Traditional Economy is an economic system that use

historical traditions and honored beliefs as a way of

TRADITIONAL ECONOMY
making economic decisions for production and
distribution. As it is called tradition, it relies on
agriculture, fishing, hunting, and gathering goods and
supplies from the gifts of nature. Instead of using
money in purchasing or investing, they heavily rely on
barter systems, the currency depends on the quality or
quantity of the product and the performance of the
service. Traditional Economy is usually use by
underdeveloped countries that are left behind by
evolution and advancing, that’s why they rely on old-
There are some underdeveloped countries around the fashion economics because it is not too complicated
world, these are likely Bhutan, Haiti, and Yemen. These for them and also there capabilities are limited.
countries rely on actual farming on different way and
their government has only limited capabilities in
providing resources and infrastructure for the country.
They allocate their resources by using the traditional
methods their ancestors taught them to do so, it is by
inheritance and primitive methods. Also the most used
occupation on these countries are farmers, they mostly
share the same role on producing products out of there
harvests. These countries are likely to be stagnant due
to their unchanging methods of the economy.
 TWO MAJOR ECONOMIC PROBLEMS IN
THE PHILIPPINES:
Unemployment has been a major conflict in
the economy for a long time up until now. It was
caused by the lack of uneducated workers who
failed to meet requirements or don’t have the
capacity to work on certain business firms or
government agencies. Major cities in the Philippines
had reached overpopulation which it leads to the
decrease of employment opportunity to most people
and also in some areas there are relatively small
industries for work. Also some industries oversupply
their work or labor force that indicates the inability to
If the people cannot be employed in their
offer available jobs for incoming employees. In
local region, the best opportunity is to go
today’s modern technology, many industries invest
abroad or be an Overseas Filipino Worker
on advance tech equipment for automatic
in result the individual will have a great
manufacturing or perform certain functions which
opportunity cost by leaving their country
affects the human resource within the industry,
and families. And if it is about local
decreasing employees in exchange for machineries.
employment industries especially on
manufacturing to increase occupation
transferring of employees, one should
leave a certain job in order to be
transferred to another field. This will
increase the availability of jobs for
incoming applicants.
 COMMAND ECONOMY Command economy is an economic system where the
government is the only one involves in terms of
managing the economy. It is an authoritative system
where the government centralized decision-making and
planning for the country. People within this type of
economy had little to no economic freedom, including
limited private ownership to personal properties. The
government owns all economic resources and it is the
only one allowed to decide and allocate on which goods
should be produced, how much should produce, and
decides what goods will be sold to the people, it is not a
free market. Countries that use Command Economy as an
economic system will likely promote communist
societies.

The countries that follow Command Economy as

the economic system are namely Cuba, Soviet
Union, and North Korea. These countries allocate
all the resources that have been produced and it
doesn’t rely on consumer’s choices and demands.
The government emphasizes its priorities and sets
them at their own ways in order to achieve
economic development. The countries have
complete ownership and access of their
manufacturing infrastructures and other huge
properties. All of them promotes communism
within their economy which is led by a dictator.
MARKET ECONOMY
Market economy is the most democratic economic
system. This economic system allocates its
resources freely depending on the demands and
market interaction. Decision-making is based on
what goods or products should be manufactured or
produce based on the consumers preferences. Also
producers are allowed on how to produce the
products freely in their own ways. Entities and
Individuals have the freedom to exchange products
and make own decisions. The government only has
a minimal involvement and activity to the
economy and maintains it, they only support and
provide what the country needs in order to achieve
economic goals. Most of the country that has
market economy is a liberated country from strict
authority.

The countries that have Market Economy are the

following: New Zealand, Australia, and Singapore.
These countries lets consumers decide on what product
should be produce in order to satisfy demands. The
economic status of these countries is high and most
likely had less problems and conflicts. The interaction
of the market to the government is important because
decisions were made for the utilization of economic
resources. Most of the people living in these countries
have high private ownership on their properties and can
access them freely.
 Poverty is almost everywhere in
the Philippines even on most province,
many live in squatter areas and river-
side swamps all over cities. The one of
the reasons that caused poverty is
unemployment, with less employed
people poverty increases because there
is no production or sustainability of The Philippine Government

necessities and properties. The lack of should improve the

proper educational attainment can also educational system for

lead to poverty because most jobs public schools in order to

require completion of education and ensure the children from

needs a degree, also certain skills that is poor families can have

useful for the job which sometimes can better educational learning

only be acquired during school. The and attainment. The

Philippine Government has an unstable government already

political activity and has limited capacity implemented on giving

to provide needs or goods for the poor, scholarships to students

including the lack of infrastructures, built that has demonstrated

for operating and manufacturing that can great performance in

provide jobs. Also in some cases others school, and also applying

lead to poverty because of natural to CHED scholarship can

disasters that wipe out most of their be helpful because all you

properties which their survival depends need is to give your

and exposing them to some many risks. information and status.

Increasing job availability
and also minimum wage for
regular workers can really
help combat against
poverty through agricultural
and manufacturing
industries that has a wide
infrastructures and
operating areas for
employees.