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Base of the pyramid video leads to the view that the greatest poverty in the world is educational

  • 1.  Base of the pyramid video leads to the view that the greatest poverty in the world is educational

    Posted 06-27-2007 08:53
    Hi Aarti,

    I was going to say something very similar to David. But your reply
    shows you have the real points in mind.

    And the real point as far as I am concerned is that in a complex world
    we would like our students to have the ability to discriminate the
    upside and the down side of activities...as an aid to choice about
    activities (given the assumption that almost all choices have up and
    down sides). beyond that it would be helpful if they had a sure sense
    of who might see the up side and downsides as up or down and why. And
    with that in mind to make informed judgments about what they think
    should be done and why and with what effects.

    Now if we are able to pass on to our students and even to the managers
    of MNCs this type of approach our world would possibly be a bit better.
    Well at least it would have in my view better managers.

    But in your example of small packet shampoo you should also encourage
    your students to consider where that shampoo comes from (natural oil or
    syynthetic detergent, where it is grown and processed or manufactured,
    and after it is bought how is it used (in an open water system or close
    sewage system for example).

    So they really need to be able to develop an ability to consider effects
    that arise in ''systems''.

    And that systems approach does not apply only to BOP but to any business
    or public policy choice in the face of complexity.

    My comments lead me to suggest we have a very very very long way to go
    in educating managers fit for the future!

    Nigel Roome



    Sharma, Aarti wrote:

    >Hi David,
    >
    >Thanks for your thought provoking response! I am with you on this, as I
    >am also seeking balance in my efforts to educate my students on
    >globalization and MNC investments in emerging markets. Unfortunately,
    >there is not much choice available when it comes to getting access to a
    >"balanced video." From what I have found so far, films either glorify,
    >or totally condemn globalization and MNCs' strategic intentions in
    >emerging markets. I guess those are the hot stories that sell.
    >Currently, I use a video which shows only the "dark" side of
    >globalization.
    >
    >Your suggestion on shampoo experiential exercise sounds pretty
    >interesting! I am sure this experiential exercise will be different if
    >conducted in India, though. Because for most people living in villages
    >in India, shampoo is not a basic necessity, a taken-for-granted
    >commodity, but a luxury item! I say it with experience as I have lived
    >most of my life there. Majority of the people live in villages, and most
    >of them do not buy shampoos. They simply can't afford it. They use raw
    >soap instead (if they can buy soap). And some of the poor people do not
    >even get opportunity to take bath for days. Why? Just because they don't
    >have access to water (leave aside clean water). Or they take bath in
    >muddy and polluted river. They don't use toothpaste. They use ash,
    >instead, to brush their teeth. Why? Because they cannot afford to buy
    >toothpaste.
    >
    >Selling a little pouch of shampoo or a tooth paste for Rs. 5 (10 cents)
    >is certainly a good marketing strategy for those firms. But I want to
    >highlight the fact that as companies sell those products to the poor, in
    >addition to the positive health and hygiene implications, there is also
    >a well being element attached to providing those products. Buying small
    >pouches of shampoo / toothpaste which are more affordable can be a
    >source of immense happiness to those deprived people, who can never
    >possibly buy those products in big fancy bottles or tubes. Strange it
    >may sound, but yes, shampoos and toothpastes can be one of the sources
    >of "happiness" for the poor. And using branded shampoos and toothpastes
    >also has a social status and prestige attached to it.
    >
    >You may be aware that when there are no monsoons in India, lots of
    >Indian farmers commit suicide. It is very tragic and people are dealing
    >with different set of realities there, which could be beyond some
    >people's imagination here. Successful firms like Hindustan Lever Limited
    >(HLL) in India (see London, 2006, for HLL case study) are exemplars of
    >how firms can alleviate miseries, empower local people, and uplift the
    >socio-economic conditions of the rural communities, while simultaneously
    >making huge profits. They bring in jobs, enhance people's skills, give
    >them new hopes and sense of security. So, I am trying to highlight the
    >positive socio-economic implications of MNC business operations in
    >emerging markets, because they need to be duly addressed and positively
    >promoted as well. That's why I seek a BoP video. It is important that
    >students develop a more rounded understanding of and perspective on
    >globalization, including its potentials and challenges. Being better
    >informed, they can then judge and decide on their own which camp they
    >want to belong to. :-)
    >
    >Please do let me know if you have come across a balanced video on
    >globalization and MNC operations in developing countries - I have been
    >searching for one for long. And thanks a lot for your stimulating
    >comments.
    >
    >Regards,
    >Aarti
    >
    >:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
    >Aarti Sharma
    >Department of Management & Organization
    >College of Business Administration
    >University of South Florida
    >4202 E. Fowler Ave., BSN-3524
    >Tampa, FL-33620-5500
    >Tel: 813-974-4354
    >Fax: 813- 974-1734
    >Email: asharma@coba.usf.edu
    >Web: http://www.coba.usf.edu/sharma
    >:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
    >
    >
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    >
    >
    >
    >
    >-----Original Message-----
    >From: Organizations and the Natural Environment Discussion
    >[mailto:ONE-L@AOMLISTS.pace.edu] On Behalf Of David Levy
    >Sent: Tuesday, June 26, 2007 10:02 AM
    >To: ONE-L@AOMLISTS.pace.edu
    >Subject: Re: Base of the pyramid video
    >
    >Aarti,
    >you could try an experiential exercise as well - take in a bunch of
    >single-use shampoo sachets, offer to sell them for 50c to the students,
    >and discuss how this "can uplift society, boost economic growth, cater
    >to the needs of the poor, and in the process contribute to sustainable
    >development."
    >
    >(the shampoo example is from the original Base of the Pyramid book)
    >I know that MNCs can be a positive force in development, bringing
    >investment, technology, employment, and taxation, but these
    >marketing-based strategies leave me very skeptical....]
    >
    >I would also be interested in resources, but only if they have some
    >balance, and express the (widely shared) critique.
    >
    >David
    >
    >
    >


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  • 2.  Base of the pyramid video leads to the view that the greatest poverty in the world is educational

    Posted 06-27-2007 09:41
    Selling to the bottom of the pyramid is certainly appealing for many
    reasons. However, I had a real eye-opener at a recent symposium on this
    topic in NYC. A presenter mentioned that MNCs entering developing
    markets where a local firm(s) is already at play will crowd out the
    local firm (especially if production of the MNC is subsidized in
    developed countries) and lead to business closure and loss of jobs.
    People without jobs will not be able to buy small packet shampoo or
    other essentials for that matter. Thus, there is a real downside to MNCs
    selling to the bottom of the pyramid.


    Dinah Koehler, Sc.D.
    Economics and Decision Sciences Research
    National Center for Environmental Research

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