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The roles of the private and public sectors in poverty reduction
Authors:Aneel Karnani
Institution:Stephen M. Ross School of Business, The University of Michigan, Ann Arbor, MI, USA
Abstract:There are two major actors involved in tackling the challenge of poverty: private businesses and government. Unfortunately, both actors have tended to view each other through the lens of negative stereotypes, and each actor (or its proponents) dismisses the contributions of the other player and minimises its role. Unusual compared to most past literature, Khare and Varman in their article 'Kafkaesque institutions at the base of the pyramid' in this journal in 2016 reject both the private and the public sectors. By contrast, in this article, I argue for an ideologically eclectic approach, and suggest appropriate roles for both business and government in poverty reduction. The private sector needs to focus on creating employment opportunities for the poor and the government should focus on providing basic public services to the poor.
Keywords:Base-of-the-pyramid  poverty reduction  corporate social responsibility  emerging/transitional economies  social marketing  create jobs  public services
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