A Comparative Study of the Concept of Pareto Optimality in Conventional and Islamic Economics

Abstract

 One of the fundamental concepts in conventional economic theories is "Pareto efficiency," which is recognized as a criterion for economic efficiency in resource allocation. This criterion is based on the principle of increasing individual utility without decreasing the utility of others and holds a special place in classical economic analyses. However, criticisms have been leveled against this criterion by justice-oriented schools of thought, especially Islamic economics. The present study, with a comparative approach, analyzes the conceptual and evaluative aspects of Pareto efficiency from the perspectives of Islamic economics and conventional economics. The research methodology in this study is descriptive-analytical, and data was collected through documentary
methods using valid scientific sources. The findings indicate that while conventional economics seeks allocative efficiency within a free market framework, Islamic economics emphasizes the integration of justice,
efficiency, and Sharia legitimacy. In fact, Islamic economics replaces the purely technical concept of Pareto optimality with "ethical optimization." Furthermore, an examination of modern global economic theories such as sustainable development and human wellbeing reveals a growing tendency towards justice-oriented models, which aligns with the foundations of Islamic economics. Consequently, a re-evaluation of the concept of economic optimization and the presentation of an integrated Islamic-human-centered model can be an effective step towards justice-oriented economic development in the contemporary world.