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Option of the bottom part of the pyramid

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Option of the bottom part of the pyramid

  1. 1. OPTION OF THE BOTTOM PART OF THE PYRAMID JHEY J BERNAS MBA 102-REPORT 2 DR. E. DETOYA
  2. 2. Who are they? In economics, they are the largest, but poorest socio-economic group.  In global terms, they are the 4 billion people or 60% of world’s population who live on less than US$2.50 per day. The Forgotten Man
  3. 3. POVERTY It is a human condition of having insufficient resources or income. In most extreme form, poverty is a lack of human needs, such as adequate and nutritious food, clothing, housing, clean water and health services.
  4. 4. Facts how poor are those in the bottom of the pyramid. • 1.4 billion people in developing countries live on $1 a day or less. • 3 billion people live on under $2 a day. • 870 million people do not have enough to eat — more than the populations of USA and the European Union combined. • 98% of the world's undernourished people live in developing countries. • Two-thirds of the world's hungry live in just 7 countries: Bangladesh, China, the Democratic Republic of the Congo, Ethiopia, India, Indonesia and Pakistan.
  5. 5. Poverty facts in the world. • Where is hunger the worst? – Asia and the Pacific: 578 million – Sub-Saharan Africa: 239 million – Latin America and the Caribbean: 53 million • Every five seconds, a child dies from hunger-related diseases. 22,000 children die each day due to conditions of poverty. • 35 million people are living with HIV/AIDS • 1.7 billion people lack access to clean water. • 2.3 billion people suffer from water-borne diseases each year.
  6. 6. What is the international mobilization? Rich countries and United Nations have extensive antipoverty programs, primarily in the form of social security and welfare systems.
  7. 7. There are three compelling reasons why business should get involved in alleviating the shameful scourge of widening poverty. • Reputational capital • Sustainability premium • Social investment
  8. 8. Why there is still massive poverty in spite of the effort of international agencies? neocolonialism unfair trade practice dependency
  9. 9. HOW???
  10. 10. OPTION OF THE BOTTOM PART OF THE PYRAMID OR (OPTION OF THE POOR) • Ending the method of “fish” giving and improve the “fishing skills training” business. • A by-product of Corporate Social Responsibility, from philanthropy to direct social engagement to community partnership. • It is a participatory methods in implementation of poverty-reduction and may work as a pro-poor principle approach which can encourage the poor sector to TAKE INITITATIVE ACTIONS rather than receiving programs.
  11. 11. Can we help the empowerment of the poor?
  12. 12. What is the preferential option for the poor? In general, the preferential option for the poor consists of such characteristics as personal and corporate option, universality, it being “beyond form” or publicity gimmick, and as witness to human dignity (Maximiano, 2003).
  13. 13. Characteristics of preferential option for the poor?
  14. 14. Characteristics of preferential option for the poor?
  15. 15. When is the option for the BOP an opportunity for business? The bottom of the pyramid represents a humongous opportunity for "high Tech” businesses such as: • cellular phones • financial services • low-end computers Added to these are massive opportunity for businesses serving basic needs, such as: • food • housing • personal care The only condition is this: Business stops thinking of the poor as burden and starts Recognizing them as value (conscious consumers). From here a whole new world of opportunities can open up for big profit.
  16. 16. Other ways to strategize in favor of the BOP
  17. 17. Conclusion Be educated!!! Value life and nature!!! Participate in CSR activities to alleviate poverty!!!

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