What are countries with traditional economy?

Traditional Economies Traditional economies refers to countries which have their economy based on the basic economic activities of hunting and gathering or farming.

A traditional economy is basically an economic system in which resources are allocated by inheritance, and which has a strong social network and is based on indigenous technology and methods.

Examples: Two countries which would be examples of this would be many of the African countries which use agriculture as their main basis for growing food and for jobs, in addition some Asian countries, such as Bangladesh and Burma also rely on farming (agriculture) as their main way for both employment and for producing food for the family and the nation.

A couple of other African countries who would fit into this category would include Malawi and the Ivory Coast.

Of Africa's 50 or so countries well over half of them would still use traditional ways of gathering and producing food even now in the year 2010.

In Addition A traditional economy is one that, like the name suggests, stems from tradition. All the economic discussions are determined by habit and tradition. In this system, people know their place, if your family is a doctor, you will be too. There is little discrepancy about who will do what and how. Because of this however, new ideas or ways of doing things are scorned, thus there is little growth and the standard of living is lower.

Entrepreneurs are very rarely found in a traditional economy, Life becomes very stable and predictable. This type of economy is best shown in the Eskimos in Alaska and the Amish people.