Capitalism at the Crossroads

Cody Durant

Managerial Economics

Book Review

11/22/11

Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World’s Most Difficult Problems. Stuart Hart. New Jersey: Pearson education, 2005. 288.

In reading Hart’s Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World’s Most Difficult Problems I found myself immersed in the real world problems of third world countries and am trying still to identify ways in which organizations can help these communities while being profitable businesses. The underlying theme of this book is the goal to develop sustainable businesses and sustainable economies; the author is trying to identify the means in which to accomplish the goal. The main focus of the book is to look at and work with the bottom sector of a pyramid economic structure, where the super rich are at the top pinnacle, a middle class exist but does not comprise the majority and the bottom is made up of the estimated 4 billion who live in poverty or near poverty conditions. Hart believes that in order for economies to turn themselves around, it has to be by developing sustainable businesses in this Bottom of the Pyramid (BoP). The author claims that by allowing impoverished people to bring themselves up and provide for their communities, we will allow them to bring in more income for themselves and communities thus stimulating their economy.

Hart points out in the beginning of the book how many of these multinational companies are focusing or are going to focus too much of their attention on "greening" and if they do not, than they will strive to just comply with standards rather than exceed them. This is good, that the company will do so, but by not identifying the true problem in their business model and structure they are just placing a Band-Aid on an open wound.

In the second part of the book he identifies how it necessary it is for us to take "The Great Leap Downward." This idea supports...