traditional economy is one of the types of economic systems of farming.The traditional economy is different from other ways of life of the economy so that it is determined the practice of using resources traditions and customs.
For countries economies is traditional, characteristic of the existence of various forms of economic activity based on various forms of relationship to the property.Quite often in this way of communal ownership is retained, which is characterized by naturally-social form of management.
traditional economy other than that presupposes the existence of small private property, which usually acts as the foundation for the creation and development of small-scale production (which represent the craftsmen and farms).
principal solutions in the traditional economy can be taken in different ways.At this affects the type of the existing economic order.In natural conditions, communal way of major economic decision-making is carried out by a small group of participants of society (Council of Elders), or the head of the family.As for the artisans and peasants, these decisions they make on their own.
traditional economy a different stimulating levers that drive the economy.Naturally, communal way of life, mainly operates financial incentives in respect of labor relations.They are connected with the necessity of meeting the basic needs of life.
In terms predominance of small-scale production incentives favor economic levers: surplus.Of course, given that the economy is based on the personal work of the participants, the size of such income is not very high.
traditional economy based on backward technology, manual labor, agricultural production.The existence of established traditions inhibits increased use of technology and the dissemination of good information.
Overall, an economy can be characterized as underdeveloped, sedentary, stagnant system.Today, the world is left of that economy are in a purely natural form.Virtually every national economy has already entered the market relations.
If today is quite a significant percentage of the world population lives in conditions of economic relations, which are characterized by the term "sub-economy."First of all, we are talking about third world countries.One of the companions of such systems is poverty.Existing wealth concentrated in the hands of a few.
traditional economy may not even have an official currency, and work through barter.
centralized economy managed by public authorities, on the basis of policy plans and programs, the direct hierarchical subordination of the lower to higher authorities in the state ownership of all means of production.
modern economy of Russia is characterized by close ties with the process of formation of new conditions for management, the transition from a centralized to a market economy.Before reforms in Russia the share of state property accounted for about 90% of assets and 80% of employment in the economy.
bureaucracy and monopolies, government regulation of prices led to a reduction of economic incentives to work and generally slowed down technological progress.This has led to reform the 90s, during which the state ownership gradually began to pass into private hands.
currently in the Russian economy have taken place such as the transformation to overcome nationalization of the economy, have developed a competitive relationship in the market, the market infrastructure is undergoing intensive development.
