Inclusive Capitalism and Bottom of the Pyramid Approaches to Development: The Case of Information and Communication Technologies Fostering 'Inclusion' in Developing Countries

Abstract

With the increasingly salient role of business in development, the bottom of the pyramid (BOP) approach is sparking great interest in multinational corporations, donor agencies, and academic circles. The BOP proposition holds that profit-generating enterprise-based ventures – typically led by multinational corporations – can reduce poverty and improve the standard of living by offering goods and services to the poor or integrating them in the value chain. BOP as a development strategy is predicated on the “inclusion” of the poor into market to enable them to reap the benefits of greater wealth and prosperity. This thesis critically investigates to what extent BOP interventions contribute to the social inclusion of marginalized groups in developing countries like Bangladesh. The thesis analyzes the case of public access information and communication technologies (ICTs) venues such as telecentres. Such venues provide access to ICTs such as Internet that enable people to access, use and share information and knowledge at an unprecedented level, offering great potential for socio-economic development. Overall, the thesis reveals the limitations in the BOP approach in contributing to inclusion, by showing the contradictions between the economic logic of business and the social imperative of inclusion. Through focusing on a broader view of inclusion, the findings highlight the complex relationship between digital inclusion and social inclusion in developing countries. In particular, the thesis problematizes the notion of “inclusive business”, which, by aiming to integrate the poor as consumers and women as entrepreneurs, serves the purpose of extending the reach of business. Thus inclusive business is rather different from a view of inclusion towards meaningfully contributing to one’s social and economic advancement. The thesis also argues that the various dimensions of inclusion are highly contingent on the business strategies and motivations of corporations as well as meso-level organizational formations. The analysis of corporate strategies uncovers how revenue making considerations are driving BOP interventions at the cost of accountability towards their stakeholders. By interrogating some of the issues silent in the discussions on business and development, such as inequality and exclusion, the work provides a counter narrative to the BOP discourse, raising questions about the uncritical repositioning of business as a development agent.