The Criteria for Economic Policymaking: From Conventional Economics to Islamic Economics

The purpose of this article is to criticize the criteria of policymaking in welfare economics and illustrate the criteria of economic policy making in Islam. In other words, we want to answer this question: what are the limitations of the criteria for policymaking in welfare economics and what is the solution proposed by the Islamic economics? Benefit-cost analysis is the main criterion of policymaking in welfare economics, and it seems to be rational. However, it has some limitations which are not accepted by the Islamic economics. After criticizing the welfare economics criteria, we illustrate these criteria in the Islamic economics. The results of this research show that the most important criterion of policymaking in Islam is to respect the rights of others in choosing the best alternative which is the base of other criteria like justice and efficiency. We have also added public satisfaction as a second criterion and illustrate the role of Maslahat (expediency) in policymaking. Finally, we show that the benefit-cost analysis is not universal, but it can be used in different situations and by some requirements in the Islamic economics. The criteria of Moslem policymakers are illustrated then.