I agree fully that benefits must reach the very poor, whose greatest
need is often livelihoods. And you are right that globalization--on the
export platfrom model--has so far contributed little to such people. But
I do believe that when companies target poor communities as customers,
something different happens. Because to succeed, they need to build the
capacity to consume in their customers; and to reach those customers,
they may need to employ lots of local entrepreneurs, creating jobs; and
given how price-sensitive low income customers are, the companies will
have to have a compelling value proposition, and price performance
ratio, or their customers simply won't buy. In Indian terms, it is the
business model of Datamation, of n-Logue, of Drishtee, of
Reliance--rather than the out-sourcing or export manufacturing
models--than can have impact on poverty.

Allen L. Hammond
Vice President for Innovation & Special Projects
World Resources Institute
10 G Street NE
Washington, DC 20002  USA
V (202) 729-7777 
F (202) 729-7775
[EMAIL PROTECTED]
www.wri.org
www.digitaldividend.org


On Monday, November 8, 2004, Chetan Sharma wrote:

> Historical evidence suggests that technological developments of all
> kinds can make improvements in the process, time management, convenience
> for the consumer. However, to the best of my knowledge, no technological
> innovation has demonstrated "enhanced" employability of the people. I do
> not want to start my postings on a negative note; but if we talk of the
> poor then we must talk about the poorest of the poor who probably do not
> have the education, nor tools nor technologies for eking out livelihods
> for themselves.

..snip...

> If we do not have jobs of any nature--if we do not even have stable
> livelihoods--then what has been the worth of Globalization and
> technological advancement?
> 
> It was said that when economies transitioned from agrarian economies to
> manufacturing and then to services, that huge opportunities would get
> created for the poor across the globe.
> 
> Regretably, nothing of this sort has happened, at least in India where
> it ought to have happened. So should we not hesitate to dig even deeper
> into the African and Latin American malaise?

..snip...



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