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"Stimson, et al. (2009) developed one of the most relevant and well known model for Regional Economic Development. This model covers the most important factors related to economic development question. However, this model excludes the social components of development. Local community should be included in terms of the development of a region. This paper introduced to the Stimson model "Skills" and "Knowledge" at the individual level for local actors indicating the capabilities at the individual level and introduced "Human Coordination" for the capabilities at the collective level. In our empirical research we looked at the Indonesian seaweed market with a specific focus on the region of Baubau. This region was chosen because there are hardly any economic developments. Furthermore this study focuses on the poorer community who are trying to improve their situation by the cultivation of Seaweed. Eighteen local informants was interviewed besides additional interviews of informants from educational and governmental institutions in the cities of Jakarta, Bandung and Yogyakarta. The informants selected had a direct or indirect relationship with the region of Baubau. With the support of the empirical data from this region we can confirm that it is worthwhile to include the local community in the model for regional economic development. The newly added variables: at the individual level; Skills and Knowledge and at the level of the collective: Human Coordination was supported by the empirical material. It is an indication that including the new variables can give regional economic an extra dimension. In this way we think that it becomes more explicit that "endogenous" means that the people, or variables closely related to them, should be more explicitly included in models trying to capture Regional Economic Development or rephrased as Local Economic Development "

"Acacia catechu (Sha)-bearing forests are the primary sources of cutch, a tannin extract from the heartwood of Sha trees. Sha forests in Myanmar are managed for cutch production, and tree harvesting for cutch is regulated by an official diameter limit (ODL, 30 cm DBH [diameter at breast height]). We explored sustainable Sha forest management for cutch production through stand inventory surveys and informal interviews with locals and forest managers. We compared Sha forests with six different official harvest histories and assessed seedlings and saplings as well as the size and species of harvested stumps and remaining trees. We found that the forest understory was disturbed by surface fire, and all Sha seedlings and saplings < 1.7 m in height showed post-fire marks. We observed a regeneration gap between 1.7 m and 2.7 m, which might indicate the flame height of the surface fire. The “illegal” harvest exceeded the official harvest; only 5% of the harvested stumps were found to be larger than the ODL. Local harvesting of cutch appeared to be limited by the stem diameter required for heartwood formation (15 cm DBH). Stump data revealed that the forests were utilized not only for cutch but also for other purposes, including fuel and timber. Despite fire and local harvesting, local forest utilization patterns appear to be reasonable, although they are illegal. Implementing fire control and community management of forests along with clear definition of property rights could help in sustainably managing Sha forests for cutch production."