Strengthening the Grassroots Economics for Sustainable Development

Abstract

              Under the influence of globalization, nations worldwide have pursued development primarily through material wealth creation, aiming for modernization. The capitalist economic development model, which integrates "material power" referred to in political economy as "productive forces" has prioritized macro-level global economic and industrial growth. Success has been conventionally measured by Gross Domestic Product (GDP) and per capita income, leading to significant economic expansion at the national level. However, this approach has also resulted in adverse effects on grassroots economies, with subsequent social and environmental repercussions. In response, alternative development paradigms have emerged, emphasizing a new economic model that strengthens local economies by fostering self-reliance through the sustainable use of local resources, biodiversity, traditional knowledge, and indigenous wisdom, in conjunction with scientific and technological advancements and innovations. This value-creation approach aligns economic activities with community lifestyles, such as forming local economic networks to generate supplementary income or utilizing biological resources to develop high-value products under the Bio-Circular-Green (BCG) Model. The goal is to cultivate capable local entrepreneurs who can produce high-value goods and services while leveraging local wisdom-driven innovations. Furthermore, collaboration among governmental, private, and civil society sectors plays a crucial role in empowering local communities to manage their resources effectively, ensuring a robust grassroots economy in line with national policy directives.