6.1.2  Traditional Economies


Harvesting tea in Bogor, West Java. Photo by Danumurthi Mahendra. Courtesy of Wikimedia Commons, Creative Commons 2.0

In many Aboriginal societies, wealth has a different meaning than it does to people in the industrialized world. Wealth in traditional economies is based on history, tradition, connection with the land, and interactions among people.

In many Aboriginal societies, wealth has a different meaning than it does to people in the industrialized world. Wealth in traditional economies is based on history, tradition, connection with the land, and interactions among people.

Traditional economies around the world are disappearing.

There are strong social networks within traditional economic systems, based on a defined division of labour. People do act in self-interest, but they also are aware of their roles in the larger community. Acting for the good of the entire community is also important. Although this type of economy has been converted to mixed, command, or free-market economies in many societies that were traditionally driven, more than 400 million people still use this economic system according to the World Bank.

This type of economy ensures that every member of society has a purpose within society. It is less demanding on the earth's resources because goods are manufactured by hand and there is no incentive to overproduce as in other economic systems.


Please read more about traditional economies on pages 110, 120, and 150 in your textbook Perspectives on Ideology.