Chapter 8: Integrating Islamic Principal in Conditional Cash Transfer: A Theory of Change Approach to Achieving Sustainable Development Goals in Poverty Alleviation

This study is especially important considering the persistent poverty challenges in many Organisation of Islamic Cooperation (OIC) countries, while current conditional cash transfer (CCT) models have struggled to achieve sustainable long-term poverty alleviation. To tackle these challenges, this study will review the integration of religious principles in cash transfer programmes, evaluating how religiosity influences their effectiveness and sustainability. Using the Theory of Change (ToC), it evaluates how CCT programmes can be strategically designed and implemented to integrate Islamic socio-economic principles and effectively target poverty reduction in Muslim-majority communities. This study employed a scoping review method, guided by the PRISMA ScR framework. A systematic search strategy was implemented, encompassing three key processes: identification, screening, and eligibility. Thematic analysis was then utilised to derive the main findings of the study. The thematically analysis data were classified into three emerging themes: (1) multifaceted impacts, (2) Islamic fiscal instruments, and (3) role of Islamic principles. The significance of Islamic fiscal instruments and key Islamic principles – such as productivity, cooperation, generosity, and self-responsibility – lies in their potential to promote positive behavioural changes and enhance the effectiveness of CCT initiatives. Strategic recommendations for policymakers in OIC countries highlight the importance of integrating religiously relevant approaches into poverty eradication strategies. By acknowledging local cultural identities and religious beliefs, policymakers can design more effective and sustainable programmes that are consistent with the global Sustainable Development Goals (SDGs) and foster a more inclusive approach to poverty reduction.