C.K. Prahalad discussed with IGD the important role the private sector can have in addressing poverty. He argued that the best way to address this problem is to look for commercial opportunities that will improve the lives of the poor and create a profitable business venture at the same time. We cannot improve the lives of the poor, said Prahalad, unless we cross the intellectual barrier from thinking that poverty is an intractable problem to thinking that it is a potential market opportunity. Prahalad then gave some real-life examples of companies who have built their success by marketing to the poor. In closing Prahalad said one of the greatest strengths of the United States is that it has always been a diamond, with a large middle class. If business can help develop the middle class in poor countries, it will have built the social collateral to bring about real change.

“By approaching it with a business perspective, we can eradicate poverty through profit. But most importantly, we can create dignity and choice for the poorest people on earth.”

-Dr. C.K. Prahalad