В настоящие дни в мире много различных economic systems. Each of them has a lot of positive and negative features. But the progenitor of all is the traditional economic system. It is still used in some third world countries. But in developed and developing countries, this system has long been transformed into a more complex one.
Traditional economic system is a situationin a country that is characterized by a high need for manual labor. At the same time in the countries in which it is used, various technologies are rather poorly developed. Here, a large role is played by such industries as mining and their primary processing. In these countries, there is such a phenomenon as a mixed economy. This means that various economic forms, characterized by the collective management of all types of industries, are preserved. That is, in countries in which there is a traditional economic system, there are many small farms that produce and then sell their own products. Such an economy can also be distinguished by the presence of a huge number of craft and peasant farms. In order for the reincarnation of the given economic system to a more perfect one, it is necessary to inject foreign capital. This is due to the fact that the level of entrepreneurship in the third world countries is quite low.
In more backward countries, the traditionaleconomic system is expressed in a simplified form. Various problems are solved in accordance with the customs, caste or tribal traditions. In such countries, religion plays a big part. Representatives of the authorities in this case are spiritual leaders. The economic life of the country can also be controlled by feudal lords, leaders, and councils of elders. For example, if a tribe is engaged in agriculture, then it is accustomed to position itself on this side of activity. Most likely, for several more decades, this tribe will continue to engage in agricultural activities. And no one of the participants in this process would ever think to ask questions:
- Is it profitable for the tribe to engage only in agriculture?
- Maybe it is necessary to master some other field of activity?
- Is it necessary to include any new technology in the production process?
Countries in which there is a traditionalsystem, of course, gradually evolve. But the pace of economic change in them is so low that it will take more than a decade to introduce, for example, new technologies. And then, these transformations will be caused by external influence. For example, a proposal to improve performance with the help of special machines. Thus, within the tribe there can be no change in the activity at all, if it is not influenced from the outside. An example of such a situation could be the peoples of the Far North in Russia. They still live in the traditional system - they are hunted by the tribe.
Now the traditional economic system is common in some countries in Africa and Asia. There are also signs of it in developing countries.
In more developed countries, distribution issuesnational income deals with the state. Concentrating the budget in its treasury, it allocates money for infrastructure development and social support for the poor. The state also deals with other major issues in the country.
If a country seeks to develop, then it does notwill be able to maintain the traditional system. Gradually, the economy becomes more complex and perfect. No country in the history of mankind has been able to preserve the old system. An example would be the collective property of the USSR. The government for 70 years tried to maintain the traditional system, but we all know that this experience was unsuccessful. And the USSR transformed its economic system into a market one.
