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Article

9 Nov 2011

Author:
Richard Welford , CSR Asia

Questions over BoP [bottom of the pyramid]: Time for some research?

...[B]usiness is key to solving the problems of poverty...As with most strategies, however, there are problems that still need to be evaluated and overcome...The issues that we still need answers to are as follows:...[W]e have to ask if businesses that are engaging with low income markets really are able to cover their costs and make a profit...[W]e ought also to examine the scale of what we are trying to achieve in alleviating poverty amongst over three billion people, almost half of the world...[W]e need also examine claims of economic empowerment in the context of a highly skewed ownership of production and resources.The introduction of foreign companies does have the potential to dislocate and sometimes replace indigenous business that, with help, could have produced good, home grown, poverty alleviation...[W]e need to better understand the role of BoP [bottom of the pyramid] intervention in developing broader sills and education that can help people move out of poverty more permanently.

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