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This is gathered from a commentary to Surah 22, Al-Hajj: Madani (The Pilgrimage) from the copy of the translation of The Qur'an by Ahmed Ali, as published by Rupa Publications India Pvt. Ltd., in 2011.
The meaning of zakat as delineated in the commentary provides a more intuitive sense of the idea of 'development'. Today the word is corrupted beyond recognition partly out of a desperate attempt to make a science out of a sentiment. The sentiment can find expression in many ways, including, the habit of not indulging in petty negotiations, honouring timely payments to vendors and suppliers, making an earnest effort to pay your taxes. It is ironical that the method of working of one of the largest publicly listed company in India involves reneging on all these three and then fooling itself behind the veil of charity.
It is hard to imagine that not long-ago we had such hard monikers as under-developed, developing and developed nations, a categorisation to comfort the lending preferences of the Bretton Woods institutions, brought inside b-school classrooms in wholesale measure. An overtly quantitative overlay on what is essentially a desire to do good and be good has led to much unavoidable mess. Whether the economists and policy-makers may accept it or not, this precise thinking has led to the mess that they themselves now call Climate Change. And again they are trying to apply the same stulted thinking to measure and control its effects. The road to Climate Change first lies, however, in getting an intuition of what it feels like to be in tune with nature, how to connect with it and live alongside it. Without these prerequisites, which flow from the an intellect suffused with the heart, decline is imminent.
Zakat, is but one example, of a number of concepts buried within literature of antiquity, which if mined with care, may present many an answers we seem to be frustratingly griping for.
The references in the passage below refer to the respective Surah:Verse.
Az-zakat means to better, to increase, as well as welfare, betterment, growth, etc, as azka means that which goodness, gives nourishment, as in 18:81, or good, as in 19:19, or nourishes, as in 91:9. Zakat and salat have often been used together in the Qur'an, being the basic elements of the Qur'anic order. Since Salat, discussed briefly in the Preface, stands for devotion and fulfilling one's duties and obligations arising from 'ubudiyat, devotion, service, as 'abd, creature or servant or slave, of God the Creator, zakat stands for striving for the welfare and betterment, or growth and development of mankind, as is clear from 23:4. Zakat, thus, constitutes the socio-economic aspect within the overall concept of salat as service to God in its widest connotation, as taqwa constitutes the moral aspect.
Being the socio-economic aspect, the dimensions of zakat are collective; and its purpose of nourishment, growth, betterment and welfare cannot be achieved without participation of each individual by contributing to the common good physically or intellectually as ita-e-zakat, and by contributing from his wealth to enable the people or the institution, or government set up to administer the affairs of the people in an Islamic Order (whose entire income is meant for the betterment, growth and progress of the people) to utilise it for the welfare and development of the members of society and mankind, the excess going to the common treasury. That is why, even though obligatory for all Muslims the Qur'an has not prescribed any fixed amount, limit, or percentage of wealth for zakat.
Other contributions that are expected to be made by Muslims for the well-being of fellow-men, fall under sadaqat, charities, specified in 9:60 and 9:103 which include zakat payment of which, however, is obligatory. The category of those deserving help under zakat, the mustahiqeen, is thus delineated in 9:60, along with those entitled to receive sadaqat. The purpose of voluntary contribution is not only the betterment of fellow-being but also to restrict the accumulation of wealth in a few hands, and to encourage itse free flow and circulation.
P.S.: After reading the last line, compare its meaning against the assumptions of human nature that underlie the modern economic order, and the kind of moral behaviour it finally encourages. Giving after one has satiated himself to the brim is quite apart from giving as one is earning under the influence of a sentiment that reminds that one is indeed fortunate to be in possession whatever he is in. When it is believed that progress of man-kind, in general, is tied intimately to its ability to convert natural resources to consumption goods with no end in sight then there indeed is something logically incoherent about the whole exercise.
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