Recently, I have learned about the four economic systems, one of which is the traditional system. The traditional system uses a system of passed down techniques in or order to accomplish their own economic growth. However, this particular system often leads to a stagnant economy. On the other hand, a traditional economy is the original economy from any part of the world. In other words, no country began with a developed economic system. That being said, most countries today with this traditional system have underdeveloped economies. Upon learning about this economic system I became curious if their still remained any purely traditional economic systems. Any traditional system today would most likely focus on agricultural. However, even the small underdeveloped countries are transforming their economies to keep up with the modern changes of society. Although this is true, the idea of a traditional economic system is not extinct. Many indigenous countries such as, Papa New Guinea, Brazil, and other African and Asian countries still practice traditional concepts. Traditional values remain prevalent in these countries, with the understanding that in order to survive they must use some of their production as a mean of commercial use.
But why would these countries still practice these ideas if they are proven less efficient than other economic systems? A traditional economic system has some valuable benefits that can only be achieve by the social nature this type of economy creates. Traditional systems require a group effort among the people. Thus, this system unifies them and nurtures their beliefs and cultures. Unfortunately, in order to survive, the main principle of the traditional system, each person has a set job to perform to keep society running. With less governmental control there is more freedom of thought, so why do the people continue performing the same jobs the same way without question. In my opinion, it’s because they value their cultural practices more than they do an advanced economy and they lack the resources need to make an economy thrive. Though they aren’t the wealthiest of nations, a society with this system can enjoy certain independence without feeling a financial strain.