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Business and human development in the base of the pyramid: Exploring challenges and opportunities with market heat maps

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Author Info

  • Acosta, Pablo
  • Kim, Namsuk
  • Melzer, Illana
  • Mendoza, Ronald U.
  • Thelen, Nina

Abstract

Roughly a little under half of the world's population is mired in poverty, most in the developing world--about 3 billion people constitute the global base of the economic pyramid. Building on earlier work by Banerjee and Duflo (2007), this paper uses survey data from three countries in order to provide a clear visualization of the spatial dimension of the economic lives of the poor and their access to markets. It develops a framework that could be used to map market inclusiveness, and then applies this to a number of markets that are critical to reducing poverty and increasing human welfare: water, credit and telecommunications. These "market heat maps" help to illustrate the extent of the challenges and in some cases reveal potential opportunities in growing more inclusive markets for the poor.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of World Business.

Volume (Year): 46 (2011)
Issue (Month): 1 (January)
Pages: 50-60

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Handle: RePEc:eee:worbus:v:46:y:2011:i:1:p:50-60

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Related research

Keywords: Human development Market access Millennium Development Goals (MDGs) Base of the pyramid (BOP);

References

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  1. Dean Karlan & Jonathan Zinman, 2006. "Expanding credit access: Using randomized supply decisions to estimate the impacts," Natural Field Experiments 00281, The Field Experiments Website.
  2. Maurizio Bussolo & María Soledad Martínez Peria & César Calderón & Yira Mascaró & Mette E. Nielsen & Pablo Acosta & J. Humberto López & Çaglar Özden & Yoko Niimi & Luis Molina & Florencia Moiz, . "Remittances and Development: Lessons from Latin America," IDB Publications 59678, Inter-American Development Bank.
  3. Gine, Xavier & Klonner, Stefan, 2006. "Credit Constraints as a Barrier to Technology Adoption by the Poor: Lessons from South-Indian Small-Scale Fishery," Working Paper Series RP2006/104, World Institute for Development Economic Research (UNU-WIDER).
  4. Beck, T.H.L. & Torre, A. de la, 2007. "The basic analytics of access to financial services," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125424, Tilburg University.
  5. Pablo Fajnzylber & J. Humberto López, 2008. "Remittances and Development : Lessons from Latin America," World Bank Publications, The World Bank, number 6911, March.
  6. Ronald U. Mendoza & Nina Thelen, 2008. "Innovations to Make Markets More Inclusive for the Poor," Development Policy Review, Overseas Development Institute, vol. 26(4), pages 427-458, 07.
  7. Elbers, Chris & Tomoki Fujii & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2004. "Poverty alleviation through geographic targeting : how much does disaggregation help?," Policy Research Working Paper Series 3419, The World Bank.
  8. Banerjee, Abhijit & Duflo, Esther, 2006. "The Economic Lives of the Poor," CEPR Discussion Papers 5968, C.E.P.R. Discussion Papers.
  9. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 879-924, 08.
  10. World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855, March.
  11. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
  12. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, January.
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Cited by:
  1. Praceus, Sarah & Herstatt, Cornelius, 2012. "Consumer innovation in the poor versus rich world: Some differences and similarities," Working Papers 71, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

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