NextBillion.net - Development Through Enterprise - Tayo Akinyemi's BOP 20 Questions - Comments

WRI

Tayo Akinyemi — Tue, 26 Jun 2007 20:44:07 -0400

Hello Abayomi,

I do not run a business. I am a guest writer for the Development through Enterprise program of the World Resources Institute.

Please feel free to review the 'About' section of the site to read more about DTE.

I hope this helps.

interested

Abayomi oludare moses — Tue, 26 Jun 2007 03:23:24 -0400

Hello Tayo, How are you today i believe you are a Nigerian Lady from Yoruba region likewise myself.Plz i am interested in your business but i dont know mush about it kindly advise me how it work. I will we very glad if i can know the benefit of the business. Your urgent response will be highly appreciated. Thanks, Best Regards GOD bless America.

Right on, James! Thanks for

Tayo Akinyemi — Mon, 09 Apr 2007 22:30:31 -0400

Right on, James! Thanks for highlighting a key consideration----the imbalance of power/power dynamic that exists between the TOP and the BoP. It has been suggested that, in order for inclusive capitalism to work, MNCs have to look beyond profit toward the "greater good." This may suggest a tranfer/loss or loss of power from the TOP.

But then again, perhaps BoP, particularly with regard to indigenous BoP businesses, is less about power/resource redistribution and more about power/resource creation. Just a thought.

Hi Lance, Great comments.

Tayo Akinyemi — Mon, 09 Apr 2007 17:29:31 -0400

Hi Lance,

Great comments. Truth be told, I presented the question as a dichotomy in order to frame the debate. From what I've read, critics of BoP sometimes assert that poverty alleviation strategies should focs on BoP production, rather than consumption. But as you've rather cogently explained, the two are by no means mutually exclusive, and may in fact, have a causative (or at least correlational) relationship.

Keep the commentary coming!

Response to Tayo

Rob Katz — Mon, 09 Apr 2007 07:53:17 -0400

This comment posted by James Dailey.

Indeed. The #1 question is How do you define success for BoP strategies? is the critical one. I like the lens on the poor as proposed in The Next 4 Billion - "...market based approach starts from the recognition that being poor does not eliminate commerce and market processes: virtually all poor households trade cash or labor to meet a significant part of their basic needs.(pg 20)"

This is important because it implicitly recognizes that each person is an individual worthy of economic trade. The problem, as I see it, is the power disparity in trades that involve MNCs and a hypothetic person living in the slums of Mumbai. By capturing that household commerce in global systems that admittedly have all the economic juice (power = concentrations of capital), we are promoting a system designed to make the rich richer.

So let me foment this debate a little myself - how do you create systems that promote a more just society, including a rational allocation of scarce resources, via BoP approaches?

This comment posted by James

Rob Katz — Mon, 09 Apr 2007 07:53:09 -0400

consumption

Lance Durham — Fri, 06 Apr 2007 02:46:47 -0400

you write:
"To produce or to consume? That is the question, now what is the answer? Can the consumption element of BOP really contribute to the reduction of poverty?"

why, it must be 'to consume'... 1)
poverty is really defined as the inability to consume. ...unless consumption increases, there can be no 'reduction in poverty'. ...in fact, one might say that 'reducing poverty' is not the goal - 'increasing consumption' (among those who consume the least) is the goal.

2
consumption always takes place before production. take the case of a farmer. ...a farmer must consume in order to produce. they consume basic things - seed, water, sunlight, land and their own labor/time. they consume knowledge - crop selection, crop rotation, irrigation, etc. they consume tools - plows, animal labor, fertilizer, etc. IF you want to help the farmer to produce, then you must FIRST help them to consume something different from what they already consume. when they consume differently, they will produce differently...hopefully producing more that they can then consume/ sell.

..so, consumption is both 'the goal' AND the precursor needed in order 'to produce'.

Tayo Akinyemi's BOP 20 Questions

Tayo Akinyemi — Thu, 05 Apr 2007 11:57:14 -0400

I have to admit, when I first encountered Karnani’s initial critique of BoP, entitled “Fortune at the Bottom of the Pyramid: A Mirage” I was beside myself with excitement. Although I had read much of NextBillion’s content with interest and hope, I couldn’t help but wonder, “Where is the other side of the debate?” Karnani introduced a dissenting opinion, which is invaluable. However, Karnani’s use of inductive reasoning via case study method, while illustrative, limits the degree to which his assertions are generalizable.

As a result, I’ve decided to dedicate my blogging activities to constructing, facilitating and fomenting (heavy emphasis on the latter), a multi-faceted debate. I truly believe that BOP business development is on to something. But defining that “something” is a continual process to which I intend to contribute. Right now, the “who, what, where, why and how” of BOP thinking is coming into focus, due in no small part to the work of your friendly neighborhood NextBillionaires. What I’d like to explore are alternate forms of those questions: “What for, who for, why so, and how the heck is that possible, really?”

“How will you do that?” you ask. Great question! I knew that you readers were a smart bunch. There are several questions that I’d like to tackle over the course of this blogquest, but I am not foolhardy enough to believe that I have the answers. That’s where you come in. Each week I will pose a question and attempt (note the word ATTEMPT) to answer it. I welcome those of you who have an opinion, an insight, a complaint, or a completely random yet witty comment, to chime in. With no further ado, the questions are as follows. Let’s get ready to rumble.

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