Despite remarkable advances in science, technology and global economic growth, poverty remains one of humanity's greatest challenges. At a time when unprecedented wealth is concentrated in the hands of a small number of billionaires — and even the world's first trillionaire has emerged — millions of people continue to struggle for food, education, healthcare and decent housing.

The contrast is striking. Enormous financial resources are readily available to fund sophisticated weapons and destructive wars, yet far less attention is given to mobilizing wealth to eliminate poverty and improve human welfare.

Over the past several decades, governments, international organizations and non-government organizations have invested heavily in poverty reduction. Microfinance has been widely promoted as an effective tool for empowering the poor through access to small loans. Yet millions of people across the world continue to experience deprivation, indebtedness and economic insecurity. This raises an important question: should microfinance continue to be driven primarily by profit, or should it be reimagined as a system founded on social responsibility?

Many conventional microfinance institutions charge annual interest rates exceeding %20. Under the traditional flat-rate system, however, borrowers often end up paying the equivalent of %40-%45 or more in effective annual interest. For poor households with limited income, such repayment obligations can become a heavy burden.

In contrast, borrowers would be significantly better off if they only had to repay the principal amount in manageable installments without interest. Naturally, this prompts legitimate questions. Is an interest-free lending model possible? Can it be sustainable? Who would finance it if no profit is generated?

The answer depends on how we define the purpose of wealth and human success.

Human beings are not merely economic agents whose sole objective is to maximize financial returns. They are also members of society with responsibilities towards fellow human beings. True success should not be measured only by the amount of wealth accumulated, but also by the extent to which that wealth contributes to the welfare of others.

When helping people escape poverty, the objective should be to preserve their dignity rather than profit from their hardship. Why should the poor be expected to repay more than they borrow simply because they are poor? A truly prosperous society is one in which wealth circulates widely rather than becoming increasingly concentrated in a few hands.

The deeper philosophical question is simple: if our families, neighbors and communities are suffering, can individual prosperity alone bring genuine happiness?

In societies where success is measured exclusively in monetary terms, interest-free microfinance may appear unrealistic. However, in communities where people recognize social responsibility alongside economic activity, such a model becomes entirely feasible.

Bangladesh is often celebrated as the birthplace of modern microfinance. Nevertheless, despite the presence of numerous microfinance institutions, poverty has not been eliminated. One reason is that conventional microfinance operates largely within a business model where capital is expected to generate maximum financial returns. While poverty alleviation is often presented as the objective, profit maximisation remains an important operational driver.

Traditional group lending has successfully improved repayment rates by creating collective responsibility among borrowers. However, the underlying financial model continues to rely on charging interest to some of the country's most economically vulnerable people.

What is often missing in conventional economic thinking is recognition that individuals are not only economic actors but also social beings. Every member of society has obligations that extend beyond personal financial success. Modern education and economic systems generally encourage maximizing investment returns but devote far less attention to cultivating social responsibility.

As a result, societies risk becoming increasingly individualistic, with fewer incentives for the wealthy to support those facing hardship. Economic wellbeing should therefore be complemented by social wellbeing. Financial success brings comfort to one's own family, but social responsibility strengthens communities and creates lasting harmony.

Islam offers a comprehensive framework for achieving this balance through social justice, equitable distribution of wealth and preservation of human dignity. Wealth is regarded not as absolute personal ownership but as a trust from Allah, entrusted to individuals for a limited period.

Islamic financial instruments — including zakat, ushr, waqf, qard hasan (interest-free loans), voluntary charity (sadaqah), and ethical business practices free from riba (interest) — provide practical mechanisms for poverty alleviation, social protection and sustainable community development. Unfortunately, these institutions are often viewed primarily as religious obligations rather than as powerful economic tools capable of addressing poverty on a large scale.

History provides encouraging examples. During the lifetime of Prophet Muhammad and the period of the Rightly Guided Caliphs, these principles formed the foundation of social welfare. Their implementation reached perhaps its highest point during the reign of Caliph Umar ibn Abdul Aziz, when poverty reportedly declined to such an extent that finding eligible recipients of zakat became exceptionally difficult. Although historical circumstances differ from those of today, these experiences continue to inspire faith-based approaches to economic justice.

Among these Islamic financial instruments, qard hasan — or benevolent interest-free loans — deserves far greater institutional attention in Bangladesh.

Under such a model, individuals and organizations contribute funds to an institution that provides interest-free loans to poor borrowers. The borrower repays only the principal amount over an agreed period. Administrative expenses are covered separately by donors, typically through an additional contribution of around %8-%10, ensuring that borrowers incur no financing or administrative charges.

Alternatively, contributors may provide refundable funds for a specified period, together with administrative support. Once loans are repaid, the original capital becomes available to assist new borrowers, creating a sustainable revolving fund that continuously benefits disadvantaged communities.

Small-scale versions of this model already exist in Bangladesh. However, the country has yet to develop a credible, transparent and professionally managed institution capable of implementing qard hasan on a national scale.

Institutionalizing a social responsibility-based, interest-free microfinance model inspired by the Medina tradition could offer an important complement to conventional microfinance. It would not replace existing financial systems but would provide an alternative approach grounded in compassion, shared responsibility and human dignity.

Bangladesh possesses both the financial resources and the religious tradition to make such an initiative successful. What is needed is visionary leadership, public trust and institutional integrity. If these can be combined, an organized qard hasan system has the potential to improve the lives of millions of disadvantaged people while demonstrating that poverty alleviation can be driven not only by profit, but also by social responsibility.