Denotations of the Theory of Normative Ethics in Economic Policy Making; Lessons for Islamic Economics

From different dimensions including setting aims and choices, economic policy making necessitates the value judgment on the basis of selected parameters. Conventional economics makes decision about alternative situations on the basis of parameters intended by Pareto and techniques of cost-benefit, which are based on the theory of utilitarianism in ethics. Although adopting this basis in policy making has caused some advantages for the conventional economics, it has left some problems. Using a descriptive-analytical method, the present paper investigates the relationship between policy making in conventional economics and its principles of normative ethics and examines its requirements for policy making in Islamic economics. The research findings indicate that adopting the theory of utilitarianism, as the only basis for policy making in Islamic economics, makes many deficits in spite of its advantages. Although this paper does not seek to provide the theory of normative ethics of Islam as the basis of economic policy making, it criticizes and corrects the problems caused by basing policies only on utilitarianism.