<![CDATA[This study aims to analyze the level of understanding of fifth-grade elementary school students regarding the concept of economic policy in developing countries within Social Studies (IPS) learning. The study is grounded in the low level of economic literacy among elementary school-aged children and the limited contextualization of macroeconomic material, such as developing countries' economic policy, within the elementary Social Studies curriculum, which tends to be delivered abstractly and through rote memorization. This research employed a quantitative descriptive approach, involving all 20 fifth-grade students of SD Negeri 022/XI Sumur Anyir as subjects, selected through a total sampling technique. Data were collected through a content-validated multiple-choice concept-understanding test, supplemented by a learning-activity observation sheet, and were then analyzed using descriptive statistics, including the mean, mastery percentage, and categorization of comprehension levels. The findings indicate that students' understanding of developing countries' economic policy generally falls into the moderate category, with an average score of 68.5. Most students were able to recognize economic policy terms and examples, but still experienced difficulty explaining the interrelationships among concepts and the impact of such policies on daily life. Factors contributing to this outcome include limited contextual learning media, the dominance of lecture-based methods, and a lack of learning experiences grounded in real-world problems. This study recommends the use of more contextual, collaborative, and experience-based learning media to enhance elementary students' understanding of economic concepts. These findings contribute to the development of more meaningful Social Studies learning strategies, particularly in cultivating economic literacy from an early age to prepare students to become critical and economically literate citizens in the future.]]>
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