Saturday, January 31, 2015

Sharing ..Emerging Markets and equality


The debate of growth rates in Emerging markets has always been an interesting one .On one hand these markets have registered great growth rates…. however  reports suggest that this change has happened  at the cost  of a lot of social and economic  inequality .So how do we bring in equilibrium?. In a thoughtful  HBR Blog  Prof Vijay Govindarajan and Ravi Ramamurti explain  3 ways thru which businesses have tried to bring in equality in EM.

Three 3 ideas that are mentioned are:

A)Designing products and services customized for EM
Example of a mobile banking product m-PESA by Vodafone and how it was used in Kenya

B)Second creating employment and access opportunities
Example of Aravind hospital in India  where they enlisted the poor to help the poor. Case of more than 2/3rd of their staff being girls from nearby villages who were trained to help perform he cost effective high quality  cataract surgeries

Creating an ecosystem for education which can be a great enabler
C)Kroton in Brazil- It ensures that quality education reaches the underprivileged  thru an online and cost effective model .These graduates in turn were able to see their income grow “by a higher multiple than students in any OECD country”

PS-I have mentioned the article summary here …Original article can be found at


https://hbr.org/2015/01/3-ways-businesses-are-addressing-inequality-in-emerging-markets

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