OP-ED CONTRIBUTOR
By Indra Surya Susantio
This essay attempts to emphasize the importance of the private sector’s involvement through APEC participation in fostering economic development at the Base of the Pyramid (BOP).
In December 2008, the Asian Development Bank reported that poverty in the Asia Pacific region is estimated to be much larger than earlier reported. The region was also reported to be facing major hurdles in meeting its Millennium Development Goals. Following ADB reports, in January 2009, the World Economic Forum , in partnership with The Boston Consulting Group presented a set of new insights and design principles which can help companies tap the economic potential of BOP markets in ways that serve both commercial and societal goals.
In fact, both reports concluded that the task to reduce poverty is far too large for the public sector to handle by itself, and so the role of the private sector in poverty reduction and inclusive growth is therefore critical. They argue that the private sector can play a bigger role in improving the lives of the poor and near poor than it does now, leaving the public sector to focus on those most in need.
While many companies around the world are increasing their engagement in emerging markets, many remain focused on the high-income populations in those countries. The major reason is because the BOP approach needs an innovative concept that channels private entrepreneurship towards inclusive development. Unfortunately, most of the private sector has been familiar with traditional and regular ways of doing business, and therefore faces difficulty in changing their ways of doing business in the BOP market.
I submit this proposal for a private sector-led response with the conviction that innovative marketing approaches will provide solutions to continuous business growth in APEC members.
