The economy is often understood as something macro—markets, investments, or national policies. Yet in reality, the implementation of economic activity begins in the space closest to human life: the family level. Since ancient times, the family has been the place where important decisions about resource use are made, from how daily needs are met to how savings and future plans are managed.
This concept has been known longer through the term oikonomia, which comes from the Greek words oikos (household) and nomos (managing). These two verbs depict how economic in the beginning is about how households manage and run the resources that they have. From the household level, this practice is then developed into the community level before turning into a bigger economic system.
However, in practice, many families, especially those in rural areas, face challenges in managing their finances. From irregular income, sudden urgent needs, to limited access to financial services. Therefore, even with basic financial literacy, many of them do not have enough ‘room’ to plan manage their income sustainablt. This condition is not only impacting the families themselves, but also the overall economic resilience.
KOMIt Foundation recognises that economic resilience is the most fundamental and essential foundation for building an independent and resilient community. From that perspective, we developed approaches that focused on capacity development of families through financial literacy at the community level. This approach aims to help households manage their finances more effectively and sustainably.
One of the approaches that KOMIt implemented is the development of the VSLA (Village Savings and Loan Association). VSLA is a community-based savings-and-loan group. Collectively, members of the group will create their own rules based on their needs. VSLA Group usually consists of 10 to 25 members who regularly meet to manage their community fund with full transparency and participation.
Through VSLA, the members will not only gain access to the group’s fund, which can be lent for productive or urgent needs, but also have the opportunity to collectively learn and practice financial management. This process strengthens trust, responsibility, and solidarity among group members.
The funds collected are managed and utilised within the group, ensuring that the benefits remain in the community. This approach reflects how locally-based, low-fee economic practice that relies on available resources could be a sustainable option. This way, families and community are also contributing to the bigger economic resilient agenda, in their own capacity.
From our experience assisting VSLA Groups, we have found that when families are given the chance to learn to improve their finances independently, they become more confident in making economic decisions. This process will not only support the families’ resilience but also strengthen the community's capacity to face broader economic challenges.
In the end, sustainable economic development does not always have to start with a medium- or large-scale intervention. This can be started on a smaller scale, by giving families and communities spaces and capacity. Our experience proves that through a community-based approach like VSLA, KOMIt strives to support families and communities in building stronger and a sustainable economic foundation – starting from the dining table into collective strength.
Ultimately, sustainable community economic development does not always have to begin with large-scale, grand interventions. It can grow from families and communities when they have the space, capacity, and confidence to manage their own resources. Through community-based approaches such as VSLA, KOMIt strives to support families and communities in building stronger and more sustainable economic foundations—starting from the dining table and growing into collective strength.