THE NEXT 4 BILLION

Everyday, when I am on my way to my office from my home (in Islamabad, Pakistan) I look at these huge new buildings branded with the leading multi-nationals and banks from all over the world, thinking why are they investing in my country with per capita income of 1,256 dollars only. I know there are serious energy issues complemented with security concerns still these corporations are investing in my country. Why?

Report – “The next 4 billion”, has brought me the answer. Very truly, countries like Pakistan are very attractive untapped markets. These countries are on the development path with a bulging middle class – better educated and more aware. This huge population has needs for all modern products, so there is a great opportunity for the providers to invest and reap profits. This ever-increasing urban population has better power to purchase; therefore, every business has a chance for first-mover advantage in such economies.

These multinational corporations and banks are providing customized products and solutions specific to the needs of these emerging economies. KFC, McDonalds and PizzaHut are labeling their food as “Halal” to counter the Muslim factor in Pakistan and they are publicizing their “Vegetarian” range in India to cater to the food preferences of Hindus and Sikhs. Almost every international bank in Pakistan has a diversified operation of “Islamic Banking” running parallel.

Very rightly understanding the rule of the game, these organizations are found leading every social development project in these countries. I can see presence of corporations like Unilever, Procter & Gamble, Pepsi, Shell, Standard Chartered Bank and many more in every area of social development in Pakistan. Most of these organizations have developed clearly defined units working for social development in the country. Quoting one such example is Unilever Foundation –

“The Unilever Foundation is dedicated to improving quality of life through the provision of hygiene, sanitation, access to clean drinking water, basic nutrition and enhancing self-esteem.” (http://www.unilever.pk/aboutus/unileverfoundation/aboutunileverfoundation/index.aspx)

These infrastructural and financial investments; modifications and diversifications of the products and solutions to match consumer preferences; and involvement in social development in the developing countries by leading multinational corporations of the world are clearly indicating towards the findings of the report – “The next 4 billion”, which very truly states that “Four-billion low-income consumers, a majority of the world’s population constitute the base of the economic pyramid.”

Reference: The next 4 billion – A report by World Resources Institute                (http://www.wri.org/publication/the-next-4-billion)