I just finished reading Freakonomics, the NY Times Bestseller written by “rogue economist” Steven Levitt and journalist Stephen J. Dubner. It’s about using economic thinking and data analysis to answer practical questions and challenge conventional wisdom. Truly, there is nothing I love more than folks who consciously and skillfully upend easy assumptions. Except perhaps, those who find ways to prove what works using hard data. In the words of the recently-liberated Paris Hilton, “that’s hot.”

As a result, I suppose that it’s not surprising that Freakonomics has inspired me to tackle two of the most difficult questions on my list of twenty:

1. How do you define success at the BoP?
2. How do you quantify it?

Well, fortunately for me, WRI and the IFC have gone a long away toward answering question #2 by publishing the report, “The Next Four Billion.” We now have a very good idea of just how large these markets are. As we all know, assessing the size of the market is a key element of business planning and finance solicitation. We also know that the sizeable profit that accompanies sizeable markets is a great motivator for business development.

However, there is no consensus about how to define and quantify the social benefits derived from building BoP businesses. For example, does success result when the market shrinks, as previously unmet needs are met, or when it expands, indicating that more people are soliciting more services? Moreover, do products consumed and services rendered enhance their beneficiaries’ quality of life, yield a higher GDP per capita, reduce disease prevalence, or create some other desirable socioeconomic benefit? If so, how do we know?

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REMINDER: This event will be held on Wednesday. Please RSVP if possible, and feel free to bring friends/colleagues.

Also, it's worth noting that early registration for September's BOP conference, "Business With 4 Billion: Creating Mutual Value at the Base of the Pyramid," will close on Friday. More info at the BOP 2007 web site.

While interest and debate about the base of the pyramid (BoP) as a poverty alleviation perspective is growing, most of the current research has focused on market entry strategies for organizations interested in exploring these markets. Indeed, a deep exploration of the unique poverty alleviation implications of a BoP perspective has lagged. With organizations from the development, non-profit, and private sectors increasingly incorporating BoP approaches in their strategies, this gap in our knowledge is increasingly untenable.

In light of this gap, please join us on Wednesday, June 27 for a presentation by Dr. Ted London of the William Davidson Institute and the University of Michigan. Dr. London’s forthcoming paper, "A Base-of-the-Pyramid Perspective on Poverty Alleviation," reviews the existing literature on the BoP and puts forth a framework and set of principles that distinguishes the BoP perspective from other poverty alleviation approaches. These principles also provide insight on when a BoP perspective is most effective and how it can complement other poverty reduction efforts.

Kristi Ragan, DAI's Strategic Advisor to USAID Global Development Alliances and an adjunct professor at Georgetown University, will offer comments following the presentation. Robert Katz of the World Resources Institute’s Markets and Enterprise Program will moderate the panel session.

What: A Base-of-the-Pyramid Perspective on Poverty Alleviation featuring Ted London, Kristi Ragan, and Robert Katz
When: Wednesday, June 27 from 3:00 pm to 4:30 pm
Where: World Resources Institute
10 G. Street NE
8th Floor
Washington DC 20002
Metro: Red Line
RSVP: Robert Katz: rkatz (at) wri [dot] org

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