Traditional Economy
A system in which traditions, customs and beliefs shape the economy
Real World Example
A traditional economy is where communities rely on customs and traditions to make economic decisions, often seen in rural areas of the developing world. After 1945, many countries in Africa, Asia, and Latin America, which were gaining independence, used traditional economies as they relied heavily on agriculture and local crafts. This system helped preserve cultural identities and ensured survival through methods passed down over generations. Today, traditional economies matter because they highlight sustainable practices, like fishing or farming, that respect the environment. For example, in some indigenous communities, people continue to fish only what they need, showing us how sustainable living can benefit both society and nature.
