The Bottom of the Pyramid Essay Example | Topics and Well Written Essays - 1750 words

The Bottom of the Pyramid - Essay Example Prahalad together with Hart have put forward an opinion that the largest part of the economic market, the fourth and the often forgotten tier has long been hidden in the depths of the marketplace. This tier has never been acknowledged as potential generators of wealth and as a source of innovation by research and development entities (2002). However, this often forgotten, bottom of the social hierarchy, fourth sector has its own set of treasures (Bendell 2005, Viscio and Pasternack 1996). The poor have within them the basic cultural knowledge for innovation and their knowledge of environmental sustainability is quite intimate (Pralahad and Hart 2002). Hence a more full-fledged engagement of this sector within the economy both as producers and consumers will result to a responsible society, marketing strategies that are culturally perceptive and overall will yield a healthy economy. Through these yields the fourth sector might even realize their importance as a generator of wealth, wh ich will naturally lead to their self-determination and empowerment. By harnessing these yields, the fourth tier can very much realize successes similar to those of India and China, opines Prahalad and Hart. However, here it can be argued that if cultural knowledge is valued as intellect, then the fourth sector holds key only for a more integrated world economy with greater participation and products and services that are innovative and ecologically safe, economies that can avoid the mistakes generally made by the developed countries. This argument that the fourth sector holds the key to economic development and social transformation has been countered on several levels, especially by Rost, Ydren and Gustaffen (2006). Most of the points that have been illuminated in these counter arguments have been matters of definition. Moreover the trio, assert that the poor may simply be unwilling or lack the resources to accomplish the transformational business model, put forward by Dr.