I love the shabby chic look of these curtains, and the best part is it's something you can easily recreate at home.
Step 1) Buy an inexpensive base curtain in a solid neutral color.
Step 2) Create the fabric strips by cutting strips from used or leftover fabric at least 1" wide. Try a variety of widths or just stick with one.
Step 3) Knot the strips together to create a strip the length of the curtain you chose.
Step 4) Attach the strips to the curtain either by sewing along the top, or to create a more natural look, cut slits near the top of the curtain for each strip, loop the strip through and knot around the curtain rod. I suggest using fray glue along the slit to minimize fraying.
Step 5) Enjoy!
Now I just have to figure out where I could do this in my apartment... :)