Traditional Economy is widely considered a more basic and primal from of economic that relies upon bartering and an honor system to exchange for goods and services. Generally Traditional Economy are more primitive, and tend to lack solid forms of currency. It tends to rely solely on goods and services that equal another good and/or service that is exchanged. Think trading goats for wives or fish for corn. These economies do evolve to use things like beads and shells as means of exchange do to rarity.
What is a Traditional Economy?
Who Uses Traditional economies?
While historically seen in primitive societies worldwide, the traditional economy remains stagnant in areas of Africa, partially The Congo, and select tribes and small groupings of society that dot the globe. No modern country claims to be a Traditional Economy, but this kinds of Economy works to be in somewhat minor use in Brazil and Papa New Guinea.
Advantages and Disadvantages
- Promotes Agriculture.
- Bases the economy exclusively on what is needed rather than what is wanted.
- Easy to implement.
- Promotes Unity.
- Promotes Trade.
- Promotes Alliances and Sovereignty.
- Doesn’t require a government.
- Doesn’t promote education.
- Economy is based on interactions of individuals.
- Incredibly Primitive.
- No solid form of currency.
- Lack of set trade standards.