What is the role of community in a traditional economy?

In a traditional economy, the role of the community is central and plays a crucial role in various aspects of economic activities. The community acts as the foundation and driving force behind the functioning of a traditional economy.

Firstly, the community determines the allocation of resources and decides what goods and services are produced. This is typically done through customs, traditions, and cultural norms that have been passed down through generations. The community collectively decides what is essential for their survival and well-being, based on their needs and preferences.

Secondly, the community is responsible for the production of goods and services. In a traditional economy, production is often carried out by families or small groups within the community. Each member of the community has a specific role and contributes to the overall production process. This division of labor is based on skills, knowledge, and expertise that have been acquired and passed down within the community.

Thirdly, the community plays a vital role in the distribution of goods and services. Since traditional economies often lack formal markets, distribution is typically based on reciprocal relationships and barter systems. The community members engage in direct exchange or sharing of goods and services, ensuring that everyone's needs are met.

Furthermore, the community also provides social support and security within a traditional economy. In times of hardship or crisis, the community comes together to support and assist its members. This can include sharing resources, providing shelter, or offering assistance in times of illness or natural disasters.

Overall, the community acts as the backbone of a traditional economy, shaping its values, customs, and economic activities. It determines what is produced, how it is produced, and how resources are allocated and distributed. The community's collective decisions and actions are essential for the functioning and sustainability of a traditional economy.