An Integrated Approach to Poverty Alleviation: Roles of the Private Sector, Government and Civil Society

Abstract

In this chapter we offer an integrated framework for poverty alleviation that maps the roles of private sector, government and civil society organizations. For private sector enterprises and social entrepreneurs, strategies to engage the poor go well beyond selling to consumers and include working with the poor as valuable sources of information, as producers and suppliers, as employees and as distributors. We argue that the greatest impact that companies or social enterprises can have in reducing poverty is to create productive jobs for low-income individuals. We also emphasize the important role for local small and medium-sized enterprises (SMEs) to generate employment. Our integrated model also seeks to bring the essential role of government into the conversation on business and poverty alleviation. We outline government’s role in providing public services, infrastructure, regulation and facilitating job creation as essential for market-based approaches to poverty alleviation. Civil society can play an important role as a catalyst and watchdog to ensure that both the private sector and governments live up to societal regulations and expectations. With an understanding of the various roles and approaches of societal actors, social entrepreneurs and their partners can make realistic progress towards the complex tasks of social and environmental innovation while genuinely addressing poverty alleviation and bring us closer to a globally inclusive market system that creates value for all.