I executed Amirkhasova Lolita GMU-121 The traditional

I executed: Amirkhasova Lolita GMU-121

The traditional economic system is a way of the organization of economic life at which the earth and the capital are in the general possession of a tribe, and limited resources are distributed according to is long existing traditions.

- Primitive technologies; - Prevalence of manual skills; - Members of the economic relations are united in a strong social network; - Key economic problems are solved according to customs.

The traditional economy is based on backward equipment, manual skills, and agricultural production. Existence of the established traditions constrains expansions of application of technologies and distribution of the advanced information.

As a whole, such economy can be characterized as underdeveloped, inactive, stagnant system. Now the traditional economic system is widespread in some countries of Africa and Asia. There are still signs of traditional economy in developing countries.

In more developed countries the state deals with issues of distribution of the national income. It, having concentrated in the treasury the budget, allocates money for infrastructure development, for social support for poor segments of the population. The state also is engaged also in the solution of other main questions in the country.

Today in the world didn't remain the countries which conduct economy in purely natural look. Practically the market relations already got into each national economy.

If the country seeks to develop, it won't be able to support traditional system. Gradually the economy becomes more difficult and perfect. Any country in the history of mankind couldn't keep old system. The collective property of the USSR can be an example. The government within 70 years tried to support traditional system, but all of us know that this experience was unsuccessful. And the USSR transformed the economic system to the market.

* 1. What were countries of traditional economy presented in video? 2. 3. What are advantages in traditional economy? What are disadvantages in traditional economy?