From 2000 to 2010, Latin America and the Caribbean enjoyed a remarkable wave of sustained economic growth. This growth helped improve the incomes and welfare of millions of people living at the base of the pyramid (BoP) – households that earn less than US$10 a day (in 2005 dollars).
According to the World Bank, nearly 70 million people increased their purchasing power significantly and 50 million Latin Americans escaped poverty over the decade. This sea change dramatically altered their aspirations, priorities, and interactions with their societies.
Yet could the upward mobility on the income ladder experienced by the BoP in the region imply a smaller market size in this segment or decreased demand for high-quality, accessible goods and services?
No. Even as the BoP population’s growth has slowed, the ...more