Mirage at the Bottom of the Pyramid
Poor people – at the bottom of the pyramid (BOP) – represent a very attractive market opportunity. The ‘BOP proposition’ argues that selling to the poor can simultaneously be profitable and help eradicate poverty. This is at best a harmless illusion and potentially a dangerous delusion. This paper shows that the BOP argument is riddled with fallacies, and proposes an alternative perspective on how the private sector can help alleviate poverty. Rather than focusing on the poor as consumers, we need to view the poor as producers. The only way to alleviate poverty is to raise the real income of the poor.
|Date of creation:||01 Aug 2006|
|Date of revision:|
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- Martin Ravallion, 2004.
"The Debate on Globalization, Poverty and Inequality: why Measurement Matters,"
QA - Rivista dell'Associazione Rossi-Doria,
Associazione Rossi Doria, issue 1, March.
- Ravallion, Martin, 2003. "The debate on globalization, poverty, and inequality : why measurement matters," Policy Research Working Paper Series 3038, The World Bank.
- repec:pid:journl:v:45:y:2006:i:2:p:241-259 is not listed on IDEAS
- Zeller, Manfred & Meyer, Richard L., 2002. "The triangle of microfinance," Food policy statements 40, International Food Policy Research Institute (IFPRI).
- Morduch, Jonathan, 2000.
"The Microfinance Schism,"
Elsevier, vol. 28(4), pages 617-629, April.
- Khawari, Aliya, 2004. "Microfinance: Does it hold its promises? A survey of recent literature," HWWA Discussion Papers 276, Hamburg Institute of International Economics (HWWA).
- Sharma, Manohar, 2000. "Microfinance," MP05 briefs 0, International Food Policy Research Institute (IFPRI).
- Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 351-397.
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