Editorial
Business inclusiveness offers new opportunities
Bridging producers and consumers
People living under the poverty line in the Asia and Pacific region have reduced drastically to about 21% over the last two decades. This has largely been made possible as countries across the region have adopted growth models that have deviated from traditional poverty reduction programmes to that of “inclusive growth†which directly help the poor and vulnerable. It is interesting to note that inclusive business has found a home in Asian economies that integrates low-income producers and consumers in their value chain.
The concept remains largely unexplored in Bangladesh. Yet across the border, the Indian dairy giant Amul which has become a global name has used inclusiveness as the driving force on the road to success. One of the key ingredients that made Amul what it is today is its ability to establish a sustainable supply of raw materials at a competitive price. It effectively brought the suppliers under the umbrella of the company to provide a smooth supply chain that benefits the business enterprise, the milk producers who get a fair price for their product and the end consumer is assured of the best quality at a price that they are willing to pay.
The International Finance Corporation estimates that 4billion people in the world live on less than US$3,000 per annum and spend approximately $5,000billion to pay for basic needs such as food, transportation, housing and health. Only a few companies, mostly in household cosmetics and fast food sectors have started using inclusiveness as a workable model.
There is undoubtedly serious potential for business inclusiveness, particularly in the agricultural sector where many of the largest corporate houses in the country have now become involved. We have witnessed in the RMG sector the benefits of composite factories which produce everything from weaving to churning out the final product. Similarly, institutionalising a value chain that would include farmers, particularly marginal farmers with producers could potentially revolutionise the way we do business, help reduce poverty and increase income levels of the rural populace.
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