1. OPTION OF THE BOTTOM PART
OF THE PYRAMID
JHEY J BERNAS
MBA 102-REPORT 2
DR. E. DETOYA
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. 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. 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. 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. 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. 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. Why there is still massive poverty in spite
of the effort of international agencies?
neocolonialism
unfair trade practice
dependency
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.
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).
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.
