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To a certain extent, we should have expected this for some time. An introduction to economics will teach you about productivity. Clearly, sending a tractor back

To a certain extent, we should have expected this for some time. An introduction to economics will teach you about productivity. Clearly, sending a tractor back 1000 years would do wonders for local productivity. The boost from the marginal US tractor would be orders of magnitude smaller. This is pretty obvious. What isn't obvious is why the developing world grows so slowly in spite of the multitude of available improvements from the first world. The article mentions looking for 20% growth in some countries. Is that really a high number considering people in the US is 40X richer than Eritrea? http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP... Increasing freedom is important here, clearly. Increased ease of communication must be playing a roll. One thing I've never understood is why it seems people don't try to make much money off of the poorest 5B people. If you tap that market, the growth potential is ginormous. This reminds me of an excellent article about design for the world's poor. http://www.nytimes.com/2007/05/29/science/29cheap.html?ex=1184904000&en=3c586de4efc78ca5&ei=5087 http://www.nytimes.com/2007/05/29/science/29cheap.html?ex=11...

euccastro 19y ago
Did you expect it to be obvious? It's a very complex problem and we are badly informed at best. Two excellent presentations on these lines: http://www.okananter.com/wordpress/?p=21 http://www.okananter.com/wordpress/?p=21 http://www.ted.com/talks/view/id/140 http://www.ted.com/talks/view/id/140 As for marketing to the poor, I don't follow your reasoning. It strikes me as obvious that it's easier and a better ROI to make money from those who have some to spare than from those who don't. As currently underdeveloped countries get richer, more people will try and sell to them. Are you talking about positioning now so you'll reap the rewards when these countries get richer? That's not making money on the poor; it's investing money on advertising to them so you can hopefully get it back when they get rich enough to be potential customers. I wonder how many of the people in the position to make such a decision will look that far into the future. They should be looking to maximize shareholder value, and who invests looking for a ROI event 50 years from now? [Edit: Of course I see why serving this market would be motivating, and I'm not saying it can't be profitable.]
ph0rque 19y ago
Regarding the poorest 5B people: google for BOP (bottom of the pyramid). You'll find people already selling things (or at least thinking of selling things) to the poor.

euccastro 19y ago

Did you expect it to be obvious? It's a very complex problem and we are badly informed at best. Two excellent presentations on these lines: http://www.okananter.com/wordpress/?p=21 http://www.okananter.com/wordpress/?p=21 http://www.ted.com/talks/view/id/140 http://www.ted.com/talks/view/id/140 As for marketing to the poor, I don't follow your reasoning. It strikes me as obvious that it's easier and a better ROI to make money from those who have some to spare than from those who don't. As currently underdeveloped countries get richer, more people will try and sell to them. Are you talking about positioning now so you'll reap the rewards when these countries get richer? That's not making money on the poor; it's investing money on advertising to them so you can hopefully get it back when they get rich enough to be potential customers. I wonder how many of the people in the position to make such a decision will look that far into the future. They should be looking to maximize shareholder value, and who invests looking for a ROI event 50 years from now? [Edit: Of course I see why serving this market would be motivating, and I'm not saying it can't be profitable.]

ph0rque 19y ago

Regarding the poorest 5B people: google for BOP (bottom of the pyramid). You'll find people already selling things (or at least thinking of selling things) to the poor.