Reading Development

Random readings on society, politics and change – Jorge Carrillo

The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise

Aneel Karnani – The movement emphasizing free markets to reduce poverty has found strong expression in the ‘bottom of the pyramid’ approach in recent years. It views the poor as “resilient and creative entrepreneurs and value-conscious consumers”. This romanticized view of the poor harms the poor in two ways. First, it results in too little emphasis on legal, regulatory and social mechanisms to protect the poor who are vulnerable consumers. Second, it overemphasizes microcredit and underemphasizes fostering modern enterprises that would provide employment opportunities for the poor. More importantly, it grossly underemphasizes the critical role and responsibility of the state in poverty reduction.

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This entry was posted on Monday, 5 November 2012 by in Poverty and inequality and tagged .
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