and charitable sectors (the third sector) has been transferred to the world, where we find that endowments are part of the development factors in industrialized countries and endowments have become one of the most important drivers of development in industrialized countries, while in Islamic countries their role has faded until it has become marginal and its role is very limited, and even fought in other Islamic countries, whether organizationally or security-wise. The decline in the role of endowments has negatively affected development in all its aspects in Islamic countries. This led to the backwardness of education and the decline of the role of Muslims from leadership in science to dependency, and also led to an increase in the poverty rate and a lack of basic needs for Islamic societies. Endowments are an important developmental part of the third sector in the economy, and the third sector refers to all activities that are established to serve society with charitable motives and are not for profit.
\nEndowments aim to serve society, and therefore seek what achieves the highest benefit for society (economic and social benefit), so the returns of endowments are spent to achieve this benefit and not the personal benefit of the endower. It also does not seek to maximize its profits as is the case in the private sector; therefore, the returns of endowments are invested in development projects that do not achieve material returns or that achieve a low material return in the short term, but they achieve high returns for society. In fact, the economic feasibility of establishing an endowment is confirmed by maximizing the social benefit of what the endowment was established for; therefore, the existence of endowments, their development, and the preparation of the legal and regulatory environment that encourages their growth is a social requirement that all efforts of society must combine to achieve.
\nEndowments in the Saudi economy are a necessary requirement not only for what was mentioned above, but also because the Saudi economy depends on a fluctuating source of income according to the international market. The Saudi economy depends on a single source of income that determines growth trends, and this is exposed to very high fluctuations and fluctuations according to oil prices in the global market; which leads to a huge flow of liquidity during times of boom and a significant shortage of liquidity in the event of a decline in global oil prices, which is reflected positively and negatively on development. In the event of the availability of liquidity and high economic growth rates, individuals and companies tend to spend and contribute socially; which facilitates the collection of funds to build endowments to serve the community, where the asset is invested and its returns are benefited from in times of recession, as endowments represent fixed investments that contribute to driving the wheel of economic growth and benefiting from them in times of recession. In this case, endowments represent the best mechanisms for redistributing income to a single community during boom years so that the benefit of the boom extends to all segments of society through endowments whose proceeds are spent to serve the community. Endowments also help distribute income for a single generation between years of growth and recession. Funds are collected in years of prosperity to build endowments and are used in times of prosperity and hardship to spend on the necessary needs of society with high social returns. Through endowments, society can involve future generations in the oil revenues of this generation. The endowments that are built in this era extend to successive generations. This necessitates the importance of the government\u2019s contribution through oil revenues to contribute to building endowments and leaving their management to the third sector, along with the importance of organizing it. Without the government\u2019s contribution, which owns the oil sector that constitutes 45 percent of the gross domestic product, in building endowments and contributing to their construction and leaving their management to the third sector (the non-profit sector), the local economy is working to build endowments at half its potential.
\nThe Saudi government’s role in the case of endowments should be regulatory, supervisory, direct support, and contribution to endowment assets, given that the government owns the equivalent of 45 percent of the gross domestic product, which achieves the highest financial surpluses. Therefore, establishing endowments without government contribution means disrupting the equivalent of 50 percent of the Saudi economy’s potential, and thus these endowments will not reflect the true potential of society. Therefore, the government in the Kingdom is required first to establish systems and laws that create a fertile environment for the growth of endowments, monitor performance, ensure quality, and implement systems to preserve endowments and guarantee what the donor has endowed (and this is what I hope will be the role of the Endowments Authority, which was recently announced), away from managing and owning endowments. Also, the government, by virtue of its ownership of half of the economy, is required to contribute to the establishment of endowments and leave their management to the market and specialized entities. Consequently, this creates decentralization in the management of endowments, and endowments multiply and their management methods vary, which is reflected in their performance and efficiency, provided that the government plays its role in organizing and supervising endowment activity. If the government contributes to the establishment of endowments by directing part of the financial surpluses achieved in each fiscal year or by fixing part of the annual budget, whereby contribution is made to the establishment of educational, health, service and financing endowments for small projects and other types of development endowments. Endowments will contribute to reducing the financial burden on the budget in the future to finance many social services from endowment revenues. If endowments are properly used, organized and managed, they are one of the best mechanisms for redistributing income among the classes of society and between years of growth and recession and between successive generations to achieve the goals of sustainable development and reduce financial waste in years of prosperity and scarcity in lean years.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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