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| Concept |
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Healthcare access at base of the economic pyramid has been a grave concern for the government and the public. The need is great and the challenges many. The policy makers alone can not do much beyond their capabilities. The population at the base of the pyramid might be sorry image but they also present a vast market with untapped buying potential. Therefore, the way forward needs innovative business modules and partnerships.
ViaMedia Health Colloquium’s initiative, an international symposium on ‘Access @ Base of Pyramid’ aims to define the base of the pyramid in India, address the various problems faced by it, identify the roadblocks in serving them and urge the public and private sector players to experiment with innovative business modules which create a win – win situation for both the served and the servers. |
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| The Base of the Pyramid |
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In the global economy, the entire world population can be described in the model of a pyramid. The bottom of this pyramid is the largest, but poorest socio-economic group. In world economy a significant percentage of the total population lives on less than $2 a day.
The BoP is a stark reality. In the Indian context various studies and surveys have quoted different figures for people comprising this stratum. As assessed from data available of most studies, assuming that 200 plus million Indians constitute the bottom of the Indian pyramid would be presenting a rosy picture. This population can be divided into two groups: with annual earning of less than 75,000 INR and annual earning between 75,000 and 1,50,000 INR. But this big a number of Indians who are at the absolute bottom of the economic ladder can not be ignored as because of their number this stratum has significant socio – economic power. Catering to their needs and aspirations is not just a social necessity but also a business opportunity. Tapping their vast combined buying power in an effective manner will not only help reduce poverty but also yield profit.
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| Social Determinants |
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Social determinants are the economic and social conditions in which people live. This term is used as a shorthand to encompass the social, economic, cultural and environmental factors which determine a person’s lifestyle, especially health. The most important determinants are those that produce stratification within a society such as the distribution of income, discrimination and political and governance structures that reinforce rather than reduce inequalities in economic power. These structural mechanisms that affect the social positions of individuals constitute the root cause of inequities in living conditions. Identifying and working around the social determinants of the downtrodden is essential to lessen the chasm between the inequality of living conditions and thus, give a facelift to the population at the base of the economic pyramid. |
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Sir Michael Marmot, Director at UCL Institute of Health Equity and chair holder of European review on the Social Determinants of Health and the Health Divide, would be giving a keynote address in ‘Access @ BoP’ symposium on 28th February 2012.
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| Tapping BoP Market |
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The government realizes the need of serving the bottom of the pyramid and the corporate sector has accepted that the strata in question is a huge market full of little explored opportunities. Many companies have made a difference by experimenting with the BoP and deriving promising results. A lot of public – private partnerships have also grown from the need of serving the BoP market profitably.
But we still have a long way to go before we can fully utilize the potential of the BoP market. Corporate sector has forayed into it but its steps are still tentative. Non competitive Private – Private Partnerships (the new PPP) can also be explored to derive better results for the consumer and the provider.
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