National development based on indigenous knowledge of Thai society that conforms to utilizing local natural resources is a beneficial alternative that Thai government agencies have given priority and promotion with optimism towards the stability and security of Thai society. Obstacles for Krajood (Sedge) handicrafts in Southern Thailand come from internal and external factors. Internal factors include shortage of local raw materials, limited processing tools that are inefficient and expensive to purchase and repair. External factors include the cheap price of low value massed produced products. Creative economics development through Krajood handicrafts in communities in Southern Thailand must include 1) Consolidation of knowledge, network marketing and diffusion of knowledge, 2) Practical government economic development policy for local communities, 3) Systematic Administration of handicraft manufacturing groups to increase efficiency, 4) design products that meet consumer requirements, 5) Products must be properly, 6) Direct and indirect support from manufacturers, entrepreneurs, government and private organizations in national and international market development and 7) Marketing support from all parties involved in advertisement and public broadcasts.
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