The article Did Business Development Reduce Poverty in China, written by Ram Kesavan, Oswald A.J. Mascarenhas, Wei Ning, and Michael D. Bernacchi explores the ways in which China developed from a poverty-ridden country to a modern business-focused society with a thriving economy.
The article is structured as a case study, examining China after the rein of Mao and the ways in which Deng Xiaoping led China into a modern market economy. According to the data in the article, China’s extreme povery rate fell from 60 percent to 49 percent from 1981 until 2004 (Kesavan 25). Growing an economy from extreme poverty can be done primarily through one of two methods. As Kesavan et al. explain, one way is through macro social political entrepreneurship which assists in diminishing social injustice and inequities which is a major cause of endemic global poverty (21). Another way is through Micro social entrepreneurship which “leads to catalytic innovations that alleviate poverty” (Kesavan 21). Both methods express that while entrepreneurship is essential, it is also necessary to address social issues and human rights in order to reduce poverty in any country. As such, political and social activists are just as important as business leaders and business development in propelling a country from extreme poverty to a developed nation.
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The business world also greatly benefits from the eradication of poverty in developing nations. As individuals are provided the opportunity to better their financial situation and exit the extreme poverty threshold, new business opportunities arise as more jobs become available and more money enters the marketplace. Many wealthy individuals from developed nations, such as Warren Buffet are cognizing the opportunity that exists in developing nations, and have begun investing money in poverty reduction efforts and education opportunities for children in these nations, who will become the business leaders of the future.
- Kesavan, Ram, et al. “Did Business Development Reduce Poverty in China?” International Management Review, 10.1 (2014) 12-30. Print
