📚The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty
This is one of my more recent reads. The concepts, case studies, and evidence presented in this book brings into sharp focus and gives further credence to assertions that entrepreneurship - particularly the market creating type of innovation remains perhaps the most certain way of development - spurring new ways of tackling entrenched problems in society stagnating growth.
I have found the concept of solving for non-consumption (which the authors describe as ‘’the inability of the would-be consumer to purchase and use (consume) a product and service’’ as a new lens to view the world of market opportunities that abound in today’s emerging economies.
Simultaneously, the book explores notable challenges to lifting countries out of poverty with some perspectives to overcoming barriers such as corruption and the lack of infrastructure.
The authors highlight the role of values and culture play a critical role in the way in which nations organize and solve problems towards progress while noting that good laws, systems, and institutions are all important however, they may not be sufficient to build and sustain businesses.
To expand on this point, alternative understanding and framing to the pervasive problem of corruption and why it persists is offered, i.e a ‘solution’ employed to subvert risks rather than simply put down to a fundamental morality, before suggesting what could be done to enshrine transparency in these business environments.
Finally, an oft understated influence on innovation and development is postulated: The Power of Outsiders - individuals and groups who are not fully immersed in the pool of assumptions and expertise of a particular environment which may lead to cognitive tunnelling being crucial to solving challenges limiting key tasks in any operating environment.
Reflecting on this from the perspective of my work, the influx of solutions and innovations targeted at improving community health via access to drugs in Africa, particularly Nigeria comes to mind. A few have approached this challenge from different perspectives usually leveraging ideas and solutions from other industries; which have ranged from tackling issues related to drug counterfeiting to companies like FIELD via Shelf Life empowering pharmacy business owners via outsourcing key management functions that enable them to offload inventory and credit risks inherent in operating a pharmacy business that limits access, availability, and affordability of essential medicines. Here, the non-consumption of technology and data-enabled decision-making tools to drive processes such as planning, replenishments, and alternative supply chain finance solution is at the core of this solution and encouragement for its transformative potential in shaping the market of enabling access to essential medicines applicable to a majority of the developing world.
The potential for market-creating innovation as described above to change the fortunes of the population (via community health improvements) and economic opportunities for service providers and professionals alike is enormous when you think of it. The path to prosperity is obvious. Innovations to solve common problems often require new or a combination of skills and capabilities, they create jobs, profits and change the culture of entire societies thereby driving economic growth and prosperity.
🗄 🗂 Retro Read & Recommendation
For anyone interested in healthcare regardless of setting will find The Innovator’s Prescription: A Disruptive Solution for Healthcare as a supplementary read which contains proposed ideas and some compelling lessons in economics, business models, strategy, and reforms in a complex industry.
