This study challenges the traditional image of peasants in developing economies as always passive to market forces. In this study of marketing upland crops in Indonesia the authors demonstrate active peasant participation and entrepreneurship in commercial and industrial activities. The peasant marketing system not only works as an effective bridge between farm producers and consumers but also produces significant employment and income in the rural sector. The Indonesian case suggests a genuine possibility of rural-based economic development in the third world. It also suggests a model for ex-socialist states on how to start markets and how to organize them.