02 Sep 2014
Suliman Al-Atiqi, Programme Analyst
Luru-Dashima, a female artisan from the Mosuo community in southwest China, participated in a UNDP/private sector project focusing on improving market access and recognition for traditional ethnic minority handicrafts. Photo: UNDP/China
From C.K. Prahalad’s thought provoking call for eradicating poverty through profits to the newly coined words ‘reverse innovation’, various schools of thought have emerged recently to make a case as to why the private sector could and should do more towards poverty alleviation.
Naturally, that case was incubated in business schools—a case for the business community to do more to eradicate poverty needs to be commercially viable. But we, at UNDP’s global policy center for private sector in development (IICPSD), opened the dialogue further and looked outside of the business schools to tap into the wealth of knowledge developed by poverty experts and learn more about various factors that lead to and perpetuate a life in poverty.
Our efforts culminated in a recent conference about “The Role of the Private Sector in Poverty Reduction and Social Inclusion”, where we disaggregated poverty data to a basic set of tangible disadvantages that sustain and perpetuate socioeconomic exclusion. We identified five overarching barriers to poverty reduction: Early Developmental, Health, Skill, Social, and Decision-making barriers.
The rationale behind this approach is based on the premise that private companies first gather in-depth understanding of the needs and challenges facing their potential consumers before presenting innovative solutions …