1. BASE OF THE PYRAMID(BOP) Needs
Is there a single solution?
2. Table of Contents
BOP Markets - A Snapshot
Economic Growth Forecast Fine print
The Stakeholders
Real Life Stories
Government – ‘The Big Brother’ in BOP Markets
Recommended Framework
Examples
3. BOP Markets – A Snapshot
Troubled Reality Today… …And the Questions Posed
• World’s 4 billion poor live on How do I provide for my
less than $2 a day family’s
Safe shelter
• Half of the world’s population
owns less than 1% of the wealth Healthcare services
• More than 50 percent of the 2.6 Education
billion workforce in developing Proper nourishment
economies is employed in the
‘informal sector’ Sanitary living conditions
• Unemployment, especially
of youths, is in the range of 40
percent to 70 percent.
• 1 billion people suffer from
malnourishment
BOP
• 2.7 billion people live without
proper sanitation and clean water
5. Economic Growth Forecast Fine-print
Markets of the Future - APAC, Latin America and Africa
1.8%
W. Europe
7.1%
2.8%
Asia/PAC
North America
5.5%
4.7% Sub Sahara Africa
Latin America
BOP Market Size For Business Opportunities
BOP Market
- Identifying Business
Opportunities
A $5 trillion global consumer - Considering business
market models
- Asia ($3.47 trillion ) - Developing products
- Latin America ($509 billion) - Investing in BOP Markets
- Eastern Europe ($458 billion) For Government
-Africa ($429-billion) - focus on reforms to
allow a larger role for
the private sector
6. The Stakeholders in Development
The Development Ecosystem
Domestic Social
Multilateral Bilateral Private
NGO’s Public Entrepreneur Government
Agencies Agencies Businesses
Bodies s
7. Real Life Stories about creating Economic and Social Value
Driving innovation through technology providing low-
cost solutions
FINO
Reinventing Strategies for the BoP
ITC e-Choupal
Linking business purpose to larger societal
purpose through Corporate Strategy
MyC4
Enabling convergence by empowering
African entrepreneurs and creating a
market place for investors
8. Real Life Stories about creating Economic and Social Value (contd.)
Tapping business opportunities through
technology innovation
Unilever
Identifying business opportunities by
enabling sustainable living
conditions in BOP communities
Jaipur Foot
Demonstrating the feasibility of a
profitable connection between the rich and
the poor – across the world
Aravind Eye Care System
Making healthcare services affordable
through innovation
9. Private Sector - Real Life Stories (contd.)
The New Wave : Corporate Commitment
Corporate Social Responsibility efforts have become an intrinsic part of the corporate
DNA
10. FACT
India spends 2 percent of its GDP
on poverty alleviation
programs, more than any other
Asian country according to the
World Bank. Still, 'India is not
getting the 'bang for its rupee' ...
11. Bottleneck - Government
Governmental Influence -> Business
Challenges
Government’s Out of
date
Role policies
No incentive
Enabler of Lack of for large
private access to
and small
investment informati
on businesses
activity
Corruption
Provider of Lack of
consistent Lack of
critical access to
infrastructure processes
Capital
Partner in No incentive
Lack of e- for
‘public-private’ government
partnerships individual
entrepreneu
rs
Leverage
Investor in social strengths
sectors of private
sector
12. Recommendation – A Collaborative Framework
What is needed? Key Messages
Improve social
health and growth • The Government, public sector and the Private
of BOP communities sector have key roles to play. Through
collaboration and commitment, the needs of the
BOP communities can be met.
•The potential of technology should be harnessed
fully for delivery of innovative, high quality and
Improve economic
low-cost products and services in various sectors
health of BOP
such as rural development, financial services,
communities
education and health care services.
• Policy reforms fostering business climate
BOCA
CARE
JAVA
Raise awareness Provide market
and inspire access for
advocacy marginalised
producers Public
COLLABORATION
and
Policy INNOVATION
private
reforms COMMITTMENT
sector
Promote collaboratio
Build capabilities sustainable and
and ensure n
equitable trading
empowerment relationships
KIVA EBAY
USING TECHNOLOGY TO DELIVER PUBLIC GOODS
13. A Public Sector Example - eGovernment
Increased
Accountability
Reduced Corruption
Empowerment of
citizens and
businesses
Increased efficiency
and effectiveness
What did citizens have to say?
‚There is absolutely NO corruption in
eSEVA‛
‚All transactions are visible and it is easy
for us to pay the bills in a single location‛
‚We are not harassed anymore at the
hands of government employees‛