Traditional Economic System
A traditional system is one that is based on the traditions, customs and beliefs of a culture which determines the trading between its people. What goods and services should be produced, how they should be produced and for whom they should be produced are all determined by custom. What was produced in the past will be produced again. Goods and services are produced how the previous generations produced them. People who receive products will receive them again. The advantages of this system are that all people in these societies know their place and little complain about it. There is little conflict between prices as no form of currency is used in these societies. Every person is equal in a way that everyone inputs into the community and its development. Also, a crucial factor with this system is that it is sustainable. This is evident if you look into the history of mankind, as a traditional economy was used throughout the world for thousands of years before the modern age. There are also disadvantages with this system, one being that there is little innovation in these societies as everyone knows that progress is discouraged between its people. Finally, there is little goods and services in these societies as none of them take part in the international market. Instead, they gather their own food as their ancestors have done for generations. Examples of traditional economies today are the Inuit Eskimos of Northern Canada, certain Aboriginal and Torres Strait Islander tribes, The Amish and countries such as Bangladesh, Burma, Malawi and the Ivory Coast peoples, who still operate under this diminishing system. The Aboriginal and Torres Strait Islander peoples, traditionally from the Australian continent, have survived and coexisted for around 40 000 years. Each tribe would have had its own product that was wanted throughout the population but could not be easily accessed. So, the tribes would have traded each other their products and the people would be satisfied. This is considered how a traditional economic system operates, therefore classing the Aboriginal and Torres Strait Islander tribes as a traditional economy.