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

Author

Listed:
  • 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.

Suggested Citation

  • Acosta, Pablo & Kim, Namsuk & Melzer, Illana & Mendoza, Ronald U. & Thelen, Nina, 2011. "Business and human development in the base of the pyramid: Exploring challenges and opportunities with market heat maps," Journal of World Business, Elsevier, vol. 46(1), pages 50-60, January.
  • Handle: RePEc:eee:worbus:v:46:y:2011:i:1:p:50-60
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    References listed on IDEAS

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    1. 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.
    2. Gine, Xavier & Klonner, Stefan, 2005. "Credit constraints as a barrier to technology adoption by the poor : lessons from South Indian small-scale fishery," Policy Research Working Paper Series 3665, The World Bank.
    3. Dean Karlan & Jonathan Zinman, 2010. "Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts," Review of Financial Studies, Society for Financial Studies, vol. 23(1), pages 433-464, January.
    4. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
    5. 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.
    6. 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 Moizeszowicz, 2008. "Remittances and Development: Lessons from Latin America," IDB Publications (Books), Inter-American Development Bank, number 59678 edited by J. Humberto López & Pablo Fajnzylber, February.
    7. Pablo Fajnzylber & J. Humberto López, 2008. "Remittances and Development : Lessons from Latin America," World Bank Publications, The World Bank, number 6911.
    8. 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, July.
    9. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 879-924.
    10. Abhijit V. Banerjee & Esther Duflo, 2007. "The Economic Lives of the Poor," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 141-168, Winter.
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    12. Beck, Thorsten & de la Torre, Augusto, 2006. "The basic analytics of access to financial services," Policy Research Working Paper Series 4026, The World Bank.
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    1. repec:eee:worbus:v:53:y:2018:i:3:p:356-372 is not listed on IDEAS
    2. Smith, Adam & Judge, William & Pezeshkan, Amir & Nair, Anil, 2016. "Institutionalizing entrepreneurial expertise in subsistence economies," Journal of World Business, Elsevier, vol. 51(6), pages 910-922.
    3. 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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