hyper-capitalism
Bill Gates refers to it as creative capitalism. C.K. Prahalad calls it BOP Markets (Bottom of the Pyramid).
4 billion people live on less than $2 per day. The thinking is simply that creating products that serve the poorest people (as opposed to ignoring them since the easiest assumption is that they have no purchasing power) would over time elevate them to middle-class, and with that all the benefits that capitalism has to offer. On the whole it seems to be rooted in good intentions: creating value for the poor and giving them equal access to the global economy.
I cant say I’ve spent too much time researching this, but there seems to me one major cause for concern shockingly omitted in all current dscussions: resources.
Where will the global economy find the resources to support an additional 4 billion consumers? Can the earth sustain our consumption habits anymore?
Im not saying we should continue to ignore the under-served, but I think we also need to balance the spending habits of the filthy rich. If the poor is to gain access to the markets, then the rich must be willing to scale back its consumption. But this is unlikely to happen, leading to hyper-capitalism.
Ironically, the current economic crisis may just aid such a scenario. The middle class will spend less, the rich will continue spending to protect their lifestyles, and the markets will turn to the poor to tap the huge potential ($2/day x 4 billion x 365 days; you do the math).
