The administration and regulation of cash waqfs: Bangladesh and Malaysia in perspective

Abstract Why are cash waqfs administered and regulated by the state in some countries but by non-state entities in others? I present a twofold argument to explain this puzzle. First, colonial policies shaped the baseline framework for the regulation of religion, well into the postcolonial period. However, political actors in the postcolonial period then made specific choices within those regulatory frameworks, with implications for the administration and regulation of cash waqfs. In British India, legal arbitration became the primary framework for religious regulation. In postcolonial Bangladesh, successive governments politicized the bureaucracy as they prioritized survival, and so cash waqfs exist within the Islamic banking and finance sector. In British Malaya, local sultans were able to bureaucratize all aspects of Islam. The bureaucratization of Islam proceeded in a centripetal manner from the state to the federal level in postcolonial Malaysia, with the federal government taking charge of cash waqfs.