This is a recycled paper bag from my local wholefoods store, they are made from a couple of sheets of newspaper, by a charity that works with street kids in india. The sheets of paper appear to have been glued edge to edge, forming a tube, then the bottom folded in (like a regular paper paper sack), with a strip of cardboard in the bottom to make a more solid area to stand on. The handles are made from strips of paper folded small. Its amazingly strong.
this idea could be used to recycle old newspapers (perhaps newspapers in a different language to you) old magazines etc. would make great gift bags, which could be easily painted, decoupaged and then recycyled after the holidays.