The pathbreaking book, The Fortune
at the Bottom of the Pyramid, by late CK Prahalad, the renowned management
guru, brought to focus the world's most exciting and the fastest growing market: the
bottom of the pyramid consisting of the world's 4 billion poor who make less than $2 a
day. In Prahalad's own words, this poor representing the so-called Bottom of
the Pyramid or BOP, cannot be just ignored because of their immense buying power
and entrepreneurial capabilities. But, according to him,
multinational corporations (MNCs), "have undermined the efforts of the
poor to build their livelihoods" and done
"greatest harm" by ignoring them altogether.
By putting the blame on MNCs for the misery of the four billion poor, Prahalad
made a case and created a worldwide movement that brought the attention of the
top executives of world's largest corporations to a pressing humanitarian need. He
also had found a mantra to finally grab the private companies' attention to
help eradicate world poverty.
While focusing on this 4 billion poor people, Prahalad highlighted the fact
that by virtue of their numbers, the poor represented a significant market
segment that needs to be unlocked. According to him, the major BOP economies, valued
at $12.5 tn as a whole were more formidable "than the combined GDP of
Japan, Germany, France, the UK, and Italy" -
in other words, the poor were not poor after all! |