ALTERNATIVE ECONOMIES AND ALLOCATION OF INVESTMENT IN GLOBAL MARKETS: THE ISLAMIC ECONOMIC PERSPECTIVES

Abstract

The current economic and financial crisis all over the world attracted the attention of investors and other stakeholders alike on what alternative economy can solve and set mankind .free from the wrath of economic mess. History showed how the socialist economy of Russia failed woefully, leading to disintegration of United Soviet socialist Republic of Russia, the communist economy of china is also facing the same fate taking into consideration the continuous changes adopted by the authority to save the face of the economy from collapsing. The current financial crisis in Europe with particular reference to Spain and the nationalization of economic interest in United States are all indications of failures of capitalist economy, which affect investment. The objective of the paper is to assess Islamic system as alternative economy that can provide lasting solutions to investment and economics problems. In achieving the said
objective, secondary data was employed, and the study found that the genesis of the failure of capitalist, socialist and mix economies is the hand work of a man. Interest is also another evil , which man himself consider as worst of all evils. The study recommended that Islamic economic system should be employed at all level of economic activities.