Writing on The Business Solution To Poverty by Paul Polak and Mal Warwick - Book Report/Review Example

In the book a phrase that can be observed repeated at many instances is that the global business established by only independent entrepreneurs and already present multinational corporations can succeed in serving the underprivileged as they are the only ones that can attract huge amount of capital to serve their needs. According to Polak and Warwick only if each of the business succeeds in hitting the mark of at least 10 million customer base, gaining revenues of at least $10 billion per year, succeeding in attracting the investors from all over the world along with the reduction of their impact on environment can be effective and will be able to make a difference.

And all this should be made a part of their ten year goal. Polak and Warwick term the approach used to erode poverty as zero-based design. The zero based design is a design that incepts from a very primary level noted in the book as “a position of assumed ignorance”. They think that in order to end poverty first one must think of ways to adapt the already present product designs to local conditions. According to them it is necessary for an individual to first understand the needs of the people and see what the poor people themselves think will be a sustainable solution to end poverty.

Zero based design is based on the concept of marketing products and services to people living on $2 per day. These eight principles are: an in depth understanding of the customers’ needs and desires; transforming local economies by developing completely new markets; crafting for scale as a main focus of the enterprise; putting into effect “ ruthless affordability” devices and “extremely efficient” business processes; crafting for a profit margin that stimulates private capital and market forces; crafting for entirely decentralized last mile distribution networks that make use of local