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Seeding Growth in the Democratic Republic of the Congo
By 2013, the agricultural sector in the Democratic Republic of the Congo (DRC) had long suffered from war, political instability, and dilapidated infrastructure. A country with 75 million inhabitants and the second lowest GDP per capita in the world in 2011, the DRC's most pressing task was to grow its agriculture sector and cultivate its 80 million hectares of fertile land. This case explores how a developing country could create a comprehensive strategy to implement the necessary institutional, political, and social frameworks needed to support sustainable agricultural developments and rise out of long-term poverty. -
Segmenting the Base of the Pyramid
The bottom of the economic pyramid is a risky place for business, but decent profits can be made there if companies link their financial success with their constituencies' well-being. To do that effectively, you must understand the nuances of people's daily lives, say Rangan and Chu, of Harvard Business School, and Petkoski, of the World Bank. Start by dividing the base of the pyramid into three segments according to people's earnings and related personal needs: (1) Low income: 1.4 billion people, $3 to $5 a day, (2) Subsistence: 1.6 billion people, $1 to $3 a day, and (3) Extreme poverty: 1 billion people, less than $1 a day. Next, consider the roles of various groups in the value-creation relationship: consumers, coproducers, and clients. Specific strategies work best with people in certain roles and at particular income levels. Success requires appreciating the diversity at the base of the pyramid and the importance of scale in undertaking ventures there. Witness Manila Water's success in the Philippines and Hindustan Unilever's in South Asia. Failure to appreciate those elements can foil base-of-the-pyramid ventures, as Microsoft and Procter & Gamble each discovered.