Resources

Karnani, Aneel / 2007. The mirage of marketing to the bottom of the pyramid: How the private sector can help alleviate poverty.
California Management Review, 49 (4): 90-111.

The BOP proposition is indeed too good to be true. It is seductively appealing, but it is riddled with fallacies. There is little glory or fortune at the bottom of the pyramid—unfortunately, it is (almost) all a mirage. This article argues that the BOP proposition is both logically flawed and inconsistent with the evidence. This analysis has serious implications for both company strategies and public policy. This article proposes an alternative perspective on how the private sector can help alleviate poverty. Rather than viewing the poor primarily as consumers, an alternative approach is to focus on the poor as producers and to emphasize buying from the poor. The only way to alleviate poverty is to raise the real income of the poor.


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Appeared in

Sector: Enterprise Microcredit Health Providers, Nutrition
Region: South America South Asia