Traditional Economy is a
system where the allocation of available resources is made on the basis of
inheritance. As a deep-rooted economic theory with well-built social set-up, Traditional Economy generally
makes use of prehistoric instruments and techniques.
From time immemorial, conventional and age-old human occupations
like agriculture remained the focal point of interest for Traditional Economy.
This is perhaps the only economic theory,
which has evolved historically in certain countries. However, all nations
having Traditional Economy these days, are fast switching off to more
contemporary concepts like Mixed Economy, Command Economy or Market Economy, to keep pace with the
modern economic trends and happenings.
Irrespective of the old
approaches of Traditional Economy, the concept is still prevalent in some under-developed
South American nations like Papa New Guinea and Brazil, and in a handful of
other African and Asian countries.
In fact, Traditional Economy
can be called as the economy
of the ingenious population of
the world like the Pygmies belonging to the Congo region in Central Africa. As
per a World Bank estimate, this type of economy is still prevalent among 400
million indigenous people across the world. So, it is not at all an extinct
economic concept in present times.
There are of course a handful
of benefits derived from Traditional Economy. It actually nurtures a feeling of
unity among individuals, helping in the development of a social bond and sense
within them by reducing mutual hostilities. Consequently, people feel
psychologically more free, comfortable and secured, which increase their
working abilities million fold. This in turn, brings down the rate of
unemployment. Moreover, since the entire population is engaged in activities of
some kind or the other, their mind never sit idle to plan criminal activities.
Hence, there is a significant decrease in the rates of crime as well. To sum
up, Traditional Economy permits people to enjoy more independence against
minimum or no financial expenses.
The concept of Traditional Economy is all about popular autonomy, where
productions take place as per the demand generated. Hence, primitive human
occupations like animal grazing, gathering, hunting and cultivation form the
basis of this economy. However, the surplus food production is not consumed but
used for commercial activities.
