I've been reading a book called The Fortune at the Bottom of the Pyramid (Wharton School Publishing, 2004) by C. K. Prahalad, a well known management consultant and overall business thinker. The author's premise is intriguiging: we can eliminate poverty by empowering the poor as consumers who are dedicated savers with deep entrepreneurial instincts and who decidely desire to participate in improving their lives (as opposed to the popular depiction of the poor and sitting around being lazy and waiting for a handout). Prahalad goes beyond the well known concept of the grameen bank and steers us straight into full on capitalism.


Skeptical? Me, too. I have to confess that I had no idea what Prahalad was talking about - it all seemed so counterintuitive. The poor are poor precisely because they have no money. What are they going to buy? Who on earth would actually market to them (other than, say, purveyors of alcohol and pay day loan places)?


Shows you what I know. I managed to squeak through my MBA classes without developing a firm grasp on the finer points of economic theory (I'm more of a decision support girl) so I was relieved to discover the book's case studies detailing the ways that a construction supply company in Mexico, a housewares concern in Brazil, and an eye care practice in India (among others) are using unique methods of community development and financial control to raise the standard of living among poor consumers, as well as provide jobs in the community and a handsome return on investment for business owners.


And, by all accounts, their efforts are working. Their customers are among the poorest people on earth and yet each of these organizations is thriving by recognizing and treating the poor as a market unto themselves and in the process raising the standard of living by providing useful good and services in ways the communities are able to absorb financially.


This is definitely food for thought. Lots of thought. I'm not through with the book so I don't know if Prahalad will address my biggest concern - increasing the consumerist nature of the global population as a whole. I believe in the human right to a basic standard of living and I'd guess I'd like to see another book about how to convince the richest billion or so people decide they don't need as much stuff and using the money for investment is a better idea. I won't hold my breath.


In the meantime, The Fortune at the Bottom of the Pyramid is some great summer reading. May not be the most typical beach book, but it's certainly got me hooked.