Why are we needed?
Developing nations are characterised by sparse economic activity. The consequence is often strained family incomes and impoverished communities. In many instances:
- One or both parents emigrate to find work elsewhere.
- Children are left with little access to education & healthcare.
- Youth unemployment is high.
- Communities fray as there is so little financial and social capital.
- Small and medium sized business activity is weak.
Conventionally charitable entities have responded with aid-based development initiatives or large scale government programmes. These bring important short-term relief but often not long-term economic & social change.
Our contention is that income and economic activity remains low in frontier nations because enterprise has not been able to flourish and entrepreneurs have not had the support and encouragement needed to establish and grow their businesses. Many such entrepreneurs have then not considered the importance of their values and corporate responsibilities in maximising their local performance and social impact.
Also, traditional capital markets have failed to serve these nations as investors allocate investment to projects that meet their requirements for risk-adjusted returns. Companies in developing countries rarely meet these requirements.
Until the problem of market failure is addressed, developing nations will continue to be trapped in poverty.