NextBillion.net - Development Through Enterprise - "Business and Poverty: Opening Markets to the Poor" - An Analysis of the Report - Comments

In regards to the first

Joey S — Fri, 04 Jul 2008 08:48:05 -0400

In regards to the first finding/suggestion the report makes, it seems hugely optimistic, naïve even, to imagine the day the business sector voluntarily takes steps to bridge the gap between profit driven business incentives and the reality of four billion people that need access to banking and other financial services. It is difficult to not question the integrity and intent of enormously advertised corporate social responsibility endeavors that perfectly fit the criteria of en vogue development trends. Further, it is hard to ignore the fact that when firms from the business sector do venture into the development playground it is always on the premise of achieving a “double bottom-line.” Not too hard to guess which objective of the two assumes most priority—profit or social responsibility?

A fair and thorough recap,

Kate — Tue, 24 Jun 2008 22:17:23 -0400

A fair and thorough recap, Mr. Bornstein! I'm so proud of you for getting your brilliant voice out in the blogosphere. Great work, can't wait to read more. xo ko

The report's finding of

Ben C — Tue, 24 Jun 2008 17:53:40 -0400

The report's finding of "connecting businesses and poverty" seems like a useless normative statement rather than a policy recommendation. What is the incentive for businesses to boost poor people's incomes and provide for more employment opportunities absent an upward pressure on wages or a higher demand for workers? Multilateral organizations like the World Bank and poor country governments should invest in human capital development and work to strengthen the rule of law. An Educated population in a stable business environment is the surest way to attract private sector investment.

I think that the points Mr.

Brendan — Tue, 24 Jun 2008 15:26:30 -0400

I think that the points Mr. Bornstein raises are definitely illuminating. Environments lacking consumers with disposable income will not be able to support homegrown entrepreneurs and vice versa. It seems to be something of a chicken or the egg scenario in many ways. Until these local economies are fostered, it seems that the global trend of the BoP emigrating to developed, foreign nations in order to send home remittances will most likely continue.

"Business and Poverty: Opening Markets to the Poor" - An Analysis of the Report

Joseph Bornstein — Tue, 24 Jun 2008 14:34:05 -0400

A key issue that the BoP development world currently faces is generating a tangible connection between markets, enterprise and the poor. After all, if we are going to alleviate poverty through enterprise, we require effective strategies that enable the BoP to participate in profitable business endeavors as well as markets that serve the BoP's needs sufficiently.

In light of this difficult obstacle, WBI has taken steps to provide insight into how BoP development can be engaged successfully through its release of the special report "Business and Poverty: Opening Markets to the Poor." The report's 18 chapters-each about eight pages long-analyzes various effective strategies, obstacles and prospects for NGOs, non-profit organizations, corporations, banks, MFIs, and local enterprises working to serve those who are most marginalized and impoverished-the BoP.

Though the World Bank report does not provide comprehensive statistical analysis explaining clear steps that can be taken in order to address barriers to serving the BoP, it does offer numerous case studies regarding successful business models. It also offers supplementary analysis, which details how and why each example project was effective, and outlines what will need to be overcome in future years.

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