Grass roots in the context of the state and society as an interpretation of community groups who are easy to influence and refers to community groups who come from the lower middle class.
Grass-root-based economy itself refers to an economy that relies on and is built from small businesses run by the people, especially the lower middle class, which are able to make a good contribution to the national economy and can compete with other economic sectors. This grass root-based economy itself can be referred to as bottom-up economics, where the grass roots seem to be the basis or support for the national economy.
Recognizing the important role of grassroots, of course the government must play an active role in supporting the populist economy, by deciding various policies that can continue to encourage productivity and creativity from the community, so that micro, small and medium business units or MSMEs can be created. optimally, and the results can be directly felt and enjoyed by the people themselves. A healthy economy on a grassroots basis coupled with proper implementation, will certainly be able to increase product capacity and competitiveness, both at local and national levels, and will directly increase buying power, which in turn will create strength and independence, both financially as well as to build the strength of their own resources or self-empowering.
The simplest things that can be done by the government to support this grass root-based economy are BLT MSMEs or direct cash assistance for small and medium macro businesses, disbursement of business loans with low interest rates, supply chain partnerships, facilitate the import of raw materials, organize various trainings. or entrepreneurship workshops, facilitating business licenses, repairing various infrastructure at lower levels that can support smooth running of business, and so on.
Grass Root-based economy is a strategy on the problem of improving the economy for the lower middle class, collective action at the local level towards a change in impact that has an impact at the local, regional, national or international level. This grassroots movement is the way the structure is implemented from top to bottom, but sometimes the path taken outside of this, however, refers to a change for the better.
Grassroot Innovation (GRI)
Grassroot Innovation (GRI) is believed by the government and citizens to be one of the most supportive concepts, more precisely in favor of the underprivileged or poor in an effort to alleviate poverty, of course this will have an impact on the stability of the life of the citizen. Concepts like this certainly emphasize ideas, technology as well as knowledge from below, which certainly reflects the needs of the poor in society.
Increasing the diffusion of local technology will feel very unworkable if the government through non-governmental organizations does not work together to implement the concept of the poverty alleviation strategy, but it is usually the government that directly intervenes in implementing the strategy in order to encourage grassroots innovation to a scale and scope that is acceptable. bigger and more advanced. build synergies between several parties, ranging from policy makers, R&D institutions, private sector, universities, and NGOs to strengthen innovation results at the grassroots level.
The point is that if Grassroot is carried out a kind of innovation, of course it can be one step to increase the competitiveness of SMEs, meaning that the lower middle class can compete and be able to increase the per capita income sector for the better because there is intervention from the government which handles the implementation of the strategy. according to the plans expected by the government.
So if explained further, the term Grass Root-based Economy is an economic concept and policy that focuses on providing access, space for action and special attention to business people, economic actors and micro-enterprises or entrepreneurs. known as the MSME sector as well as the lower middle class community who have not received enough attention to participate, contribute and play a broad role in supporting and encouraging the national economy in an effort to create the concept of economic growth based on welfare, justice and prosperity as well as efforts to realize the concept of economic equality. on a wide scale.
In its implementation, the application of this grassroots-based economic concept is related to various matters concerning the establishment of policies that are able to accommodate complaints, limitations and desires of small communities, grassroots communities and the growth potential of the MSME sector to be able to rise together and contribute to the economy, especially to encourage the creation of new jobs, business and business diversification, optimizing the management of human resources (HR) and natural resources (SDA) as well as taking advantage of the potential demographic bonus that is owned in providing additional output for the national economy, especially expected to be able to provide added value for increasing the income per capita of individuals and homes. household income and national per capita income whose benefits will be felt widely for the wider community.
The concept of Grass Root-Based Economy was born of concerns arising from the application of a Liberal economic system and a market economy where the economic rights of individuals are weak, the poor and groups of business and business owners are unable to compete with those with large capital, entrepreneurs and those with high income. mastering the factors of production and the actions of corporate business owners who often marginalize and neglect the weak which in the end create a very clear gap between the poor and the upper middle class in terms of income distribution and welfare.
What are the Advantages of a Grassroots-Based Economy?
The first advantage is in terms of its strength in the face of world economic turmoil, so that it is more able to support the national economy. You certainly remember, during the global economic crisis the economic sector that was barely affected was micro, small and medium enterprises (MSMEs). This is because MSMEs are a grassroots-based economic sector.
The second advantage is that it can foster diversity in the entrepreneurial sector which is mutually reinforcing. Each community, region, and region has a unique economic capital and natural resource capital. Each region has its own economic potential. Let’s take the example of only one sector, namely agriculture. Each region has its own superior commodity. There are areas that produce rubber, rice, fruits, vegetables, and so on. If this is synergized, it seems that Indonesia no longer needs to import agricultural commodities from other countries.
The third advantage, a grassroots-based economy will encourage the birth of new innovations that can increase the capacity and competitiveness of products which will ultimately contribute to the local and national economy. One of the countries that is considered the most successful in innovating in grassroots-based economic activities is India.
Grassroots innovation makes the management of the diversity of natural and human resources better. Indonesia, now has started to follow in the footsteps of India. Several regions have succeeded in creating innovations that can increase economic added value in agricultural products.